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Plain-language definitions
Glossary of Indian business terms
What BOQ, RA bill, LR, TPA, RevPAR, PF ECR, e-invoice and FEFO actually mean, with a worked example, the rule behind each and the tool to try.
- 30 terms
- 9 topics
- Worked examples in ₹
Construction
BOQ (Bill of Quantities)A BOQ is a priced list of every item of work in a construction contract, with its unit, quantity and rate. Its total fixes the contract value, and every RA bill is measured against it.RA bill (Running Account bill)An RA bill is a periodic bill, usually monthly, that claims payment for work done so far. For each BOQ item it takes the quantity completed to date, subtracts what earlier RA bills already billed, and bills the difference at the contract rate.Retention moneyRetention money is a share of each bill that the client holds back until the defect liability period ends, to secure the contractor’s performance. It is earned but not received until it is released.Measurement book (MB)A measurement book is the record in which the quantities of work actually done are measured and entered, signed by the engineer and the contractor. RA bills are prepared from it.Variation orderA variation order is a written instruction that changes the scope, quantities or rates of a construction contract. Approved variations change the contract value.
Transport
LR (Lorry Receipt) / BiltyAn LR, also called a bilty, is the consignment note a transporter issues when goods are accepted for carriage. It records the consignor, consignee, goods, quantity, freight and vehicle, and it is the base document for the freight bill.POD (Proof of Delivery)POD is the signed or confirmed record that the consignee received the goods. Transporters usually wait for it before raising the freight bill.E-way billAn e-way bill is the electronic document required under GST to move goods above a specified consignment value, generated on the e-way bill portal with the vehicle details. It is different from the e-invoice.Trip sheetA trip sheet is the record of one vehicle trip: the vehicle, the driver, the consignments carried, the advance given and the expenses incurred. It is the basis for trip profit and for the driver’s hisab.
Hotel
RevPAR (Revenue per Available Room)RevPAR is room revenue divided by the number of available room-nights, which is the same as occupancy multiplied by ADR. It is the single number most hotels use to compare months and properties.ADR (Average Daily Rate)ADR is room revenue divided by the number of room-nights sold. It is the average price paid for the rooms that were actually sold.Night auditNight audit is the end-of-day process that closes the hotel’s business day: it posts room charges and taxes to guest folios, reconciles the day’s collections and produces the day’s revenue report.Guest folioA guest folio is the running account of all charges and payments for a guest’s stay: room, restaurant, room service, minibar, banquet and any advance paid.
Hospital
TPA (Third Party Administrator)A TPA is a company that processes health-insurance claims on behalf of insurers. For cashless treatment, the hospital sends the pre-authorisation request and later the claim to the TPA or insurer.Pre-authorisation (pre-auth)Pre-authorisation is the approval a hospital obtains from the insurer or TPA before a planned admission so that treatment can be billed cashless. If costs exceed the approved amount, an enhancement request is needed.Bed occupancy rate (BOR) and ALOSBed occupancy rate is inpatient days divided by available bed-days, as a percentage. Average length of stay (ALOS) is inpatient days divided by discharges.ABHA numberABHA is the 14-digit health account number under the Ayushman Bharat Digital Mission, used to link a person’s health records across facilities with their consent.
School
Payroll
PF ECR (Electronic Challan cum Return)The PF ECR is the monthly file, in the EPFO’s text format, that lists each member’s wages and contributions and is uploaded to the EPFO portal to file the return and pay the challan.ESI (Employees’ State Insurance)ESI is a state insurance scheme for employees below a wage limit, funded by contributions from the employee and the employer, that gives medical and cash benefits.GratuityGratuity is a lump sum an employer pays on exit after long service. It is calculated as 15 ÷ 26 × last drawn wages × completed years of service.CTC (Cost to Company)CTC is the total annual cost of an employee to the employer, including salary, the employer’s PF and ESI contributions, gratuity, bonus and insurance. It is not the same as take-home pay.
GST
E-invoice (IRN)An e-invoice is a B2B invoice whose data is sent to the government’s Invoice Registration Portal, which validates it and returns an Invoice Reference Number (IRN) and a signed QR code.HSN and SAC codesHSN codes classify goods and SAC codes classify services under GST. The code on an item or service decides its GST rate and must appear on the invoice.GST TDSGST TDS is tax that specified deductors, such as government departments, deduct at 2% (1% CGST + 1% SGST, or 2% IGST) from payments for taxable supplies under a contract worth more than ₹2.5 lakh.Input tax credit (ITC)Input tax credit is the GST a business pays on its purchases that it can set off against the GST it collects on its sales, subject to the conditions in the law.
Pharma
FEFO (First Expiry, First Out)FEFO is a stock rule that issues the batch with the earliest expiry date first, instead of the oldest-received stock. It reduces expiry write-offs for items that have a shelf life.Batch number and expiry dateA batch number identifies one production lot of an item, and the expiry date is the date after which that lot should not be sold or used. Together they let stock be traced and recalled.MRP, PTR and PTSMRP is the maximum retail price printed on the pack. PTR is the price at which the distributor sells to the retailer, and PTS is the price at which the company sells to the stockist.
ERP
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