Service charge and gratuity, handled properly

A service charge and a tip are not the same thing, and treating them the same is how invoices end up wrong. 1pm now keeps them straight.

Service charge: mandatory and taxable

Add a service charge as a percentage of the bill. It’s taxable, so it feeds the tax line the way the rules expect, and you can exclude individual lines from it, so a flat delivery fee or a bought-in item isn’t marked up when it shouldn’t be. The charge recalculates as the lines change.

Gratuity: voluntary and untaxed

A gratuity is a voluntary amount on the invoice that sits outside tax entirely. It’s added at the invoice level, not per line, and it’s kept separate from the service charge so the totals read honestly to the client and to your accounts.