Good day Rowan,

Sage 50c Pastel POS does not have a function to handle tips. A suggestion is to use the daily cash float to pay the tips in cash and bank the tips paid by card. You can increase the daily cash float by the average daily tips amount and reallocate the cash float, which will balance out the card amount. 

Please test this in the Demo company and see how it affects reports.

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Te biggest problem is that the client has very little cash transactions and thereby it would deplete their float within days.

Can we perhaps do a service item as "tips/Gratuities" and balance the transaction to match the card amount. Then do an EFT at the end of the week to the different waiters?

That can work, but instead of a service item, I suggest using a GL account for tips / gratuities.

Test it out as well.