How do I add tips/gratuity to my invoices? How do I enable sales receipts to be automatically sent after each invoice payment?

Welcome back to the QuickBooks Community, usernicovargas722. I'll be sharing information on how tips and sales receipt works in QuickBooks Online. Then, to ensure you'll be able to add a tip in your sales entry and send a receipt to your customer by performing the steps below.

There's an option in QuickBooks Online where you can activate a Tips feature to add tips/gratuity to your sales entry. However, this can only apply in creating Sales receipts, and utilizing this one in the invoice is currently unavailable.

Meanwhile, you can make a Non-inventory item and select this when creating an invoice. Beforehand, you'll have to add an income account to track tips.

Here's how:

1. Go to the Gear icon ⚙ and select Chart of Accounts.
2. Click the New button.
3. For Account Type, choose Other Income. Then, select Other Miscellaneous Income for Detail Type.
4. Enter a Name, like "Tip Revenue" and click Save and Close.

Once done, you can now create a tip item. Please follow the steps below.

1. Go to Get paid & pay and select Products and services.
2. Click New and choose Non-inventory.
3. Enter a Name, like "Tips."
4. For Income account, select the account you created in step 1.
5. Click Save and close.

After that, you can now go to the Invoice page and start entering the details and make sure to select the item you've created above.

1. Go to Get paid & pay and select Invoice.
2. Click New Invoice.
3. Enter the Customer. In the Products/Services field, select the tip item you created in step 2.
4. Select Save. Then, if your credits are set up to apply automatically, you're done. Otherwise, choose Receive Payment
5. Select the credit and click Save and close.

On the other hand, the option to enable sales receipts to be automatically sent after each invoice payment isn't currently possible. To email a sales receipt to a specific customer, you'll have to manually create a sales receipt and send it to your customer.

Lastly, you may refer to this article to see various details on how the Sales page provides you with detailed information about your sales transactions that have been created: View sales transactions.

Feel free to click the Reply button below if you have any other concerns or questions about adding tips in QuickBooks. I'll make sure to get back to you as quickly as I can,usernicovargas722. Have a nice day!

Thanks for the information.

Is there any way for the client to add a tip to their payment without me having to manually enter the item into the invoice prior to sending it to them?

We're always looking for ways to make your experience with QuickBooks more convenient and enjoyable, @usernicovargas722.

At this time, it's not possible for your customer to add a tip on their payment. As a workaround, I'd recommend adding the item manually to your invoices before sending them.

The program is enhanced by user suggestions continuously. You can voice your opinion about what you would like to see in the future of QuickBooks by sending a feedback. 

Here's how: 

1. Go to the Help menu on the upper right side. 
2. Select the Feedback tab. 
3. Write your suggestion in the box and click Next. 

The company listens to its customer base, which is why many of the program's current features were suggestions from QuickBooks' users. The company wants to hear from you, too, so check out its website to vote on future ideas. To access the page, visit this link: Customer Feedback for QuickBooks.

Additionally, check out these articles below on how to manage your customer payments and personalize sale forms in QuickBooks:

• Record invoice payments in QuickBooks Online
• Customize invoices, estimates, and sales receipts in QuickBooks

If you need help with invoices in QuickBooks, please feel free to drop me a line. I'll do my best to help you out. Take care. 

What kind of business and what kind of sale are you making?

As the other's have said, there's no easy way to add a Tip to a standard QBs Invoice.  But it sounds like you may be offering more of a Service like a Restaurant where there is the potential for a Tip on every transaction.  If that's the case, I think you want to look into a Point-Of-Sale (POS) system where a simple Receipt is printed and there is a built in process for adding a Tip before the transaction is completed.  Check with your Credit Card Provider for a POS device. 

But if you are generating Invoices for each sale, then simply add a line item into the Invoice for the Tip so that the Total and Amount Paid match.

If you're not used to dealing with Tips, one very big note...  It is NOT a Sales/Profit item on your side.  You are only collecting the money and holding it for the employees (you certainly don't want to pay Sales or other Taxes on their Tips).  So set up a Liability Acct (e.g. Employee Tips Collected) and the Line Item you add to your Invoice should put that Tip portion into that Employee Tips Collected Acct.  Then when you give them their Tip money (daily, weekly or whenever), you show the money coming out of that Employee Tips Collected Acct.

After you've got it set up, I'd ask you Tax Accountant to take a quick look to confirm it is the way they want it set up.

i read in November 2022 gratuity options have been added to Quickbooks Online but you have to turn it on etc. I am using Quickbooks self employed and cannot find the path to turn this option on. is this available on the self employed platform??

Hello, Xpert_Jen.

I'll share some details about the option to add gratuity or tips in the Self-Employed platform. 

The option to add gratuity options is unavailable in QuickBooks Self-Employed. For now, we'll want to manually record the tips or gratuity by adding another service line on the invoice. 

Here's how to do it: 

1. On the Invoice screen, click the Add product or service link. 
2. From the Product or Service drop-down menu, select Add new.
3. On the Name field, we'll want to enter something like "Gratuity" or "Tips."
4. Enter the Description.
5. Select the Amount type. 
6. Hit Save.

We'll also want to manually calculate the amount tipped on the Amount field. 

Although, it would be a great option to have the ability to add gratuity in the Self-Employed platform, just like in QuickBooks Online. We can send feedback to our developers about this if you haven't done it yet. 

In Self-Employed, on the Invoice screen, click the Feedback button located in the top-right corner. Enter your suggestions to add the gratuity option on your invoices. 

Alternatively, we can also do this: 

1. In Self-Employed, click the Assistant button.
2. In the chat box, enter something like "send feedback."
3. Click Add a feature.
4. When asked, type "Add gratuity option on invoices."
5. Hit Yes. 

If you'd like to learn more about creating invoices in Self-Employed, feel free to open this article: Create invoices in QuickBooks Self-Employed.

Need help managing your estimated taxes when the tax season comes? We can bookmark this article as a guide: Pay federal estimated quarterly taxes in QuickBooks Self-Employed. 

Would you like some other assistance in recording your invoices and the corresponding payments? Or do you need to take care of some reports? Let me know and I'll help you out again.