Liabilities and Redemptions

Liabilities give you a way to sell store credit to customers that they can come back and redeem later. Learn how to set up liabilities in BackOffice, issue and redeem them at the register, and view reports on their usage.

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Integrated Gift Cards

Table of Contents

What are Liabilities?

To understand how to use liabilities in ShopKeep, let’s define what they are and examine how they are used.

  • Liabilities are redeemable inventory items, such as gift cards, gift certificates, and deposits.
  • Revenue gained from issuing liabilities is kept separate from sales revenue.
  • The business is “on the hook for” liabilities until customers redeem them.
  • When a liability is redeemed, the sale amount is then counted as sales revenue.
  • Have questions about liabilities? Visit our Gift Cards & Liabilities FAQ for help.

    Set Up a Liability Item

    Enable a liability tender in BackOffice, then create an inventory item to represent that liability. Once created, the liability item will be used to issue the liability to customers at the register.

    1. In BackOffice, click 'Settings' and select 'Tenders'.
    2. Under 'Redeemable', check a box to enable one of the liability tenders.

      Visit our Tender Settings article to learn about the ‘Regular’ tenders listed above.

    3. Click 'Items' and select 'Item List'.
    4. Click 'Add New'.
    5. Select 'Create' under 'Basic Item'.

      Items with variants cannot be liabilities.

    6. Fill in the item's details.

      Visit the complete Adding Items article to learn about each field.

      Click to Enlarge
    7. Select a tender from the 'Liability Tender' drop-down to associate with the item.
      Click to Enlarge
    8. Click 'Save' to save the item.
    9. In the ShopKeep Register app, tap 'Get Updates' to sync updates to the register.

      Receiving an error while getting updates? Visit our troubleshooting guide for help.

    Issue a Liability

    Issuing a liability gives a customer credit which they can redeem in-store at a later point. Sell a liability item at the register to issue a gift card, gift certificate, or deposit liability to a customer.

    1. Add a liability item to a sale.
    2. If the liability is priced in store, enter its sales price and tap 'Done'.
    3. To complete the sale, select how the customer is paying.
    4. If using ShopKeep Gift Cards, swipe a card to load the balance.
    5. Finish the sale as usual.

    Redeem a Liability

    Redeem a liability when a customer returns to use their gift card, gift certificate, or deposit. Liability redemptions are similar to using other payment tenders to complete a sale.

    1. Ring up a sale as usual.

      Not sure how to do this? Visit our Running Sales at the Register article for help.

    2. To complete the sale, tap 'More...' and select the liability tender being redeemed.

      If redeeming a liability that is less than the sale total, perform a split tender transaction.

    3. If using ShopKeep Gift Cards, swipe the gift card to redeem its balance.
    4. Finish the sale as usual.

    Liability Reporting

    Keep track of issued, redeemed, and outstanding liabilities with the Gift Cards & Deposits report in BackOffice.

    For ShopKeep Gift Cards, there are additional reports available in the gift card reporting portal. Learn more here.

    Run the Report

    From BackOffice, run the Gift Cards & Deposits report for an overview of liabilities issued and redeemed during a specific time period.

    1. In BackOffice, click 'Reports' and select 'Gift Cards & Deposits'.

      If using the ShopKeep Register on The Mini or on The Station, built by Clover, select ‘Liabilities’.

      Click to Enlarge
    2. Click the date icon to choose a preset or custom rang, then click 'Retrieve'.
    3. Toggle between 'Redeemed' and 'Issued' to view liabilities redeemed or issued.
    4. To hide a liability tender, click the 'Show Tender(s)' drop-down and uncheck a box.

      To show the tender again, recheck its box.

    5. (Optional) Click 'Export' to download a copy of the report.

    Read the Report

    Learn to read the Gift Cards & Deposits report to understand the amount of new liabilities issued, the amount of liabilities redeemed, and the net liability amount still waiting to be redeemed.

    Dashboard Tiles

    The tiles at the top give a broad overview of liability activity.

    Click to Enlarge
    New Liabilities | Total amount of liabilities issued over the selected date range.
    Redeemed Liabilities | Total amount of liabilities redeemed over the selected date range.
    Net Liabilities | New Liabilities minus Redeemed Liabilities.

    Redeemed View

    The default reporting view shows details on redeemed liabilities.

    Click to Enlarge
    Date | Date and time a liability was redeemed.
    Tender | Type of liability that was redeemed (gift card, gift certificate, or deposit).
    Total Amount | Amount of the liability that was redeemed.

    Issued View

    Switching to Issued highlights how customers are purchasing liabilities.

    Click to Enlarge
    Date | Date and time a liability was issued.
    Item | Name of the item that was sold to issue the liability.
    Quantity | How many of the liability item was sold.
    Linked Tender | Type of liability that was issued (gift card, gift certificate, deposit).
    Total Amount | Amount of the liability that was issued.

    Deposits

    This section walks through common scenarios involving deposit liabilities to show how to accept refundable or non-refundable prepayments/down payments.

    For questions about deposits, or liabilities in general, visit our Gift Cards & Liabilities FAQ.

    Security Deposit

    Scenario 1

    In this example, we’ll look at keg deposits. Here, kegs of beer are sold for $75 and require a $25 deposit. The deposit is refundable upon return of the empty keg by the customer.

    1. Enable the 'Deposit' liability and create a liability item called 'Keg Deposit'.
      • For help, visit Set Up a Liability Item above.
      • Either set the item’s price to $25 or change the ‘Price Type’ to ‘At the Register’ to be able to enter the price at the register.
    2. In the ShopKeep Register app, tap 'Get Updates' to sync the item to the register.

      If you receive an error while getting updates, visit our troubleshooting guide for help.

    3. At the register, ring up a sale for the keg and 'Keg Deposit' items.
      Click to Enlarge
    4. Select a tender to accept payment for the sale.

      At this point, deposit liabilities increase by $25 and no sales revenue increases by the price of the keg itself.

    5. When the customer returns the empty keg, perform a return for the keg deposit.

      Deposit liabilities will be reduced by $25 and the customer receives their deposit back.

    Scenario 2

    In this scenario, we’ll look at what happens if a customer does not meet the conditions of a deposit return (e.g. they don’t return the keg within 30 days or if it’s not in good condition upon return).

    In addition to the items created in scenario 1, we’ll also create an item called ‘Keg Deposit Not Refunded’. This item will be used instead to convert money received from the ‘Keg Deposit’ liability item into sales revenue.

    1. In BackOffice, create an item called 'Keg Deposit Not Refunded' and set the sale price to $25.
      • Or, set the item’s ‘Price Type’ to ‘At the Register’ to be able to enter the price at the register.
      • This is not a liability item, so do not select a liability tender.
    2. Complete a sale for the 'Keg' and 'Keg Deposit' items as shown above in scenario 1.
    3. If the customer does not meet the requirements for a deposit refund, follow below to convert the outstanding liability into a sale.
      • Ring up a sale for the ‘Keg Deposit Not Refunded’ item.
      • Tap ‘More…’ and select the ‘Deposit’ tender.

      Deposit liabilities will be reduced by $25 and sales revenue will increase by $25. No money is collected at this point since you already received payment when the keg was originally purchased.

    Partial Deposit

    Scenario 1

    In this example, prepayment is required for a cake. A customer orders a $5,000 wedding cake and a $1,000 refundable down payment is required before making the cake. The deposit is redeemable at the time of final payment when the customer returns on the pick-up date.

    1. Enable the 'Deposit' liability and create a liability item called 'Cake Deposit'.
      • For help, visit Set Up a Liability Item above.
      • Set ‘Price Type’ to ‘At the Register’ to be able to enter the price at the register.
    2. In the ShopKeep Register app, tap 'Get Updates' to sync the item to the register.

      If you receive an error while getting updates, visit our troubleshooting guide for help.

    3. At the register, ring up a sale for the 'Cake Deposit' item in the amount of $1,000.

      There should only be one item on the transaction.

    4. Select a tender to accept payment for the sale.

      At this point, deposit liabilities increase by $1,000.

    5. When the customer picks up the cake, follow below to apply the down payment and collect the balance.
      • Ring up a sale for the $5,000 ‘Wedding Cake’ item.
      • Since the customer already paid a $1,000 deposit, tender the sale as a Split Tender transaction.
      • Using Split Tenders, tender $1,000 to ‘Deposit’ and the remaining $4,000 to the customer’s preferred payment method.

      Deposit liabilities will be reduced by $1,000 and sales revenue will increase by $5,000.

    Scenario 2

    Continuing the previous scenario, your business policy states that cakes canceled with less than 48 hours notice receive 50% of the deposit back. Here, the customer cancels the order a day in advance.

    In addition to the items created in scenario 1, we’ll also create an item called ‘Cake Deposit Non-Refundable’. This item will be used instead to convert 50% of the money received from the ‘Cake Deposit’ liability item into sales revenue so we can refund the other half.

    1. In BackOffice, create an item called 'Cake Deposit Non-Refundable'.
      • Set the price to fixed or open-priced as necessary.
      • This is not a liability item, so do not select a liability tender.
    2. Complete a sale for the 'Cake Deposit' item as shown above in scenario 1.
    3. When the customer cancels their order, follow below to convert the non-refundable portion of their deposit into sale revenue.
      • Ring up a sale for the ‘Cake Deposit Non-Refundable’ item in the amount that will not be refunded to the customer (in this case, $500).
      • Tap ‘More…’ and select the ‘Deposit’ tender.

      Deposit liabilities will be reduced by $500 and sales revenue will increase by $500. No money is collected at this point since you already received payment when the deposit was originally given.

    4. Follow below to refund the remaining 50% of the deposit back to the customer.
      • Begin a return for the ‘Cake Deposit’ item.
      • Set the item’s unit price to $500 (50% of the original deposit).
      • Tender payment back to the customer (e.g. cash, credit, etc.).

      Deposit liabilities are reduced by $500 and the customer receives 50% of their deposit back.


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