POS stands for Point of Sale. Here, you will know about Point of Sale Software, its benefits, and its important features.
Point-of-sale software is software that deals with all the factors that are involved in business transactions. In other words, we can say that POS is software that is used to make business transactions.
POS Transaction and Its Types:
In point-of-sale software, there are various kinds/sources of transactions. These transactions are often known as business transactions.
Transaction between a merchant and customer
Transaction between a merchant and supplier
Transaction between a merchant and its Employees
Cash and Credit Transaction
POS Transaction between a merchant and customer
A merchant offers various kinds of products or services. When a customer wants to purchase a product or hire any service from the merchant the customer bids for it with the merchant. The customer bids and finalizes its prize. (In some instances the price of a product is fixed). Now it’s time for customer order/billing (Order for Online purchasing / Billing for physical purchasing). When the Customer Chooses the product/service and finalizes their cart. The merchant enters the products/service type in the system(Point of Sale Software System) and generates an invoice against that product or service. The Invoice contains the info on the product/service and its price with a subtotal price. The customer then pays its dues and takes away its product. This whole process is known as a transaction between a merchant and a customer.
POS Transaction between a merchant and supplier
A merchant also needs to purchase new stock or refill the old stock from the supplier. There can be a huge number of products interacting with various companies. Each company has its supplier. However, these suppliers take orders from the merchant. The supplier then supplies those ordered products to the merchant. The supplier then gets paid for fulfilling order requirements. These payments and products are also entered into the point-of-sale system. Such transactions are named transactions between a merchant and a supplier.
POS Transaction between a merchant and Employees
A merchant may hire some staff to manage its store/warehouse. The merchant hire these employees on a fixed salary and may also include some progress bonus. The merchant pay them on monthly basis for their work. These transactions are also entered and recorded in the Point-of-sale software system. Such transactions are named transactions between a merchant and its employees.
Cash and Credit Transactions
Between a merchant and a customer:
Sometimes the customer pays the merchant in Cash and sometime just says (“Bai Baad mai dy jaon ga”) I means on credit. Whenever, the customer pays the due amount it will clear the customer receivables from the customer account.