When a customer pays their invoice online and adds a tip this isn't closing their invoice since the amount is now greater. It appears to be causing an error.

Hi, @mowertech1. I can help you record customer payments with the tip to close your invoice.

You'll receive an excess amount than the actual transaction once your customer adds a tip to their payment. In this case, you can mark the invoice as paid and record the tip manually.

To get started, create an income account to track tips.

1. Sign in to your QuickBooks Online (QBO) account.
2. Click on Accounting at the left pane, then Chart of Accounts.
3. Click New.
4. Choose the account type "Other Income" and detail type "Other Miscellaneous Income".
5. Enter the account name, like "Tip Revenue".
6. Tap Save.

Then, switch over to the Product and Services window to create a tip item. From there, choose Non-inventory as an item type and select the income account you've just created under the Income account dropdown. 

When done, you're now ready to record the extra amount as a tip.

1. Go to the +New icon, then Invoices.
2. Pick the customer's name. 
3. In the Products/Services field, select the tip item you created.
4. Hit Save. The credits will be applied automatically if it's enabled. If not, select Receive Payment.
5. Choose the credit and then Save and close.

You can also learn more about tracking tips from this article: Record an invoice overpayment as a tip in QuickBooks Online.

In case you have a customer that paid an extra amount in error, you can contact them and arrange for a refund.

If you have follow-up questions while recording your customer payments, notify me by adding a comment below. I'm always here to help. Have a good one!

I'm getting no notification that this invoice has been paid.  I'm having to manually monitor the transactions through the intuit merchant accounts to see of a payment has been made.  Since a tip has been added to the original amount is causing it not to close.  

I appreciate you getting back to us, mowertech1.

We can configure your Merchant account to enable the payment notification settings for paid invoices. Please be guided with the steps below:

1. Log in to https://merchantcenter.intuit.com
2. Under Account, select Settings & Alerts.
3. Select Yes under Receive Credit Card Deposit Notification in the Email Alerts section.
4. Enter the email address and hit Yes.
5. Save the information.

For more details about this process, we can refer to this article: Turn on or off Customer Notification Emails for Recurring Payments.

The following pointers are good references. These will provide us steps on where we can access the statements as well as other helpful links about QuickBooks Payments concerns:

QuickBooks Payments FAQ.

Find out when QuickBooks Payments deposits customer payments.

Let me know if you have any other invoice payment concerns or anything about QuickBooks. I want to make sure I got you covered and I'm always here to keep helping. Have a nice day, mowertech1!

Unfortunately I do not get that option.  This is what 

I appreciate for sharing a screenshot of your concern, @mowertech1. This shows us a clearer picture of why you’re unable to set the email notifications option.

In situations like this, we’ll have to check the setup of your merchant account and QBO. The process requires us to open your account, which I’m unable to perform in the Community for security reasons.

Thus, I suggest contacting our Payments Support Team for further assistance. They have the necessary tools to guide you on how to turn on the Email Alerts option. 

I'm also adding these articles you can utilize to help manage your payments in QuickBooks:

• Take and process payments in QuickBooks Online
• Turn on or off Customer Notification Emails for Recurring Payments 

Don’t hesitate to get back to this thread if you have further concerns with enabling the payment notification for invoices. I’ll jump right back in to assist further. Have a good one.

We are having the same issue. As a catering business, we were very excited to be able to offer the tip option.We send out 20-50 invoices a day. After having this feature on for a month, we have now realized that we have multiple outstanding invoices that have in-fact been paid, but were not closed because a customer added a tip. It would be twice the work for us to go in and try and find which invoices have been paid, and then manually mark them as paid. I am not sure why you would add this feature and not have it automatically record the payment and tip to the invoice. After spending hours in chat with quickbooks, we still received no solution! We now have to go back and match our deposit amounts to invoices just to see if a tip was added and close out each invoice manually. This makes no sense. We might as well just leave the tip feature off and record overpayments. This was a huge inconvenience and should have been executed better and tested before it was rolled out as a new feature.

I appreciate you for reaching out to the Community, @acaomaha.

Your effort in matching the deposited amount just to see if the tip was added and manually closing the invoices is deeply recognized. 

For now, you can submit your feedback to our software engineers. They may consider reviewing this new feature "recording overpayment as a tip" in our future product updates.

Here's how to submit feedback:
 

1. Go to the Gear icon.

2. Below Profile select Feedback.
3. Type in your suggestion and click "Next"

To be in the loop with our new features and product updates, you can check this link: QuickBooks Online Blog.

If you want to learn how to send invoices overtime as you work off an estimates, you can read through this article: Set up and send progress invoices in QuickBooks Online.

Please don't hesitate to reply to this post if you have further invoice-related questions. I'll be happy to lend a hand. Keep safe.