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Established Member

Separating out the tip from restaurant receipts??

How do you input a restaurant receipt with tip, since it doesn't look like you can make up a category for tips?

QuickBooks Team

Re: Separating out the tip from restaurant receipts??

I can help you record the restaurant receipt and tip, tealscuisine.


You can use the Meals and entertainment to record it. Since we're unable to create a category for tips, you can record it as a personal expense and put a reminder/notes on the Notes field.


Also, I'd suggest reaching out to your accountant to verify what's the best category to use for these transactions.


You can always reach out to us here if you have other questions. Have a wonderful day!

Established Community Backer *

Re: Separating out the tip from restaurant receipts??

Just add another line, use the same expense account as was used for the meal and write 'Tip' into the description for your own reporting purposes.  Tips are part of your overall restaurant expense.  If it is a valid 'Meals and Entertainment' expense, at tax time you will only be able to claim 50% of the overall amount anyways.  But there's no need to put the Tip to a 'personal' expense if you deem it to be a valid business expense.  The criteria is that you are entertaining vendors or clients, and you have a reasonable expectation of profit as a result of the meeting.  The same could be said of travel expenses.