Glossary
What is an SKU?
What an SKU is, how to write useful SKU codes for a small business, and how it differs from an HSN code.
Updated
In short
An SKU, stock keeping unit, is a short unique code a business gives each product it stocks. SimpleERP gives every product an SKU, unique within the business, created automatically or typed in.
An SKU, stock keeping unit, is a short code a business gives each distinct product it stocks, so that similar items are never confused on a bill, a shelf label or a count sheet. Two racks that differ only in shelf count get two SKUs. SKUs are your own codes, unlike HSN codes, which are government tax codes shared by everyone.
SKU: a worked example
| Product | SKU | HSN |
|---|---|---|
| Steel rack 4 shelf | SR-4S | 9403 |
| Steel rack 6 shelf, old design | SR-6S-OLD | 9403 |
| Office chair mesh | OC-MESH | 9401 |
| LED panel 2×2 | LED-22 | 9405 |
| Cable tray 3 m | CT-3M | 7308 |
FAQ
Questions, answered
What is the full form of SKU?
SKU stands for stock keeping unit. It is the code a business uses to identify one product in its own stock records, for buying, selling, counting and reporting. The same code is used on bills, invoices, count sheets and price tags.
How do I create good SKU codes?
Keep them short, start with the product family and add the main difference: SR-4S for a 4-shelf steel rack, SR-6S for 6 shelves. Avoid spaces, the letter O next to zero, and details that change, such as price or supplier.
Is SKU the same as HSN code?
No. HSN is a government code for the type of goods, used for GST, and many of your products share one. An SKU is your own code and is unique to one product in your business.
Can I change an SKU later?
Yes. In SimpleERP documents link to the product, not its code, so renaming an SKU does not break any past invoice, bill or stock history. The new code must still be unique within your business.
Related
Keep reading
Unit of measure (UoM)
The unit a product is counted, bought and sold in, such as Nos, kg or metres, with the decimal places it allows.
Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
Read moreInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
Read more
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