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.
- Aged receivables
- A report of what customers owe, grouped by how long it has been outstanding (current, 30, 60, 90+ days). Read more →
- Average cost
- A stock valuation method where each unit is valued at the weighted average cost of all units purchased. Read more →
- Barcode
- A machine-readable code on a product or pack (often EAN-13) that a scanner reads to identify it instantly. Read more →
- 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 →
- 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 →
- 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 →
- Credit limit
- The maximum amount a customer may owe at any time. Read more →
- Cycle count
- Counting a small group of products regularly, instead of everything at once, to keep stock records accurate. Read more →
- Days of stock
- How many days your current stock would last at the current rate of sales. Read more →
- Dead stock
- Products that have not sold for a long time and are unlikely to sell. Read more →
- Delivery note
- A document listing the goods delivered to a customer, signed on receipt. Read more →
- Dispensing
- Preparing and supplying medicines against a prescription, usually by or under a pharmacist. A clinical process, distinct from retail selling.
- Expiry date
- The date after which a product must not be sold or used. Read more →
- FEFO (first expired, first out)
- Stock rotation where the stock with the earliest expiry date is sold or used first. Read more →
- FIFO (first in, first out)
- Stock rotation (or valuation) where the earliest-received stock leaves first. Read more →
- GRN (goods received note)
- A record that goods arrived from a supplier, listing what was received, often with batches and expiry dates. Read more →
- Gross margin
- Profit as a percentage of the selling price: (price − cost) ÷ price. Read more →
- Inventory valuation
- The total value of stock held, usually at cost, using a method such as average cost or FIFO. Read more →
- Lead time
- The number of days between placing an order and the stock being ready to sell. Read more →
- Markup
- Profit as a percentage of cost: (price − cost) ÷ cost. A 25% markup equals a 20% margin. Read more →
- Maximum stock level
- The most stock you want to hold of a product, to limit cash tied up and expiry risk. Read more →
- Near-expiry stock
- Stock that will expire soon, typically within 60–90 days, and needs action. Read more →
- Offline mode
- The ability of a till to keep selling without internet and sync sales later. Read more →
- OTC (over the counter)
- Medicines that can be sold without a prescription. Read more →
- PAO (period after opening)
- The open-jar symbol on cosmetics showing how many months a product lasts once opened, such as 12M. Read more →
- Point of sale (POS)
- The system used at the counter to ring up sales, take payment and print receipts. Read more →
- Price list
- A set of prices for a customer group, such as wholesale or retail, sometimes with quantity breaks. Read more →
- Purchase order (PO)
- A document sent to a supplier listing the products, quantities and prices you are ordering. Read more →
- Recall
- The withdrawal of a batch from sale because of a safety or quality problem. Read more →
- Reorder level (reorder point)
- The stock level at which a new order is placed: average daily sales × lead time + safety stock. Read more →
- Safety stock
- Extra stock held to cover busier-than-usual sales and late deliveries. Read more →
- Shrinkage
- Stock lost to expiry, theft, damage and errors: the gap between recorded and actual stock. Read more →
- SKU (stock keeping unit)
- A unique code for each distinct item you stock, including each pack size or variant. Read more →
- Stock take
- A count of all stock, compared with records to find and correct differences. Read more →
- Stock transfer
- Moving stock from one branch or warehouse to another, recorded on both sides. Read more →
- Stock turnover
- How many times stock is sold and replaced in a year: cost of goods sold ÷ average stock value. Read more →
- Supplier bill (vendor bill)
- The invoice a supplier sends you for goods delivered. Read more →
- Unit of measure
- The unit a product is counted in, such as tablet, bottle, kg, litre or bag, with conversions between them. Read more →
- Variant
- A version of a product, such as a shade, size or flavour, with its own barcode and stock. Read more →
- VAT (value added tax)
- A tax on sales; many countries exempt or zero-rate essential medicines. Read more →
- Write-off
- Removing stock from records because it expired, was damaged or was lost, recorded as a loss. Read more →
- Zero-rated
- Taxable at 0%, as opposed to exempt; the difference affects whether input VAT can be reclaimed. Read more →
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Last updated by the poso team.