Glossary

Inventory Glossary

Common inventory management terms — explained.

A

Access Right: A particular feature that a User may be allowed to use. For example Access Rights might be "Add Inventory" or "Edit Invoice".
AUC: Average Unit Cost.
Audit Log: The process of recording which actions have been taken (log) for the purpose of an audit (to check).
Average Unit Cost (AUC): A type of Item Pricing System that averages the purchased price in order to set a sale price.

B

Barcode: A visual image that can be scanned via a barcode scanner to identify the item.
Barcode Scanner: A device that typically plugs into a computer to allow for the scanning of barcodes. Scanned barcodes are then used to identify an item.

C

Category: Along with the Sub-Category the Category is used to organize and group together Items. This helps to find items and also produce reports.
Comma Separated Values (CSV) File: A standard file format used for transferring information between different programs. A program is said to "export" or save to a CSV File and then "import" or load from a CSV file. For example Microsoft Excel can export a spreadsheet to a CSV File.
Commission: A payment for services or goods supplied. Users can be set with a Commission percentage, allowing for tracking of sales people against Invoices created.
Commission Report: Shows the total commission earned by a sales person over a period.
Custom Invoice: A type of Invoice that can be customized to change the layout or details it contains.
Customer: An individual or business that has been Invoiced.

E

Expiration Date: Records the expiry date of perishable goods, such as food, flowers, drugs etc.

F

Field: A single piece of information stored in a database. A field could be a customer's name, city, phone number, etc.
FIFO: First In First Out.
File Export: The process of saving a piece of information from a program in order to transfer information to another program.
Financial Quote: Same as a Quote.
First In First Out (FIFO): A type of Item Pricing System that sets the sale price based on the order in which the item was received. For example if 3 widgets were received where the cost was $1, $5 then $3, the sale price will be set to the "First In", being $1.
Fixed Pricing: A type of Item Pricing System that sets the sale price at a fixed amount.

I

Inventory: A collection of Items.
Invoice: A list of Items sent to a Customer for payment. Usually also includes the Item price and quantity.
Item: A representation of a physical item of stock. Usually stored against a quantity to indicate the total available.
Item Custom Field: An additional piece of information (field) that can be manually added to extend the functionality of the system.
Item Description: A usually long text entry that describes the item and its features.
Item Field: A Field that relates to an Item.
Item Group: A collection of Items that when added to an Invoice automatically include all individual Items or a collective Item name. For example an Item Group called "Car" would include "Wheels" and "Hub Caps". When added to an Invoice it would show "Car" rather than the individual items.
Item Name: The name given to the item to identify it.
Item Number: Usually a unique number used to identify an item. This may or may not be the same as the item barcode.
Item Picture: A photograph or other visual identification of an item.
Item Pricing System: A method used to calculate the selling price of an item based on its purchase price.
Item Type: Indicates if an Item is "Service" or "Product". While both can be added to invoices, only Products would have their stock level adjusted.
Item Unit: Defines the unit of measurement for an item. For example you could set an Item Unit to "Yard" then sell "0.5" to indicate half a yard being sold.

L

Last In First Out (LIFO): A type of Item Pricing System that sets the sale price based on the order in which the item was received. For example if 3 widgets were received where the cost was $1, $5 then $3, the sale price will be set to the "Last In", being $3.
LIFO: Last In First Out.
Location: The place within a Warehouse where an Item is, usually, physically located. Items could be located in several Locations.

N

Number in Stock: The total number of items that are currently available (in stock).

P

Payment Method: The method a customer can use to pay an invoice. This may include cash, credit card, check, etc.
PDF: Portable Document Format.
Portable Document Format (PDF): A type of file that can be opened on different types of computers (such as PCs, MACs and portable devices like smart phones). To open a PDF file requires a PDF Reader.
Price List: A list of prices for a given item. Each Price List is usually associated with the type of customer, for example Wholesale Price List, Retail Price List etc.
Pro forma Invoice: See Quote.
Purchase Order: See Vendor Reorder.

Q

Quote: A statement that lists the items and cost of those items. Usually valid for a set period of time, these are often used in accounting departments to authorize an order before it is made. When a quote is approved it is turned into an invoice.

S

Sales Quote: Same as a Quote.
Stock: A collection of Items. Usually also implies a quantity of those items, as in "Do you have widgets currently in stock?".
Stock Count: A process in which physical stock is counted and compared to the recorded stock totals.
Stock Take: The same as Stock Count.
Sub-Category: A further division of the Category. An Item would be associated with a given Sub-Category, where the Category would be implied.

T

Tax Rate: A percentage of a given sale sent to the government for the purpose of providing services.
Transfer Stock: The process of moving Items from one Location to another. This would usually indicate the physical move from one place to another.

U

User: A particular person who is accessing the system. A User may refer to a "login" or to a purchased license for using the system.
User Access: A method to control which users (people) can access the system. Usually you can also set the Access Rights of a User, specifying which Users should have access to particular features.
User Access Control: The system that maintains the User Access — that is, which people can use which parts of a system.

V

Vendor: An individual or company that supplies Items for sale.
Vendor Reorder: An order sent to a Vendor with a list of Items. Vendor Reorders can usually be automatically generated by checking the current stock level of an Item against a Minimum Level. The quantity ordered is derived from the current stock level and the Reorder Level.

W

Warehouse: The physical building where any number of Locations are. Items are then stored within those Locations.
Warranty Returns: The count of items that have been returned by the customer under a warranty claim.

Y

Year To Date: Indicates a figure on this day exactly 1 year ago. Often used in comparing sales when trends repeat annually, such as comparing retail Christmas sales to last year.
YTD: Year To Date.

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