How do I Deal with Tips in Platinum?
Contents
Summary
This article explains how you can enter and account for tips in Platinum.
More Information
Depending on the method of payment of the tip, you may need to alter how you deal with the money received. Please check with your accountant or HMRC for more specific advice regarding the VAT implications of the money received.
This article covers how to deal with tips added to a card or cheque payment.
You will firstly need to create a new Sales Centre and Nominal Centre for Tips/Gratuities. The Nominal Centre should be a Balance Sheet - Asset/Liability.
Recording tips via Stock Control
- Create a non-moving part number e.g. 'Tips' or 'Gratuities' with a description of 'Tips Recieved' or 'Gratuities Received'.
- Leave the "Standard Selling" price at zero.
- You may create a specific "Group" such as 'zzz' to keep this item at the bottom of any reports you produce.
- Enter the new "Sales Centre" you have created.
- Set the "VAT Rate" to 'Exempt'. (Tax is paid by the employee via their wages or by completing a self-assessment form).
- Save the new code.
When producing your Stock Control invoice, see Selling parts over the counter or Selling stock in Invoicing and Customer Orders, add this stock code to the invoice and enter the value of the tip received. It will be added on to the final bill and paid for with the balance of the invoice.
Accounting for Tips
You may check the balance of tips received using Nominal Review to view the Nominal Centre for tips.
 | Set "Preview" to 'Yes' to allow you to see tips received for months you have not yet closed. |
When the tips are paid out to employees, journal this portion of their wages to Credit the Bank and Debit the Nominal Code for tips.
See also
- How do I create a sales or purchase centre?
- How do I Create Non-Moving Items?
- Selling parts over the counter
- Selling stock in Invoicing and Customer Orders
