SKU
Stock keeping unit: a unique code for each distinct item you hold, down to its size, colour or pack.
What it means in business
Each SKU stands for one thing you stock and sell. The same product in two sizes has two SKUs. SKUs let stock be counted, priced, ordered and tracked without confusion between similar items.
Example
A bolt that comes in M8 and M10, in zinc-plated and plain finish, has four SKUs, each with its own code, stock and price. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Keep the coding simple and consistent, never reuse a code for a different item, and put the SKU on bins, labels, orders and invoices. Merge duplicates so one item is not tracked under two codes.
Common confusion
A SKU is your own internal code and may differ from a supplier's part number or a customer's code. It is also not the same as an HSN code, which is a tax classification covering many SKUs.
Related glossary terms
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.