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Diego619
Diego619 asked in Business & FinanceSmall Business · 1 decade ago

How do you book income Groupon in QuickBooks?

I am a bookkeeper and I have a new client that is using Groupon to promote his business.

Two Questions:

1) I want to book the income as Unearned Revenue and as service is used book that amount as sales. Is that the correct way anyone else is handling Groupon Revenue?

2) What if the Groupon is not redeemed, the amount I assume stays in Unearned Revenue, but what if they customer never shows or uses the Groupon?

Thanks for any Bookkeeping Tips!

2 Answers

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  • Presti Naegele QuickBooks ProAdvisor
    Lv 4
    1 decade ago
    Favorite Answer

    I would recommend treating the Groupon similar to a gift certificate. You can create an other charge item and link it to a liability account. If the customer never redeems the Groupon, then you would move the amount from the liability to income. Keep in mind that you would have to reverse this transaction if the customer ever did show up.

  • know-it-all
    1 decade ago

    Wow, that's a tough one. You want to consult a seasoned CPA on that one.

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