Hi Mirriam,
I am accountant and know very well how to do journal entries. I am relatively new to QBO and find more and more that QBO is not developed well to meet accounting needs compare to QB Desktop version. As I read thru different posts, supposed to be two ways of dealing with paycheck tips paid by patrons. One of them to post them as Tip Income and process the tips thru payroll as expense. Second way,as it is stated, can be done by posting paid tips to current liability account "Undistributed Tips" and then distribute them to employees thru pay checks. The problem with QBO development is that these accounts impossible to link without doing manual work thru creating separate expense account like Paychecks Tips and manually balance "Undistributed Tips" account thru additional J.E.. It does not make sense. In my opinion, QBO should able to link account "Undistributed Tips" on both ends: patrons pay of tips and payments them to employees.
