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How Vouchers Show Up In Reports

You'll notice in your Financial Summary Report that Voucher Sales are listed separately from Sales. This is because of the differences in how Vouchers and Sales are treated under accounting standards.

The difference between a voucher and a sale can be tricky to understand, so we've broken it down for you. This article will cover:

1. Difference between a voucher and a sale

2. Changes in reports when issuing new vouchers

3. Changes in reports when redeeming a voucher


1. Difference between a voucher and a sale

Regular sales: Your business delivers a service and prepares an invoice, and your client pays for it after the service is rendered. These types of sales are reflected in your Finance Summary report.

With vouchers, the opposite occurs. Your client pays for a voucher upfront for a service that has not yet been rendered. This now creates an obligation for you as a business to deliver this service at a later, often unspecified date.

In accounting terms, we refer to this as a liability or a credit that you now owe your client. As long as these liabilities are outstanding, they would be reflected as debt, and not as sales. When a voucher is redeemed, the service obligation of the voucher is cleared, and the liability can now be considered revenue. We'll show you how each of these steps are reflected in Shedul's reports.


 2. Changes in reports when issuing new vouchers

Suppose you sell a voucher worth $100 to a customer. The following happens to your financial statements:

  • You have collected $100 in cash or card. This is reflected under the Payments log and other payments-associated reports
  • You have also given your customer $100 worth of services, along with an obligation to fulfill this service later. The Vouchers outstanding balance report keeps track of this balance
  • Since you cannot yet recognize revenue until the service is rendered, there is no effect on any sales reports

You will also be able to track newly issued vouchers in the following places:

1. In the Voucher sales report, you'll see a summary of all vouchers you have issued during this period

2. In your Finances summary report, you'll see the voucher sale reflected in both the Vouchers section and the Payments section. For example, in this case, $50 were generated in sales and $100 worth of vouchers were sold, accounting for $150 worth of payments. Sales are thus not affected by issued vouchers.


 3. Changes in reports when redeeming a voucher

You can only redeem a voucher when you raise an invoice. For example, if you generate a sale worth $100, you may redeem the voucher as a payment method. In this case:

  • Your voucher sales during this period remains unchanged
  • Because you generated an invoice worth $100, your sales increased by $100
  • Because you did not collect any new cash or credit, your payments remain unchanged

1. In the Voucher sales report, you'll see a summary of all vouchers you have issued during this period

2. In your Finances summary report, you'll see the voucher redemption reflected in both the Sales and Vouchers section. Using the same example, $100 worth of voucher redemption contributed to $100 worth of sales, but the payments have not been changed. 

TIP: You can track all issues you have issued or redeemed, as well as track their expiration status, on the Sales > Vouchers tab. This is also a great place to track voucher codes for redemption.


For more voucher related articles, see:

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