Thank you for getting back to us, Jsanti.
Let's go back to the sales phase where the tip is set up as an item with a liability account in its Income account field in the item profile. When there is a sale, the liability increases. That liability account should also be the account assigned to the Tip payroll item so that when you process payroll, its balance decreases. I suggest contacting our QBO Payroll Support for UK accounts for the setup.
If the Tip hits and increases the payroll expense account when creating payroll, you can journal the tip amount from payroll expense to the liability account after running payroll. That way, both of their balances will decrease.
I'd like to include these articles for your additional reference:
Feel free to reach back out if you have other questions in mind. Take care and have a good one!
