Learn how to turn a customer overpayment or credit into a tip in QuickBooks Online.
When a customer overpays an invoice to give you a tip, you need to record the income. Here’s how.
Step 1: Add an income account to track tips
- Go to the Accounting menu and select Chart of Accounts.
- Select New.
- For Account Type, select Other Income.
- For Detail Type, select Other Miscellaneous Income.
- Enter a Name, like "Tip Revenue" and select Save and Close.
Step 2: Create a tip item
- Go to the Settings ⚙ icon and select Products and Services.
- Select New, then Non-inventory.
- Enter a Name, like "Tips."
- For Income account, select the account you created in step 1.
- Select Save and close.
Step 3: Record the extra money as a tip
State laws vary on unclaimed funds. If your customer paid you too much in error, you should contact them and arrange for a refund.