Glossary

The terms you meet when running a restaurant, shop or trading business, explained with examples in rupees.

A

Accounts payableAccounts payable is the money your business owes suppliers for goods or services received on credit.Accounts receivableAccounts receivable is the money customers owe your business for goods or services already supplied on credit.

B

Batch and expiry trackingBatch and expiry tracking records which production batch each unit of stock came from and when it expires.

C

Cost of goods sold (COGS)Cost of goods sold is what you paid for the stock you actually sold during a period.Credit noteA credit note is a document a seller issues to reduce what a customer owes, usually for returned goods or an agreed price reduction.

D

Debit noteA debit note is a document a buyer sends a supplier to record a reduction in what is owed, usually for returned or damaged goods.

E

Enterprise resource planning (ERP)ERP is software that keeps sales, purchases, stock, accounts and other business records in one connected system.

F

First in, first out (FIFO)FIFO assumes the oldest stock is sold first, both for valuing inventory and for physically rotating goods on the shelf.Food cost percentageFood cost percentage is the cost of ingredients used, divided by food sales, shown as a percentage.

G

Goods received note (GRN)A goods received note records what was actually delivered by a supplier, checked against what was ordered.Gross marginGross margin is the share of sales left after paying for the goods sold, shown as a percentage of sales.

K

Kitchen display system (KDS)A kitchen display system is a screen in the kitchen that shows incoming orders from the counter, replacing paper order slips.Kitchen order ticket (KOT)A kitchen order ticket is the slip or screen entry that tells the kitchen what to cook for an order, without the prices.

L

Landed costLanded cost is the full cost of getting goods into your shop or godown, including the purchase price, freight, loading and any duties.Ledger (khata)A ledger is the running record of every transaction with one party or account, showing the balance after each entry.

N

National Tax Number (NTN)An NTN is the National Tax Number issued by the Federal Board of Revenue to identify a person or business for income tax.

P

Par levelA par level is the amount of an item you want on hand after each delivery, so you do not run out before the next one.Petty cashPetty cash is a small fund of cash kept at the business for minor daily expenses, topped up and recorded regularly.Point of sale (POS)A point of sale is the place and the software where a sale is recorded, the bill is printed and payment is taken.Purchase order (PO)A purchase order is the written order a business sends a supplier, listing the items, quantities and agreed prices.

R

Recipe cardA recipe card is the standard list of ingredients and quantities for one dish, used for consistent cooking and for costing.Reorder levelA reorder level is the stock quantity at which you place a new order, set high enough to last until the delivery arrives.

S

Sales tax invoiceA sales tax invoice is a bill issued by a sales tax registered business that shows the value of goods, the tax rate and the tax charged.Sales Tax Registration Number (STRN)An STRN is the Sales Tax Registration Number issued by the Federal Board of Revenue to a business registered for sales tax.Stock keeping unit (SKU)An SKU is a code for one specific item you stock, so every size, colour or pack is counted separately.Stock valuationStock valuation is the rupee value of the goods you have on hand at a given date.

T

Trial balanceA trial balance is a list of all account balances at a date, used to check that total debits equal total credits.

V

Void and refundA void cancels a bill or item before the sale is completed; a refund returns money for a sale that was already completed.

W

Weighted average costWeighted average cost values every unit of an item at the average price paid for all units in stock.

Z

Z reportA Z report is the end-of-day sales summary from a till or POS, usually taken when the day is closed.

Tell us about your business.

We reply with a price, a demo time and the setup that fits your branches, counters and users.

Get a quote Contact us