What Is a Point of Sale (POS) System?

what is a point of sale pos system

Point of Sale (POS) can be called a modern cashier application that is software used by stores to help transactions like cash register machines at retail stores. But its use is more sophisticated than a cash register, a POS system is used to record sales, record orders for goods, help calculate profits per item sold, record goods receipts, inventory calculations, store expenses, and calculate store net profit.

By using the POS application, you as a shop owner can monitor and manage the store more easily, quickly, and without having to always be in the store.

At present, there are many choices of POS cashier applications for those of you who run retail or store businesses. Starting from the cashier system that is offline, online, can be adjusted to your business / customize, or already available on the Cloud.

Read also: Online vs Offline Point of Sale Software? Which One Is Right for Me?

With the development of mobile technology, so now there are also various choices for using POS systems with Android or iOS devices. This makes it easier for stores that have limited space, such as kiosks.

Read also: Recommended 13 Free Cashier Android Applications


What is the Function of the POS Application?

  1. Recording Sales transactions and store sales returns, dan print sales invoice.
  2. Recording transaction movements of goods receive and goods issue, such as receipts from suppliers, goods issues due to lost or damaged goods.
  3. Recording other expenses incurred in the store, such as employee salary, electricity costs, telephone costs.
  4. Recording customer transactions customer relationship module (CRM), so you can analyse shopping habits and promotions that need to be done.
  5. Record the performance of the store sales team, , based on sales transaction history.
  6. The ability to run sales transaction Offline, especially for the Cloud (Online) based POS system, should be a concern that the Point of Sale must be able to continue running in Offline conditions. This is to make sure store operational is not disrupted when internet connection is interrupted.
  7. Automatic reports can be directly available to help Analyse store activity. Starting from the sales report, inventory, gross profit per item, store expenses, to store net profit.


What are the Benefits of using the Point of Sale Application?

  1. Simplify sales and inventory recording and tracking with POS system
  2. Increase store control using point of sale system
    • Standardize product code for sales, return, and receiving from Vendor
    • Automatic sales price / standardize pricing
    • Automatic reconciliation from sales transaction to stock
    • Easier payment reconciliation by means of payment
    • Reduce mistakes
  3. Customer Service
    • Minimize fraud and increase customer confident.
    • Recording specific customer transaction history for future loyalty program
  4. Online reports from POS system can be immediately analysed for timely decisions for sales, determine selling prices, and stock analysis.
  5. POS system reports analysis will increase sales, and make efficient stock of goods, increase the stock of goods sold and reduce the stock of goods, especially those that slow-moving items.