Inventory & POS Glossary

Accounts Payable

Money your business owes to suppliers for purchases made on credit.

See also: inventory management software

Accounts Receivable

Money customers owe your business for goods or services delivered but not yet paid for.

See also: POS software

Baki

Bangladeshi term for customer credit. When a shop gives products now and collects payment later. Common in grocery and wholesale businesses.

See also: POS software

Barcode

A machine-readable pattern (lines or numbers) attached to products for quick identification at point of sale and during stock counts.

See also: POS software

BOM (Bill of Materials)

A list of raw materials, components, and quantities needed to manufacture a product.

See also: inventory management software

Challan

A delivery document in Bangladesh that accompanies goods during transport. Required for compliance with VAT and tax regulations.

See also: inventory management software

COGS (Cost of Goods Sold)

The direct cost of producing or purchasing the products your business sells.

See also: inventory management software

Cycle Count

A periodic partial stock count where a subset of inventory is counted on a rotating schedule, rather than counting everything at once.

See also: inventory management software

Dead Stock

Products that haven't sold for an extended period and are unlikely to sell in the future. Ties up capital and storage space.

See also: inventory management software

Dropshipping

A retail model where the store doesn't keep products in stock. Instead, orders are fulfilled directly by the supplier or manufacturer.

FEFO (First Expired, First Out)

An inventory method where the oldest products by expiration date are sold first. Critical for pharmacies and grocery stores.

See also: inventory management software

FIFO (First In, First Out)

An inventory valuation method where the oldest stock items are recorded as sold first.

See also: inventory management software

GRN (Goods Received Note)

A document confirming that goods have been received from a supplier, matching the purchase order.

See also: inventory management software

Inventory Management Software

Computer system that tracks products from purchase to sale, managing stock levels, orders, sales, and deliveries.

See also: inventory management software

Inventory Turnover

The number of times inventory is sold and replaced over a period. Higher turnover generally means better sales performance.

See also: inventory management software

JIT (Just In Time)

An inventory strategy where materials are received only as they are needed in the production process, reducing holding costs.

See also: inventory management software

LIFO (Last In, First Out)

An inventory valuation method where the most recently purchased items are recorded as sold first.

See also: inventory management software

MOQ (Minimum Order Quantity)

The smallest amount of a product that a supplier is willing to sell per order.

See also: inventory management software

Overage

When actual stock count is higher than the recorded quantity. Can indicate data entry errors, theft reversal, or supplier over-delivery.

See also: inventory management software

Overstock

Having more inventory than needed, tying up capital and increasing storage costs.

See also: inventory management software

Purchase Order (PO)

A formal document sent to a supplier requesting goods or services at agreed prices and quantities.

See also: inventory management software

Reorder Point

The inventory level at which a new order should be placed to avoid stockouts.

See also: inventory management software

Retail Markup

The percentage added to the cost price of a product to determine its selling price.

See also: POS software

Safety Stock

Extra inventory held as a buffer against unexpected demand or supply delays.

See also: inventory management software

SKU (Stock Keeping Unit)

A unique identifier assigned to each distinct product for tracking inventory.

See also: POS software

Stock Transfer

Moving inventory from one location or warehouse to another.

See also: inventory management software

Stockout

When a product is out of stock and unavailable for sale. Results in lost sales and customer dissatisfaction.

See also: inventory management software

Throughput

The amount of inventory or products that pass through a business over a given period.

See also: inventory management software

VAT (Value Added Tax)

A consumption tax charged on goods and services in Bangladesh. NBR (National Board of Revenue) sets the rates and compliance requirements.

See also: POS software

Warehouse Management System (WMS)

Software that controls and manages daily warehouse operations from receiving to shipping.

See also: inventory management software