How to create a customer contact in Sage Accounting
Description
This saves time when creating transactions and allows you to send invoices to your customers.
Use customer contact records to:
- Save details about the people or businesses that you regularly do business with
- Send physical copies of invoices by email or post
- Keep track of who owes you money
Resolution
What you need to know
You can create customer records with as little as a Name.
Choose to keep our defaults or enter your own information. You can do this now or come back and edit the record at any time.
When you start entering transactions such as sales invoices, we use the information set on the customer record to determine the following
- Ledger Account The default ledger account is 4900 Other Income
- Due date - credit terms are set to 30 days by default
- VAT rate - this is determined by the customer's location and whether they are VAT registered
- Price - set the type of price used for common products and services such as Sales Trade or Wholesale. The default is the Sales price
- Currency - set this if you invoice customers in their own currency. The default in your home or base currency
In addition, you can set other information such as:
- Main Address - If you're sending invoices to your customers, you must enter an address
- Delivery address - set this when the delivery address is different from the invoice address
- Bank details - Store your customer's bank account details
- Analysis group - Group your customers together for reporting purposes
- Notes - use this for any other information you’d like to store about this customer
See the following sections for more information about each section.
Import your customer details
Import from CSV file
Consider importing customer records if you already have the details somewhere else. Just export them to a CSV file (type of Excel spreadsheet) and import all the details in one go.
You can import additional new contacts at any time.
Read more about importing customers
Import from mobile phone
If your customer details are in your mobile phone contacts, consider importing them using our mobile app.
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Download the mobile app:
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Open the mobile app and from the menu choose Contacts. Select the plus button, then choose Import from phone.
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Choose Customers.
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From the list of contacts in your phone, choose the ones to import.
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Once you've imported your contacts, edit them in the mobile or web app to enter additional details.
Create a customer
For one-off customers, or if you don't want to import them, create new customer records from Contacts.
- From Contacts, choose Customers, then New Customer.
- Enter the business name for the customer. This is the name you'll see on all lists when selecting this customer.
- Enter the remaining details.
If you don't know all the details yet, just enter the business name and save. You can add additional details later.
You always need an address before you can save an invoice for a customer.
Use the following sections to choose which defaults to change and choose additional information to store about the customer.
If you're sending invoices to your customers, you must enter an address. This is the address that appears on sales documents such as sales invoices, quotes and estimates.
If you want to email your sales documents, make sure you add an email address as well.
Add the main address from the Account details tab.
If your customer is outside the UK or Ireland, make sure your change the region just above the address and then choose the correct Country.
TIP: If you don't have an address for a customer, just use No address on the first line.
If the business has a different delivery address, add this on the Delivery Address tab. Clear the Same as invoice address checkbox first.
Add more delivery addresses once you save the customer record. When you create an invoice, just choose which delivery address to use.
If your customer is VAT registered, enter their VAT registration number to make sure we use the correct VAT rate when entering invoices.
Enter the VAT registration number from the Account Details tab. We check the VAT number against the Country entered in the address. You cannot save the VAT number unless it has the correct format.
VAT reverse charge
Select VAT Reverse Charge when:
We use Ledger accounts to categories or group your transactions. This is to make sure they report correctly on financial reports, such as the Profit and Loss or Balance sheet. It also helps you track your business performance and see where you are making money.
Selecting the right ledger account is key to making sure you know where your money comes from and what you are selling.
On sales invoices, you must select a ledger account on each line to indicate what you have sold. You can use our default Ledger accounts or set up your own.
To ensure automatic selection of the correct ledger account, you can establish a default setting in your customer records. This feature is particularly beneficial if you typically sell the same type of goods to a specific customer.
From the Account Details tab
TIP: If you usually use the same ledger account for all your sales, set this in the Record and Transaction settings. Read Record and Transactions settings
If you've agreed on the credit terms with your customer, you can record them here. You can also set the credit limit.
The credit terms specify how many days an invoice can remain outstanding before the customer must pay it. Once you set them up, the system calculates the invoice's due date accordingly.
We've set the credit terms to 30 days as this is usual for most businesses.
If your credit terms are different, set them in the Record and transaction settings so they applied to all new customer records, or if this customer has unusual credit terms, enter them here.
If you possess bank details for any of your customers, you can store them on the Payment Details tab. We maintain the customer bank details for your reference only, with no usage elsewhere.
If you use product and services, and use different prices, such as a retail and a wholesale price, set the price used by this customer.
For example, if the customer functions as a wholesaler, you'll typically want to consistently apply the wholesale price. As you add a product or service to the invoice, the system will automatically input the wholesale price.
From the Defaults tab
Read more about product and service prices
Set the currency for a customer when the customer is based overseas and you want to send sales invoices in their currency.
- When entering the customer's address, select the Region and then the Country from the Account Details tab. This ensures accurate location details.
- Has the customer registered for VAT?, if so input their VAT number in the Account Details tab. This ensures correct VAT rate application on invoices.
- From the Defaults tab, choose the currency.
Use analysis groups to group your customers together for reporting purposes. For example, you may want to divide your customers by the region in which they are based so you can compare sales across regions, or you may want to see the total based on the sales manager to calculate commission.
Once set up, you can
- Filter the Aged Debtors report by analysis group
- Filter the customer list by analysis group
Read more about analysis groups
Once you've set them up, just choose the group that this customer belongs to from the Analysis tab.
This space is for any additional relevant notes about your customer. These notes do not appear on printed documents like sales invoices.
If you indicated that your business is VAT registered on sign-up, there will already be two contacts on the list. You'll use the Revenue Reclaimed customer contact when you reclaim VAT and the Revenue Payments supplier contact when you make VAT payments. You can change the reference for these contacts but you cannot rename or delete them.
Read more about VAT in accounting.
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