Chain Gift Cards – Intercompany Settlement
Chain operations create a unique challenge for gift card accounting. When the guest buys a card at Restaurant A and redeems it at Restaurant B, it's two separate legal entities that need to settle the transfer. It's a classic intercompany problem requiring special accounting.
The scenario
Chain: "Restaurang AB" consists of three legal companies:
- Entity A (org no. 559351-4788-A) = Restaurant Stockholm
- Entity B (559351-4788-B) = Restaurant Gothenburg
- Entity C (559351-4788-C) = Restaurant Malmö
The guest buys a 500 SEK gift card at Restaurant Stockholm, then eats for it at Restaurant Gothenburg.
The problem
- Entity A received 500 SEK (asset) and booked a 500 SEK liability (2421)
- Entity B delivered food/drinks worth 500 SEK (revenue), but received no money
- Without intercompany bookkeeping, Entity B would have delivered without payment, and Entity A would sit on 500 SEK that really belongs to Entity B
The solution – intercompany accounts
In the BAS chart of accounts there are special intercompany accounts:
- 1660 – Short-term receivable from group company (receivable from another entity in the group)
- 2860 – Short-term payable to group company (payable to another entity in the group)
These accounts are used to track intragroup balances that are later settled (usually monthly or quarterly).
At issuance (Entity A, day 1):
- D 1580 500 / C 2421 500
At redemption (day 30)
Entity B (Gothenburg) – guest eats for 500 SEK (food, 12% VAT):
| Account | Name | Debit | Credit |
|---|---|---|---|
| 1660 | Receivable from Entity A | 500.00 | |
| 3001 | Food 12% | 446.43 | |
| 2620 | Output VAT 12% | 53.57 |
Entity B books the revenue and VAT (B sold the food), but instead of debiting 1580 (bank), debits 1660 – a receivable from Entity A.
Entity A (Stockholm) – same day:
| Account | Name | Debit | Credit |
|---|---|---|---|
| 2421 | Gift card liability | 500.00 | |
| 2860 | Payable to Entity B | 500.00 |
Entity A releases the liability to the guest (2421 decreases) and takes up a liability to Entity B instead (2860).
Monthly settlement
Monthly (or quarterly), the intercompany accounts are reconciled and money moves:
Entity A: D 2860 500 / C 1580 500 (pays Entity B) Entity B: D 1580 500 / C 1660 500 (receives from Entity A)
After settlement: both intercompany accounts are at 0, and Entity B has the 500 SEK that Entity A originally received from the guest.
VAT and intercompany
Important: VAT (53.57 SEK in our example) is charged at Entity B, not Entity A. Entity B delivers the goods/services (food to the guest), so Entity B is liable for VAT on the delivery.
This is correct even though the money was originally received by Entity A. VAT follows the goods, not the money.
The intercompany transfer (500 SEK from A to B) is a pure financial transaction and is not VAT-liable – it's not a sale from A to B, just a settlement.
Current Vendion support
As of April 2026, chain gift cards are planned but not fully implemented in Vendion. Currently:
- Gift cards are tied to a specific restaurant (one entity)
- If the card is sold at one entity it currently can only be redeemed at the same entity
- Full chain gift card support is planned during 2026
Related articles
- Gift card accounting – issuance
- Gift card accounting – redemption
- Chain accounting – overview
- Intercompany accounts (1660, 2860)
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