Gift Cards in Odoo
Gift cards are prepaid stored-value cards that customers purchase for themselves or as gifts. When redeemed, the gift card balance is applied as payment toward a purchase. Odoo supports digital gift cards through its promotions engine, covering the full lifecycle from creation and sale through redemption and balance tracking. Gift cards serve both as a revenue stream and a customer acquisition tool.
How Gift Cards Work
A customer buys a gift card for a specified amount (e.g., $50). Odoo generates a unique gift card code and sends it to the buyer or recipient via email. The recipient enters the code at checkout (online or in-store). The gift card balance is applied as payment. If the purchase is less than the card value, the remaining balance is available for future use. If the purchase exceeds the card value, the customer pays the difference with another payment method.
Configuration
Creating a Gift Card Program
In Odoo, gift cards are managed through the Gift Card and eWallet features. Navigate to Sales → Products → Gift Cards and eWallets. Create a new gift card program specifying the program name, how codes are generated (automatically or imported), whether cards are sold or given, and the validity period (expiration date from activation).
Gift Card Product
Create a product that represents the gift card. This is typically a service product with the invoicing policy set to ordered quantities. The product price can be fixed (only $50 cards) or variable (customer chooses the amount). When this product is purchased, Odoo generates a gift card code and sends it to the specified recipient.
Sales Channels
Ecommerce
Add the gift card product to your online store. Customers select the card value and enter the recipient's email address. After payment, Odoo sends a styled gift card email with the code, amount, sender's message, and redemption instructions. The recipient can redeem the code at checkout on your website.
Point of Sale
Sell physical or digital gift cards through the POS. The cashier selects the gift card product, enters the amount, and processes payment. A receipt with the gift card code is printed for the buyer. The code can be redeemed at the POS or online.
Redemption
| Channel | How to Redeem | Process |
|---|---|---|
| Ecommerce | Enter code at checkout | Balance applied as payment, remainder with other method |
| POS | Cashier enters or scans code | Balance deducted, receipt shows remaining balance |
| Sales Order | Manual code application | Sales team applies code to order |
Balance Management
Gift cards carry a balance that decreases with each partial redemption. Odoo tracks the original value, amount used, and remaining balance for each card. Customers can check their balance online through the ecommerce portal. Cards with zero balance are automatically marked as fully redeemed. Expired cards can either forfeit the remaining balance or be extended, depending on your policy and local regulations.
Accounting Treatment
When a gift card is sold, the revenue is not immediately recognized — it is recorded as a liability (unearned revenue or gift card liability account). Revenue is recognized when the card is redeemed and goods or services are delivered. Unredeemed balances (breakage) are recognized as revenue based on your accounting policy, typically after the expiration period. This treatment complies with IFRS 15 and ASC 606 standards.
Promotional Gift Cards
Beyond selling gift cards, use them for promotions. Give gift cards as rewards for customer referrals, issue store credit via gift card codes for returns without receipts, offer gift cards as incentives for large purchases, and use them for employee rewards or customer appreciation. Promotional gift cards follow the same redemption flow but are generated for free (no purchase transaction).
Gift Card Reporting
- Cards sold — Number and total value of gift cards sold per period.
- Redemption rate — Percentage of sold value that has been redeemed. Industry average is 80-90%.
- Outstanding liability — Total unredeemed gift card balance, a liability on your balance sheet.
- Average redemption time — Days from purchase to first redemption.
- Breakage estimate — Projected unredeemed value based on historical patterns.
DeployMonkey + Gift Cards
Deploy Odoo on DeployMonkey and set up gift card management with AI assistance. From card creation to redemption tracking, add a new revenue stream from day one.