---
title: "Tip Automation Rules"
slug: "tip-automation-rules"
description: "Tip Automation Rules — define how distributions are calculated, including frequency, hours, contributing and receiving jobs, and percentages."
updated: 2025-08-26T19:47:49Z
published: 2025-08-26T19:47:49Z
canonical: "docs.restaurant365.com/tip-automation-rules"
---

> ## 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.

# Tip Automation Rules

## **Navigation**

****Tip Automation Page****

1. Navigate to the [Tip Automation page](/doc/docs/tip-auto-page)
2. In the page header, click the gear icon![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/tip-automation-rules-image-cmw6ybi7.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D) to open the Tip Automation Rules sidesheet.

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/tip-automation-rules-image-jbjd98ii.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

****Tip Distribution Details Page****

1. Navigate to the desired [Tip Distribution Details page](/doc/docs/tip-distribution-details).
2. Click the **Action Menu** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(980).png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D).
3. Select **Rule Configuration.**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image(956).png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

---

## **Security**

**Only users with the following permission will be able to access the Tip Automation Rules sidesheet:**

Labor → Tip Automation → Configure Rules

These permissions can be added to [custom user roles](https://restaurant365.us.document360.io/doc/docs/custom-user-roles) or [individual users](https://restaurant365.us.document360.io/doc/docs/users-overview-and-security). The [Permission Access report](https://restaurant365.us.document360.io/doc/docs/generating-a-permissions-access-report) can be used to determine which user roles or users already have these permissions assigned. For more information, see [User Setup and Security](/doc/docs/user-setup-security-and-location-access).

---

## **Tip Automation Rules Sidesheet**

For documentation purposes, this sidesheet has been broken into the following sections:

**A) Sidesheet Action Buttons**

**B) Rule List -** Location selection and list of tip automation rules for the displayed location

**C) Rule Details -** Details for the selected tip automation rule

- **Information -** Rule name and general settings
- **Time - Frequency** that the tip automation rule will be calculated
- **Contributors -** Settings for contribution calculations associated with **contributing jobs**
- **Receivers -** Settings for receiving calculations associated with **receiving jobs**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-2VJFWKG2.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

### **Sidesheet Action Buttons**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-3NCYJFLY.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

|  | **Field** | **Description** |
| --- | --- | --- |
| **1** | Test Mode Toggle | Places the selected rule in [test mode](/doc/docs/test-a-tip-automation-rule). |
| **2** | Save | Click to save the displayed tip automation rule. > This button is disabled if the displayed rule has not been changed or if required settings are incomplete. |
| **3** | Delete | Click to delete the selected tip automation rule. > Unapproved tip distributions calculated with this rule **will also be deleted.** |
| **4** | Expand/Collapse | Click to expand to full screen, or collapse to half screen if already expanded. |
| **5** | Close | Click to close without saving. |

### **Rule List**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/tip-automation-rules-image-027eclvg.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

|  | **Field** | **Description** |
| --- | --- | --- |
| **1** | Location | Location associated with the listed tip automation rules |
| **2** | + Add New Tip Automation Rule Button | Click to add a new tip automation rule for the selected location |
| **3** | Tip Automation Rule | Tip automation rule name and description. Click to view or edit the rule details. Selected rule is highlighted in blue. |
| **4** | Active Toggle | Indicates if the tip automation rule is active. Tip distributions will only be calculated for active rules. - ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/tip-automation-rules-image-kp0d11r2.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D) - Activated - ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/tip-automation-rules-image-maeir9z9.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D) - Deactivated Click to activate or deactivate the tip automation rule. > This toggle is not displayed for rules in [test mode](/doc/docs/test-a-tip-automation-rule). |
| **5** | Rule Issue Icon | Indicates that the tip automation rule is incomplete or overlaps with another tip automation rule and cannot be saved. |

### **Rule Details**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-ZWH73V99.png?sv=2026-02-06&spr=https&st=2026-10-28T16%3A32%3A19Z&se=2026-10-28T17%3A32%3A19Z&sr=c&sp=r&sig=zfbEpZLx0JL0c36qG4UF42K2VDPT4OQEsCzCCcxDggM%3D)

#### Information

|  | **Field** | **Description** |
| --- | --- | --- |
| **1** | Name | Unique name of the tip distribution rule. This name will appear as the title for calculated and approved tip distributions. |
| **2** | Description | Description of the tip automation rule |
| **3** | Effective Date | Date that tip distributions will begin being calculated using this rule. When creating or editing a tip automation rule, the selected date must be today or a future date. |

#### Time

|  | **Field** | **Description** |
| --- | --- | --- |
| **4** | Frequency | Frequency with which tip distributions are calculated. **Daily** - Tip distributions are calculated and applied to the DSS on selected days only. **Weekly** - Tip distributions are calculated and applied to the DSS for the full operational week on the last day of the operational week. |
| **5** | Start Time | Beginning time for the tip automation rule. 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. The start time must be on or after the first hour of the [business day](/doc/docs/start-of-day-overview). > 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 > Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing jobs. |
| **6** | End Time | End time for the tip automation rule. 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. The end time must be on or before the last hour of the [business day](/doc/docs/start-of-day-overview). > 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 > Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing jobs. |
| **7** | Days of the Week | Days of the week that a tip automation rule with a daily frequency will be calculated. This setting is only displayed when 'Daily' is set as the frequency. > Tip automation hours for selected days **cannot overlap** with other tip automation rules for the contributing jobs. |

#### Contributors

|  | **Field/Button** | **Description** |
| --- | --- | --- |
| **8** | Contribution is based on | **Sales** - Tip distribution pool amount is calculated as a percentage of sales associated with contributing employees during the hours of the tip automation rule. When selected, the 'Sale(s)*' field is displayed (#10). **Tips** - Tip distribution pool amount is calculated as a percentage of tips collected by contributing employees during the hours of the tip automation rule. |
| **9** | Funding On | **Job Title** - Contributing employees will be determined by the job(s) worked by each employee. Only employees who work the selected jobs (#12) will contribute to the distribution pool. **Service Type** - Contributing employees will be determined by POS service types. Only employees with sales associated with the selected service types (#12) will contribute to the distribution pool. |
| **10** | Declared tips paid with payroll | Indicates if cash tips are included when calculating each contributing employee's owed tips. - Deactivated - Declared tips are paid directly to the contributing employee and are not included in total tips or owed tips calculations. - Activated - Declared tips are not paid directly to the contributing employee and are included in total tips and owed tips calculations. |
| **11** | Job(s) / Service Type(s) | Jobs or service types contributing to the tip distribution pool. When 'Funding On' (#11) is set to **Job Title**, contributing jobs are selected. - Employees who have **worked hours** under a contributing job during the hours associated with the tip automation rule **will be included as contributors** to the tip distribution. - Only jobs with a Tip Designation of 'Directly Tipped' on their associated [Job Record](/doc/docs/job-records) can be assigned as a contributing job. When 'Funding On' (#11) is set to **Service Type**, contributing service types are selected. - Employees who have **sales** associated with a contributing service type during the hours associated with the tip automation rule **will be included as contributors** to the tip distribution. > Contributing jobs or service types **cannot overlap** with other tip automation rules for the same hours. |
| **12** | Contribution Percentage | Percentage of sales or collected tips used to calculate the amount of tips contributed to the tip distribution pool by the contributing employee. > Tips that are not contributed to the tip distribution pool will be included in the contributing employees' owed tips totals. |
| **13** | + Add Contributor Group Button | Adds an additional group of **contributing jobs/service types** with a different contribution percentage**.** |
| **14** | Sale(s)* | Sales categories included in contribution calculations. This field is only displayed when 'Contribution is based on' (#9) is set to Sales. When Net Sales is selected, employee contribution amounts will be calculated as a percentage of their net sales. - > When Net Sales is selected, additional sales categories cannot be selected. When one or more sales categories are selected, employee contribution amounts will be calculated as a percentage of their sales from the selected categories only. - > When one or more sales categories are selected, Net Sales cannot be selected. > The available sales categories will match the categories provided by the POS. |

#### Receivers

|  | **Field** | **Description** |
| --- | --- | --- |
| **15** | Tips are divided by | **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. |
| **16** | All jobs receive the same percentage of the tips | When **enabled**, the tip distribution pool is divided evenly between all receiving jobs. When **disabled**, the tip distribution pool is split by percentage between the receiving jobs. |
| **17** | Job(s) | Jobs that will receive distributed tips. Employees who have **worked hours** under this job during the hours associated with the tip automation rule **will be included as receivers** of the tip distribution. Only jobs with a 'Tip Designation' of 'Directly Tipped' or 'Indirectly Tipped' on their associated [Job Record](/doc/docs/job-records) can be assigned as a receiving job. |
| **18** | Split Percentage | Percentage of the tip distribution pool assigned to the **receiving job**. This setting is only displayed when 'All jobs receive the same percentage of tips' is disabled. > The total split percentage for all receiving jobs must total 100% |
| **19** | +Add Receiver Group Button | Adds an additional group of **receiving jobs** with a different split percentage. |
| **20** | xx / 100% Distributed | Total percentage of the tip distribution pool already assigned to all receiving jobs. This field only appears when the 'All jobs receive the same percentage of tips' setting (#16) is disabled. > The total split percentage for all receiving jobs must total 100% before the tip automation rule can be saved. |
| **21** | Receiver Back Up Behavior | Determines how undistributed tips are handled when there are no clocked hours for any job in a receiver group. This field does not appear when the 'All jobs receive the same percentage of the tips' setting is enabled (#16) **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. |

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).