Hi
In return for bands playing at the pub, I give them a voucher for food and drinks. For example say
Hi Rob,
I'm very sorry for the late reply to your query - our system doesn't make it easy to see which emails require a response and your query slipped through the cracks!
To answer your question: I recommend you create a new liability account called 'Voucher Credit Outstanding'. When you 'pay' the band create a Money Paid Out transaction allocated to the appropriate expense account and using the same VAT rate that you would use if you were paying cash. Set the Paid From Account to 'Voucher Credit Outstanding'.
When the band redeems the voucher create a Money Received transaction for a normal sale (ie. with From Account set to 'Sales Income') using the standard VAT rules, but set the Deposit Into Account to 'Voucher Credit Outstanding'.
The net effect of these two transactions should be to leave the balance of the 'Voucher Credit Outstanding' at zero.
Regards,
