Categorizing your customers is one way to see what parts of your business are doing better than others. In QuickBooks you can create customer types and assign a type to each customer. Then you can run reports to see how profitable different types of customers are or how much business you do with each type. In addition to customer type you can tell QuickBooks a lot more about your customers than the contact information. Payment terms, sales taxes and how they prefer to pay you are just a few of the additional fields in the customer record.
To add more information about a customer, go back to the Customers Center and click Customers on the homepage. In the previous video we filled in the Address Info tab. In this lesson we're going to work on the Additional Info tab. To open the Edit dialog box, right- click the customer you want to edit and then choose Edit Customer Job on the shortcut menu. Click the Additional Info tab. The first box is Type, which is where you assign a customer type to the customer.
QuickBooks adds a few choices out of the box but you can create your own. The Add New Entry, which appears in the QuickBooks dropdown lists, lets you digress to another dialog-box to create an entry you want and then continue with your original task. So to create a type click Add New and then in the New Customer Type, type what you want for the customer and click OK. In this case it adds it to the Type box for you. The Terms box is for the customer's payment terms.
QuickBooks also offers a few built-in payment terms such as the common Net 30, which means that the customer pays within 30 days of receiving an invoice. You can also create your own again by choosing Add New in the dropdown list. If you assign sales reps to customers, you can assign one in the Rep dropdown list. You can add any employee you want to Rep list. The Preferred Send Method is how you prefer to send invoices or other communications to the customer. You can choose None if it doesn't matter or you send e-mail sometimes and snail mail other times or you can click E-mail or Mail.
If you charge sales tax, you can choose the tax code and tax item to apply to the customer's invoices. You'll learn about sales tax in the chapter on setting up to sell services and products. You can also apply a price level to the customer. A price level is a markup or discount. For example a 10% discount for members of your loyal customers club. If you apply a price level here, the percentage applies to every item on every one of the customer's invoices.
The Custom Fields area lets you define a handful of your own fields that you can apply to customers, vendors, or employees. All you do is define the label. When you fill in a custom field, you have to type the text or the numbers. The Payment Info tab has more fields that have to do with how the customer pays. If you assign an account number to a customer type it in the Account Number box. You can fill in a credit limit for a customer. If you do you, QuickBooks warns you when an invoice for the customer will put them over their credit limit.
The Preferred Payment Method dropdown list is for the payment method that the customer typically uses. You can choose a payment method there then when you receive a payment from the customer, QuickBooks automatically fills in the payment type for you. You can fill in credit card information on the Payment Info tab but before you do you make sure that your security procedures are enough to protect your customer's card info. If you don't want to interrupt your customer creation with creating list entries, you can do that from the QuickBooks menu bar, choose List and then choose Customer Vendor Profile List and you'll see lists, like Terms list and Payment Type list.
The Job Info tab has boxes for information about a job but you'll learn how to create a job for a customer and fill in its fields later in this chapter. When you're ready to save the customer, click OK and the edited customer record is available the next time you need it in a transaction.
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