POS glossary
Forty point of sale terms in plain English, from KOT and KDS to Z reports, batch close, tax groups and FIFO. Each entry gives a short definition, a longer explanation and, where it helps, a worked example.
Point of sale (POS)
A point of sale (POS) is the place, software and hardware where a sale is rung up, paid for and recorded.
Kitchen order ticket (KOT)
A kitchen order ticket (KOT) is the printed slip that tells the kitchen what to prepare for an order, without prices.
Kitchen display system (KDS)
A kitchen display system (KDS) is a screen in the kitchen that shows incoming orders in place of paper tickets.
Z report
A Z report is the end-of-day sales summary a POS produces when you close out, showing totals, taxes, tips, refunds and payments by method.
End-of-day close
End-of-day close is the routine of counting the drawer, closing the register, settling the card batch and checking the day's report before you lock up.
Cash float
A cash float is the fixed amount of change placed in the till at the start of a shift so the cashier can make change.
Cash pay-out
A cash pay-out is money taken from the till for something other than a sale, such as paying a supplier or a staff tip-out.
Void vs refund: what is the difference
A void cancels a sale before the card batch has settled, so no money moves; a refund sends money back after the sale has settled.
Split bill
A split bill is one check divided between guests, evenly, by item, by percentage or by custom amounts, with each guest paying their share.
Mixed tender payment
Mixed tender (or split tender) is paying for one sale with more than one payment method, such as part cash and part card.
Tip in a POS
A tip in a POS is the gratuity a customer adds to a sale, entered at the till or on the card terminal and recorded separately from sales.
Card surcharge
A card surcharge is a percentage fee added to credit card sales to help cover the cost of card processing.
Semi-integrated payment terminal
A semi-integrated payment terminal takes the amount from the POS and sends back the result, while the card data stays on the terminal.
Batch close
A batch close sends the day's approved card transactions from the terminal to the processor for settlement, so the money is paid into your bank.
Interac debit
Interac is Canada's debit network, used when a customer pays at the counter with a bank debit card by chip and PIN or by tap (Interac Flash).
POS modifier
A modifier is an option added to an item at the till, such as extra cheese or oat milk, with or without a price, that also prints on the kitchen ticket.
Product variation
A product variation is one version of a product, such as a size, colour or flavour, with its own price, SKU and stock count.
SKU
A SKU (stock keeping unit) is your own code for each product or variation you sell, used to track it in stock, sales and purchasing.
UPC and EAN barcodes
UPC and EAN are the standard retail barcodes printed on packaged goods: UPC-A has 12 digits and EAN-13 has 13.
Weighing scale barcode
A weighing scale barcode is a label printed by a deli or produce scale that carries the item code and the weight or price inside the barcode itself.
Food cost percentage
Food cost percentage is the cost of the ingredients in a dish, or in a period's sales, divided by the menu price or food sales, shown as a percentage.
Recipe costing
Recipe costing is adding up every ingredient, waste allowance and prep cost in a recipe to find the true cost of one portion, then pricing the dish from it.
Cost of goods sold (COGS)
Cost of goods sold (COGS) is the direct cost of the products you sold in a period: opening stock plus purchases, minus closing stock.
Gross margin
Gross margin is sales minus cost of goods sold, usually shown as a percentage of sales.
Markup
Markup is the amount added to an item's cost to set its selling price, shown as a percentage of the cost.
Table turnover
Table turnover is the number of times a table is seated with new guests during a service, a key measure of how much a dining room can earn.
QR code ordering
QR code ordering lets guests scan a code to open your menu on their phone, build an order and send it straight to the POS.
Self-order kiosk
A self-order kiosk is a touchscreen where customers build and pay for their own order, which then goes straight to the kitchen.
Ghost kitchen
A ghost kitchen is a delivery-only kitchen with no dining room, often running several food brands from the same line.
Lot number
A lot number (or batch number) is the code that ties a group of products to when and where they were made, used for expiry, recalls and rotating stock.
FIFO and LIFO
FIFO (first in, first out) and LIFO (last in, first out) are two ways to decide which purchase cost is assigned to the stock you sell.
Inventory shrinkage
Inventory shrinkage is stock you paid for but can no longer sell, lost to theft, damage, spoilage or recording errors.
Stock transfer
A stock transfer moves inventory from one location to another and records it in both, so each store's count and value stay right.
GST and HST
GST is Canada's 5% federal sales tax; HST is the single harmonized tax that replaces GST and provincial sales tax in Ontario and the Atlantic provinces.
PST and QST
PST and QST are provincial sales taxes charged on top of the 5% GST in British Columbia, Saskatchewan, Manitoba and Quebec.
US sales tax
US sales tax is a state tax, often with county, city and district taxes added, collected by the seller at the point of sale.
Double-entry accounting
Double-entry accounting records every transaction as at least one debit and one credit of equal value, so the books always balance.
QuickBooks Web Connector
The QuickBooks Web Connector is Intuit's free Windows app that lets an online system exchange data with QuickBooks Desktop on a schedule.
Server-client POS
A server-client POS has one till that holds the shared database and other tills on the same local network that work from it, so tables and orders stay in sync.
Offline POS
An offline POS keeps ringing sales when the internet drops and uploads them once the connection is back.
Why the words matter
Point of sale software borrows words from restaurants, retail, card processing and accounting, and the same idea often has two or three names. A kitchen ticket is a KOT, the end-of-day report is a Z report, and closing the card batch is not the same as closing the register.
Knowing the terms makes it easier to compare systems, talk to your processor or accountant and set up SeroPOS correctly. Where a term maps to a screen in SeroPOS, the entry says where to find it.
Frequently asked questions
What does POS stand for?
POS stands for point of sale: the place, and the system, where a customer pays. Today a POS system is usually software on a tablet or computer that rings up items, takes payment, prints receipts and kitchen tickets, and records each sale for stock and reports. SeroPOS is a POS system for restaurants and retail.
What is a KOT?
A KOT, or kitchen order ticket, is the slip that tells the kitchen what to make. The POS sends it to a kitchen printer or a kitchen display when an order is held or sent. In SeroPOS, KOT Mapping decides which printer each item goes to, so the bar and the grill each get only their own items.
What is a Z report?
A Z report is the end-of-day summary of everything the till took: sales, discounts, returns, tips, taxes and payments by method. It is used to close the day and check the cash drawer. In SeroPOS it is the Daily Sales Report in the app, which prints on the receipt printer as the Z report.
What is the difference between a register close and a batch close?
Closing the register ends a cash-drawer shift: you count the cash and record the total against what the system expected. Closing the batch sends the day's card transactions from the terminal to your processor for settlement. SeroPOS does both: Open/Close Register in the drawer, and Close Batch in the card terminal settings.