The Sales Preferences screen lets you enter company-wide defaults that affect customer invoices, credit memos, and refunds.
We strongly recommend that you set these preferences and defaults before using these customer-related functions.
You can use the fields on this screen to define the special accounts required for the Sales module to carry out its internal processes.
Note: You can set additional invoice options on the Set Up Invoice Print Options screen.
To set preferences for invoices and payments:
1. Select Preferences from the Sales menu to open the Sales Preferences screen.
2. Use the drop-down lists in the fields in the Account Information section of the screen to specify default accounts to use when entering sales transactions:
§ Revenue: The primary account to credit when entering customer invoices. This account appears by default when you enter a customer invoice, but any other revenue account can be substituted.
§ Deposit: The liability account to credit when entering an unapplied payment.
§ Return and Allowance: The revenue account to debit when issuing credit memos.
§ Discount: The revenue account to debit when issuing customers a discount on an invoice.
§ Write Off: The expense account for writing off receivables you do not expect to collect .
3. Select options in the Invoice Specification section to set defaults for generating invoices:
§ Auto Apply Deposit and Credit Memo: Select this option to apply deposits and credit memos on customer invoices by default.
§ P.O. Number: Select this option to display purchase order numbers on invoices.
§ Ship Via: Select this option to set a shipping method that appears by default when you generate invoices, and select the appropriate method from the drop-down list.
Note: You can change the method on individual invoices, if necessary.
§ Payment Terms: Select this option to display payment terms on invoices, and use the drop-down list to select the default terms to apply from the list of industry-standard terms.
Alternatively, use the If Custom Terms, Description, and Days fields to enter custom terms.
Note: You can change the terms on individual invoices, if necessary.
§ Freight: Select this option to apply charges for shipping and handling for company products, and use the drop-down list to identify the revenue account for freight charges.
§ Tax Freight: Select this option to charge tax on freight charges. Tax on freight is charged at the same rate as sales tax.
4. Enter descriptions for up to three custom fields to include on customer invoices in the Custom Entries section.
For example, you could add a Mileage column or a Tracking Number field to your invoices, and then fill in the specific information on individual invoices.
5. Select the Sales Tax option in the Sales Tax Specifications section if the company collects sales tax, and use the options in the panel to set sales tax-related defaults.
§ Sales Tax Account: Select the liability account to use when collecting sales tax.
§ State: Use the drop-down list to specify the primary state for which you collect sales tax. This state is selected by default when you create a new customer, but you can change the state, if necessary.
§ County: Select the specific county for which you collect sales tax from the drop-down list. If the state you specified has a uniform sales tax (for example, New Jersey), only one county is listed.
§ Tax Rate: Verify the listed tax rate. By default, this field displays the rate for the state and county you select.
6. Use the fields in the Finance Charges Setup section to specify defaults if you collect finance charges on overdue customer accounts.
§ Finance Charges Account: Use the drop-down list to select the account to use when applying finance charges.
§ Annual Interest Rate: Specify the annual rate to apply to overdue accounts.
7. Click Save to save your preferences and apply them to customer invoices and payments.