Daily Sales Tips Payable

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. 

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.  

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:

• Advanced Payroll hub
• Standard Payroll hub

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

Hi JessT,

On my products and services list, I changes the tips payable to payroll tips (expense account) but it made the payroll tips negative. The restaurant uses a third-party payroll company. I journal the payroll tips to payroll liability and that account was thrown off. Maybe that works for QBO Payroll? 

Hello, @Jsanti.

In order not to mess up your account and make sure you use the appropriate categories, I would encourage you to speak to a trained and qualified accountant on how to record this in your QuickBooks account. Refer to this article on how to create a journal entry.

You can also check the following article on how you can record your total daily sales using a single sales receipt: Record your total daily sales in QuickBooks Online.

Let us know if you have further questions about recording your transactions. The Community is always here to help. 

I was actually able to figure it out. Thank you all for trying to help me! 

That's great to hear, @Jsanti!

I'm happy that you already figure out and your concern with tips payable is already fix. I appreciate all your efforts in getting back to this thread and following the steps by my colleagues. Please remember that we can always assist you with any other QuickBooks issues.

I'm happy that you already figured it out and your concern with tips payable is already fixed. I appreciate all your efforts in returning to this thread. 

Please know that you’re always welcome to post in the Community space for any QuickBooks concerns you may have.

If you need tips and resources to manage your QuickBooks Online account and finances, feel free to visit our Support page to learn more. This provides information to help your navigation experience be more effective.

Let us know if you have other questions with managing sales tips payable. We'll be happy to lend a helping hand. Stay safe!