The meals are taxable while the tips are not. Can I record both of them together, without applying tax on the tip?
Yes, this can be done by itemizing your expense. Here’s how it is done:
- Navigate to Expenses.
- Create a new expense by clicking +New.
- Enter the Date and Merchant name.
- Click Itemize.
- Select the appropriate category for meals and tips.
- Apply tax only on the meals expense.
- Fill in the rest of the details and Save the expense.