What is POS Terminology?

POS terminology refers to the common terms and phrases to describe point-of-sale systems and business processes. Use of this terminology is generally accepted as standard usage throughout the retail, hospitality, and service-based industries, where POS terminology is commonly utilized to describe transactions, report data, hardware, software functions, and operating workflows.

Understanding POS terminology helps business owners and employees improve how businesses utilize POS systems and interpret reports and data.

8 Common POS Terms

While terminology may vary slightly between systems, many POS terms are used consistently across the industry.

• Transaction - A completed sale or exchange recorded by the POS system
• SKU (Stock Keeping Unit) - Used to identify products uniquely within an inventory control system.
• PLU (Price Look-Up) - A number to identify an item as sold by weight or unit.
• Receipt - A record of a completed transaction provided to the customer.
• Modifier - Customizes an item, e.g., size of the item, add-on item, or something to do with modifying an item.
• Void - Cancellation of a sale before completion.
• Refund - Returning money to the customer after a completed sale.
• Tender - Payment used at time of sale, e.g., cash or credit card.