Gift voucher accounting
in Xero - structured automatically
Every voucher sale, redemption, expiry, and adjustment can post to Xero with the right supporting records: liability movements, GST timing, breakage reporting, and links back to the original voucher.
- Chart
- Gift Vouchers Outstanding created for you
- Events
- Sales, redemptions, expiry, and breakage journals
- Audit
- Every Xero entry links back to the voucher
VoucherGrid vs manual Xero.
Xero is excellent accounting software, but it was not built specifically for the gift voucher lifecycle. VoucherGrid adds the voucher layer: balances, redemptions, expiry, audit history, and structured journals.
| Feature | VoucherGrid + Xero | Xero alone | Why it matters |
|---|---|---|---|
| Chart of accounts | Creates suggested supporting accounts, including Gift Vouchers Outstanding, breakage income, and linked GST treatment. | Usually configured manually, with voucher balances tracked outside Xero. | A clear liability account helps keep unredeemed voucher balances visible until they are redeemed, expired, or otherwise resolved. |
| Voucher sale | Can post face value voucher sales to liability, with GST tracked for redemption. | Often booked manually, sometimes directly to income. | Recording voucher sales clearly helps avoid recognising income before the voucher has been redeemed. |
| Redemption | Moves the redeemed amount from liability to revenue, with GST recorded according to voucher type. | Often handled through manual journals or month-end adjustments. | Timely redemption records help keep voucher balances, revenue, and GST reporting aligned. |
| Breakage on expiry | Can post expiry events and breakage reporting when vouchers expire. | Expired vouchers are easy to miss if they are tracked outside the accounting workflow. | Unredeemed balances need clear records so your accountant can review the correct treatment. |
| Audit trail | Every voucher event links back to the original voucher record. | The audit trail may depend on spreadsheets, notes, or manually entered references. | When questions are asked later, the full chain from sale to redemption matters. |
What VoucherGrid does for your Xero.
Connect via OAuth and click Set up for me. VoucherGrid can create the suggested supporting accounts in your Xero organisation and use them for voucher-related journal entries.
- Gift Vouchers Outstanding - a Current Liability account holding the value of unredeemed face value vouchers
- Sales Revenue - linked to your existing accounts or to dedicated voucher revenue accounts if you prefer
- Other Income - Breakage for expired voucher income
- GST accounts and tax rates applied according to the voucher type and event being posted
Every event posts a journal.
Debit Bank / Stripe Clearing $150.00
Credit Gift Vouchers Outstanding (Liability) $150.00
Tax BAS Excluded (no GST at sale)Debit Gift Vouchers Outstanding $150.00
Credit Sales Revenue $136.36
Credit GST on Income $13.64
Tax GST on Income at redemptionDebit Gift Vouchers Outstanding $150.00
Credit Other Income - Breakage $136.36
Credit GST Increasing Adjustment $13.64
Tax 1/11th increasing adjustment (G7)How to connect.
Setup takes only a few minutes and does not require accounting knowledge.
- 1Open Integrations settings. Go to Settings → Integrations in your VoucherGrid dashboard.
- 2Click Connect Xero.Authorise VoucherGrid through Xero's OAuth flow. VoucherGrid stores an access token, never your Xero password.
- 3Click Set up for me. VoucherGrid creates the suggested supporting accounts and account mappings for voucher activity.
- 4Done. From that point, voucher events can sync to Xero automatically. You can disconnect the integration at any time.
GST tracked by voucher type.
Face value vouchers.
For a face value voucher, such as a “$100 gift card,” GST is generally not reported when the voucher is sold. VoucherGrid records the sale as a liability and tracks GST when the voucher is redeemed for taxable supplies.
Non-face value vouchers.
For a non-face value voucher, such as a “60-minute Swedish massage,” the supply is defined at purchase. VoucherGrid can record GST at the time of sale and post the relevant amounts to Xero.
On expiry.
For unredeemed face value voucher balances, VoucherGrid can calculate the 1/11th GST increasing adjustment and include it in the expiry journal for accountant review.
Reports for your accountant.
- Deferred revenue report - outstanding voucher liability at any date, filterable by issue date, product, or location
- GST reconciliation - all GST movements from voucher events, cross-referenced to BAS periods
- Breakage schedule - expired vouchers with breakage income and associated GST adjustments
- Audit trail - append-only log of every voucher event, timestamped and exportable
All reports exportable as CSV. Xero-synced entries include a reference link back to the originating voucher in VoucherGrid.