PC Square Inventory And Sales

CHAPTER I

INTRODUCTION

The Present era is the age of Information technology. Easy access to information and

interfacing of database with decision making process are quite vital in the process of computer

technology. The whole economy of any country depends on the business position of the country

and how the business is adopting the new technology. In addition to this any business, can

survive in this competing market only if the business is running with the growth of the current

technological advancements. Presently the database available in book format is not easily

accessible. Like in other areas, the area of business and marketing too, sales and inventory

system is becoming quite pertinent. Monitoring of product stocks and sales of the business, but

in order to overcome those matters, the researchers must conduct several practices such as

observation, interview and countless researching regarding on how the system will be developed.

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PC Square Inventory And Sales

BACKGROUND OF THE STUDY

A Sales and Inventory system is a web-based business solution used to simultaneously

track activity and inventory. The Business and Customers can both benefit from a thorough

solution, where single transaction entry records necessary details on the customer, products

purchased, price, invoice number, and date while also updating inventory stock. Using

computerized sales and inventory systems allows for much greater accuracy in stocking and

product management. They encourage ease of interaction between employees and customers as

transaction are processed and items move from business to the consumer. Computerized sales

help provide better insight into which branch makes higher sales, and how much sales does every

branch made. Computerized sales and inventory systems save time for business by speeding up

transaction while raising accuracy. This allows for confidence in accounting and accountability

among employees as it is easy to verify how much money and what time transactions took place.

They also allow for consistent experience in terms of customer service. People know there is

always uniform interaction at the register that requires tendering payment, taking a receipt and

transition of ownership of products and services. This generates confidence in a business and

ensures ongoing consumer relationships. Computerized systems are the most common method of

inventory control and sales processing in retail markets.

In using this computerized sales and inventory system you can establish the benefits you

and your business handling may have. First is time savings. The amount of time that can be

saved by a business is perhaps the biggest benefit of using a computerized inventory system. In

cases where a shop maintains all data manually, its manager must reconcile each sales receipt

with every piece of physical inventory.

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PC Square Inventory And Sales

Depending on the size of the establishment and how many different products are sold,

this can be a daunting and time consuming task. It that same store, however, used a computerized

point of sale or POS System, the master inventory list would be updated electronically each time

a sale is made. An additional benefit of using a computerized inventory system is the accuracy it

ensures. When an inventory list is maintained by hand, the margin of error widens with each

update. If one mathematical calculation is wrong or one typo is made, disaster may occur. And

lastly is the consistency. A small business operates most efficiently when its processes are

executed in a consistent manner. By using a computerized inventory system, a business

proprietor can ensures that all orders, reports and other documents relating to inventory are

uniform in their presentation, regardless of who has created them. This will allow ease of

reading. In addition, uniformity creates a professional appearance, which can go a long way to

impress associates, such as potential investors.

IMPORTANCE OF THE WORK

The importance of the study to PC Square is efficiency in monitoring their products

stock, easy to retrieve and accurate customer transaction record, and reliable sales report based

on the transaction made by the customer.

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PC Square Inventory And Sales

STATEMENT OF THE PROBLEM

The main problem is to manage an electronic shop using offline point of sale system

which only includes monitoring of product stocks, and sales of a single branch.

Manual system used in purchasing transaction, generating receipt, and preservation of

customer transaction record.

Inefficient monitoring of other branch products stocks availability
By using offline system every branch has its own system which is inconvenient for the

proprietor to know the profit of the whole business.

These problems have initiated the researchers to develop such system, which will be helpful for

the business, which deals in the sales of electronic products.

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PC Square Inventory And Sales

OBJECTIVES OF THE STUDY

General Objectives

The general objectives behind developing this system is to solve problems in managing

of an electronic shop, which includes preservation and efficient retrieval of customer transaction

record, generating printed receipt based on the transaction, monitoring of product stocks, and

sales of the business.

Specific Objectives
To design and develop a user account feature that will handle the user accounts

information.
To design and develop a log in feature that will be having three level of access of for data

security.
To design and develop an inventory feature that can add and update new products, and

monitor products availability and stocks including its serial number.

To design and develop a cart feature that will replace the manual transaction between the

Cashier and the Customers.

To design and develop a feature that can generate returned products report.
To design and develop a sales record feature that can monitor, and generate sales report of

the business.

SCOPE AND LIMITATION

Scope

The researchers aim to develop a web-based Sales and Inventory System for PC Square

to improve their existing offline point of sale system. The system will consist of some significant

features in order to satisfy the company needs.

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PC Square Inventory And Sales

The system will provide a security feature which will have three level of access.
1. Proprietor is the only user that has the privilege to monitor sales and inventory of all the

branches, and the only one that can add Branch Manager, and includes the privilege to

deactivate all accounts except his/her account.

2. Branch Manager has the access and responsible for monitoring of products inventory

and has the privilege to add and update products information and stocks. Has the access

and responsible for adding cashier account and includes the privilege to deactivate

cashier account and has the access to his/her branch sales.

3. Cashier/User has the access in products stock, cart feature, returned products feature

and responsible in issuance of receipt based on the transaction made, by using cart

system feature of the system.

Theres a feature for all accounts to update their information including their username and

password.
Transaction between Cashier/User and Customer can be done just by using cart system.

Cashier/User can add the desired item to the Cart as long as the product is available. The

Cart contains the summary of the customer desired products and details such as unit details,

serial number, regular price, discount, discounted price, and the total cost. If the customer

wants to cancel the desired item/s, Cashier/User can remove a specific product off the Cart.

The system also includes the functionality to compute the total costs, customers change by

inserting the cash received. The functionality to generate receipt was also included with

Customer Name and Address.

The system will also provide inventory feature, this feature is mostly for managing,

maintaining and monitoring of products. Branch Manager can view a table of all products

containing the branch, category, brand, model, description, replacement, warranty, original

price, discount, selling price, stock and column for update product information and add

stock button. To search for a product, filtering is available. Updating of products information

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PC Square Inventory And Sales

was included in this feature which allows the Branch Manager to add and update products

information. In order to add new products, the Branch Manager must input the required text

fields such as brand, model, description, replacement, warranty, original price, selling price,

discount and select the appropriate category.

The system will also provide a feature that can generate summary report of total sales of

every branch of the company.

Returning of product was also provided in case there is some problem with the sold product

within 1 week. If the sold product was diagnosed and proved by the technician there will be

a required form to be filled up. Generating of printed report was also included.

Limitation

The researchers proposed system has also limitations including the following:

Online purchasing and ordering was not included.

Only cash basis in cart payment.
The propose system can only be access by the Company.
The proprietor will not be able to view the sales and inventory of the other branch if not

uploaded.
Branch Manager not allowed to view other branch sales.
Ordering to other branch was not included.

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PC Square Inventory And Sales

CHAPTER II

REVIEW OF RELATED STUDIES

According to Mr. Eugene F. Brigman, [BRIG2000] Fundamentals of Financial

Management, 5th ed., Companies are increasingly employing Inventory System. A computer

start with an inventory counts in memory. Withdrawals are recorded by the computer as they are

made, and the inventory balance is constantly revised. When the recorded point is reached, the

computer automatically places an order, when this new order is received, the recorded balance is

increased. Retail stores have carried this system quite far, each item has a magnetic codes, and as

on item is checked out, it passes over an electronic reader, which then adjusts the computers

inventory balance, at the same time the price is fed to cash register tape. When the balance drops

to the recorder point, an order is place. The researcher aim to develop a automated inventory

system which is technically, operationally, and economically.

According to Johnson and Kaplan [JOHN1991]. It seems that around1880 there was a

change in manufacturing practice from companies with relatively homogeneous lines of products

to horizontally integrated companies with unprecedented diversity in processes and products.

Those companies (especially in metalworking) attempted to achieve success through economies

of scope - the gains of jointly producing two or more products in one facility. The managers now

needed information on the effect of product-mix decisions on overall profits and therefore

needed accurate product-cost the huge overhead of the information processing of the time.

However, the burgeoning need for financial reporting after 1900 created unavoidable pressure

for financial accounting of stock and the management need to cost manage products became over

shadowed. In particular, it was the need for audited accounts that sealed the fate of managerial

cost accounting. The dominance of financial reporting accounting over management accounting

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PC Square Inventory And Sales

remains to this day with few exceptions, and the financial reporting definitions of 'cost' have

distorted effective management 'cost' accounting since that time. This is particularly true of

inventory. Hence, high-level financial inventory has these two basic formulas, which relate to the

accounting period. (First the Cost of Beginning Inventory at the start of the period +inventory

purchases within the period + cost of production within the period = cost of goods available.

Second the Cost of goods available cost of Ending inventory at the end of the

period=cost of goods sold).

The benefit of these formulas is that the first absorbs all overheads

of production and raw material costs into a value of inventory for reporting. The second formula

then creates the new start point for the next period and gives a figure to be subtracted from the

sales price to determine some form of sales-margin figure. Manufacturing management is more

interested in inventory turnover ratio or average days to sell inventory since it tells them

something about relative inventory levels. (Inventory turnover ratio (also known as inventory

turns)= cost of goods sold / Average and Inventory =Cost of Goods Sold / ((Beginning Inventory

+ Ending Inventory) / 2)) and its inverse Average Days to Sell Inventory = Number of Days a

Year / Inventory Turnover Ratio = 365 days a year /Inventory Turnover Ratio. This ratio

estimates how many times the inventory turns over a year. This number tells how much

cash/goods are tied up waiting for the process and is a critical measure of process reliability and

effectiveness. So a factory with two inventory turns has six months stock on hand, which is

generally not a good figure (depending upon the industry),whereas a factory that moves from six

turns to twelve turns has probably improved effectiveness by 100%. This improvement will have

some negative results in the financial reporting, since the 'value' now stored in the factory

as inventory is reduced. While these accounting measures of inventory are very useful because of

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PC Square Inventory And Sales

their simplicity, they are also fraught with the danger of their own assumptions. There are,

in fact, so many things that can vary hidden under this appearance of simplicity that a variety

of 'adjusting' assumptions may be used.

According to Timothy S. Vaughan [TIMO1994]. The introduction of

unit perishability has significant effect on inventory policy for a large number of commodities. A

significant amount of research has been presented which addresses the trade-offs between

ordering, carrying, shortage, and outdate costs for perishable inventory. A model of

the perishable inventory system which incorporates the effects of consumer realized product

expiration. This model represents a synthesis of two distinct directions in the perishable

inventory literature, and addresses the simultaneous determination of inventory ordering and

outdates policy for a perishable item with random demand and random lifetime.

According to Kumar, Anil [KUMA2009] the benefits of inventory control are to

improvement in customers relationship because of the timely delivery of goods and service.

Smooth and uninterrupted production and hence, no stock out. Efficient utilization of working

capital helps in minimizing loss due to deterioration, obsolescences damage and pilferage.

Eliminates the possibility of duplicate ordering.

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PC Square Inventory And Sales

Database Management System (DBMS) collection of data, usually referred to as the

database, contains information relevant to an enterprise. The primary goal of a DBMS is to

provide a way to store and retrieve database information that is both convenient and efficient

stated by Silberschatz, Abraham [SILB2002].

Advantages of Inventory Control. To ensure continuous production by supplying

material. It helps the concerned to secure many economics through bulk purchase such as low

freight, higher discount, lower price, better use of available resource etc. It ensures timely and

continuous supply of goods to customers by maintaining sufficient stock of finished goods. It

eliminates overstocking of the inventories and maintains minimum investment. It helps in

optimum utilization of men, money, material, equipments, time and thereby reduce the total cost

of the production stated by Vilegave, Kailash [VILE2012].

According to the article of Abilla, Pete [ABILL2011]; they tackle the different causes

of using inventory system. First, to Stop products from spoiling, if you have too many products

in your warehouse, you increase the risk that they will become obsolete, damaged, spoiled or

stolen before you can sell them all. Depending on which industry youre in, youre probably

more worried about some of these risks than others. For example, if youre in the technology

industry, you dont want your expensive products to become outdated, damaged or stolen, but

you probably dont care about their freshness date. Food producers, on the other hand, put

product spoilage high on the list of inventory management concerns. Second, to Stop paying

hidden costs, having too much inventory doesnt just increase your risk of paying more in the

future; it costs you more money all the time. Where will you store the extra inventory? You may

need to buy a larger warehouse than you really need or rent trailers if your warehouse isnt big

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PC Square Inventory And Sales

enough. Plus, you have to provide security to prevent theft. And dont forget about the money

thats tied up in inventory that you could have used to hire personnel or grow your business in

other ways. Third, to Stop disappointing customers, on the other end of the inventory spectrum,

if you have too few products in your warehouse, you face a whole other set of risks. Your

customers dont want to wait too long to get their orders shipped to them. So if you run out of the

products theyre looking for or if you are picking, packing and shipping processes are too slow,

you could drive customers away. Fourth, to Stop wasting time, inventory management can be

time-consuming, especially if youre trying to do it by hand or in Excel spreadsheets. Speed is

everything in business. How fast you reorder products, ship customer orders and update your

inventory records could make or break your company. Thats why an automated inventory

management system is so important. Scanning product barcodes and setting up automatic reorder

points can save valuable time by streamlining complex processes. Fifth the Start planning ahead,

you cant afford to be purely reactionary in your inventory management. You need to start

planning ahead and being proactive. Instead of being unprepared for sudden spikes in sales, try

to notice these trends ahead of time by monitoring social media channels for mentions of certain

products and looking at historical records to spot seasonal upticks in sales. All of this is easier

said than done. It goes back to having a powerful inventory management system to free up your

time and do most of the data analysis for you.

Wal-Mart runs its stores on a perpetual inventory system. This system records the

quantity of items sold as items are purchased. The computer system at Wal-Mart constantly

keeps up with additions or deductions from inventory and tells management what items are on

hand. The organization also conducts counts of employee manual counts of inventory

periodically. When an item arrives at the Wal-Mart distribution center it is scanned into the

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PC Square Inventory And Sales

inventory system. When the items are purchased by the consumer, the point-of-sale system

reduces the inventory from that purchase. According to Wal-Marts Gail Lavielle, a leaner

Inventory will help clear out store clutter and help Wal-Mart focus on specific brands and

products that consumers want [LAVI2006]

According to Dr. Geoff Relph,[GEOF2003]; Inventory can be call as Professional

Inventory Management if they meet the terms; (Good Inventory, Extending Stock Classification

for Greater Control, A worked example showing the impact of moving from 3 to 6classes, Buffer

Stock Methodology, Simple buffer stock, Stochastic buffer stock, A worked example showing the

impact of simple safety stock and stochastic safety stock.)

According to Citeman Operations Mgt [CITE2006]. Benefits of Inventory

Management and Control are inventory control ensures an adequate supply of materials and

stores minimizes stock outs and shortages and avoids costly interruptions in operations. It keeps

down investment in inventories, inventory carrying costs and obsolescence losses to the

minimum. It facilitates purchasing economies through the measurement of requirements on the

basis of recorded experience. It permits a better utilization of available stocks by facilitating

inter-department transfers within a company. It provides a check against the loss of materials

through carelessness or pilferage. It facilitates cost accounting activities by providing a means

for allocating material costs to products, departments or other operating accounts. Perpetual

inventory values provide a consistent and reliable basis for preparing financial statements.

Inventory is one of the most important in monitoring a stock that take place in business

activity. The inventory system does the entire task in computing the value with inventory (cost

and quality) and handling data or information. Inventory System maintains an orderly flow of

supplies, raw materials, or finished goods through an office shop/factory because of items in any

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PC Square Inventory And Sales

inventory. Represents cost, they need to be controlled. The purpose of inventory system for

management are to keep inventory levels and cost at desire minimums while maintaining to

proper safeguards over materials to places and people who need them. Inventory review refers to

the time interval between counting inventories. Periodic review systems have a set schedule for

conducting an inventory count. Transactional review systems update the inventory count after

each transaction. Periodic review is less resource intensive but more prone to creating shortages

and inventory discrepancies while transactional review is more accurate but requires more

resources. Inventory costs can be broken into several categories: the actual cost of the

inventoried product, the cost of storage and the cost of unmet demand if inventory is not

available to fill orders. Additional costs include transportation and ordering costs incurred when

replenishing inventory. Each of these costs is unique to individual businesses and can vary

widely. Warren R. Planret, [PLAN2002].

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PC Square Inventory And Sales

CHAPTER III

Methodology

Population of the Study

The Proprietor of the PC Square Sales and Inventory System covered the monitoring of

sales, inventory, and user accounts. The Branch Manager covered the monitoring and managing

of inventory. The Cashier covered the transaction between Customers.

Operational Feasibility

The Proprietor who is the one can add Branch Manager Account in the database. The

Proprietor can monitor the user accounts. The Branch Manager is responsible for adding new

cashier account and adding new products.

Environme Method
nt By using
PHP and
PC MySQL
SQUARE Efficient,
accurate Systematic
and
Windows Proprietor,
Information
orgaized
XP and Branch
above
Dual Manager,
Custom
Core and erCashier
Peopl Figure 3.1 Fishbone Diagram
above
Technolog e
y

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PC Square Inventory And Sales

Data Flow Diagram

Figure 3.2.1 Proprietor

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PC Square Inventory And Sales

Figure 3.2.2 Branch Manager

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PC Square Inventory And Sales

Figure 3.2.3 Cashier

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PC Square Inventory And Sales

SOFTWARE SPECIFICATION

The figure below listed the Software used in PC Square Sales and Inventory System

Recommended:

Web Server XAMPP v3.2.2

Web Browser Google Chrome
Database MySQL
Operating System Windows XP or 7
Text Editor Sublime Text 2

Figure 3.3

The Figure 3.3 presents the specification of softwares that is used in creating the PC

Square Sales and Inventory System.

HARDWARE SPECIFICATION

The figure below listed the Hardware used in PC Square Sales and Inventory System

Recommended:

CPU Dual Core CPU or higher

Memory at least 2 GB or higher
Hard Disk 500 GB
Mouse Optical mouse
Keyboard PS2 or USB type
Monitor 14.5 LED

Figure 3.4

The Figure 3.4 presents the specification of hardware that is used in creating the PC

Square Sales and Inventory System.

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PC Square Inventory And Sales

CHAPTER IV

RESULTS AND DISCUSSION

Through the related studies and practices the researchers made the better ways for the

Proprietor generate sales report, and for Customer receipt.

Figure 4.1 Sales Report

The figure above shows the actual sales report based on the the transaction made using

cart feature of the propose system.

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PC Square Inventory And Sales

Figure 4.2 Printed Receipt

The figure above shows the actual printed receipt based on the transaction made using

cart feature of the propose system.

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PC Square Inventory And Sales

Figure 4.1 Replacement Report

The figure above shows the actual replacement report.

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PC Square Inventory And Sales

PROPOSED GRAPHICAL USER INTERFACE (GUI) OF THE SYSTEM

Figure 4.3 Log-in Form

The figure above shows the login form of the propose system.

Figure 4.4 Homepage

The figure above shows the propose systems homepage.

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PC Square Inventory And Sales

Figure 4.5 User Accounts

The figure above shows the list of user accounts.

Figure 4.6 Proposed Design of Add New User Accounts

The figure above shows the form for adding new accounts.

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PC Square Inventory And Sales

Figure 4.7 Sales

The figure above shows the sales record based on the transactions made using cart feature

of the propose system.

Figure 4.8 Product List and Replacement Form

The figure above shows the page for replacing products sold.

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PC Square Inventory And Sales

Figure 4.9 Returned Products

The figure above shows the list of returned products.

Figure 4.9.1 Sold Products

The figure above shows the list of sold products.

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PC Square Inventory And Sales

Figure 4.9.2 Product Inventory

The figure above shows the list of products in Inventory.

Figure 4.9.3 Cart

The figure above shows the cart feature of the propose system.

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PC Square Inventory And Sales

CHAPTER V

CONCLUSION AND RECOMMENDATION

CONCLUSION

By using a computerized system, the process of the business had been simplified,

improved and modernized resulting to a more productive, effective and less expensive operating

expenses. The proposed system had met their stated objectives. It has been an instrument to

conduct faster sales transaction and kept track of all the records. The updating of stocks in the

inventory was also efficient that resulted to accurate records. Conflicts and confusions were also

avoided because the system had reduced the existence of the bulk of papers for the records of the

business. And lastly, it is foreseen that this will make the employee more effective that will make

it more competitive with their rivals.

RECOMMENDATION

To upload the system online for better performance and to reach the systems full

capability.

To add CCS3 to make the system responsive that can fit with different screen sizes.

To add an online purchasing and ordering transaction.

Add a feature that can manage the outgoing products or the products that are not

marketable enough.

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PC Square Inventory And Sales

APPENDICES

DEFINITION OF TERMS

Developer - one who programs computers or design the system to match the requirement of a

system analysis.

Inventory - a complete list of items such as property, good in stock or the content of a building.

Sales - act of selling a product or service in return of money.

Proprietor a person who owns a business or property, who has the legal right or exclusive title

to something.

Branch Manager - is an executive who oversees a division or office of a

large business or organization, operating locally or with a particular function.

Cashier - is a person who handles the cash register at various locations such as the point of sale

in a retail store.

PHP: Hypertext Preprocessor (PHP) - is a widely-used open source general-purpose scripting

language that is especially suited for web development and can be embedded into HTML.

MySQL - is an open source relational database management system. Information in a MySQL

database is stored in the form of related tables. MySQL databases are typically used for web

application development.

Database Management System (DBMS) - is a program that uses HTTP (Hypertext Transfer

Protocol) to serve the files that form Web pages to users, in response to their requests, which are

forwarded by their computers' HTTP clients internal IT systems are available that would not be

available to the public from the Internet.

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PC Square Inventory And Sales

Data Flow Diagram (DFD) - is a graphical representation of the "flow" of data through an

information system, modeling its process aspects.

Graphical User Interface (GUI) - is a type of user interface that allows users to interact with

electronic devices through graphical icons and visual indicators such as secondary notation,

instead of text-based user interfaces, typed command labels or text navigation.

Username - an identification used by a person with access to a computer, network, or online

service.

Password - a secret word or phrase that must be used to gain admission to something; a string of

characters that allows access to a computer, interface, or system.

Database - is an organized collection of data; that is organized so that it can easily be accessed,

managed, and updated.

Cross-Platform, Apache, MySQL, PHP and Perl (XAMPP) - Everything needed to set up a

web server.

Product List of items that the business sells.

Report Informational work made with the specific intention of relaying information or

recounting certain events in a widely presentable form.

Stock number of items that are still available.

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http://www.shmula.com/why-use-an-inventory-management system/9501 on
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2. Citeman Operations Management (2006). Benefits of inventory management and control, online:
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and-control.html on November 29 2016
3. Eugene F. Brigman (2000) Fundamentals of Financial Management, 5th ed., Hinsdale: Holt,
Richard and Winston Sounders College Publishing, pp. 840-841
4. Thomas Johnson, (1991) Relevance Lost. Publishing Company, Harvard Business School Press)
p.126
5. Timothy S. Vaughan (1994) A model of the Perishable Inventory System with referent
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6. Kumar, Anil. (2009). Operations Management. New Age International Limited Publisher.
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9. Gail Lavielle,(2006) Wal-Mart Inventory System online retrieved from
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10. Dr. Geoff Relph,(2003); Professional Inventory Management retrieved form
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