You sell a service via voucher.. It is sold either singularly or 20 trip packet or unlimited for 30 calendar days. All sales are for cash (credit card). All sales are final (and with the exception of the 30 day calendar sale, they never expire).. How would you record the sale? Is it unearned revenue and deposit? Reversed/adjusted for each use.... Or can you just book it as sales and cash received (and forget about whether it is used or not). What if we put a 1 year expiry date on the voucher, does that change anything?
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Wayne
Look out for some state laws that may ensnare the company re validity of any expiration date. I know gift cards are legislated this way.
Do you track actual usage so as to develop a data profile on usage/redemption rates?
For single and 20 trip options, it seems you would:
1. book the sale as revenue
2. develop a redemption model that models - e.g. 98% of single trips are used that day, 2% within the next x days; the 20 trip option ranges from two weeks to two months...kinda like a deferred model
1
Interesting, thanks Len.
Any
One else have thoughts?
BTW, sales tax would be charged at time of sale and ultimately it is proposed to be multi-state.