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Part VII: Appendixes > Sales & Customers Preferences

Sales & Customers Preferences

Click the Sales & Customers icon in the Preferences window to set some standard sales options that apply to all your invoices. You can always override these options on the actual invoice form. The preferences are listed as follows:

  • Usual Shipping Method— Is there one method of shipping you use time and again? Choose the carrier that you prefer, and your entry appears on all your sales forms (see Figure C.17).

    Figure C.17. Choose sales options that apply to all the invoices that your company issues.

  • Default Markup Percentage— Enter an amount for standard markup. Any items that you purchase and resell are affected by this amount. To enter a 20-percent markup, enter 20 in the space provided. A 10.5-percent markup needs to be entered as 10.5. QuickBooks fills in the percent (%) sign.

  • Usual FOB— Choose the normal FOB status that applies on your sales. Enter Destination if your company pays to ship the order to its destination and retains ownership of the item until it reaches its final destination. Enter Our warehouse if the customer pays to ship the item from your warehouse and takes over ownership at the time of shipment. This status is for your information only, can be overridden on the actual invoice, and has no accounting implications.

    → To find more information on the meaning of FOB (Free on Board) and its importance to your company, see the “Tip” on p. 211.

  • Track reimbursed expenses as income— When you make a purchase and expect reimbursement from your customer, does that reimbursement offset the purchase price, or do you report it as income? If you report reimbursements as income, check this box. If you don’t use this option, QuickBooks relieves the expense account by the amount of the reimbursement, and the result on your income statement is as if no transaction had occurred.

  • Automatically apply payments— If this box is checked, payments you receive are applied to outstanding invoices, the oldest invoice first. An exception to the oldest first rule is if the payment exactly matches one of the outstanding invoices—even if the invoice is not the oldest outstanding invoice, a payment will be applied to the matching invoice. If you leave the Automatically apply payments box unchecked in the preferences window, when you receive a payment and open the Receive Payments window, QuickBooks displays the outstanding invoices for the customer but makes no attempt to apply the payment to any particular invoices.

  • Warn about duplicate invoice numbers— Check this box if you want QuickBooks to indicate that you are about to issue an invoice with a number that has already been used.

  • Use Price Levels— You can automatically increase or decrease inventory, non-inventory, and service item prices by using the Price Levels feature. You give a name to a particular price level, and then use that name on sales forms to adjust the price of an item. For example, you can create a price level called “special discount” and specify a decrease of 20%. Then when you sell an item and attach the “special discount” price level, the amount of that item is automatically reduced by 20%.



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