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December 13, 2021
Question

I received a payment and they had given me a tip. I tried to use the resources given in Quickbooks and am still unsure how to have it credited to my account.

  • December 13, 2021
  • 1 reply
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I was able to set up the tips in quickbooks. When I go to do the invoice, do I put myself as the customer to be credited or the customer who paid the tip? Am a little confused with the second step of this process. Any help would be greatly appreciated.

1 reply

JessT
December 13, 2021

Oh wow! Good for you, acknowledgewellnessllc!

 

I'm sure you did a great service or you have a great product that's why your customer gave a tip! Let me shed light on the process of recording it.

 

Just to be sure we're on the same page about the setup process, QuickBooks has a setting for Tips/Gratuity, and one of these articles is probably the reference that you meant:

 

 

There's a step in the setup that will ask you if you're self-employed (My Self) or if you're distributing the tip to your teams or employees (Team). If you chose My Self, QuickBooks will post all tips to an income account, and a liability account, if otherwise.

 

In addition, you will only see a Tip field on sales receipts. Therefore, in this case, you will record it using an invoice and an item. You will create an item and assign an income account to it if you chose My Self or a liability account if you chose My Team. Add your customer's name as the payee of the invoice, make the item non-taxable, and mark the transaction as paid. From there, you can deposit the payment together with the payment for the original invoice.

 

That will do it. If you have other concerns, you can always go back to this thread. Take care and have a good one!