--- title: Pharmacy & Inventory Glossary: FEFO, GRN, Reorder Point description: Plain-English definitions of the terms used in pharmacy, agrovet and wholesale stock control: FEFO, batch number, GRN, reorder point, COGS, SKU and more. url: https://www.poso.co/glossary/ updated: 2026-10-29 --- Glossary # Glossary of stock, pharmacy and retail terms. Plain-English definitions of the words used in pharmacy, agrovet, wholesale and retail stock control, with links to guides that go deeper. **About this glossary:** This glossary defines 43 terms used in pharmacy, agrovet and wholesale stock control and accounting, from aged receivables and FEFO to reorder level, shrinkage and zero-rated VAT. ## A - **Aged receivables:** A report of what customers owe, grouped by how long it has been outstanding (current, 30, 60, 90+ days). [Read more →](https://www.poso.co/guides/wholesale-credit-management/) - **Average cost:** A stock valuation method where each unit is valued at the weighted average cost of all units purchased. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/) ## B - **Barcode:** A machine-readable code on a product or pack (often EAN-13) that a scanner reads to identify it instantly. [Read more →](https://www.poso.co/features/point-of-sale/) - **Batch number (lot number):** A code a manufacturer gives to a production run. It links a product to its expiry date and is used for recalls. [Read more →](https://www.poso.co/features/batch-and-expiry-tracking/) - **Best-before date:** The date after which a product's quality may decline. Different from an expiry date, after which it must not be used. [Read more →](https://www.poso.co/guides/track-medicine-expiry-dates/) ## C - **Cold chain:** Keeping temperature-sensitive products, such as vaccines and insulin, within a set temperature range from manufacturer to customer. - **Cost of goods sold (COGS):** The cost of the stock you sold in a period: opening stock + purchases − closing stock. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/) - **Credit limit:** The maximum amount a customer may owe at any time. [Read more →](https://www.poso.co/features/customer-credit/) - **Cycle count:** Counting a small group of products regularly, instead of everything at once, to keep stock records accurate. [Read more →](https://www.poso.co/guides/stock-taking/) ## D - **Days of stock:** How many days your current stock would last at the current rate of sales. [Read more →](https://www.poso.co/guides/pharmacy-inventory-management/) - **Dead stock:** Products that have not sold for a long time and are unlikely to sell. [Read more →](https://www.poso.co/features/inventory-management/) - **Delivery note:** A document listing the goods delivered to a customer, signed on receipt. [Read more →](https://www.poso.co/pharmaceutical-wholesale-software/) - **Dispensing:** Preparing and supplying medicines against a prescription, usually by or under a pharmacist. A clinical process, distinct from retail selling. ## E - **Expiry date:** The date after which a product must not be sold or used. [Read more →](https://www.poso.co/guides/track-medicine-expiry-dates/) ## F - **FEFO (first expired, first out):** Stock rotation where the stock with the earliest expiry date is sold or used first. [Read more →](https://www.poso.co/guides/fefo-vs-fifo/) - **FIFO (first in, first out):** Stock rotation (or valuation) where the earliest-received stock leaves first. [Read more →](https://www.poso.co/guides/fefo-vs-fifo/) ## G - **GRN (goods received note):** A record that goods arrived from a supplier, listing what was received, often with batches and expiry dates. [Read more →](https://www.poso.co/features/purchasing/) - **Gross margin:** Profit as a percentage of the selling price: (price − cost) ÷ price. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/) ## I - **Inventory valuation:** The total value of stock held, usually at cost, using a method such as average cost or FIFO. [Read more →](https://www.poso.co/features/inventory-management/) ## L - **Lead time:** The number of days between placing an order and the stock being ready to sell. [Read more →](https://www.poso.co/guides/reorder-level-formula/) ## M - **Markup:** Profit as a percentage of cost: (price − cost) ÷ cost. A 25% markup equals a 20% margin. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/) - **Maximum stock level:** The most stock you want to hold of a product, to limit cash tied up and expiry risk. [Read more →](https://www.poso.co/guides/reorder-level-formula/) ## N - **Near-expiry stock:** Stock that will expire soon, typically within 60–90 days, and needs action. [Read more →](https://www.poso.co/features/batch-and-expiry-tracking/) ## O - **Offline mode:** The ability of a till to keep selling without internet and sync sales later. [Read more →](https://www.poso.co/features/offline-pos/) - **OTC (over the counter):** Medicines that can be sold without a prescription. [Read more →](https://www.poso.co/chemist-software/) ## P - **PAO (period after opening):** The open-jar symbol on cosmetics showing how many months a product lasts once opened, such as 12M. [Read more →](https://www.poso.co/guides/cosmetics-shelf-life-and-stock/) - **Point of sale (POS):** The system used at the counter to ring up sales, take payment and print receipts. [Read more →](https://www.poso.co/guides/what-is-a-pharmacy-pos/) - **Price list:** A set of prices for a customer group, such as wholesale or retail, sometimes with quantity breaks. [Read more →](https://www.poso.co/pharmaceutical-wholesale-software/) - **Purchase order (PO):** A document sent to a supplier listing the products, quantities and prices you are ordering. [Read more →](https://www.poso.co/features/purchasing/) ## R - **Recall:** The withdrawal of a batch from sale because of a safety or quality problem. [Read more →](https://www.poso.co/features/batch-and-expiry-tracking/) - **Reorder level (reorder point):** The stock level at which a new order is placed: average daily sales × lead time + safety stock. [Read more →](https://www.poso.co/guides/reorder-level-formula/) ## S - **Safety stock:** Extra stock held to cover busier-than-usual sales and late deliveries. [Read more →](https://www.poso.co/guides/reorder-level-formula/) - **Shrinkage:** Stock lost to expiry, theft, damage and errors: the gap between recorded and actual stock. [Read more →](https://www.poso.co/guides/reduce-pharmacy-stock-losses/) - **SKU (stock keeping unit):** A unique code for each distinct item you stock, including each pack size or variant. [Read more →](https://www.poso.co/features/inventory-management/) - **Stock take:** A count of all stock, compared with records to find and correct differences. [Read more →](https://www.poso.co/guides/stock-taking/) - **Stock transfer:** Moving stock from one branch or warehouse to another, recorded on both sides. [Read more →](https://www.poso.co/features/multi-branch/) - **Stock turnover:** How many times stock is sold and replaced in a year: cost of goods sold ÷ average stock value. [Read more →](https://www.poso.co/guides/pharmacy-inventory-management/) - **Supplier bill (vendor bill):** The invoice a supplier sends you for goods delivered. [Read more →](https://www.poso.co/features/purchasing/) ## U - **Unit of measure:** The unit a product is counted in, such as tablet, bottle, kg, litre or bag, with conversions between them. [Read more →](https://www.poso.co/features/inventory-management/) ## V - **Variant:** A version of a product, such as a shade, size or flavour, with its own barcode and stock. [Read more →](https://www.poso.co/cosmetics-shop-software/) - **VAT (value added tax):** A tax on sales; many countries exempt or zero-rate essential medicines. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/) ## W - **Write-off:** Removing stock from records because it expired, was damaged or was lost, recorded as a loss. [Read more →](https://www.poso.co/guides/reduce-pharmacy-stock-losses/) ## Z - **Zero-rated:** Taxable at 0%, as opposed to exempt; the difference affects whether input VAT can be reclaimed. [Read more →](https://www.poso.co/guides/pharmacy-accounting-basics/)