What is POS System

A Point of Sale (POS) system is a system for managing the sales of retail business. The term is used to refer to the software and hardware associated with check out stands, and all of the bundled features which are included. Most retailers use a POS system at their checkout or counters. Using a POS system makes a business much more efficient, lowering the costs of running the business while improving customer service and making the business more pleasant to work in.

A POS system, however, includes numerous bundled features. Many POS systems have inventory management capabilities, where each piece of merchandise is entered into the system so that it can be tracked. Some systems also allow store buyers to generate purchase orders from within the system, using data about sales and product popularity. Time clocks and other accounting features such as credit card processing may be integrated into a POS system as well.

The hardware of a POS system is also distinctive and important. A typical system includes a display screen for the clerk, a customer display, a cash drawer, a credit card swiping system, a printer, and a bar code scanner, along with the computer loaded with the POS software. Custom features may be added or removed, depending on the industry. A restaurant POS system, for example, may have a feature which prints order tickets directly in the kitchen, or a grocery store may have an integrated scale for weighing goods.