Sales Preferences are settings particular to the selling side of your business. From here you can change such things as default sales accounts, invoice aging methods, finance charges, and aging periods.
1- Setup Periods. Having accounts payable aging periods allows BSC Software to track the age of past invoices. You can set up four distinct periods. Usually these are from 0 to 30 days, 31 to 60 days, 61 to 90 days, and over 91 days. Invoices you have sent will each fall into one of the periods. This allows tracking of your receivables. You can age your invoices according either to the Invoice Date or from the date on which they are due.
2- Enter default Sales accounts. Sales - This is the default revenue account used for invoices and sales memos, if not overridden at the inventory card level. This account is used only if the corresponding account on the inventory item card is blank.
3- Cost of Sales - This is the default Cost of Goods Sold account. The actual cost of the sale goes into this account. This is the amount of cost associated with the sale that takes place. It is calculated by either Average or Standard cost, depending on what you have selected in the Inventory Preferences. This account is used only if the corresponding account on the inventory item card is blank.
4- Inventory - When you sell an item, its cost is subtracted from this account, since you no longer have the item. This is the default inventory account that is used when there is no inventory account on the item card.
5- Non Stock Sales - When you sell items that are not part of your regular inventory, the revenues post to this account. Note: Non-inventory items cannot have costs.
6- Sales Discount Account - Whenever you discount a customer's invoice or the discount amounts from payment terms post to this account. This account cannot be overridden by item Setup.
7- Accounts Receivable - If a customer owes you money but has not yet paid it, the amount is tracked in this account. This account cannot be overridden by item Setup.
8- Sales Returns - When customers return items, the negative revenue goes into this account, while the regained cost of the inventory item goes into the Inventory account. This account cannot be overridden by item Setup.
9- Freight Income - Freight / shipping charges post to this account. This account cannot be overridden by item Setup.
10- Select miscellaneous sales options. Invoice Printing - You can print Invoices either on plain paper or on preprinted forms. BSC Software uses a different report depending on which option you choose. If you choose preprinted forms, you should order some from BSC Software forms service.
11- Invoice Aging - You can choose to age your invoices either by the date the invoices were posted or by the date on which they are due. The due date is calculated from the payment terms. The invoice date is the date the invoice was posted.
12- Default Sales Account - This option chooses whether the item card or customer card will be used for the primary account defaults. If there is no information on either the customer or item Setup regarding the Sales account, then BSC Software will use the Sales account you defined on the left side of the form. If, on the other hand, there is information on both the customer and item Setup, then you must tell BSC Software which one to use. Do this by selecting either the Customer or Item option.
13- Edit finance charge information. Use Finance Charges - If you want your customers to be billed finance charges for late payment, check this option. Then, at the end of every month you will assess finance charges using the Month End Closing Assistant. If you decide to use finance charges, you must also set up the rest of the information, described below.
14- Annual Finance Charge - This is the annual percentage rate for late payment. If you want to charge customers finance charges, the amounts are based on this Annual Finance Charge percentage.
15- Monthly Finance Charge - This is the percentage amount charged to your customers every month if they have over the Minimum Balance. It is calculated by dividing the Annual Finance Charge by 12 (months are used, not periods, in calculating finance charges).
16- Minimum Balance - If customers owe more than this Minimum Balance at the end of the month, they will be charged the Monthly Finance Charge.
17- Minimum Finance Charge - Customers are charged based on a percentage of the amount they owe. Regardless of how much this amount is, if they owe more than the Minimum Balance they will be charged at least this Minimum Finance Charge.
18- Charge Interest on Finance Charges - If customers do not pay the finance charges, you can calculate additional finance charges the next month based not only on the amount they owe on their purchases, but also on the amount they owe in finance charges.
19- Finance Charge Income - when Finance Charges accrue they post to this General Ledger account.
20- Enter Defaults. Default Sales Payment Method, Shipping Method, Customer Type, Tax Group, Discount Level, Salesperson can be selected from the different dropdown boxes. That information is used when a new customer is created as the default for each and every one of those fields.
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