# Customer types

Customer types allow you to create arbitrary groupings for Customer (Debtors). Every Debtor created must be assigned a Customer type.

The Customer type of a Debtor is not considered in the calculation of their discounts (the Discount type is used for that), but it is used to determine the default Tax Exempt status of Customers for the purposes of Sales quotation, Sales order and Sales invoice.

A Customer type would generally be used to group customers according to their role as a customer, rather than their pricing arrangements. For example, Customer types might include Local and Export, or Retail and Distributor.