Rectangle with scalloped corners

[chuckpa]

Make sure snap to objects is selected and the circle has not been converted to an editable shape.

"Grab" the circle near its center and drag it close to the corner of the rectangle. It will snap in place.

[chuckpa]

Before subtracting the circles from the rectangle, either group them or join them.

[tonylondon]

Here's another possibility -not sure if it saves much time though...

Carygee's idea of being able to enter negative (therefore scalloped) rounded corners seems a good suggestion for an improvement.

Tony