Introduction to Computerized
Point-of-sale (POS)
Workforce Training
W. Mike Tyler
Introduction to Computerized POS
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Definition of POS
History of POS
Types of POS
Benefits of POS
Is a POS System for you?
Components of a POS
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Definition of POS
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Point Of Sale. The physical location at which goods
are sold to customers
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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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CPOS: A computer-based POS which employs
software to implement the POS functionality
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History of POS
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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.
Computerized POS development is
tied to development of computers.
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Benefits of POS
POS System Cash Register
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
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Is a POS system for you?
Your accounting
tools
Accounting
Software program
Pencil and
ledger book
Your Computer
Literacy
Home computer,
Email user,
Shop online
Installed software
Don’t use one,
Bill Gates?
Business discipline
Aspire to do it the
right way.
A maverick, free
thinker, hate rules
How big is your
business?
Use tax consultant
Do your own taxes.
Yes
No
Inventory?
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POS Components
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Hardware
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Computer Hardware
POS Hardware
Communications Hardware
Software
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Computer Software
POS Software
Communications Software
Accounting Software
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POS: Computer Hardware
Basic Personal Computer
 Computer
 Monitor
 Keyboard
 Mouse
 CDROM –R/W
 MODEM / LAN-DSL
 Backup Device
 UPS
Integrated POS System
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POS: Computer Hardware
Mainframe &
terminals
Desktop Computers
& Servers
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POS: Computer Software
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Operating System
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DOS
Windows 98
WindowsXP
MAC
UNIX
Linux
- Relic software but stable
- Legacy / reliable?
- Stability / Current
- Minority player
- Minority player
- Minority - growing
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POS Software:
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POS software gives the POS system its POS
functionality.
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User Interface
Inventory
Reports
Invoicing
Receivables
Accounts Payable
Credit Card Payments
More ...........
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POS Communications Hardware
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Modem
DSL Modem
LAN hardware (Ethernet)
Wiring / Wireless
Modern PC’s have built-in
LAN H/W
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POS: Communications Software
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Networking (Included with modern O/S’s)
An issue when dealing with non-Windows or
legacy (DOS) solutions
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POS: Accounting Software
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Windows-based POS Accounting Software
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ACCPAC Advantage Discovery Series
BusinessVision 32
BusinessWorks Gold
ePeachtree
MYOB Plus for Windows (MYOB Software)
Oracle Small Business Suite
One-Write Plus
Peachtree Complete Accounting
QuickBooks Online
QuickBooks Pro
Simply Accounting
Small Business Manager
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POS Hardware
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Display / Touch screen
Cash Drawer
Receipt Printer
Bar code scanner (fixed, attached, portable)
Label / Report printer
Mag stripe reader
POS Keyboard
Check reader / printer
Scales
PDA
Pole Display
Signature Pads
More...
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POS Display
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Consider Flat Panel
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POS: Cash Drawer
Two types of Drawers
 Receipt Printer I/F
 Computer I/F
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Removable trays
Media slots
Key locks
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POS: Receipt Printer
Three Types
 Dot Matrix
 Thermal
 InkJet
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B/W
Limited Color
Separate unit
Integrated with other device
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POS: Barcode scanner
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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
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POS: Barcode Scanners
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
Label Volume
Fast
Slow
High
Low volume
Quality
Very good
Reports
Cost
Limited
Dot matrix
Inkjet
Laser
Very good
$500+
$100+
No
Poor
Good
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POS: Mag Stripe Reader
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Replaces the Retail Terminal
Uses software to perform functions
Usually connects to keyboard and barcode scanner
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POS: Mag Stripe Reader
Track 1
Track 2
Track 3
Normally encodes
the cardholder’s
name, card
number and card
expire date.
Also contains the Normally not used
cardholder’s card
number and expire
date. This
provides data
redundancy on the
card.
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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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POS: Portable Data Assistant (PDA)
Portable data collection
 Inventory
 Audits
 Remote data entry
 Restaurants and lounges
 Lumber yards
 Remote inventory
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Wireless
Docking station
Cable connected
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POS: Scales
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Serial Port I/F to your PC
POS Calculates total
Desktop units / Built-in units
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POS: Check Reader / Printer
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Magnetic ink character recognition (MICR)
Requires POS Software support
Requires bank / online authorization service
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POS: Slip Printer
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Ideal for printing ‘Company
branded” slips and forms.
Record keeping
Warranty info, layaway
receipts
Restaurants, Gas stations,
Retail stores
Combo receipt / slip printers
available
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POS: Pole Display
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Item and price information
Customer comfort
Display Advertising
Serial Port I/F (RS-232)
Characters per line / number of lines
LED, Plasma
Character sets (Chinese?)
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POS: Signature Pads
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Electronic receipt storage
Simultaneous on-screen signature verification
Some have integrated credit card swipe
Eliminates chargebacks from lost receipts
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POS: Other Peripherals
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Kitchen displays
GPS terminals (Delivery vans, golf carts..)
RFID tracking devices
Badge scanners
Movie ticket printers
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POS: Summary
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POS functionality defined by the Software
Wide variety of POS products defined by the
business’s needs
POS is about the process, not the hardware
and software
A good POS will change the way you run
your business
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