x
Beta Member

Don’t include service charges in net sales

Please update the net sales calculation 

automatic gratuity is servers tips

currently you are adding service charges to net sales.

Restaurant doesn’t make the money, please make sure you are not adding service charges/automatic gratuity into the net sales please.

 

thank you! 

Message 1 of 9
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8 REPLIES 8
Beta Member

Any update on this request please?

Message 2 of 9
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Square Community Moderator

Apologies, but we do not have any updates at this time. 

Message 3 of 9
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Fired a response to you on another thread, but compulsory charges, whether labeled "service charge" or "auto gratuity" cannot be included in tips. Square for Restaurants is doing what is legally required.

 

https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

Message 4 of 9
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We give our servers the Automatic Gratuity

Restaurants don't keep them so adding them into Net Sales doesn't make sense for record keeping prospective.

 

Not sure how your book keeper is following but currently none of our reports are correct because the Net Sales include the Service Charges (Automatic Gratuity)

 

My feature request is NOT include Automatic Gratuity or Service Charges into Net Sales.

Message 5 of 9
127 Views
Beta Member

Currently in Square for Restaurants you are adding Service Charges with the Net Sales

Service Charges are either Gratuity or Tips for our servers

Please exclude the Service Charges from the Net Sales

So our reporting is accurate please

Right now it is not accurate.

Message 6 of 9
174 Views
Beta Member

@BernadetteA 

 

Is there any update on the request?

 

Sales Summary report to exclude service charges from Net Sales, please

 

Thank you

Message 7 of 9
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Square Community Moderator

Hi @sbrockz I checked in with the team, and the reports are showing accurately. Please reference this article if you have additional questions. 

Message 8 of 9
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Beta Member

@BernadetteA 

I understand the IRS article but you guys are not understanding the basic concept here.

Automatic Gratuity as you roll up under service charges belong to the server and they take them home 

The restaurant doesn't keep the service charges so technically it is not NET SALES, yes it is part of the GROSS SALES but not net sales.

The requirement here for you guys to deduct service charges from the NET SALES not ADD IT where it becomes complicated and ALOT OF MANUAL CALCULATIONS.

Message 9 of 9
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