What does SKU mean and when, where and how would you use it?

[gsdcv]

What does SKU mean and when, where and how would you use it?

Simple I know but new to this

Cheers

[#2]

SKU is an acronym for Stock Keeping Unit.  It is pronounced skew.  A retailer assigns a SKU number (or code) to whatever they are selling to distinguish that item from some other item.  For garmets, you might assign a different SKU to colors, sizes  of the same shirt.  

For example, we had a small store and used a barcode reader to make selling easier.  Here is an example from SKU list:

ICe Cream, Pint 3015
Ice Cream Cone, Double 3002
Ice Cream Cone, Single 3001
Ice Cream Cup, Double 3004
Ice Cream Cup, Single 3003
Ice Cream, Small cone 3000
Ice Cream Scoop (as a side) 3007
Ice Cream Sandwich 3025

Reports based on SKU can help you track what is slling and what is not moving, so you can have enough inventory to satisfy your customers.

You can find los of info on SKUs and other aspects of retail at your local library for free.  Your local community collage may have some business classes that can be very helpful as you get started.

[FogataMexicana]

I believe it is for barcode reader/scanner. so you use it when you enter items that are scanned with a scanner.  Im not 100% sure but I believe it works this way. I don't use it yet but maybe someone can teach us.  

[oregoncrepe]

SKU is an acronym for Stock Keeping Unit.  It is pronounced skew.  A retailer assigns a SKU number (or code) to whatever they are selling to distinguish that item from some other item.  For garmets, you might assign a different SKU to colors, sizes  of the same shirt.  

For example, we had a small store and used a barcode reader to make selling easier.  Here is an example from SKU list:

ICe Cream, Pint 3015
Ice Cream Cone, Double 3002
Ice Cream Cone, Single 3001
Ice Cream Cup, Double 3004
Ice Cream Cup, Single 3003
Ice Cream, Small cone 3000
Ice Cream Scoop (as a side) 3007
Ice Cream Sandwich 3025

Reports based on SKU can help you track what is slling and what is not moving, so you can have enough inventory to satisfy your customers.

You can find los of info on SKUs and other aspects of retail at your local library for free.  Your local community collage may have some business classes that can be very helpful as you get started.

[AirPlay]

Oregoncrepe is absolutely correct. The accronym is very old and is used for inventory as a slang term such as, How many SKUs do you currently track or cycle-count?

It has no dependent link to bar codes, as we had SKUs long before we had computers.

Any link to Bar Codes, (Interleafed 3 of 5, or other tracking bar codes), is just to speed up counting, referecing and accuracy of managing inventory. Today, many companies are using flat labels which actually have a unique code embeded in them to be read as they come throughthe loading dock. This is called RFID.

[BayAreaBlanks]

What is the difference between SKU and UPC Codes? 

We were previously using Clover Station POS and had an easy label app that created UPC codes and used the Barcode scanner to scan items at checkout. Where do we import the UPC codes? to the SKU category?

[Lorraine]

I have a retail store where I purchase product from distributors.  We use the UPC codes and insert in the SKU field.  We use the barcode scanner in order to ring up sales.  We have over 2000 SKU's so it is a great feature.

For those that are converting from QB POS keep in mind QB uses 13 digit SKUs and Square uses 12 digits.  I learned this the hard way as I imported into Square and none of the SKU's worked with the bar code scanner.  For those that are converting from QB you will need to update your import file in excel by re-formatting with the Custom format - 12 digit code in order to make this work.  If anyone needs help let me know and I can post a screenshot.

[Gretchen]

So, if Square only uses 12 digits, what digit do you leave off?  The first number?  The last number?  I don't understand what you mean "update your import file... by re-formatting with the Custom format".

[Lorraine]

If you're converting from QB POS it will add in leading 0's to adjust to 13 digits.  You will see 0000890139012 - In order to convert in excel highlight the column and select format cells/number/custom/ and add 12 0's - 000000000000.  Excel will convert the highlighted column to 12 digits by removing the leading zeros.  Make sense?  The issue is the leading 0's.

[llij96]

@Lorraine - i'm new, am opening a bricks & mortar retail store, and was wondering about SKUs. so you just input the items' UPC into the SKU field?  otherwise, it appears i'd have to make up my own SKUs, and that seems very time-consuming, as i will be carrying many different things--and i don't know if it's necessary.  do you feel using the UPC for the SKU has limited your reporting/tracking in any way?  thanks.

[Lorraine]

I'm sorry for the delay.  I haven't logged into the community in a while.  I purchase products from suppliers and the SKU is how we track the products.  If you do not have pre-defined SKUs not sure you really need them as you could just use the Categories & Items without SKUs.  I typically run my reports on the Item vs. the SKU #.

Hope this helps - sorry for the delay.