--- title: "Create A Tip Automation Rule" slug: "create-a-tip-automation-rule" description: "Create a tip automation rule — configure name, location, frequency, contributing jobs, receiving jobs, and contribution percentages." updated: 2025-08-21T21:27:48Z published: 2025-08-21T21:27:48Z canonical: "docs.restaurant365.com/create-a-tip-automation-rule" --- > ## Documentation Index > Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt > Use this file to discover all available pages before exploring further. # Create A Tip Automation Rule ## **Create A Tip Automation Rule** First, navigate to the [Tip Automation page](/doc/docs/tip-auto-page), then follow these steps to create a tip automation rule: *Click steps to expand for additional information and images.* ****1)** Click the **Gear** icon to open the [Tip Automation Rule sidesheet](/doc/docs/tip-automation-rules).** ![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/create-a-tip-automation-rule-image-1dcp8sfx.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****2)** Select the desired **location.**** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(981).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****3)** Click the **+Add New Tip Automation Rule** button.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(982).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) **Enter 'Information' details:** ****4)** Enter the rule **Name.**** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(983).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****5)** Enter the rule **Description.** (Optional)** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(984).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****6)** Select the **Rule Effective Date.** The selected date must be today or a future date.** This is the first date that tip distributions will be calculated using this tip automation rule. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-962JO8UP.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) **Enter 'Time' details:** > Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing jobs. ****7)** Select the rule **Frequency:**** - **Daily** - Distributions will only be generated on the selected day(s). - **Weekly** - One distribution will be generated on the last day of the week for all days in that week. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-HDWRDBX5.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****8)** Enter the **Start Time.**** Only employees with worked hours between the 15-minute interval start time and 15-minute interval end time of the tip automation rule will be included in the tip distribution. Start times and end times are in 15-minute intervals. Selecting a time within a 15-minute interval will include the entire 15-minute interval. > **Example intervals:** > > - 12:00 - 12:14 > - 12:15 - 12:29 > - 12:30 - 12:44 > - 12:45 - 12:59 ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-RC8YVW0L.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****9)** Enter the **End Time.**** Only employees with worked hours between the 15-minute interval start time and 15-minute interval end time of the tip automation rule will be included in the tip distribution. Start times and end times are in 15-minute intervals. Selecting a time within a 15-minute interval will include the entire 15-minute interval. > **Example intervals:** > > - 12:00 - 12:14 > - 12:15 - 12:29 > - 12:30 - 12:44 > - 12:45 - 12:59 ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-0R4UOG5J.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****10)** If the Frequency is set to Daily, select the **Days of the Week**:** Tip distributions will only be generated for this rule on the selected days. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-J1FSA767.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) **Enter Contributors details:** ****11)** Select **'Contribution is based on'** type:** **Sales** - A percentage of sales will be contributed. **Tips** - A percentage of tips will be contributed. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-BR9AAJBR.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****12)** Select the **Funding On** type:** **Job -** Contributing employees are determined by the job(s) that they work. **Service Type -** Contributing employees are determined by the service type(s) associated with their sales. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-0MSEECJ6.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****13)** Enable/disable the ‘**Declared tips paid with payroll'** setting.** When 'Declared tips paid with payroll' is enabled, declared tips will be included in contributors' 'Total Tips' and 'Owed Tips' calculations. ****14)** Select the desired contributing job(s) or service type(s) from the **Job(s)/Service Type(s)** dropdown menu.** > Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing job(s)/service type(s). If the Funding On type is **Job**, [jobs](/doc/docs/job-records) are selected. > Only jobs with a tip designation of 'Directly Tipped' can be selected. If the Funding On type is **Service Type**, service types are selected. > Service types are defined by the POS. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-DCO6I0JU.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****15)** Set the **Contributes Percentage** for the selected group of contributing job(s)/service type(s).** This is the percentage amount of sales or collected tips that a contributing employee will contribute. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-GTMHHY4M.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****16)** Click **+Add Contributor Group** to assign an additional group of contributing job(s)/service type(s) that will have a different associated Contributes Percentage (optional).** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-PPE84MAV.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****17)** If the contribution is based on Sales, select the **sales categories** that will be included in the sales contribution calculation.** If Net Sales is selected, no other sales categories can be selected. If one or more sales categories are selected, Net Sales cannot be selected. > Sales categories are defined by the POS. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-X8GBJQSA.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) **Enter Receivers details:** ****18)** Select the desired **Tips are divided by** option:** **Worked Hours** - Employees receive a proportional amount of tips based on the number of hours they worked during the hours associated with the tip automation rule. **Evenly** - Employees receive an even amount of tips regardless of the number of hours worked during the hours associated with the tip automation rule. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(993).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****19)** Enable/disable **'All jobs receive the same percentage of the tips'** setting.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(994).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****20)** Select desired receiving job(s) from the **Job(s)** dropdown menu.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(995).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) If the 'All jobs receive the same percentage of tips' setting is **disabled**: ****21)** Enter the **Splits Percentage** for the first group of receiving job(s).** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(996).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****22)** Click **+Add Receiver Group** to assign an additional group of receiving jobs with a different Splits Percentage.** Total Splits Percentage for all receiving job groups must equal 100% before the rule can be saved. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(997).png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) ****23)** Select the **Backup Behavior**.** **Return Tips to Contributor** - Undistributed tips are returned to the associated contributing employee. **Distribute Tips to Other Receiver(s)**- Undistributed tips are distributed proportionally to the receivers in other receiver groups. - > If there are no receiver groups with clocked hours, undistributed tips will be automatically returned to the associated contributing employee. ![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/create-a-tip-automation-rule-image-30mr5w6z.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) **Save the tip automation rule:** ****24)** Click **Save** in the sidesheet header to create the tip automation rule.** ![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/create-a-tip-automation-rule-image-ntru57mr.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) --- ## Testing Tip Automation Rules After creating a rule, test distributions can be created by [placing the rule in test mode](/doc/docs/test-a-tip-automation-rule). When in test mode, test distributions are created using historical data and new distributions from updated DSS data are not created. Test distributions cannot be approved and **do not** add tip earnings to the DSS. If deleted, test distributions can be recreated at any time by placing the rule in test mode again. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-L7KF1E0H.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) --- ## **Locations With No Tip Automation Rules** When the location selected on the [Tip Automation page](/doc/docs/tip-auto-page) has no tip automation rules configured, the Pending and Approved tabs will display a message informing the user there are no tip distributions yet. Clicking '**Create a Tip Automation Rule**' will open the [Tip Automation Rule sidesheet](/doc/docs/tip-automation-rules). ![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/create-a-tip-automation-rule-image-dp3jpny8.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) When the location selected on the [Tip Automation Rules sidesheet](/doc/docs/tip-automation-rules) has no tip automation rules configured, the ‘+Add New Tip Automation' button will be disabled and a placeholder rule titled 'New Tip Automation Rule' will be automatically selected. Completing and saving the displayed tip rule details will create the first tip automation rule for that location. Once a tip automation rule for a location is created, the placeholder rule is no longer displayed and the '+Add New Tip Automation Rule' button is enabled. ![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/create-a-tip-automation-rule-image-yjj58ubx.png?sv=2026-02-06&spr=https&st=2026-11-01T02%3A41%3A16Z&se=2026-11-01T03%3A41%3A16Z&sr=c&sp=r&sig=%2FUpv%2BQj1fKcyVo0NTfxNU24iLWKgzJDgjsHh1p2V1Xw%3D) Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing jobs. POS (Point of Sale) A system used by businesses to process sales transactions and manage customer payments. Connected to R365 through a [POS integration](/doc/docs/pos-integration-overview).