POINT-OF-SALE SYSTEM

In Partial Fulfillment
To the Requirements in
Technical Documentation

Submitted to
Associate Professor Domingo, Vivien, DBA

Submitted by
Ailyn P. Agoy
Genesis Carmelle V. Calda
July 7, 2014
 Part 1
PROPOSAL SUMMARY

 Point-Of-Sale System

 Keywords
retail business, payroll, inventory, sales, receipt

 Abstract

Point of Sale Software for general retail, small merchants, small businesses, grocery
stores and other types of retail businesses is cheap, powerful, and very easy to learn and use. It
helps you manage your business effectively and efficiently. It reduces your payroll overhead by
allowing your employees to concentrate more on the business of selling instead of capturing
sales. Complete tracking of clients, employees, inventory, sales, credits, payments, refunds,
returns, and purchases. Powerful reports that can show you instantly how your business is
performing. Free updates and support by email.

Feel free to download the software and try it free for 90 days. The software
automatically expires after 90 days, and if you decide you like the software, you can visit our
website to purchase a copy. If you do not like the software, you don't have to do a thing, your
trial software will simply stops working.

Part 2

DETAILS OF PROPOSAL

1. Background of the Study

Having the right POS System to run your business is critical to your business support and
proper functioning. A good POS system will save you time and money. It allows you and your
employees to concentrate on selling your products to your customers, while the point of sale
software takes care of the rest.
The Point of Sale software was built specifically for retailers, and small businesses that
require order capture, taking payments, processing returns, tracking inventory, generate and
print bar codes, and generate reports that helps managers of owners of such businesses to
make intelligent decisions about what to change and what not to change in order to continue
growing their business . It allows you to quickly process customer’s purchases which keep your
customers happy. It has reports that will show you detail about customer retention, profits,
commissions, best performing employees, and more.
2. Survey/Review of Related Works

The point of sale in a well-run business is more than just the place where the money
comes in. With the right equipment, it becomes your strategic service center, the place that will
help you grow your business and keep your customers coming back (Aldrich, 2005).

In the past, sales and inventory systems were mutually exclusive systems, with one used
to sell merchandise and the other used to track it; modern point-of-sale systems incorporate
computerized access to the inventory control system, allowing for real-time updating. An
inventory and sales system working in unison effectively tracks product from the moment it
enters the store to the moment it leaves,
barring losses due to shrinkage (Mueller, 2014).

Originally, in the era before computers, sales were tracked with counter ledgers or, later
on, mechanically issued receipts from cash registers. Inventories had their own ledger book,
meaning that the two systems were entirely separate out of necessity. With the advent of
modern computer technology, it has become possible to combine the two systems into one
digital process (Mueller, 2014).

According to The Small Business Treasure Chest (2007), Many small manufacturers,
wholesalers, and retailers with relatively few items in inventory use manual inventory control
system. They use card records, inventory tags and accounting data to capture the information
necessary to establish economic order quantities, order points, and other parameters for
effective inventory control. However, as the number of item, supplies, and general importance
of inventory increases, it is often desirable to consider use of a computerized system for
inventory control.

A seller may have run out of product due to an inaccurate forecast. Or the supplier may
have shipped an incorrect package size. Products in inventory may be unfit for sale because of
damage or an expired shelf life. Finally, a seller may not have the capability to accurately track
inventory in their stores or distribution centers (Dooley, 2005).

An inventory tracking system is often a technological system that helps a business owner
control the items in an inventory. The tracking system essentially tracks all of the items that
leave the inventory, whether the purpose is for constructing products or for direct sales. An
inventory tracking system can also include other aspects of inventory control measures, such as
technological locks, employee entry cards to the inventory and daily inventory reports (Jane,
2014).

Inventory management systems must monitor inventory levels across all locations,
internal and external. One of the chief components of a good inventory management system is
its ability to monitor inventory levels. Every transaction that moves inventory from one location
to another, either internally or externally, affects the level of inventory in one or more locations
(Hamlett,2014).
 A computerized POS can instantly tell you that you have $350 in your cash drawer, that
$225 of that $350 is profit, that you sold 123 bottles of soda today and that you still have 246
bottles on the shelf. It can tell you that your customers favor Coke over Pepsi and can also tell
you what items you should order today because your stock is low (The Small Business Depot,
2005).

There's more to a good point of sale system than just handling payments and recording
sales quickly. If selling products is at the core of your business, your POS system should also be
at that core. Being able to track sales, manage inventory, empower staff, identify regular
customers and get the pricing right are a few of the things a good POS system should do (Xero,
2014).

According to Wuorio (2011), with a point-of-sale system, your "sudden shrink" no

longer goes undetected, markdown management is much easier, promotions can be tracked
more successfully, you can maintain control in absences, Your prices are consistent from one
location to the next, You get many tools in a single package and You can make better use of
your personnel.

Currently, retail POS Systems were among the most sophisticated, powerful and user
friendly computer networks in commercial usage. In fact, most Point of Sale Systems do much
more than just "Point of Sale" tasks. Even for the smaller tier 4 & 5 retailers, there are Point of
Sale Solutions available that include fully integrated accounting, inventory tracking &
management, open-to-buy forecasting, customer relation management (CRM), service
management, rental services, operation reporting and payroll modules (POSmatic, 2014).

3. Conceptual/Theoretical Framework

Using Input-Process-Output (IPO), the figure shows the paradigm of the study to be
conducted; it illustrates the problem needed to be resolved for the study input which is the
system requirements for the sales environment and inventory field.

Input represents objectives of the study. The existing sales process and the problems
encountered by the company will be included as the input. Features of the system will also
include as input of the study, as well as the acceptability of the system.

The waterfall model will be the basis for the development of the sales and inventory
system. This includes the following stages: Requirement Analysis, System Design, System
Development, System Testing and System Implementation. The output of the study is the Point-
of-Sales System.
 Input Process Output

 Existing sales
Point-
process Waterfall Model
of-
 Problems Requirement Analysis
encountered in Sale
the existing System Design
sales system System
System Development
 Features of the
System Testing
system
System Implementation

4. Statement of the Problem

This study aimed to determine the efficiency of using Point of Sale System in retail
business. Specifically, it sought to answer the following question:
1. What is the level of acceptability of Point of sale system in terms of:
a. service performance of the employees
b. data handled
5. Objectives of the Study

One of the objectives of a POS system is inventory management. Rather than expending labor
hours to monitor stock levels, determine when to reorder low stock items or to record the sale
of specific items, the POS system can automate much of the processes involved in monitoring
and managing inventory. A POS system can also monitor the cost of goods sold, purchase price,
sale price and profit margins, allowing users to pull reports and determine when to adjust
customer pricing.
Retailers can use a POS system to gather information on current customers. By using customer
identification variables such as a phone number, retailers can customize the buying experience
for customers. Keeping a credit card on file, for example, offers customers ease of ordering and
encourages repeat business.
Another objective of a POS system is to simplify the accounting and record-keeping tasks
involved in business. Sales are automatically calculated to determine sales and use tax owed,
gross receipts accumulated and even expenses like payouts to vendors for inventory. When
incorporated into a computerized accounting system, a POS system can manage sales, collect
taxes, record transactions, clear credit cards and track bank deposits from various credit card
processing vendors.

POS systems seek to automate as much of a retailer's financial processes as possible. By

increasing information reporting accuracy, retailers gain smoother operations and better
information on which to make crucial business decisions. By reducing the labor hours required
to gather such information, retailers can reduce the cost associated with record keeping and
information collection. Likewise, costs are further reduced because retailers have more current
information on buying trends and inventory levels, as well as increased accuracy in regard to the
prices charged to customers.

6. Significance of the Study

The POS acts as a cash register as well as a computer. In fact, the POS can consist of multiple
stations, including credit card terminals, receipt printers, display screens, hostess stations and
server stations. Having a POS system in place can add convenience, accuracy and save time in
busy situations. In fact, is has the ability to perform a multitude of functions, including the
following:
1. Calculate cash due for every order entered
2. Record the method of payment
3. Keep track of the cash in the cash drawer
4. Create hourly and daily sales reports
5. Allow hourly employees to clock in and out
6. Calculate labor and payroll data
7. Record daily check averages for each worker
8. Keep track of menu items sold
9. Record information on repeat customers

7. Scope, Limitations and Delimitations

The scope of an inventory system considers which needs the inventory system addresses. These
include valuing the inventory, measuring the change in inventory and planning for future
inventory levels. The value of the inventory at the end of each period provides a basis for
financial reporting on the balance sheet. Measuring the change in inventory allows the
company to determine the cost of inventory sold during the period. The inventory level and
changes allow the company to plan for future inventory needs.

The limitations of a POS inventory system include a false sense of reliability, and dependence on
human entry. Consider that the system depends on human entry. As each transaction
occurs, an employee enters the data into the system. Human error sometimes makes this
information inaccurate.
8. Research Design and Methodology

How Employees Use POS Systems

Keep in mind that some systems work differently than others. User processes will be different
depending on restaurant type and service style. The following steps represent the general
process of taking an order with a POS system:

1. The employee enters in his or her name or user code into the initial touch screen. This
allows the worker to access the system.
2. The employee begins a new order or check by entering in food items the customer
orders. For full service restaurants, the employee is also able to choose a table number and
add food to an existing check.
3. The POS sends this all order information to the kitchen or bar in the form of a printed
ticket or on a digital display monitor.
4. The kitchen or bar employees read the order and make the appropriate food or
beverage for the wait staff or other employee to serve the customer.
5. In a quick-service restaurant, the employee will read the total charge on the POS display,
and collect payment from the customer. In full service, the server will bring a check, wait
for payment, and then enter it into the POS when the customers are finished.

Where to Set Up the POS

Touch screens can be located in many different places around the restaurant, depending on the
layout and the service style. For quick-service or fast-casual restaurants, the POS systems are
usually located in a visible place, often close to the front doors of the restaurant. In a full service
restaurant, the POS is usually located in a discreet location so as not to interfere with the
ambience or the dining experience.

9. Glossary of Terms

Account. An account that is established to allow for regular business dealings or services. It is
used to keep track of sales transactions in a point-of-sale system.

Barcode. A special code that consists of printed, randomly patterned spaces and bars that is
typically used to scan the price of an item in a retail setting.

Discount. A reduction in the normal cost of an item. In retail stores, customers who have
special loyalty cards are often given discounts on certain items.
Inventory. Products that are actually on the shelves and available for purchase by customers. It
also refers to the value of the products that are currently on hand.
On Hand. Inventory items that are physically present in a store.
On Order. Inventory items that have been ordered but have not arrived yet.
Point of Sale. The particular area in a retail store, restaurant or other establishment where the
company's product are sold, usually at some form of cash register, computer terminal or cash
box.

Point of Sale System. A general term used for the collection of all aspects of how an
establishment processes and reviews all of its purchases and inventories, including the actual
POS register, credit card payment equipment and connection, any other POS-related
peripherals, the actual network of the establishment, additional software and computers used
in the POS process, auditing hardware, etc.

Purchase Order. A purchase order or PO is an official record of the order that has been placed
with a vendor.
Receipt. A printed piece of paper showing the details of a particular sale, usually: the date,
establishment name & address, cost of items sold, tip, tax, total, and form of payment rendered.
Retail. The sale of products for use or consumption by the general public.
Retailer. A business that sells products at retail. The products that are sold by a retailer are
marketed directly to end users.
Return. A return is conducted any time a customer returns an item to the store in exchange for
a refund. In some cases, store credit is given in lieu of a cash refund.
Wholesaler. A middleman or distributor who primarily sells to institutions and retailers.

10. Working Bibliography

Aldrich, Steven (2005). “Point-of-Sale System Basics for Retailers”, retrieved Jul 06, 2014 from
http://www.entrepreneur.com/author/steven-aldrich

Dooley, Frank (2005, October). Logistics, Inventory Control, and Supply Chain Management.
Choices.

Hamlett, Kenneth (2014). "The Features of an Inventory Management System", retrieved Jul 06,
2014 from http://www.ehow.com/list_6636015_features-inventory-management-
system.html

Jane, Mary (2014). "Problems With Inventory Tracking Systems", retrieved Jul 06, 2014 from
http://www.ehow.com/info_8069608_problems-inventory-tracking-systems.html
Mueller, Daniel R. (2014). " Define a Sales & Inventory System", retrieved Jul 06, 2014 from
http://www.ehow.com/info_7758579_define-sales-inventory-system.html#moreread

POSmatic (2014). " What is Point of Sale (POS)? And Why it is Essential for a Retail Business"
retrieved Jul 06, 2014 from http://www.posmatic.com/point-of-sale/what-is-point-of-
sale.php

The Small Business Depot (2005). “Point-of-Sale: A Beginners Guide to Computerized POS
Software” retrieved Jul 06, 2014 from http://www.barsnstripes.com/docs/pos4beginners.pdf

The Small Business Treasure Chest (2007). "Managing your Inventory", retrieved Jul 06, 2014
from http://www.belgotec.com/general-small-business/general-m6m.htm

Wuorio, Jeff (2011). "7 reasons to switch to a point-of-sale system" retrieved Jul 06, 2014 from
http://www.microsoft.com/business/en-us/resources/technology/business-software/7-
reasons-to-switch-to-a-point-of-sale-system.aspx?fbid=hmbWM2famX6

Xero (2014). “Small Business Guides: How Retail POS Software Benefits your Business”, retrieved
Jul 06, 2014 from http://www.xero.com/small-business-guides/business-
management/retail-pos/
 OBJECTIVES ACTIVITIES TIMETABLE EXPECTED OUTPUT

To find a topic Finding a Topic June 12 , 2014 A topic that will be

To gather information about the
topic
Choosing a system based on the
topic
Submitting proposal
To start creating Chapter 1
How we come up with the study
To know the acceptability of the
system
To whom is the study beneficial
The boundary of the study
To start creating Chapter 2
To gather review of related
literature about the study
To gather review of related
studies about the study
To create conceptualize model of
the study
To define terms used in the study
To start creating chapter 3
To know the methods of research
that will be used in the study
To know where the data of the
study will come from
To know the instruments that will
be used in the study
To know the procedures to gather
the data that will be used in the
study
To cite references of the study
Submitting Chapter 1-3
used in the study
Gathering Information July 14, 2014 Information about the
topic
Choosing a System July 22-28, 2014 System that will be
used in the study
Creating Proposal July 1-6, 2014 To confirm the system
Creating Chapter 1 Finished Chapter 1
*Background of the Study July 21, 2014
*Statement of the Problem July 21, 2014
*Significance of the Study July 21, 2014
*Scope and Limitations July 21, 2014
Creating Chapter 2 Finished Chapter 2
*Review of Related
August 4, 2014
Literature
*Review of Related Studies August 4, 2014
*Conceptual Model August 4, 2014
*Definition of Terms August 4, 2014
Creating Chapter 3 Finished Chapter 3
*Methods of Research August 14, 2014
*Sources of Data August 14, 2014
*Data Gathering
August 14, 2014
Instruments
*Data Gathering Procedures August 14, 2014
Bibliography August 14, 2014 Finished Citing
References
Checking of Manuscript August 21, 2014 Finished Chapter 1-3
To eliminate error from previous
Chapters
To finish Chapter 1-3
To present the study to the class
11. Work Plan
Revising of Manuscript August 21, 2014 Furnished Chapter 1-3
Finalizing Manuscript August 28, 2014 Finished Chapter 1-3
Presentation September 1, 2014 Presentation of the
study