What is a Point of Sale System?

In today’s world of POS systems, there are three basic choices for POS system definition. Retail
software, web-based software, and POS hardware and software package. Each system has its
pros and cons.

The pos system in a store is the actual process of retail sales. The checkout process is also
processed through a POS system, usually a cash register machine. The register is the actual
point of sales where the retail customer passes a bar code or swipe a card to gain admission
into the store.

The Point of Sale Software or POS system is the physical process of retail sales. This system includes
hardware, software, database, accounting, and reporting mechanisms. It provides the capability
to process transactions involving cash, credit cards, debit cards, and electronic check payments.
The point of sales system for a store is a part of the store’s advanced inventory management
system. Advanced inventory management involves a system of shelves, boxes, racks, shelves,
and catalogs that allow the retailer to manage product inventory, purchase decisions, and accept
and process returns of products.

A POS system is a very important part of inventory control and is the foundation for additional
revenue. An effective system will manage all aspects of the retail store’s inventory. It includes
bar code scanners, electronic readers for multiple product lines, cashiers, payroll, and loyalty
programs. The pos system software is used to collect payments from customers, process returned
merchandise, calculate taxes, and determine loss and profit. POS system can be set-up for
single store locations or for all stores in a chain.

The basic difference between the POS and E POS systems is that an E POS system is
equipped with a cash drawer. The cash drawer allows the user to keep goods and services cold
when not in use and to automatically charge purchases to the merchant account when these
goods are in the process of being purchased. When goods are held in inventory, goods can be
accessed by an employee through a keypad and the work order management software. A POS
system does not have a cash drawer; therefore, it is designed for point of sales operations. Most
POS systems come with a database management system that will allow for employee
management and other inventory functions.

Both POS systems can handle items that have a price tag, like a bag of ice cream or a book on
gardening. However, the POS software for a store will always record the price in an item’s fixed
price tag. Because of this, most businesses with POS systems come equipped with a drop-down
list feature for displaying perishable product. A pos system for retail also has an integrated POS
display system that allows the system to display the prices, descriptions, and images of
perishable items. The sale system can display the list of available products and run reports on all
available items at once.