Glossary
Retail & POS Terms, Explained
Clear, plain-English definitions of the retail, point-of-sale, and compliance terms that matter for multi-store retail and pharmacy chains.
Point of Sale (POS)
A point of sale (POS) is the system where a retail transaction is completed — the hardware and software a store uses to scan items, apply pricing and tax, take payment, and issue a receipt. In a chain, the POS also feeds inventory, loyalty, and head-office reporting.
Mobile POS (mPOS)
A mobile POS (mPOS) is point-of-sale software running on a smartphone or tablet with a card reader, letting staff check out customers anywhere on the floor instead of at a fixed counter. It reduces queues and enables line-busting during peak periods.
Warehouse Management System (WMS)
A warehouse management system (WMS) is software that controls the storage and movement of stock within a warehouse — receiving, put-away, location tracking, picking, and dispatch. For retail chains it enforces FIFO/FEFO, tracks batches and expiry, and keeps inventory accurate from warehouse to store shelf.
FEFO (First-Expiry-First-Out)
FEFO (First-Expiry-First-Out) is an inventory method where stock with the earliest expiry date is sold or dispatched first, regardless of when it arrived. It is essential for pharmacy, grocery, and cosmetics retail to minimise expired-stock write-offs and stay compliant.
FIFO (First-In-First-Out)
FIFO (First-In-First-Out) is an inventory method where the oldest stock — the first received — is sold or dispatched first. It keeps inventory fresh and is the default rotation rule for most retail goods, while perishables typically use FEFO instead.
SKU (Stock Keeping Unit)
A SKU (Stock Keeping Unit) is a unique code that identifies a distinct product variant — a specific size, colour, or pack of an item. Retailers use SKUs to track stock levels, sales, and pricing precisely across every store and the warehouse.
GRN (Goods Receipt Note)
A GRN (Goods Receipt Note) is a document created when stock is received from a supplier, recording the items, quantities, and batches actually delivered. It is checked against the purchase order and invoice, and is the entry point for inventory into a store or warehouse.
Stock Reconciliation
Stock reconciliation is the process of matching recorded inventory against physically counted stock to find and resolve discrepancies. Automating it across a chain surfaces shrinkage, receiving errors, and data problems early — and is the foundation of trustworthy, real-time inventory.
Shrinkage
Shrinkage is the loss of inventory between purchase and sale — from theft, damage, miscounting, or administrative error. Measured as a percentage of sales, it directly erodes margin, so retailers use reconciliation and anomaly detection to identify and reduce it.
E-Invoicing
E-invoicing is the generation and exchange of invoices in a structured electronic format that tax authorities can validate — rather than paper or PDF. A growing number of countries mandate it, so a retail POS must produce compliant structured invoice data at the point of sale.
eTIMS (Kenya)
eTIMS is the Kenya Revenue Authority's electronic Tax Invoice Management System, requiring businesses to generate tax invoices electronically in a KRA-recognised way. Retailers in Kenya need a POS that produces eTIMS-compliant invoices automatically at checkout.
VAT (Value Added Tax)
VAT (Value Added Tax) is a consumption tax charged on the value added at each stage of a supply chain and ultimately paid by the end customer. Retail POS software must apply the correct VAT rate per market — for example 5% in the UAE, 15% in South Africa, and 16% in Kenya — and produce compliant tax invoices.
GST (Goods and Services Tax)
GST (Goods and Services Tax) is a broad-based consumption tax on most goods and services — for example 10% in Australia. Retailers must issue GST-compliant tax invoices and keep clean records for tax reporting, such as Australia's Business Activity Statement (BAS).
Drug Schedule
A drug schedule is a regulatory classification of medicines by their level of control — determining which require a prescription, record-keeping, or restricted sale. Pharmacy POS software must enforce the correct schedule rules at checkout and link prescriptions to keep dispensing compliant.
Batch & Expiry Tracking
Batch and expiry tracking records the manufacturing batch and expiry date of stock at receipt, storage, and sale. It is critical for pharmacy, grocery, and cosmetics retail — enabling FEFO rotation, recall handling, and near-expiry alerts that cut write-offs.
Loyalty Program
A loyalty program rewards repeat customers with points, discounts, or perks to encourage return visits and higher spend. In retail, it is powered by a unified customer profile that links purchases across stores, enabling targeted offers and measurable repeat-purchase growth.
Cashier Session (Shift Reconciliation)
A cashier session is a tracked period during which a specific cashier operates a till, from opening float to shift close. At the end, cash and payments are reconciled against recorded sales — creating accountability and surfacing cash-handling discrepancies.
Retail Operations Platform
A retail operations platform is unified software that connects the core systems a retail chain runs on — point of sale, inventory and warehouse management, CRM and loyalty, analytics, and store execution — so data flows between them and head office has one real-time view across every store.
Omnichannel Retail
Omnichannel retail is a strategy that unifies a retailer's sales channels — physical stores, online, and mobile — into a single connected experience, sharing inventory, pricing, and customer data so shoppers can buy, collect, and return seamlessly across any channel.
Perpetual Inventory
Perpetual inventory is a system that updates stock levels continuously and automatically as items are received and sold, rather than only at periodic physical counts. It gives retailers real-time, per-SKU stock visibility across stores — the basis for accurate reordering and reconciliation.