Business Glossary

Definitions for inventory, accounting, GST, billing, and manufacturing terms used in Indian business.

82 terms6 categories

A B C D E F G H I L M O P Q R S T W

82 terms

A

ABC AnalysisAn inventory classification method that ranks items by their value contribution Accounts Payable (AP)Total money owed by a business to suppliers for goods or services purchased on credit Accounts Receivable (AR)Total money owed to a business by customers for goods or services sold on credit

B

Balance SheetA financial statement showing business assets, liabilities, and owner's equity at a specific date Bank ReconciliationProcess of matching business records with bank statement to identify discrepancies BarcodeA machine-readable code printed on products for quick identification Batch Tracking / Lot TrackingTracking inventory by batch or lot number for traceability and expiry management Bill of Materials (BOM) / RecipeA list of raw materials needed to manufacture a finished product Bill-wise Profit / Invoice ProfitProfit calculated on each individual sales invoice

C

Cash BookA financial record of all cash receipts and payments in a business Closing StockThe value of unsold inventory at the end of an accounting period Credit Note / Sales ReturnA document issued when goods are returned by the buyer

D

Day Book / Daily Transaction RegisterA chronological record of all daily business transactions Dead StockInventory that has not been sold and is unlikely to be sold Debit Note / Purchase ReturnA document issued when goods are returned to a supplier Delivery ChallanA document for transporting goods without a sales invoice Discount (Trade & Cash)A reduction in the price of goods offered to buyers at the time of sale or for early payment

E

E-InvoiceAn electronically authenticated invoice generated via the GST portal E-Way BillA digital document required for transporting goods worth over Rs. 50,000 Expense / Business ExpenseMoney spent on running your business that is not a direct purchase of goods Expiry Date / Shelf LifeThe date after which a product should not be sold or used

F

FIFO (First In First Out)Inventory valuation method where oldest stock is sold first Finished GoodsManufactured products that are ready for sale to customers

G

GodownA warehouse or storage facility used for keeping goods and inventory Goods in TransitGoods that have been shipped by the seller but not yet received and accepted by the buyer GST (Goods and Services Tax)India's unified indirect tax on the supply of goods and services GSTR-1A GST return form for reporting all outward supplies (sales) details GSTR-2A / GSTR-2BAuto-generated GST returns showing inward supplies from supplier GSTR-1 filings GSTR-3BA monthly self-assessed summary GST return for tax payment

H

HSN CodeA standardised numerical code to classify goods under the GST system

I

Input Tax Credit (ITC)GST paid on business purchases that can be claimed as credit against output GST liability InventoryAll goods and materials a business holds for sale or production Inventory Turnover RatioA metric showing how many times inventory is sold and replaced in a period Item Category / Product CategoryA classification system to group similar products together Item LedgerA complete transaction history of an item including sales, purchases, adjustments, and returns Item Price ListA list of all products with their selling/purchase prices Item-wise Profit ReportA report showing profit earned on each individual product across all sales

L

Landed CostTotal cost of a product including purchase price, freight, customs, insurance, and all other charges Lead TimeTime between placing an order with a supplier and receiving the goods LIFO (Last In First Out)Inventory valuation method where newest stock is sold first Low Stock / Low Stock AlertWhen item quantity falls below minimum threshold, triggers reorder alert

M

Manufacturing Date / Mfg DateThe date when a product was manufactured or produced Manufacturing Entry / Production EntryA record of converting raw materials into finished goods Margin / Profit MarginThe percentage of selling price retained as profit after deducting cost MOQ (Minimum Order Quantity)The smallest quantity a supplier will sell in a single order MRP (Maximum Retail Price)The maximum selling price printed on packaged goods in India

O

Opening StockThe value of inventory at the beginning of an accounting period

P

Party BalanceThe outstanding amount owed to or by a customer or supplier Party LedgerA record of all transactions with a specific customer or supplier Party-wise ReportA report grouping transactions by customer or supplier to track purchase, sales, and profit per party Payment In / ReceiptMoney received from a customer against outstanding invoices Payment OutMoney paid to a supplier against outstanding purchase bills Payment VoucherA document recording a payment made to a supplier or for a business expense Profit and Loss Statement (P&L)A financial report showing total revenue, expenses, and net profit or loss Proforma InvoiceA preliminary invoice sent before delivery of goods or services Purchase Invoice / Purchase BillA bill received from a supplier for goods or services purchased Purchase Order (PO)A formal order document sent to a supplier to buy goods Purchase ReturnGoods returned to a supplier, documented via a debit note

Q

Quotation / Price EstimateA formal offer stating the price and terms for goods or services

R

Raw MaterialBasic materials used in manufacturing to produce finished goods Receipt VoucherA document recording a payment received from a customer or other party Reorder LevelThe stock level at which a new purchase order should be placed

S

SAC CodeA numerical code used to classify services under the GST system Safety StockExtra inventory kept as a buffer against unexpected demand or delays Sales Invoice / BillA document issued to a buyer recording a sale transaction Sales OrderA confirmed order from a customer to supply goods or services Sales ReturnGoods returned by a buyer to the seller, documented via a credit note Secondary UnitAn alternate unit of measurement used alongside the primary unit for an item SKU (Stock Keeping Unit)A unique alphanumeric code assigned to each product for tracking Stock AdjustmentA correction made to inventory records to match the actual physical stock count Stock Audit / Inventory AuditA physical verification of actual stock against recorded book balances Stock RegisterA record book or digital system to track all inventory movements Stock Summary ReportA snapshot of all items with current quantity, value, and category Stock TransferMoving inventory from one store or godown to another within the same business Stock ValuationThe process of calculating the monetary value of inventory held by a business Sundry CreditorA supplier to whom your business owes money for goods purchased on credit Sundry DebtorA customer who owes money to your business for goods sold on credit

T

TDS (Tax Deducted at Source)Tax deducted by payer when making payments above threshold and deposited with the government Trial BalanceA statement listing all ledger account balances to verify arithmetic accuracy of books

W

Weighted Average CostInventory valuation using average cost of all units in stock Work-in-Progress (WIP)Partially finished goods still in the production process, not yet raw materials and not yet finished goods Working CapitalMoney available for day-to-day business operations after covering short-term obligations

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