Auto Gratuity Versus Tips

Auto gratuity, or gratuity, is not considered to be a tip. Gratuity is a “House Charge” generally reserved for large parties. Auto Gratuity is often seen as a sale, which may be taxable revenue. Tax laws for gratuity vary from region to region. For more information on gratuity requirements, please contact your local tax advisor. Depending on the business, gratuity may or may not be paid to staff. The options for gratuity can be modified in the Advanced Location Settings.

Tips attributed to servers, and other staff, are not usually considered restaurant revenue.


Tips and Auto Gratuity, whether cash or card, are attributed to the server that begins the order in Lavu. Both are reported separately in the Lavu Control Panel in Reports > Other Version 1 Reports (Blue Button) > Server Sales w/ Tips:

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