Customer Tips

snappyfish

When a customer gives me a cash tip, whats best to record this?

Sometimes when a customer comes to buy something, every now and then they don't want a receipt. So I created a customer called "cash customer" for this example.

So should I do the same for "cash tips"

Centanni

@snappyfish

If I'm invoicing them and they tip me, I add it to the invoice after the fact. I made a "Customer tip" item for my invoices. I make the change and I mark the invoice as paid. That item is linked to a "Tips" income account, so it doesn't get mixed in with my sales.

If I wasn't making an invoice, I'd just create an income transaction, split it between Sales and Tips as necessary.

snappyfish

@Centanni said:
@snappyfish

If I'm invoicing them and they tip me, I add it to the invoice after the fact. I made a "Customer tip" item for my invoices. I make the change and I mark the invoice as paid. That item is linked to a "Tips" income account, so it doesn't get mixed in with my sales.

If I wasn't making an invoice, I'd just create an income transaction, split it between Sales and Tips as necessary.

Thanks, I didn't release you don't pay NI on tips. I need to check through and make an income account for tips in that case.

Alexia

Just throwing in quickly here, @snappyfish and @Centanni.

Keep in mind that the laws on what does and doesn't apply to tips change from country to country. However you do end up keeping track of those tips, check in with an accountant familiar with your local tax administration first, just to make sure you're doing everything right.