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J
Jsanti
November 10, 2022
Question

Daily Sales Tips Payable

  • November 10, 2022
  • 1 reply
  • 0 views

 I am  using daily sales to record clients (restaurant) sales and it works great. I am stuck though on how to get rid of "tips payable" my client pays through payroll, not cash. Can you please advise on a method. 

1 reply

A
Ashleigh1
November 10, 2022

Hello Jsanti, 

 

Welcome to the Community page, 

 

So you could set up a product/service that posts to a liability account and when you pay the staff you would reduce the liability for the tips as well as the net wages. 

 

 

J
JsantiAuthor
November 10, 2022

Hi Ashleigh1, thank you for your help. I tried to expense it out into an expense account (payroll tips) but it made that expense account negative. The same when I journaled it. I must be missing something.  

JessT
JessT
November 10, 2022

Thank you for getting back to us, Jsanti.

 

Let's go back to the sales phase where the tip is set up as an item with a liability account in its Income account field in the item profile. When there is a sale, the liability increases. That liability account should also be the account assigned to the Tip payroll item so that when you process payroll, its balance decreases. I suggest contacting our QBO Payroll Support for UK accounts for the setup. 

 

If the Tip hits and increases the payroll expense account when creating payroll, you can journal the tip amount from payroll expense to the liability account after running payroll. That way, both of their balances will decrease.

 

I'd like to include these articles for your additional reference:

 

Feel free to reach back out if you have other questions in mind. Take care and have a good one!

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