Full-Form of POS (Point of Sale)
Full form of POS or point of sale can be defined as a final step in the completion of purchase where the customers pay for the goods or services that they are willing to buy at a retail store; or in other words, point of sale is an arrangement in a store where the sale of goods or services takes place which includes processing of orders, payment of bills, and check out too.
- These systems help in sales reporting by recording and analyzing sales data for the purpose of making informed decisions related to the business.
- These systems help in inventory management by managing inventory quantities, which helps determine the reorder points of a particular product.
- These systems even take care of customer management by ensuring that the customer details and their purchases are recorded, and they are frequently updated about the upcoming offers and such other information via marketing tools.
- These systems help in employee management by tracking the productive hours devoted and sales conducted by the personnel and accordingly evaluating the best performers for a particular period.
The terminologies used in point of sale are often confused with one another. Below are the different terminologies used in POS along with what they actually mean and function, which actually is performing in the world of sales management, inventory management, employee management, and customer management:
#1 – POS System
It can be defined as a combination of software and hardware system used for the purpose of billing in a retail store that has a POS. A POS system contains a display screen that shows the billing amount, a touchscreen or a keyboard device for selecting the products and recording data, a printer for printing the bill, a barcode scanner for scanning the billed products, a cash register for storing money paid by the customers against their purchases, and software interface for completing the total process of sales.
#2 – POS Software
This can be defined as software that runs on the point of sale system. It helps the retailers to process their orders in their retail stores through the hardware. It helps the users to input data concerning the products, tally costs pertaining to orders, and make financial transactions.
#3 – POS Terminal
It can be defined as a machine that can read cards, and these can detect all sorts of payments, which ultimately help in fast checkouts and seamless management of orders.
#4 – POS Payments
This can be defined as the moment of time when the payment for a transaction is made with the help of a point of sale system.
- For retailers dealing in apparel, they will need to upload pictures of the digital catalog products.
- For retailers dealing in electronic items, they will need to upload serial numbers into their point of sale software.
- For retailers dealing in packaged goods, they can identify products that will expire anytime soon based on their expiry dates.
The examples of point of sale include Magestore, Shopkeep, Shopify, Lightspeed, Vend Pos, etc.
Magestore is intuitive and has a user-friendly interface. It helps retailers manage their inventories and speeds up revenue generation by easy conversion of sales. Magestore point of sale is equipped with numerous payment methods like online and offline payments, partial payments, split payments, etc. to enhance the users’ convenience.
These systems can be used for the purpose of having access to the inventory, customers, and annual sales information anytime and from anywhere, managing sales returns, business expansion, fast checkouts, inventory control, enabling retailers to conduct their business online, management of accounts, management of employees and management of customers as well.
- Anytime Access: The retail storekeepers can access the desired information as and wherever they feel like. The information they seek might be related to inventories, customers, employees, annual sales, etc., which can be accessed by them anytime and from anywhere.
- Return Policy: This system can even be taken into use for managing sales returns.
- Online Shopping: It enables retailers to conduct their business online.
- Business Expansion: It enables retailers to grow their business by catering to more and more customers and earning higher profits.
- Fast Checkouts: This enables the retailers to provide a mechanism where the customers will not have to wait in long queues for billing. Hence, ensuring faster checkouts.
- Inventory Control: This even helps retailers manage and control their stocks and protect them from getting stocked out. The quantities of the stocks are easily known to the retailers, and this helps them in evaluating the reorder points for each and every product.
- Expensive: Installing and managing POS systems can be a costly affair for the retailers. This is mostly why the installation of point of sale systems is highly discouraged by a few retailers instead of being aware of the benefits that it has to offer.
- Security Risks: These systems are vulnerable to security risks. If the software is not updated timely or correctly, then a breach of security might take place.
- It can be really hectic and exhaustive for retail stores to conduct their day to day operations. Having installed a perfect and compatible point of sale system enables the retail stores to ease out the important and most difficult day to day business operations and that too with a lot of excellence and proficiency as well.
- These systems offer a lot of ease and flexibility. These systems are user-friendly too. These days POS systems are designed and installed in a manner to offer not just ease and flexibility but a lot more in carrying out daily business operations.
- Modern point of sale systems acts as a central point where sales management, inventory management, and customer management take place. Today’s point of sale systems tends to offer effective tools that help in streamlining business operations.
This has been a guide to the What is Full Form of POS, i.e. (Point of Sale). Here we discuss features of POS, terminology, and types along with an example, advantages and disadvantages. You may refer to the following articles to learn more about finance –