The words of the trade, in plain English.

Barcode

A machine-readable pattern of bars printed on a product that a scanner reads to identify the item, usually as a 13-digit EAN number.

Batch tracking

Recording stock by the manufacturing batch it came from, with its expiry date, cost and MRP, so each unit can be traced and sold in time.

Bin location

The exact address of a spot in a store room or warehouse, such as zone, rack and shelf, where a product is kept so anyone can find it.

Cash on delivery (COD)

A payment option where the customer pays in cash or UPI when the order reaches them, instead of paying online while placing it.

CGST, SGST and IGST

The parts GST is split into: CGST and SGST on sales within a state, and IGST on sales from one state to another.

Composition scheme

An optional GST scheme for small businesses that pay a low fixed percentage of turnover and file fewer returns, but cannot claim input tax credit.

Credit note

A document a seller issues to reduce the amount of an earlier invoice, for example after a return, a price correction or a discount given later.

Cycle count

Counting a small part of your stock on a regular schedule, instead of shutting the shop for one big annual stocktake.

Day close

Checking at the end of a shift or day that the cash in the drawer, UPI and card totals match what the billing system says was taken.

Dead stock

Stock that has not sold for a long time and probably will not sell at its current price, locking up cash and shelf space.

Debit note

A document that increases the amount of an earlier invoice, or that a buyer raises when returning goods to a supplier or claiming a shortage.

E-invoice

A B2B GST invoice reported to the government's Invoice Registration Portal, which returns a unique reference number and a signed QR code.

E-way bill

An electronic document generated on the GST e-way bill portal before moving goods worth more than ₹50,000, carried with the vehicle.

FEFO

A stock rule where the units that expire soonest are sold or picked first, whatever order they arrived in.

FIFO

A stock rule where the units that arrived first are sold first, used both on the shelf and to work out the cost of goods sold.

Goods received note (GRN)

A record made when a supplier's goods arrive, listing what was actually received so it can be checked against the purchase order and the bill.

GSTIN

The 15-character GST Identification Number given to every business registered under GST in a state, printed on its tax invoices.

GSTR-1

The GST return where a registered business reports the details of its sales, so that buyers can see the tax charged to them.

GSTR-3B

The GST summary return where a business reports total sales tax, claims input tax credit and pays the GST it owes for the period.

HSN code

An internationally used number that classifies goods, used in India under GST to decide the tax rate and printed on invoices.

Input tax credit

The GST you paid on business purchases, which you can subtract from the GST you collected on sales so you only pay the difference.

Khata

The record of credit a shop gives customers: who bought on account, how much they owe, and what they have paid back.

Loyalty points

Points a customer earns on purchases and later redeems as a discount, used by shops to bring the same customers back more often.

Markup vs margin

Markup is profit as a share of cost; margin is profit as a share of selling price. The same profit gives two different percentages.

MRP

Maximum retail price: the highest price, including all taxes, at which a packaged product can be sold to a consumer in India.

Omnichannel retail

Selling through the counter, phone, WhatsApp, your own website and marketplaces while running them all from one stock count and one order list.

Order management system

Software that collects orders from every channel into one place and tracks each through stock reservation, packing, dispatch and returns.

Pick list

A list telling a picker which products, quantities and batches to collect from which shelves to fulfil one or more orders.

Place of supply

The location GST law treats as where a sale happens, which decides whether a sale is within a state (CGST and SGST) or between states (IGST).

Point of sale (POS)

The counter where a sale is billed and paid for, and the billing software and hardware a shop uses to do it.

Purchase order

A document a business sends to a supplier listing the products, quantities and prices it wants to buy, before the goods are delivered.

Putaway

Moving goods that have just been received from the unloading area to the shelf or bin where they will be stored, and recording that location.

Reorder point

The stock level at which you should place a new order, so the new stock arrives before you run out.

Return to origin (RTO)

When a courier cannot deliver a parcel, often a refused COD order, and sends it back to the seller, usually at the seller's cost.

Reverse charge

A GST rule where the buyer, not the seller, pays the tax to the government, for certain notified goods and services.

Safety stock

Extra stock kept on hand as a cushion against a sudden rise in sales or a late delivery from the supplier.

Shrinkage

Stock you have paid for that is missing when counted, lost to theft, damage, wrong billing, supplier shortages or expiry.

SKU

Stock keeping unit: a code a shop gives each distinct product variant, such as size, flavour or pack, so it can be tracked separately.

Stock transfer

Moving stock from one of your locations to another, such as a warehouse to a shop, while keeping its batch, expiry and cost records.

UPI

Unified Payments Interface: India's instant bank-to-bank payment system, used at shops by scanning a QR code or paying to a UPI ID.

Warehouse management system

Software that knows where each unit sits, down to the shelf, and guides stock in, put-away, picking, packing and dispatch.

Transport management system

Software that plans and runs deliveries: vehicles, drivers, trips and stops, with proof at the door and a link to track each one.