Shopify Tips Handling In Bookkeep | Build with Bookkeep

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Bookkeep automatically captures and posts Shopify tips (gratuities) in a way that ensures clear visibility, accurate reporting, and proper separation from sales revenue.

This article explains how tips are handled and where they appear in your accounting system.

How Bookkeep Handles Shopify Tips

Bookkeep automatically identifies Shopify tip amounts and posts them to a dedicated line:

Gratuity Collected (line in your mapping setup)

This ensures:

• Tips are separated from sales revenue
• Financials remain clean and auditable
• Reporting reflects true operational earnings

Accounting Treatment

When a Shopify order includes a tip, Bookkeep:

1. Detects the gratuity amount from the Shopify transaction data
2. Excludes it from product sales and tax calculations
3. Posts it to a dedicated Gratuity Collected line item in your accounting system

Why This Matters

Separating tips from sales provides:

1. Clean Revenue Reporting

• Product sales remain accurate and uninflated
• Tips are not incorrectly treated as revenue

2. Clear Liability or Pass-Through Tracking

• Tips can be tracked independently depending on your accounting treatment

3. Improved Transparency

• Clear visibility into customer gratuities

Mapping Behavior

The Gratuity Collected line can be:

• Mapped to a liability account (common for pass-through tips)
• Or mapped to income if your accounting policy treats tips as revenue

Bookkeep gives flexibility based on your accounting requirements.

Summary

Bookkeep automatically captures Shopify tips and posts them to a dedicated Gratuity Collected line, ensuring that gratuities are clearly separated from sales revenue and accurately reflected in your accounting system for full transparency and clean financial reporting.