Customer Groups allow you to categorize customers in different ways, such as Retail Customers, Wholesale Customers, Friends, Colleagues, or any other category you prefer.

Here's how to work with Customer Groups:

1. To create a new "Customer Group," go to Contacts -> Customer Groups and click on the "Add" button.

2. A popup will appear, asking for the group's name and Calculation Percentage. The Calculation Percentage is used to determine the selling price.

For example:

- Let's say a product named Product1 has a Selling Price of $200.

- You create a Customer Group named "Friend" with a Calculation Percentage of -20.

- Note: A minus sign (-20) or simply 20 (without a minus sign) both represent a percentage, with -20 being a discount of 20%.

- Assume you have a customer named Harry assigned to the "Friend" Customer Group.

- Now, in the Point of Sale (POS) or Sell screen, when you select customer Harry and add Product1:

- The selling price for Product1 will be reduced by 20%, making it $200 - 20% = $160.

This demonstrates how Customer Groups function.

The Customer Group internally calculates and applies the calculation percentage to the selling price. However, this discount won't be shown as a separate line item on the invoice or POS screen.

This feature is especially useful when you have different types of customers like retail or wholesale, allowing for specific pricing adjustments.

To understand the performance of different customer groups, you can view reports through the "Customer Groups Report." For instance, if you have both retail and wholesale customer groups, this report can help you identify which type of customer group contributes more to your sales.