Glossary
Omnizone glossary — plain definitions with worked arithmetic, useful even if you never buy.
- Multi-currency revaluation — Restating open foreign-currency receivables or payables at a later exchange rate so unrealised FX gain or loss hits the books before cash settles.
- Landed cost — The full cost to bring goods onto your shelf or into your warehouse — purchase price plus freight, duty, insurance, and other inbound charges allocated to the item.
- Three-way match — Checking that the purchase order, goods receipt, and vendor invoice agree on quantity and price before you approve payment.
- Perpetual inventory — Updating on-hand quantity and value continuously as you receive, issue, transfer, and sell — not only after a year-end stock count.
- FIFO vs weighted average — Two ways to cost inventory issues: FIFO assumes oldest receipts leave first; weighted average blends remaining value across remaining quantity.
- Cost of goods sold (COGS) — The inventory cost removed from the balance sheet and recognised as expense when you sell (or consume) the goods — not the selling price.
- Work in progress (WIP) — Cost incurred on jobs or production that is not yet fully recognised as revenue or finished goods — typically actual cost less what has already been certified or completed.
- AR ageing — Splitting open customer balances into time buckets (current, 1–30, 31–60, …) based on due date or invoice date so collections know what is late.
- Credit limit — The maximum open exposure you allow a customer — usually open AR plus undelivered orders — before new sales need approval or are blocked.
- Consignment stock — Goods physically at a customer or distributor that you still own until they sell or consume them — your inventory on someone else’s floor.
- Reorder point — The on-hand level that should trigger a replenishment order: expected demand during lead time plus safety stock.
- SKU — A stock-keeping unit — the distinct item identity you buy, store, count, and sell as one row in inventory (often size, colour, or pack specific).