【Finance】FMS Financial Management System: Gift Card Management

This article summarizes the gift card management in the FMS financial management system, and how to perform corresponding accounting processing according to the process and management of different types of cards.

At present, when purchasing goods on major e-commerce websites or APPs, there are many websites that can use gift cards when paying. The management of gift cards is also the focus of the company and the Ministry of Finance. There are strict rules.

So how should gifts be managed?

This article briefly introduces the content of gift cards, and I hope it can be helpful to everyone.

1. Gift card

1. What types of gifts are there?

According to the media, gift cards can be divided into physical gift cards and electronic gift cards; according to the face value, they can be divided into 5 yuan, 10 yuan, 100 yuan, 500 yuan, etc.; Value cards; currently, physical gift cards are sold on JD.com, Carrefour and other large e-commerce websites and supermarkets.

2. Why are there gift cards?

The word "gift" can be seen from the literal, which can be a form of mutual gifts, a way of company welfare, or a special promotion method carried out by the company to promote sales , gift cards can be sold at a discount or purchased in bulk; it has become a very common form in daily life.

3. What is the relationship and importance of gift cards with finances?

Personally, I understand that gift cards = cash. It actually sells cash, which has an important relationship with money. Therefore, the finance department attaches great importance to the management of gift cards (cash), which requires strict procedures and systems to manage and control. .

Gift cards are different from coupons, red envelopes, points, etc. Gift cards are the carrier of cash, which is actually cash, regardless of whether you use it or not. It is a means that you use it, it is valuable, and it is worthless if you don’t use it. Of course, if the points can be converted into cash, then it also has its value.

To sum up, it is important to monitor cash flow related content in the financial system, especially gift cards.

4. What are the risks of gift cards?

Because gift cards can be used as cash to purchase goods, the risk of fraudulent brushing needs to be guarded against, which requires the system to fully consider this part of security when designing. There should also be corresponding system strategies for the entry and exit of physical cards, binding, loss reporting, etc.

Predicting risks in advance, formulating preventive measures, and monitoring data in real time are the only ways to reduce risks.

The author here mainly uses gift cards with face value to illustrate (for discount cards, delivery cards, etc., you can refer to them), the process and management of different types of cards are different, and the financial accounting treatment is also different.

2. Gift card life cycle

To manage gift cards well, it is necessary to have complete data to record the life cycle of gift cards. The main process is as follows:

1. Generation: generate gift cards (card number, password) according to the needs of the business department or company.
2. Production: If it is a physical card, you need to contact the gift card producer to print the card.
3. Warehousing: After the gift card is made, it is necessary to conduct a sampling quality inspection first, mainly to check whether the card number and password are correct (the password is protected by a coating, and the quality inspection card needs to be invalidated), and the remaining cards are put into storage after passing the pass. The management of gift cards is kept in the warehouse as high-value items.
4. Out of the warehouse: After the user purchases and the company receives it, they need to place an order or receive a receipt; then the warehouse performs a warehouse operation, and the outbound gift card must be managed according to the card number or unique code.
5. Use: First, the user needs to bind the gift card (the gift card can be recharged at this node or at the delivery node), and the user purchases the product for payment.
6. Termination: After the last gift card amount is used up, the gift card balance becomes zero, and the status is Ended; if the gift card expires and is not used, the gift card status becomes Expired and terminated.

3. Gift Card Status

The management of gift cards is actually the circulation of their status. Similar to the circulation of orders, each link has corresponding logic processing. Here are a few statuses for reference.

4. Relationship between gift cards and products

The most important information of a gift card is the card number, which is unique, and the change in the amount inside is what the user and the company are most concerned about; however, the gift card is received and sold as a commodity when it is stored and sold, so it is actually a A product is the SKU.

illustrate:

1. Inbound: Create purchase orders based on SKUs instead of gift card numbers.
2. Out of the warehouse: When selling gift cards on the website or APP, select the product SKU and add it to the shopping cart. When the product is out of the warehouse, it will be out of the warehouse according to the gift card number (unique code).
3. Batch: The same batch of gift card applications may include gift cards with different denominations, so the correspondence between batch numbers and SKUs is n:n.

5. Process

Let’s briefly explain the two processes of “Gift Card Generation and Storage Process” and “Sales and Delivery Process”:

1. Gift card generation and storage process

illustrate:

Electronic cards are generally generated according to sales orders, so they do not involve warehousing, and here mainly refer to physical cards.

A general physical card has a card number (with barcode or QR code), face value, instructions for use, validity period (generally 3 years validity period), company logo, etc. on the surface.

1. Gift card application: Apply for gift cards according to business and company needs. Each application batch can apply for gift cards of various denominations, and the business department (marketing department) will submit the application.
2. Financial audit: The financial officer should verify the total face value of the gift card applied for (once the gift card is sold, it will be an advance payment); if it is a physical card, the production cost should be considered.
3. Review: The system starts the gift card generation service and starts to generate the gift card number and password (the password must be encrypted and saved). For the management of the gift card number and password, you can refer to the user management module (but the password is fixed and cannot be reset). Follow-up It will also be used when binding gift cards; there must be rules for card number generation, and it is recommended not to use sequence numbers.
4. Physical card: It is necessary to make the card. At this time, the card number and password need to be exported. This part must be controlled in the process, and a confidentiality agreement should be signed with the producer. This part has a certain risk of card number and password leakage (so the card will not be recharged until it is out of the warehouse); at the same time, the password is protected by coating.
5. Create a purchase order: When the card is made, a purchase order can be created. The supplier can be the company or a branch. According to the SKU, create the quantity of gift cards in storage, generate a purchase order, and send it to the warehouse for storage.
6. Warehouse warehousing: It must be operated according to the gift card management process, and stored in the warehouse with the gift card number (unique code); gift cards are high-value commodities, so they are different from ordinary commodity management. Follow the process.

2. Gift card sales and delivery process

illustrate:

1. Sales order : The order type is a physical gift card or electronic gift card order, and the user places an order for purchase.
2. Out of the warehouse : the electronic gift card will be sent directly to the purchaser (the card number and password will be notified by SMS), and the physical gift card will be processed according to the gift card outbound process, and the gift after outbound will be in an activated state (unbound)
3. User binding gift card : The user enters the card number and password to bind. At this time, the gift card card number and password management interface is required for verification; in addition, in order to ensure security, it is also necessary to call the gift card outbound interface to verify whether the gift card is a normal sale Out of the warehouse, if not, it cannot be bound; double verification can relatively reduce the risk.

6. Gift Card Financial Statements

The relevant process is briefly described above. These parts need to be tracked and monitored financially, especially the gift cards that have been sold out of the warehouse and their usage.

1. Gift Card Inventory

It is an aspect of financial inventory and tracking. This part of inventory is different from SKU commodity inventory management, and it needs to be refined to the dimension of gift card number. There must be a checking mechanism for the inventory quantity of gift card SKUs and the number of gift cards (the number of gift cards that have not been released from the warehouse = the number of SKUs).

2. Gift Card Tracking Report

• Which sales order shipped each gift card?
• Which user is bound?
• Which regular order was paid with this gift card and how much was it used for?
• What is the gift card balance?
• What is the current status of the gift card?
• When do gift cards expire?

All of these require each gift card to have its own ledger to clearly understand the life cycle of each gift card.

3. Gift card summary report

This is mainly to summarize the use of gift cards that have been sold out of the warehouse. Why do you want to do this?

Because the gift card is sold out of the warehouse, there will be an advance payment (actually a liability) , so the amount of the gift card used in the current period is counted; the amount of the gift card that has expired and has not been used; What is the card amount; what is the gift card amount at the beginning of the period; calculate what the gift amount is at the end of the period, and check the difference.

Is this part similar to the dynamic balance sheet of commodities ? Indeed, gift cards must be managed in sufficient detail, so that financial accounting can be more accurate and convenient; reports are generally generated on a monthly basis (see financial requirements for details).

7. Gift card accounting processing

Here is a list of how finance is accounted for when gift cards are sold and used to help understand.

Example 1 : Accounting treatment for a user purchasing a 1,000-yuan gift card:

Example 2 : Continuing from the above example, when the user binds the gift card and uses the gift card for payment (1,000 yuan payment):

Example 3 : The user purchases a 1,000-yuan gift card, the company pays 20% off sales, the user actually pays 920 yuan, how to deal with this accounting:

There are two methods:

The first is to recognize revenue at face value of the gift card, treating the discounted amount as a sales expense.

When the user uses the gift card to pay 1,000 yuan, as follows:

The second is to recognize revenue based on actual receipts.

To summarize here, the income from selling gift cards can only be recorded as advance receipts, and the income will only be recognized after the user actually uses it; if the gift card expires and is not used, the accounting will carry forward the balance of advance receipts as other income; for The accounting treatment of receiving gift cards, etc. is to be treated as an expense. If you are interested, you can download this part of the content on Baidu. Here I just record what I know.

Summarize

Finally, let me explain that the management of gift cards can be understood as a small invoicing management. Its inventory is similar to commodity inventory management. It also has a dynamic balance report. The initial amount of the gift card + the change in the amount of the gift card (positive or negative) = gift The end-of-period amount of the card , and the final financial confirmation of revenue can only be accounted for after the user uses it, otherwise the amount of the gift card sold is a liability, and invoices cannot be issued when the gift card is used (because the invoice has already been issued at the time of purchase).

Again, gift cards are equivalent to cash, very much appreciated, thanks for reading!