Glossary

Business terms, explained plainly.

65 accounting, stock, payroll and tax terms, each with an example and the common mistakes. Indian terms are marked.

The index

65 terms in 6 subjects

Start with GSTIN, place of supply or CTC.

A, 5 terms

AATO Category: GST, India: AATO (aggregate annual turnover) is a business's total turnover for a financial year across all GSTINs on the same PAN, and it decides several GST thresholds. Also called: aggregate annual turnover, aggregate turnover.
Accounts receivable ageing Category: Accounting: Accounts receivable ageing is a report that sorts what customers owe by how long each invoice has been outstanding, such as 0–30, 31–60, 61–90 and over 90 days. Also called: debtors ageing, AR ageing, receivables ageing.
Accrual accounting Category: Accounting: Accrual accounting records income when it is earned and expenses when they are incurred, whether or not cash has been received or paid. Also called: accrual basis, mercantile system.
AIS Category: Accounting, India: AIS (Annual Information Statement) is the statement on the income-tax compliance portal that lists the income and financial transactions reported against a PAN, such as interest, dividends, TDS and large purchases. Also called: Annual Information Statement, TIS.
AMC Category: Business software: An AMC (annual maintenance contract) is a yearly agreement under which a vendor supports, updates and fixes software or equipment after it has been installed. Also called: annual maintenance contract, support contract.

B, 4 terms

Bank reconciliation Category: Accounting: Bank reconciliation is matching each entry in your bank ledger with the bank statement, so the difference between the two balances is fully explained. Also called: BRS, bank reconciliation statement.
Batch number Category: Inventory and manufacturing: A batch number identifies a lot of an item made or received together, so its quantity, expiry date and source can be tracked separately from other lots. Also called: lot number, batch.
Bill of materials Category: Inventory and manufacturing: A bill of materials (BOM) is the list of raw materials, sub-assemblies, quantities and operations needed to make one unit or batch of a finished product. Also called: BOM.
Bill of supply Category: GST, India: A bill of supply is the document a GST-registered supplier issues instead of a tax invoice when no tax is charged, such as for exempt goods or by a composition dealer. Also called: bill of supply under GST.

C, 4 terms

CGST Category: GST, India: CGST (central GST) is the Centre's share of the tax on a supply made within one state, charged alongside SGST or UTGST at half the GST rate each. Also called: Central GST, central goods and services tax.
Composition scheme Category: GST, India: The composition scheme is an optional GST scheme for small businesses that pay tax at a low flat rate on turnover, without charging GST to buyers or claiming input tax credit. Also called: composition levy, composition dealer.
Credit note Category: GST, India: A credit note under GST is the document a supplier issues to reduce the taxable value or tax on an earlier invoice, for example after goods are returned or a price is cut. Also called: GST credit note, sales return.
CTC Category: Payroll, India: CTC (cost to company) is the total yearly cost of an employee to the employer, including gross salary, the employer's PF and ESI share, gratuity and other benefits. Also called: cost to company, salary package.

D, 5 terms

Data migration Category: Business software: Data migration is moving a business's records, such as customers, items, ledgers, opening balances and past transactions, from its old software into the new one, and checking that they agree. Also called: data import, migration.
Day book Category: Accounting: A day book is the date-wise list of every voucher posted in the books, such as sales, receipts, payments and journals, used to review a day's entries. Also called: daybook, day book report.
Debit note Category: GST, India: A debit note under GST is the document a supplier issues to increase the taxable value or tax on an earlier invoice, such as when the agreed price goes up after billing. Also called: GST debit note, supplementary invoice.
Delivery challan Category: GST, India: A delivery challan is the document that goes with goods moved without a tax invoice, such as goods sent for job work or moved for reasons other than a sale, under rule 55 of the CGST Rules. Also called: challan, DC.
Depreciation Category: Accounting: Depreciation is the part of a fixed asset's cost charged as an expense in each year of its useful life, as the asset wears out or becomes outdated. Also called: SLM, WDV, straight-line method, written-down value.

E, 7 terms

E-invoice Category: GST, India: An e-invoice is a business invoice that a registered supplier reports to the government's Invoice Registration Portal, which returns an IRN and a signed QR code to print on it. Also called: e-invoicing, electronic invoice.
E-way bill Category: GST, India: An e-way bill is an electronic document generated on the government portal before moving goods worth more than ₹50,000, carrying the invoice and vehicle details. Also called: EWB, eway bill.
EMI Category: Lending: An EMI (equated monthly instalment) is the fixed amount a borrower pays every month, made up of interest on the balance and part of the principal, until the loan is repaid. Also called: equated monthly instalment, instalment.
EPF Category: Payroll, India: EPF (Employees' Provident Fund) is the retirement fund run by EPFO, now under the Code on Social Security, 2020 (earlier the EPF Act, 1952), to which the employee and the employer each pay 12% of the employee's basic wages and DA every month. Also called: PF, provident fund, Employees' Provident Fund.
EPS Category: Payroll, India: EPS (Employees' Pension Scheme) is the pension fund that receives 8.33% of an employee's wages, up to ₹2,083 a month from 17 Sep 2026, out of the employer's 12% PF contribution. Also called: Employees' Pension Scheme, pension scheme.
ERP Category: Business software: ERP (enterprise resource planning) software runs a business's accounts, sales, purchase, stock, production and people on one shared set of records, so each fact is entered once. Also called: enterprise resource planning, business management software.
ESI Category: Payroll, India: ESI (Employees' State Insurance) is the health and social insurance scheme run by ESIC, paid as 0.75% of wages by employees and 3.25% by employers for staff earning up to ₹21,000 a month. Also called: ESIC, Employees' State Insurance.

F, 5 terms

FIFO Category: Inventory and manufacturing: FIFO (first in, first out) is a stock valuation method that assumes the units bought first are sold first, so closing stock is valued at the latest purchase costs. Also called: first in first out.
Financial year Category: Accounting, India: A financial year (FY) in India is the twelve months from 1 April to 31 March, used for company accounts, GST and income tax. Also called: FY, fiscal year, tax year.
FOIR Category: Lending: FOIR (fixed obligation to income ratio) is the share of a borrower's monthly income already committed to EMIs and other fixed payments, including the proposed new loan. Also called: fixed obligation to income ratio, debt-to-income ratio.
Form 16 Category: Payroll, India: Form 16 is the certificate an employer gives each employee by 15 June, showing salary paid and income tax deducted for the year; from tax year 2026-27 it becomes Form 130. Also called: salary TDS certificate, Form 130.
Form 26AS Category: Accounting, India: Form 26AS is the annual tax credit statement for a PAN, showing TDS and TCS deposited by others and taxes paid; under the Income-tax Rules, 2026 it is Form 168. Also called: tax credit statement, Form 168.

G, 6 terms

Godown Category: Inventory and manufacturing, India: A godown is a warehouse or storeroom where a business keeps its stock, and under GST it must be declared on the registration as a place of business. Also called: warehouse, store.
Gratuity Category: Payroll, India: Gratuity is a lump sum an employer pays an employee on leaving, retiring or death, worked out as 15 days' wages for each completed year of service. Also called: gratuity payment.
GSTIN Category: GST, India: A GSTIN is the 15-character GST identification number given to each GST registration, made of the state code, the PAN, an entity number and a check character. Also called: GST number, GST identification number.
GSTR-1 Category: GST, India: GSTR-1 is the GST return in which a registered business reports its sales invoice by invoice, along with credit notes, exports and an HSN-wise summary. Also called: GSTR1, return of outward supplies.
GSTR-2B Category: GST, India: GSTR-2B is the monthly statement the GST portal generates for each buyer, listing the input tax credit available from suppliers' filed invoices and notes. Also called: GSTR2B, ITC statement.
GSTR-3B Category: GST, India: GSTR-3B is the summary GST return in which a business declares its sales tax, claims input tax credit and pays the net GST for the period. Also called: GSTR3B.

H, 1 term

HSN code Category: GST, India: An HSN code is the number from the international Harmonized System that classifies a product for GST, and it decides the rate and the digits printed on the invoice. Also called: Harmonized System of Nomenclature, HSN.

I, 4 terms

IGST Category: GST, India: IGST (integrated GST) is the single GST charged on a supply from one state to another, on imports and on supplies to SEZs, collected by the Centre. Also called: Integrated GST, integrated goods and services tax.
IMS Category: GST, India: The Invoice Management System (IMS) is the GST portal facility where a buyer accepts, rejects or keeps pending each supplier invoice before it counts in GSTR-2B. Also called: Invoice Management System.
Input tax credit Category: GST, India: Input tax credit (ITC) is the GST a business paid on its purchases that it may set off against the GST it owes on its sales, so tax is paid only on value added. Also called: ITC.
IRN Category: GST, India: An IRN (Invoice Reference Number) is the unique 64-character code the Invoice Registration Portal returns for each e-invoice, proving it was reported to GST. Also called: Invoice Reference Number.

J, 2 terms

Job work Category: Inventory and manufacturing, India: Job work is processing or treatment done by another business (the job worker) on goods that belong to you (the principal), with the goods sent and returned without GST under section 143. Also called: subcontracting, job worker.
Journal entry Category: Accounting: A journal entry is an accounting record that posts equal debit and credit amounts to two or more accounts, used for adjustments that no invoice or payment covers. Also called: JV, journal voucher.

K, 1 term

Key Facts Statement Category: Lending, India: A Key Facts Statement (KFS) is the standard one-place summary of a loan's amount, interest rate, annual percentage rate, fees, repayment schedule and grievance contacts that a lender must give the borrower before the loan agreement. Also called: KFS.

L, 3 terms

Labour welfare fund Category: Payroll, India: The labour welfare fund (LWF) is a small contribution, set by each state's own law, that employees and employers pay to a state board that runs welfare schemes for workers. Also called: LWF.
Ledger Category: Accounting: A ledger is the record of every debit and credit posted to one account, such as a customer, a bank account or sales, with its running balance. Also called: ledger account, khata, general ledger.
LTV Category: Lending: LTV (loan to value) is the loan amount as a percentage of the value of the asset pledged as security, such as a house, a vehicle or gold. Also called: loan to value ratio, margin.

N, 1 term

NPA Category: Lending, India: An NPA (non-performing asset) is a loan whose interest or instalment has remained overdue for more than 90 days, under RBI's income recognition and asset classification norms. Also called: non-performing asset, bad loan.

P, 3 terms

Payslip Category: Payroll, India: A payslip is the statement an employer gives each employee for a pay period, showing wages, attendance, deductions and net pay; under the Code on Wages it is the wage slip in Form V. Also called: wage slip, salary slip, Form V.
Place of supply Category: GST, India: Place of supply is the state (or union territory) where GST treats a supply as made; it decides whether the invoice carries CGST + SGST or IGST. Also called: POS.
Professional tax Category: Payroll, India: Professional tax (PT) is a tax on employment levied by some Indian states, deducted from salary by the employer and capped at ₹2,500 per person per year by the Constitution. Also called: PT, profession tax.

R, 2 terms

Reorder level Category: Inventory and manufacturing: A reorder level is the stock quantity at which a new purchase order should be placed, so that fresh stock arrives before the current stock runs out. Also called: reorder point, ROP.
Reverse charge Category: GST, India: Reverse charge (RCM) is the GST rule under which the recipient of certain notified goods or services pays the tax to the government instead of the supplier. Also called: RCM, reverse charge mechanism.

S, 7 terms

SAC code Category: GST, India: A SAC (Services Accounting Code) is the six-digit code, starting with 99, that classifies a service for GST and decides its rate. Also called: Services Accounting Code, SAC.
Safety stock Category: Inventory and manufacturing: Safety stock is the extra quantity of an item kept on hand to cover days of higher sales or late deliveries, so the business does not run out. Also called: buffer stock.
Schedule III Category: Accounting, India: Schedule III of the Companies Act, 2013 is the format in which an Indian company must present its balance sheet, profit and loss statement and notes. Also called: Schedule III format, Companies Act Schedule III.
Self-hosted Category: Business software: Self-hosted (on-premise) software runs on a server that the customer owns or rents and controls, rather than on the vendor's shared cloud. Also called: on-premise, on-prem, own server.
SGST Category: GST, India: SGST (state GST) is the state's share of the tax on a supply made within that state; in union territories without a legislature it is called UTGST. Also called: State GST, UTGST, union territory GST.
SMA Category: Lending, India: An SMA (Special Mention Account) is a loan account showing early stress, classed as SMA-0, SMA-1 or SMA-2 by how many days the dues have been overdue, before it turns into an NPA. Also called: Special Mention Account, SMA-0, SMA-1, SMA-2.
Stock valuation Category: Inventory and manufacturing: Stock valuation is putting a rupee value on the goods you hold, at cost or net realisable value whichever is lower, using a method such as FIFO or weighted average. Also called: inventory valuation, closing stock valuation.

T, 3 terms

Tax invoice Category: GST, India: A tax invoice is the bill a GST-registered supplier issues for a taxable sale, showing the fields rule 46 of the CGST Rules requires, so the buyer can claim input tax credit. Also called: GST invoice, GST tax invoice.
TDS Category: Accounting, India: TDS (tax deducted at source) is income tax that a payer deducts from certain payments, such as fees, rent, contract work and salary, and deposits with the government on the payee's behalf. Also called: tax deducted at source.
Trial balance Category: Accounting: A trial balance is a list of the closing balances of every ledger account on a date, in which the total of debit balances must equal the total of credit balances. Also called: TB.

U, 1 term

Unlimited users Category: Business software: Unlimited users means the software is priced for the system and modules switched on, so a business can give logins to every employee without paying more per person. Also called: no per-user pricing, unlimited logins.

W, 1 term

Work order Category: Inventory and manufacturing: A work order is an instruction to make a set quantity of a product from its bill of materials by a set date, tracking the materials issued, the operations and the output. Also called: production order, manufacturing order.

Terms marked India (42 of 65) come from Indian law or practice, such as GST, PF and ESI; the rest apply anywhere. Each term has its own page: an example, common mistakes, where it shows up in MyRecords and, for laws and returns, the official source. Need the document itself? See the free invoice, challan and payslip templates.

Last updated 3 Nov 2026

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