Plain answers for growing businesses

B

Batch and expiry tracking

Recording which production lot each unit came from and when it expires, so stock can be traced to a supplier or customer and sold before it dates. Inventory

Beat plan route plan

The fixed list of outlets or customers a field salesperson visits on each day of the week, in route order. Managers compare planned visits with actual ones to see coverage. Field apps

Bill of materials BOM

The list of raw materials, sub-assemblies and operations needed to make one unit of a product. A multi-level BOM has sub-assemblies with BOMs of their own. Manufacturing

C

Cost centre

A branch, department, project or product line that costs and income are tagged to, so profit can be reported for each one. Accounts

Credit limit

The most a customer may owe at any time. Orders that would push them over it are held until someone approves them. Sales and CRM

D

Distribution management system DMS

Software that manages a distributor's orders, stock, schemes, billing and collections, often for a brand's network of distributors. Distribution

E

E-invoice IRN

Under GST, businesses above the notified turnover limit report each B2B invoice to the Invoice Registration Portal, which returns an Invoice Reference Number (IRN) and a signed QR code to print on it. GST

E-way bill

An electronic document generated on the GST portal before goods above the notified value are moved, carrying the invoice, transporter and vehicle details. GST

ERP enterprise resource planning

One system for a company's core work (selling, buying, stock, production, accounts, payroll) on a single database, so each transaction is entered once and every department sees the same figures. BeatOS ERP

F

FEFO first expiry, first out

A picking rule that sends out the stock that expires soonest first, used for medicines, food, agri inputs and chemicals. Inventory

G

GSTIN

The 15-character GST identification number of a registered business. Its first two digits are the state code, which decides whether CGST and SGST or IGST applies. GST

GSTR-1

The GST return of outward supplies: the sales invoices, credit notes and HSN summary for a period. GST

GSTR-3B

The summary GST return where the tax payable is worked out and input tax credit is claimed. GST

GSTR-2B

A statement generated by the GST portal from suppliers' filings, showing the input tax credit available to you. Matching your purchase bills to it protects the credit you claim. GST

H

HSN and SAC codes

The classification codes for goods (HSN) and services (SAC) used on GST invoices and returns; each code links to a tax rate. GST

J

Job card

The shop-floor record of one operation on a work order, with the workstation, operator and time taken. Manufacturing

Job work subcontracting

Sending your material to another firm to process (for example machining or coating) and receiving the finished goods back, while the material is still counted as your stock. Manufacturing

L

Landed cost

The full cost of goods once freight, duty, insurance and handling are added to the purchase price. Margins are only real when stock is valued at landed cost. Trading

M

MRP material requirements planning

Working out, from orders or a forecast and the BOMs, what to make, what to buy and when. Not the same as the printed maximum retail price. Manufacturing

P

Projected stock

Stock on hand, plus stock on order or planned, minus stock already promised to orders. It tells sales what can really be promised. Inventory

R

Reorder level

The stock level at which a new purchase or production request should be raised so the item does not run out before it arrives. Inventory

S

Secondary sales

Sales from a distributor to retailers, as opposed to primary sales from the company to the distributor. Brands track them to see real market demand. Distribution

Sales force automation SFA

Software for field sales teams: beat plans, visit check-ins, order taking, collections and activity reports. Field apps

T

TDS and TCS

Tax deducted at source by the payer, and tax collected at source by the seller, under the Income Tax Act, each in specified categories and above thresholds. Compliance

Three-way match

Checking a supplier's bill against the purchase order and the goods receipt before paying, so you pay only for what was ordered and arrived. Purchase

W

Work order

An instruction to make a quantity of a product from its BOM. It reserves the material, lists the operations and records the finished output. Manufacturing