| Term | Meaning |
|---|
| SKU | The unique item number |
| FIFO | First in, first out: cost of sale taken from the oldest purchase |
| Average cost | Cost of sale = average of purchase prices |
| Cost of goods sold (COGS) | The cost of the goods that were sold |
| Accounts receivable | Amounts customers owe you |
| Accounts payable | Amounts you owe vendors |
| Entry | An accounting record with a debit side and a credit side |
| Posting | Recording a transaction in the accounts |
| Accounting period | One month of the fiscal year |
| Trial balance | A list of all account balances |
| Bank reconciliation | Comparing system transactions with the bank statement |
| Return (credit memo) | A document reversing an invoice fully or partly |
| Inactive | A switched-off record: hidden from lists, its history kept |