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Entering Meal Receipts with Tips into Quickbooks – CANADA and UK

Quickbooks auto-calculates taxes for you when you enter receipts. This is a cool time-saving feature. Where Quickbooks doesn’t do so well with its auto-calculation is when there are tips added to a receipt, such as with meals purchased at a restaurant.

To enter the proper amounts for that restaurant bill into Quickbooks, you need to do one manual calculation.

Let’s take a restaurant receipt as an example.

Entering a Meal Receipt with Tips into Quickbooks

If you pay with a credit or debit card, you usually receive two documents, the restaurant receipt and the credit or debit card receipt. You need both.

In Quickbooks, you need the following information from both receipts.

  1. For the total amount, use the total amount of the meal’s bill plus any tip (1)
  2. For the tax amount, use the total tax amount (2)
  3. For the subtotal, it is (1) - (2) = (3)

If you look at the Quickbooks screen shot, you’ll see where you enter these numbers.

Entering Meal Receipt with Tip into Quickbooks

I hope you found this quick tip (pun intended) useful!

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Working From Bed Pro
February 18, 2013, 8:17 am

This does not work if living in manitoba with 2 taxes

February 18, 2013, 11:58 am

It actually does, you just have to change out the H for G when dealing with taxes. To be more clear, the PST is considered part of the cost of the meal, so the only tax you need to worry about is the GST (as you want to separate out the GST so that you can claim an input tax credit).

So, what you do is take the total amount of the bill, subtract the GST, and you will get the before taxes amount to enter into QuickBooks. Make sense?

November 26, 2013, 12:27 am

Not sure if I'm missing something, but when I follow all of the steps I get a message that the transaction is not in balance and will not let me proceed. If I hit recalculate then it changes all of the numbers.

Kelly Patchet
May 7, 2014, 11:28 am

Yes – you have to re-enter the actual HST number again and then it will submit without an error. Thanks for this – talk about clumsy.