Overview

The A2X Shopify Gift Card monthly report provides an accumulated total of all Gift Cards Sold, Issued, Expired or disabled.

These are 4 Gift Card actions that need to be accounted for:

Gift cards sold. A2X tags these as gift card sales.
Gift cards used. A2X accounts for these as sales made via a gift card payment gateway.
Gift cards issued. These are not counted as transactions - they are simply recorded in the gift card report.
Expired or disabled gift cards. Similar to the above, these are non-transactional but recorded in the report for reference.

All of these actions are accounted for in the monthly report generated by A2X. Types 3 and 4 from the list are included in A2X’s report but not in Shopify payouts received by A2X.

What does the Shopify gift card report show?

You can navigate to this report in the reports header in your A2X account.

The Shopify Gift Card Report will run at the end of every month and display an ongoing accumulated total of:

Total Number of Cards - A tally of all Gift Cards that have been sold or issued to customers for the month. It does not count disabled cards.
Total Value - Sum of the value of all unredeemed gift cards as at month end. This is the sum of the Shopify 'balance' column in the Shopify Gift Card report. This excludes disabled card values.
Sold Value - Sum of Gift Cards that have been sold to customers during the month. These are Shopify Gift Cards that customers have purchased. These will come through A2X. This excludes disabled card values.
Issued Value - Sum of gift cards that have been issued by the seller for the month. These are Shopify Gift Cards that sellers may issue to customers e.g. we are sorry for the delay or if a store issued a promotional gift card for customer loyalty. This excludes disabled card values.
Expired Value - Sum of value where expired date is less than the date the report is run. It excludes disabled card values.
Disabled Value - Sellers can manually disable a Gift Card within Shopify. This will show the sum of the value of Gift Cards disabled during the month.

Please note - the values for Total Value, Sold Value, Issued Value (Non-Sold Value) are inclusive of expired Gift Cards.

How to use these reports to ensure your accounts are accurate:

There are two parts to using this report to ensure your Gift Card Liability account is correct.

Accounting for gift cards issued manually

To account for gift cards that have been manually issued to customers (e.g: to compensate for a late shipment), the ‘Shopify Gift Card’ liability account should be increased to reflect the increase in the value of redeemable gift cards.

This can be done via a manual journal entry to credit the ‘Shopify Gift Card’ liability account by the value of manually issued gift cards (shown in the ‘issued’ column of the report) and debit the relevant expense account to show the cost of credits provided to customers.

Adjust for expired gift cards

To account for expired gift cards, the ‘Shopify Gift Card’ liability account should be reduced to reflect the decrease in the value of redeemable gift cards. This can also be done via a manual journal entry. In this case, you would debit the ‘Shopify Gift Card’ liability account by the value of expired gift cards and credit an income account to reflect the funds originally received for the sale of the gift card.