Certain POS systems will calculate the increased Credit Card fee for the portion of the bill that is related to the tip. The system will also allow the user to retain that amount from the tips payable to pay for the Credit Card fee. If this approach is taken, Restaurant365 Payment and Sales Type accounts will need to be updated to ensure the correct General Ledger Accounts are being affected. Click here to learn more about Payment Type Accounts or Sales Type Accounts.
Payment Type Account
Depending on how the tips are paid (cash at the end a shift or through payroll) affects how the accounts are set up. First, navigate to Payment Type Accounts by clicking 'Payment Type Accounts' under the 'Administration' listing of the 'Accounting' module.
Payment and Sales type accounts are generated by the POS, so depending on the system the title of the accounts will be different, but it is typically something similar to ‘Tip Reduction’. Locate this account and double click to select it.
If paying tips in cash at the end of a shift, set the GL Account to the same account that cash would normally be assigned to. The Payment Group should be set to cash (i.e. Undeposited Funds), which tells the system that the cash will be retained rather than paid out to employees as tips.
If paying tips through payroll, set the GL Account to 'Tips Payable' and the Payment Group to ‘Credit Card Individual’. This is like setting the Payment Group as None.
Sales Type Account
The configuration of the Sales Type Account is the same for either option above. Locate the Sales Type Account in the left navigation bar by clicking 'Sales Accounts' under the 'Administration' listing in the 'Accounting' module.
The Sales Type Account to be updated should also be titled similarly to ‘Tip Reduction’. Locate this account and double click to select it. Assign the GL Account to whichever expense relates to Credit Card fees and the Sales Account Type should be set to ‘Standard (none)’.
Before exiting from any of the previous screens, save the changes made by selecting a 'Save' option from the upper left corner of the window.