What if a customer adds a tip to their payment? When a customer did this, the amount went to Unapplied Amount. What now?

It's a pleasure to help you handle unapplied amounts in QuickBooks Online, @mikemark312003.

To begin, let's create an account and an item for the tip. By doing so, you'll be able to keep track of your customer's tips.

The tip account is created automatically once you turn on the Tips feature. Otherwise, you can create it manually:

1. Go to the Gear icon in the upper-right corner and choose Chart of Account.
2. Select the New button and select Other Current Liabilities in the Account Type field.
3. Select Other Current Liabilities in the Detail Type field.
4. Enter the account name and click Save and Close.
   
   

Then, let's associate the account to the tip item:

1. Go to the Gear icon in the upper-right corner and choose Products and Services.
2. Click the New button and select Service or Non-inventory as the item type.
3. Enter the tip details and go to the Sales information section.
4. Enter Undistributed Tips in the Income account field.
5. Remove the checkmark in the Is taxable box.
6. Click the Save and Close button.

Now, you can include it as an item on the invoice with the unapplied amount. The tip item won't affect your sales revenue as long as you set up the associated account correctly.

I'm also adding this link to guide you create and send invoices in QuickBooks Online.

You'll want to personalize your invoices. Here's how to create custom templates in QuickBooks Online.

Please don't hesitate to leave a comment if you have further concerns about recording tips in QuickBooks Online. I'm just around if you need help. Have a pleasant day.

Hi, @mikemark312003.

Hope you’re doing great. I wanted to see how everything is going about the unapplied amount concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!