Every unredeemed gift-card dollar is money your business owes a customer. Selling a card isn't revenue yet — it becomes revenue when the card is redeemed against a service or product. Owneli tracks this in dedicated liability reports so the outstanding balance is always visible, not a surprise at year end.
Why isn't a gift card sale just revenue?
Because the customer hasn't received anything yet. The cash is in your till, but you owe them the service. Accountants call this deferred revenue or a liability:
| Event | Effect on your books |
|---|---|
| Card sold | Cash in, liability up — not revenue |
| Card redeemed | Liability down, revenue recognised |
| Card expires unredeemed | Liability may be released ("breakage") — a decision for your accountant, and regulated in many places |
This is the same model Owneli applies to packages and prepaid memberships — see Understand the finance reports.
The reports that track it
| Report (in Growth → Reports) | Question it answers |
|---|---|
| Gift-card liability ledger | Issued vs redeemed value and the outstanding redeemable balance, including the expired portion |
| Liability summary | Everything you owe customers right now — gift cards plus remaining package sessions |
| Liability activity | Every transaction that moved a liability bucket in the period: sold, redeemed |
| Deferred revenue & MRR | The liability position alongside recurring revenue |
Expiry
Cards can be issued with or without an expiry date; the gift-cards list flags cards expiring soon, and an expired card shows the Expired status and can no longer be redeemed. The value left on expired cards is reported separately in the liability ledger.
Common questions
Can I write off old, dormant card balances?
Not unilaterally — dormant value is still a legal liability in most places until expiry (where permitted) or escheatment rules apply. Take the Gift-card liability ledger to your accountant.
A card expired but the client wants to use it — can I honour it?
An expired card can't be redeemed as-is. If you choose to honour it, issue a fresh card or apply a manual discount for the amount, so the ledger stays truthful.
Do gift cards pay commission when sold?
Selling a gift card can carry commission if a rule covers gift-card sales; redemptions don't pay commission. See Commission and compensation.