Adding Tips to quickbooks from payments

Hi there, jonbauerfl!.

Let me help record your customer's tips in QuickBooks Desktop (QBDT).

If they pay you more than the invoice amount for a tip, you can simply open back the transaction and add it from there. This way, it would be included in your record and match it in the Bank Feeds Center. 

First, create an income account for the tip. Here's how:

1. Go to the Lists menu and select Chart of Accounts.
2. From the Account ▼drop-down list, click New.
3. Choose an account type, select Continue.
4. Complete the account details.
5. Click Save & Close.

You can also ask your accountant for further guidance when setting this up in QuickBooks.

Once done, create a service item for the tip and use this as your income account. Then, open the invoice and add the tip in the second line.

Additionally, you can check out our Accounts Receivable workflows in QuickBooks Desktop. This can help you organize your cash flow, and track sales, receivables, and profitability more accurately.

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one. 

Thank you..  So when i get paid and an email shows up that i've been paid on a qb invoice.. that amount automatically gets deposited to my bank account minus the fee qb charges??  Then it's up to me to go in and manually add payment to account (minus the fee qb charged to that invoice) or do I have to go through a different process to match up deposits to invoice?

Thanks for coming back to us, @jonbauerfl.

Usually, funds reach your deposit bank account within 2-3 business days of the transaction. It varies depending on the time of day you enter transactions, which financial institution you choose for transactions to be deposited in, and how long it takes your bank to verify and process electronic deposits.

To link the deposits to an invoice, you can make a bank deposit, then add lines items for those fees. Let me show you how:

1. On the Homepage, select Record Deposits / Make Deposits.
2. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to drop-down.
3. Check the deposit total. Make sure the account and selected payments match the deposit slip from your bank. 
4. Enter the date you deposited at your bank.
5. Add line items for the fees.
6. Click Save & Close.

I've added this article for additional information: Record and make bank deposits in QuickBooks Desktop.

Additionally, when you have QuickBooks Payments, QBDT groups the customer payments you process each day and deposits them as a single bank deposit into your account. To know more about this, you can refer to this link: Automatically record QuickBooks Payments bank deposits.

I'm also adding this article to answer the most frequently asked questions about recording merchant service deposits in QBDT: QuickBooks Payments bank deposits FAQs. It includes topics about finding transactions in the merchant service deposit and duplicate entries, to name a few.

Should you have additional questions about managing your transactions, let me know in the comments. I'm always here to help.

I have used QB desktop Pro for years with Square as our credit card processor.  Starting 1/1/22, I decided to try recording the credit card payments with QB to cut down on double entry with fees and tips.  But on the merchant summary and activity, I am not seeing fees until processed and do not see anywhere what the tips are.  Also are receiving monies with credit card on Sales Receipts the same service as using online payments received when emailing an invoice.  Also can a Sales Receipt be emailed and paid on line?  Thanks for any advice.

Hello @deb13,

Thank you for reaching out to us here in the Community. I can share some details about the Merchant Service Center in QuickBooks Desktop.

You're right. The payment fees will only reflect after transactions are processed in our system. I recommend viewing details of your transactions, deposits, or fees directly through the Merchant Service Center.

Here's the link, which includes detailed steps of the process: Find transactions, deposits, or fees in the Merchant Service Center.

For tips, the way they reflect will depend on how you enter them using QuickBooks. The information should be available from the details of your transactions.

Also, you use sales receipts when your customer pays you on the spot for goods or services. You can email them to customers, but the option to pay using this transaction type is not available. Check out this link: Email sales forms, invoices, and statements in QuickBooks Desktop.

For more information about customer payments, like the common reasons why cards are declined, I recommend the following article: What to do if customers can't pay their invoices online.

Comment down below if you have further questions about how the Payment features work in QuickBooks Desktop. Have a great day ahead.

We would love to only tax labor. The way the 10% 15% and 20% options are showing up on the entire total which usually includes electronics. If a client has $500.00 labor and $4,500.00 electronics, a  $5,000.00 total.It is asking our client for a $500.00, $750.00 0r $1,000.00 tip. Needless to say, we are not winning any awards with our client at the end of their transaction.