WEEK 3:

Point of Sales (POS)

System
Learning Objectives

1. Explain the mechanism of point of sales systems.

2. Discuss the costs and benefits associated with this POS
system.
3. Discuss the controls and risks available in the POS
environment.

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Learning Outcomes
1. Examine the POS system in the management of inventory.
2. Examine the POS system relationships with the inventory
and billing systems.

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Point of Sales (POS)
System
Definitions of Point of Sales System
 Point Of Sale. The physical location at which goods are
sold to customers
 Point Of Sale. The physical location of a transaction but
usually refers to any device or system used to record the
transaction for the retailer.

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Definitions of Point of Sales System

 CPOS: A computer-based POS which employs software to

implement the POS functionality

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History of Point of Sales System
 1981 First Restaurant POS
 1979 A POS scanning system was developed.

 1971 The first electronic cash register (NCR).

 1970 The first POS terminal (NCR).
 1884 NCR founded in the U.S.

 1878 The cash register was invented by James Ritty.

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Benefits of Point of Sales System
POS Cash Register
System
Inventory Control Yes No
Invoicing and Receiving Yes No
Interfacing with Accounting Yes No
Reports Yes Z-Out
Enforced accuracy Yes No
Integrated CC handling Yes Limited
General Ledger Yes No
Accounts Payable Yes No
Accounts Receivable Yes No
Preferred by tax consultants Yes No
Source: Anon
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Suitability of Point of Sales System
Your Accounting Pencil and
accounting Software program ledger book
tools
Your Computer Home computer, Don’t use one,
Literacy Email user, Bill Gates?
Shop online
Installed software
Business Aspire to do it the A maverick, free
discipline right way. thinker, hate rules
How big is your Use tax consultant Do your own taxes.
business?
Inventory? Yes No

Source: Anon
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Hardware and
Software of POS
System
Components of Point of Sales System
 Hardware
 Computer Hardware

 POS Hardware
 Communications Hardware

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Components of Point of Sales System
 Software
 Computer Software

 POS Software
 Communications Software
 Accounting Software

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Examples of Point of Sales System
 Windows-based POS Accounting Software
 ACCPAC Advantage Discovery Series 

 BusinessVision 32   
 BusinessWorks Gold
 ePeachtree

 MYOB Plus for Windows (MYOB Software) 

 Oracle Small Business Suite

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Examples of Point of Sales System
 Windows-based POS Accounting Software
 One-Write Plus

 Peachtree Complete Accounting

 QuickBooks Online
 QuickBooks Pro

 Simply Accounting
 Small Business Manager

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POS Hardware
 Display / Touch screen
 Cash Drawer
 Receipt Printer

 Bar code scanner (fixed, attached, portable)

 Label / Report printer
 Mag stripe reader
 POS Keyboard

 Check reader / printer

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POS Hardware
 Scales
 PDA
 Pole Display

 Signature Pads
 More...

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POS Display
 Flat Panel

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POS Cash Drawer
 Two types of Drawers
 Receipt Printer I/F
 Computer I/F

 Removable trays
 Media slots
 Key locks

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POS Receipt Printer
 Three Types
 Dot Matrix
 Thermal

 InkJet

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POS Receipt Printer
 B/W
 Limited Color

 Separate unit
 Integrated with other device

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POS Barcode Scanner
 LED
 CCD
 Laser

 Fixed
 Attached
 Portable

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POS: Typical Configuration
Connect cable between
cash drawer and receipt
printer. Note that ends are
NOT the same.

Plug keyboard into

‘Y’ cable. Plug
other connector
into keyboard port
on computer

Connect printer
interface cable to
LPT1

Mag
stripe
reader

Source: Anon
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POS Barcode Scanner

Ease of use
Cost
LASER

CCD

LED

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POS: Label / Report Printer
 Two Choices:
 Dedicated label printer
 Standard computer printer w/Label software

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POS: Label / Report Printer
Label Printer PC Printer

Label Speed Fast Slow

Label Volume High Low volume

Quality Very good Dot matrix No

Inkjet Poor
Laser
Good
Reports Limited Very good
Cost Moderate to Reasonable to
Expensive Moderate

Source: Anon
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POS: Magnetic Stripe Reader
 Replaces the Retail Terminal
 Uses software to perform functions
 Usually connects to keyboard and barcode scanner

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POS: Magnetic Stripe Reader

Track 1 Track 2 Track 3

Normally encodes Also contains the Normally not used
the cardholder’s cardholder’s card
name, card number and expire
number and card date. This
expire date. provides data
redundancy on the
card.

Source: Anon

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POS: Keyboard
 A POS keyboard more closely resembles a cash register
key layout and usually has programmable keys. Some have
integrated card swipes.

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References
 Mark G. Simkin, James L. Worrell, Arline A. Savage (2018), Core
Concepts of Accounting Information Systems, 14th Edition, Wiley.
 Bagranoff, N.A.,Simkin, M.G. and Norman, C. S. (2014), Core
Concpets of Accounting Information Systems, 13th Edition, Wiley.
 Dull, R. B. , Gelinas, U. J. and Wheeler, P. R. (2012), Accounting
Information Systems Foundations in Enterprise Risk Management,
9th Edition, South-Western, Cengage Learning.
 Hall, J. (2011), Principles of Accounting Information Systems, Asia
Edition, South-Western, Cengage Learning.
 Brodnar, G. H. and Hopwood, W. S. (2006), Accounting Information
Systems, Ninth Edition, Pearson – Prentice Hall.
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References
 Curtis, G. and Cobham, D. (2008) Business Information Systems:
Analysis, Design and Practice, Financial Times/ Prentice Hall
 Rainer, R and Turner E (2009), Introduction to Information Systems,
Wiley.
 Stair, R., Reynolds, R. and Chesney, T. (2008) Fundamentals of
Business Information Systems, Cengage
 Hall, J.A., (2011) & (2007), Accounting Information Systems, 5th & 7th
Edition, International Student Edition, Thomson South-Western, US.

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References
• Romney, M. & Steinbart, P. (2006) Accounting Information Systems,
Upper Saddle River, New Jersey, Pearson Education.
• Boczko, T. (2007), Corporate Accounting Information Systems, Financial
Times/Prentice Hall
• Dale Klooster, Warren Allen (2006). Integrated Accounting for Windows
(with Integrated Accounting Software CD-ROM). outh-Western College
Pub
• Bernard J. Bieg and Judith A. Toland (2008). Payroll Accounting 2009.
South-Western College Pub
• James A. Heintz and Robert W. Parry (2007). Klooster & Allen General
Ledger Software. Heintz/Parry's College Accounting

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