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How Are My Tips Transferred?

When "Transfer Tips" has been enabled, Commerce Sync maps to a Liability account.

The Commerce Sync default is to transfer your tips into a liability account called "Clover Tips," or "Square Tips."

You may change which account they transfer to at any time. In your Commerce Sync Dashboard, click View in the Settings box on the webpage, scroll down to the Tips section and click the drop-down menu to select an account and item to use for the transfer.

Only liability accounts will appear in the drop-down because tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers, since tips are not income for the business, but for employees, so income accounts will not appear in that dropdown. 

* Please note that in QuickBooks, accounts are referenced by items when we transfer your sales information. The default tip item "Clover Tip" is associated with the default tip account "Clover Tips". If you associate your tips to a different account, please make sure you create a new tip item for that account.

Note: Although tips information is transferred to a liability account, tips payment information is transferred along with (or, included in) your payments information transfer, and is therefore transferred to the accounts in your books that your clearing accounts are set to (the default for all tender types is Undeposited Funds).

If you collect tips on your POS you must ensure that you have the "Transfer Tips" setting enabled, if it is not and you collect tips on credit cards, the sale data will not be able to transfer over.

If you have questions about Auto Gratuity or Service Charges, please view our help article on it.

Updated 8/4/2021

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