Reconciliation for Gift Cards

Modified on Wed, 25 Feb at 2:34 PM

The gift card reconciliation process occurs when a gift card is purchased at one location (source location) but redeemed at another (destination location). In this article, we will walk through how reconciliation works when goft cards are redeemed across different franchise locations.

Things to know:

To activate the reconciliation feature on the parent account, follow the steps provided here
To reconcile between two locations under different franchises, the Global DB must be activated. However, for reconciliation between two locations within the same franchise, activating the Global DB is not required.
Source Location: Where the gift card was originally purchased
Destination Location: Where the membership was redeemed/used
Reconciliation %: The percentage of the item value (service, product, class) to be transferred from the source to the destination location.
Reconciliation records are automatically generated when a ticket is closed, as long as the reconciliation feature is active at the time of closing.
All reconciliation data is captured in the Reconciliation Detailed Report
Reconciliation for gift cards is based on the gift card amount used (redeemed) at the destination location x adjustment rate set on parent.
When a gift card purchased at Child A is redeemed and refunded at Child B, the refund is reflected in the Reconciliation Detailed Report and deducted from Child B’s bank account on the date the refund was done.

CONTENTS

Configuration
Cross-Location Gift Card Settlement
- Refund Behaviour

Configuration

Reconciliation % of the price to transfer

5% of services
30% of products
20% of classes

Example 1: Partially Covered

Client purchases gift card at Franchise 1
Uses it to pay for services, class and products at Franchise 2
Service Price: $20 (partially covered)
Class Price: $40 (partially covered)
Product Price: $10 (partially covered)

Reconciliation Calculation

Service - 5% x $20 =$1
Product - 30% x $10 = $3
Class - 20% x $40 = $8
Total to be transferred -> $1+ $3+ $8 =$12

Total Reconciled: $12 from Franchise 1 to Franchise 2

Example 2: Fully Covered

Client purchases gift card at Franchise 1
Uses it to pay for services, class and products at Franchise 2
Service Price: $60 (fully covered)
Class Price: $70 (fully covered)
Product Price: $20 (fully covered)

Reconciliation Calculation

Service - 5% x $60 =$3
Product - 30% x $30 = $9
Class - 20% x $70 = $14
Total to be transferred -> $3 + $9+ $14 =$26

Total Reconciled: $26 from Franchise 1 to Franchise 2

This information can be seen in the Reconciliation Detailed Report which can be accessed by going to Dashboard > Reports > Reconciliation Detailed Report.

Cross-Location Gift Card Settlement

Refund Behaviour

When Centre A sells a gift card and Centre B redeems it, the system creates a Pos::Reconciliation::Item record linking the two locations—capturing the issuing location (A), the redeeming location (B), and the calculated settlement amount based on the configured percentage. These items are then periodically batched into actual ACH settlement transfers by a separate settlement job.

Scenario A: Refund processed before the settlement has run

The refund causes the reconciliation calculator to re-run, which:

Deletes the original (unsettled) reconciliation item for Centre A
The refund creates a net-zero outcome; no settlement item is ever generated

Result: No money moves between centers at all. The gift card balance is restored immediately.

Scenario B: Refund processed after the settlement has already run

The original settlement (ACH transfer) is never reversed directly. Instead:

The original settled reconciliation item is left untouched (the system explicitly guards against modifying it)
A new negative reconciliation item is created (same percentage, negative amount), flagged as a refund
This negative item waits for the next periodic settlement run
When the next settlement runs, the negative amount is included and nets out against any other Centre A activity—effectively reversing the transfer

Result: The original settlement remains as-is temporarily. The reversal flows through as a negative entry in the next settlement cycle. The gift card balance is re-credited immediately regardless.

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