Glossary

Business software terms, in plain words.

What the words on billing, inventory, restaurant and school software actually mean, with links to where they matter.

B

Barcode: A machine-readable pattern that encodes a number identifying an item, read by a scanner instead of typing. SKU vs barcode guide
Batch (lot): A group of units received together, often sharing a manufacturing date and expiry date. Tracking batches lets you sell the earliest-expiring stock first. Inventory and stock
Business operating system: The software a business runs its daily work on, keeping sales, stock, money, people and records in one system. What is a business OS?

Cash drawer shift: The period between opening a cash drawer with a float and closing it with a count, used to check that cash in the drawer matches what the records expect. Cash drawer and staff
Churn: The share of members or customers who leave in a period. In a gym, the members who do not renew. Membership revenue calculator
Code 128: A barcode type that can hold letters and numbers, often used for in-store labels where an EAN-13 number is not needed.
Credit note: A document that reduces the amount of an earlier invoice, for example when goods are returned. Under GST it also reverses the tax on the returned goods. GST, returns and exchanges
Customer-facing display: A second screen that shows the customer the items and total being billed.

Dead stock: Items that have not sold for a long period. They tie up money and shelf space. Reports that matter
Debit note: A document recording an amount owed back to you by a supplier, such as for goods returned to them. It lowers what you owe the supplier.
Dine-in, takeaway and delivery: The three main ways a restaurant order is served: at a table, collected by the customer, or delivered. Restaurant till and order hub

EAN-13: A 13-digit barcode standard used on retail products worldwide. Numbers are allocated by GS1; numbers starting 20 to 29 are reserved for use inside a single store or company. SKUs, barcodes and labels
Exchange: Taking back an item and giving another in its place, against the original bill, with any difference paid or credited.

FIFO and FEFO: First in, first out, and first expired, first out: rules for which units leave stock first. FEFO matters for food, medicines and cosmetics. Fast-moving inventory
Float: The cash placed in a drawer at the start of a shift so the cashier can give change.
Food cost percentage: The cost of ingredients in a dish divided by its selling price. A key measure of a menu’s profitability. Food cost calculator

GSTIN: The 15-character Goods and Services Tax Identification Number given to a registered business in India.
GSTR-1: The GST return in which a registered business reports its outward supplies (sales). Billing software can prepare the data; filing is done on the GST portal. GST-inclusive vs exclusive pricing

Held bill: A bill parked at the counter so the cashier can serve the next customer, then picked up and completed later.
HSN code: Harmonised System of Nomenclature code: a classification number for goods, used on GST invoices and returns.

IGST, CGST and SGST: The parts of GST. Within a state, tax is split into central (CGST) and state (SGST or UTGST). Between states, it is integrated GST (IGST). GST calculator
Input tax credit: GST paid on purchases that a registered business can set off against the GST it collects on sales, subject to the rules.

Kitchen display system (KDS): A screen in the kitchen that shows orders as tickets, replacing or supplementing printed KOTs. Kitchen display and KOTs
KOT (kitchen order ticket): A ticket that tells the kitchen what to prepare for an order, printed or shown on a kitchen screen. Restaurant printer guide

Lead time: The number of days between placing an order with a supplier and receiving the goods. Reorder point calculator
Loyalty points: Points a customer earns on purchases and redeems later as a discount.

Margin: Profit as a percentage of the selling price. Not the same as markup. Margin and markup calculator
Markup: Profit as a percentage of the cost price. A 50% markup equals a 33.3% margin. Margin and markup calculator
Modifier: A choice that changes a menu item, such as size, milk or an extra topping, often with its own price. Menu and recipes

Offline billing: Billing that keeps working when the internet, or the link to a central server, is unavailable. Offline vs cloud billing software

Place of supply: Under GST, the location that decides whether a sale is within a state (CGST and SGST) or between states (IGST).
POS (point of sale): The place and the system where a sale is completed: billing, payment and receipt.

Recipe (bill of materials): The list of ingredients and quantities in a menu item, used to deduct stock when it is sold. Restaurant stock and purchasing
Reorder point: The stock level at which you should order more so you do not run out before the delivery arrives. Reorder point calculator

Safety stock: Extra stock kept to cover days when sales are higher or deliveries are late.
SKU (stock keeping unit): Your own code for one specific item you stock, such as a shirt in one size and colour. SKU naming guide
Split payment: One bill paid by more than one method, such as part cash and part UPI.
Stock ledger: The record of every change to stock: sales, returns, receipts, adjustments and transfers. Stock on hand is the sum of these movements. Inventory and stock
Stock tally (stock count): Counting what is physically on the shelves and comparing it with the records, then adjusting with a reason. Stock count and reconciliation

Tally XML: A file format that Tally accounting software can import, used to move sales and receipts into the books without re-typing. Reports and exports
Thermal printer: A printer that prints on heat-sensitive paper without ink, common for receipts and labels. Hardware guide

UPI: Unified Payments Interface: India’s real-time payment system used for instant bank transfers by phone.

Variant: One version of a product, such as a size and colour of a shirt, with its own SKU, barcode, price and stock. Size and colour variants

Ask us, and we will explain it plainly.