Collect, Track, and Pay Out Tips


Article covers how to handle tips are paid by cash, credit card, check, custom payments and gift cards.   It also deals with splitting tips and recording them for accurate reporting. Reports available in Zenoti show tip collections, which can be used to pay out tips on a daily basis or as part of payroll.

Using Zenoti you can do the following:

  • Collect tips in cash regardless of the customer’s payment method for their appointment. For example, the customer can pay for their appointment via credit card and pay for the tip using cash.
  • Tips can be paid using cash, credit card, check, custom payments, and gift cards. 
  • The ability to auto-generate a suggested tip amount for your front desk. For example, if on your service menu or otherwise you suggest a tip of 20%, you can define this in the system. The system will calculate 20% of the invoice value so that no manual calculation is required.
  • Split tip payments between payment methods. For example, if a customer wanted to give $30 in tips, she could split the payment between $10 on a gift card and $20 with cash.


As the first step, ensure that your organization settings are enabled to add a tip at the invoice level and to track it. Follow these steps to do so:
  1. Make sure you are in the organization view
  2. On the main menu, click Admin
  3. On the Admin dashboard, click Organization > Organizations.
  4. On the Edit Organization window, click the Settings tab, and then click Invoice and Receipt to open it.
  5. Select the Allow entry of tip amounts checkbox.
  6. To show a different label for the Tips box in the invoice, such as gratuity, enter the label in the Tips Label box.
  1. Make sure you are in the organization view.
  2. On the main menu, click Admin.
  3. On the Admin Dashboard, click Organization > Centers.
  4. On the Manage Centers list, click the name of the center you want to modify.
  5. Click on the Settings tab, and then click Invoice & Receipt.
  6. To allow splitting tips between therapists, click the Allow splitting of Tips checkbox.
  7. To suggest tips, in the Suggested Tip field, enter a percentage value. The system auto fills the tips box in the invoice with the specified percentage calculated on the actual price of the services in the invoice, without taxes or discounts.
  8. Click Save. Repeat the above steps to add suggested tips to other centers.
  1. Open the invoice and start taking the payment.
  2. In the Collect Payment section, select a payment type. 
  3. If a suggested tip is not displayed, in the Tip field, enter the tip amount.
    Note: The tip field remains blank if your center does not have a percentage entered in the suggested tip field in the center settings.  If a percentage is entered, a suggested tip amount is calculated based on the services included in the invoice, before adding tax and discount.  The suggested tip can be adjusted according to the guest's preference.
  4. The value in the Amount field changes based on the tip.  
    Click Add Payment.
  5. The invoice amount is added to the Amount column below while the tip amount is added to the Tip column.
  6. The shows the tip amount, in the Total tip field, 
  7. Click on Close & Print to print the receipt. The receipt shows the tip amount as well.
    • Both the service and tip payments are printed on the receipt. For example, if the customer pays for the appointment with membership credits and for the tip using a credit card, both of them are shown on the receipt.
    • Cash tips cannot be refunded.  
    • Credit card tips can be refunded to the same credit card.

If a guest pays tip using a credit card, and you pay out tips to employees at the end of the day, you need to use cash from your petty cash register. 

To add an appropriate category to the petty cash register, follow these steps:

  1. Make sure you are in the organization view.
  2. On the main menu, click Admin.
  3. On the Admin Dashboard, click Categories > Petty Cash.
  4. In the Manage Petty Cash Categories window, click the Add button
  5. In the Create New Petty Cash Category screen, enter Tips in the Category Name field
  6. Type a description, and then click Add Category.

  7. Repeat these steps to create a category called Tips Inward.

After you add petty cash categories you need to enter the tips paid using credit card, check, custom payments, and gift cards in your end of day closure. To close your daily accounts, you have to first access the Split Tips report to check tips paid by cash, credit card, credit card, check, custom payments and gift cards against each employee.

  1. Make sure you are in the Center view.
  2. On the main menu, click Employee.
  3. On the Employee Dashboard, click Reports > Sales.
  4. In the Select a Report list, click Split Tips. 
  5. Optionally, in the By Sale Date field, you can select either By Collection Date or By Closed Date.
  6. Optionally, in the All field, you can select Closed or Open invoices. 
  7. In the Select Time Period list, select a time period. If you select Custom, enter a From and To date for the report using the calendar drop downs. 
  8. Optionally, in the Select sale by id list, you can select a specific employee’s name. 
  9. In each invoice check if the customer paid the tip using their credit card, check, custom payments, gift cards, or cash and if the tip was split between therapists.
    Note: Since tips are listed according to the invoice, make sure to click the Split Tip button in each invoice and check if the tip is split between therapists.
  10. After checking all invoices with tips, create a total of tips paid using credit card, check, custom payments, and gift cards and note the tip amounts to be paid to each therapist.  
  1. On the appointment book, click an empty time slot, and then click Petty Cash.
  2. In the Entry type field, click Receipts.
  3. In the Source listclick Other.
  4. In the Category list, click Tips Inwards.
    Note: Tips inward is usually money deposited (as other cash) by the owner or manager to pay daily tips to therapists.
  5. In the Description field, type any helpful notes.
  6. In the Amount field, enter the total Tip Inward amount coming into petty cash.
  7. Click Add. The amount appears below as a petty cash receipt.
  8. Click Save
    : Putting money into petty cash using the “Tips Inward” category ensures your petty cash register always has sufficient balance to handle the payment of tips, in addition to other expenses. At the end of the month the owner can withdraw the total amount handed out as monthly tips from the credit card receipts. 
  1. Click an empty appointment block, and select Petty Cash.
  2. In the Category drop down box select Tips.
  3. In the Description field, enter a description and the therapists who were paid tips.
  4. In the Amount field, enter the total tip amount.
  5. Click Add. The total tip amount paid to the therapists appears below.
To pay tips to the therapists during payroll

Zenoti shows the tips earned by the employees in your center during a pay period in the Payroll report. Learn how to run the Employee Payroll report.

A guest might avail services from multiple service providers when you might need to share tips between multiple employees. You can use the Split Tips feature to do so. Note that to split tips, the feature needs to be enabled for your center. 

  1. Open the guest invoice and start taking the payment. Learn how to.
  2. Click the Split Tip button next to Total tip.  
  3. In the Split Tips screen that opens, the total tip is proportionally allocated to employees as per the service provided.
  4. Click in the TIP field to change the amounts.
  5. To add more employees to share the tips, click the employee name in Select Employee list.
  6. In the Tip field, enter the tip amount
  7. Click Add. The name of the provider is added to the list.
  8. Click <

To split tips in a group invoice, you first need to add invoices to a group bill and collect the payment, including the tip. Now you need to split the tip between invoices added to the group bill as follows:

  1. In the Collect Payment section of the POS window, click Split Tips.
  2. In the Split Tips dialog, the total tip is automatically split between the therapists according to the service provided.
    For example, if there are two services ($90 and $40) and if a $15 tip is provided, $10 is assigned automatically to the $90 service and the rest of the tip goes to the latter. However, If the guest suggests a different amount for each service provider, this tip can be adjusted in the Split Tips dialog. In case products are sold and an employee name is not selected in the POS, a tip is reserved and paid out after an employee is assigned.
  3. In the Select an Invoice list, select the invoice number against which you want the tip adjusted. Only the invoice numbers listed in the bill are shown here.
  4. In the Select Employee list, click the name of the therapist on the service. Make sure the employee is the same person who is listed in the invoice number.    
  5. In the Tip box, enter the tip amount you want give the employee.
  6. Click on the red ‘X’ icon next to invoice number, and then click Yes to delete the employee and tip amount. This deletes the original invoice number, employee name and tip amount and you can then add the new tip.
  7. Click Add. The new tip amount for the invoice is added. All the tip amounts when added should be equal to the total tip paid for the group bill.
  8. Click Save
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