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We’re excited to announce that the latest information is now available on our new site, the Ginesys One Wiki!. Visit the site for up-to-date resources and insights. We look forward to continuing to support you there!
Accounting Impact for Gift Voucher in Ginesys ERP
- Aparajita Basu Roy
Point to Note
All accounting entries are passed in the books of the brand i.e. Head office for both Head office and POS store transactions. In case of franchisee stores (MS-CO-OM-TS), since it is not owned by the brand, there is no accounting impact for transactions held in that store.
Possible Combinations of Sale of GV and Redemption at store
Combination | Sale of GV from | Redemption at store | |
|---|---|---|---|
| 1 | Brand’s HO | Other than Franchise | |
| 2 | Brand’s HO | Franchise | |
| 3 | Other than Franchise | Other than Franchise | |
| 4 | Other than Franchise | Franchise | |
| 5 | Franchise* | Other than Franchise | |
| 6 | Franchise* | Franchise | |
| 7 | Brand’s HO + Other than Franchise + Franchise | Other than Franchise + Franchise |
*This is an exception in Ginesys ERP where accounting is posted for Franchisee stores.
Possible Combinations for Sale of GV and Expiry
Combination | Sale of GV from | Expiry at | |
|---|---|---|---|
| 1 | Brand’s HO / Other than Franchise / Franchise | End Customer |
Point to Note
(A) - Auto System Entry, (M) - User Manual Entry
Positive numbers - Debit Amount, (Negative Number) - Credit Amount
Combination 1: Sale from HO and redemption at other than franchisee store
Example: Brand sells GV (100 No * Rs.1000 each = Rs.100,000) to the institutional customer at a discounted price of Rs.30,000 and redemption at POS stores (Other than franchise stores)
STAGE OF GV | Debtor a/c | Discount a/c | GV Control Liab a/c | Bank a/c | MOP a/c | POS Sale a/c | Output GST A/c | |
|---|---|---|---|---|---|---|---|---|
| 1 | Creation | -No accounting impact- | ||||||
| 2 | Issue from HO (A) | 30,000 | 70,000 | (100,000) |
| - | - | - |
| 3 | Amount Received* (A) | (30,000) | - |
| 30,000 | - | - | - |
| 4 | Redemption at Store (Other than franchisee stores) (A) | - | - | 100,000 |
| - | (84,746) | (15,254) |
| 5 | Ledger balance | 0.00 | 70,000 | 0.00 | 30,000 | 0.00 | (84,746) | (15,254) |
*If amount is received from the customer then 3rd entry would be passed, else balance will reflect in the Debtor account.
Combination 2: Sale from HO and redemption at franchise store
Example: Brand’s HO decided to sell GV (100 No. *Rs.1000 each = Rs.100,000) to the institutional Customer at a discounted price of Rs.30,000 and redemption at POS stores (Franchise stores)
STAGE OF GV | Debtor a/c | Discount a/c | Franchisee a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c |
Creation | -No accounting impact- | ||||||
Issue from HO (A) | 30,000 | 70,000 | - | (100,000) | - | - | - |
Amount Received* (A) | (30,000) | - | - | - | 30,000 | - | - |
Redemption at Franchise Store (M) | - | - | (100,000) | 100,000 | - | - | - |
Ledger balance | 0.00 | 70,000 | (100,000) | 0.00 | 30,000 | 0.00 | 0.00 |
*If amount is received from the customer then 3rd entry would be passed, else balance will reflect in the Debtor account.
Combination 3: Sale from Store (Other than Franchise Store) and redemption at other than franchise store
Example: Brand’s HO decided to sell GV (40 No. *Rs.1000 each = Rs.40,000) to Stores (Other than franchise stores) and redeemed all at POS store (Other than franchise stores)
STAGE OF GV | Debtor a/c | Discount a/c | Franchise a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c |
Creation | -No accounting impact- | ||||||
Allocation to Store | -No accounting impact- | ||||||
Sale to Customer from store (Other than franchise stores) (A) | - | - | - | (40,000) | 40,000 | - | - |
Redemption at Store (Other than franchise stores) (A) | - | - | - | 40,000 | - | (33,898) | (6,102) |
Ledger balance | 0.00 | 0.00 | 0.00 | 0.00 | 40,000 | (33,898) | (6,102) |
Combination 4: Sale from Store (Other than Franchise Store) and redemption at franchise store
Example: Brand’s HO decided to sell GV (40 No. * Rs.1000 each = Rs.40,000) to Stores (Other than franchise stores) and redeemed all at POS store (Franchise store)
STAGE OF GV | Debtor a/c | Discount a/c | Franchise a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c |
Creation | -No accounting impact- | ||||||
Allocation to Store | -No accounting impact- | ||||||
Sale to Customer from store (Other than franchisee stores) (A) | - | - | - | (40,000) | 40,000 | - | - |
Redemption at Franchise Store (M) | - | - | (40,000) | 40,000 | - | - | - |
Ledger balance | 0.00 | 0.00 | (40,000) | 0.00 | 40,000 | 0.00 | 0.00 |
Combination 5: Sale from Store (Franchise Store) and redemption at other than franchise store
Example: Brand’s HO decided to sell GV (40 No. * Rs.1000 each = Rs.40,000) to Stores (franchise stores) and redeemed all at POS store (other than Franchise store)
STAGE OF GV | Debtor a/c | Discount a/c | Franchise a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c |
Creation | -No accounting impact- | ||||||
Allocation to Franchisee Store | -No accounting impact- | ||||||
Sale to Customer from Franchise store (A) | - | - | 40,000 | (40,000) | - | - | - |
Redemption at other than Franchise Store (A) | - | - | - | 40,000 | - | (33,898) | (6,102) |
Ledger balance | 40,000 | 0.00 | 0.00 | 0.00 | 0.00 | (33,898) | (6,102) |
Combination 6: Sale from Store (Franchise Store) and redemption at Franchise store
Example: Brand’s HO decided to sell GV (40 No. * Rs.1000 each = Rs.40,000) to Stores (Franchise stores) and redeemed all at POS store (Franchise store)
STAGE OF GV | Debtor a/c | Discount a/c | Franchise a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c |
Creation | -No accounting impact- | ||||||
Allocation to Franchisee Store | -No accounting impact- | ||||||
Sale to Customer from Franchisee store (A) | - | - | 40,000 | (40,000) | - | - | - |
Redemption at Franchisee Store (M) | - | - | (40,000) | 40,000 | - | - | - |
Ledger balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Combination 7: Sale from Brand’s HO/Store (Franchise Store)/other than Franchise Store and redemption at Franchise store/other than Franchise store
Example: Brand’s HO decided to sell GV (100 No. * Rs.1000 each = Rs.100,000) to the institutional customer at a discounted price of Rs.30,000; and allocated to POS store (Franchise store) worth (40 No. * Rs.1000 each = Rs.40,000) and other than Franchise store worth (40 No. * Rs.1000 each = Rs.40,000). The store sold all the GV’s and further it was redeemed by end customer at Franchise Store worth Rs. 80,000 and other than Franchise worth Rs.100,000.
STAGE OF GV | Debtor a/c | Discount a/c | Franchise a/c | GV Control Liab a/c | Bank a/c | MOP a/c | POS Sale a/c | Output GST A/c | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Creation | -No accounting impact- | |||||||
| 2 | Issue from HO (A) | 30,000 | 70,000 | - | (100,000) |
| - | - | - |
| 3 | Amount Received* (A) | (30,000) | - | - |
| 30,000 | - | - | - |
| 4 | Sale to Customer from franchisee store (A) |
|
| 40,000 | (40,000) |
|
|
|
|
| 5 | Sale to Customer from store (Other than franchise stores) (A) |
|
|
| (40,000) |
| 40,000 |
|
|
| 6 | Redemption at franchise Store (M) |
|
| (80,000) | 80,000 |
|
|
|
|
| 7 | Redemption at Store (Other than franchisee stores) (A) | - | - |
| 100,000 |
| - | (84,746) | (15,254) |
| 8 | Ledger balance | 0.00 | 70,000 | (40,000) | 0.00 | 30,000 | 40,000 | (84,746) | (15,254) |
*If amount is received from the customer then 3rd entry would be passed, else balance will reflect in the Debtor account.
For Expired Vouchers (In case any GV’s are not redeemed by customers and are expired, the businesses need to knock off the Liability ledger. However, since the amount is already received it needs to be shown as Income in the books. Thus, HO needs to pass a manual entry)
Combination 8: Sale from HO/Franchisee/Other than franchise and expiry at end customer’s end
Example: Brand’s HO / Franchise / Other than Franchise sold the GV’s and GV’s (10 No. * 1000 each) expired say for Rs. 10,000
STAGE OF GV | Debtor a/c | Discount a/c | GV Control Liab a/c | MOP a/c | POS Sale a/c | Output GST A/c | Income From GV A/c |
Sale Entry | -Same as per the combinations mentioned above- |
| |||||
Expired Vouchers (M) | - | - | 10,000 | - | - | (1,525) | (8,475) |
Ledger balance | 0.00 | 0.00 | 10,000 | 0.00 | 0.00 | (1,525) | (8,475) |
For Cancelled Vouchers (HO may cancel gift vouchers having GV status as “New” . Once cancelled, these vouchers are ineligible for further allocation or issuance)
Creation of GV | -No accounting impact- |
Cancellation of GV | -No accounting impact- |
No further entries for Cancelled GV’s | |