Key terms

Term	Meaning	Example
Sales order	A customer's order. Numbered automatically.	SO-3F9A2C1B
Order line	One product variant on the order, with quantity and price	40 × Ceramic Mug, Standard
Customer	The partner you're selling to	Café Aroma (CUST-0042)
Business unit	The part of your organisation making the sale	Bright Home Supplies
Warehouse	Where the goods are reserved and dispatched from	Main Warehouse
Default location	The warehouse location orders reserve and dispatch from	DISPATCH
Transaction currency	The currency the customer pays in	GBP
Base currency	Your accounting currency	GBP
Exchange rate	Transaction to base conversion; 1 when they're the same	1

Pricing

Term	Meaning	Example
Base price	The price before discounts, from your pricing setup (a price list or a price rule)	4.50 per mug
Price list	A list of prices per product variant, e.g. Retail or Wholesale	Wholesale 2026
Condition	A pricing rule that adds or takes away an amount: discount, surcharge, tax, freight, rounding	Customer discount 5%
Manual discount	A discount % typed on a line by the salesperson	15%
Override reason	Why a manual discount was given (required)	"Annual contract, agreed by Nadia"
Breakdown	The list of conditions applied to a line	Base 4.50, Customer discount −0.23, Tax +0.86
Pricing approval	Sign-off needed for big manual discounts	Manager approval for 15%

Term	Meaning	Example
Reservation	Stock held for the order when it's confirmed	40 mugs reserved at DISPATCH
Dispatch	Sending goods out; removes them from stock	40 mugs sent
Remaining quantity	Ordered minus already dispatched	10 T-shirts still to send
Sales invoice	The bill for the order. Numbered automatically.	INV-…
Post (invoice)	Make the invoice final and record it in the accounts
Journal	The accounting entries behind the invoice or payment (debit and credit)	Debit Receivables, Credit Sales
Payment	Money received against the invoice. Can be several part payments.	100.00 by bank transfer
Outstanding balance	Invoice total minus payments so far	127.60