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Normally all Client records are sorted by client name. The Sort Value setting allows you to specify an alternate value to sort the Client record on.
This is useful when you want a Client's name to be displayed (on invoices, reports, etc.) one way (i.e. John Smith) but be sorted another (i.e. Smith, John).
For even more client name flexibility be aware that you can specify an invoice name for client that will appear only on invoices for a client.
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