Stock keeping unit (SKU)
An SKU is a code for one specific item you stock, so every size, colour or pack is counted separately.
A stock keeping unit, or SKU, is one distinct item that you buy, store and sell. If two items differ in any way a customer cares about, such as size, colour, flavour or pack size, they are separate SKUs. Each SKU usually has its own code, price and stock count.
Example
A garment shop in Faisalabad buys a cotton kurta in three sizes (small, medium, large) and two colours (white and sky blue). That is one design but 3 × 2 = 6 SKUs. The shop buys 10 pieces of each SKU at Rs 1,800 per piece, so 60 pieces cost 60 × 1,800 = Rs 108,000.
Two weeks later, the stock report shows the medium white is down to 1 piece while the large sky blue still has 9. If all six SKUs were counted as one item called kurta, the owner would see 31 pieces left and would never know which size to reorder.
Why it matters
- You reorder the sizes and colours that actually sell.
- Slow SKUs are visible early, so you can discount them before the season ends.
- Billing is faster and more accurate when each SKU has a clear code.
How software handles it
Inventory software treats each SKU as its own item. In Taajir, each item has its own price and stock, and sales and stock reports show which items are moving. For trading businesses with thousands of small parts, such as hardware or auto parts shops, SKU discipline is what makes the stock count trustworthy.
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