Introduction to

Computerized Point-ofsale (POS)

Workforce Training
W. Mike Tyler

Introduction to
Computerized POS

Definition of POS
History of POS
Types of POS
Benefits of POS
Is a POS System for you?
Components of a POS

Definition of POS

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.

CPOS: A computer-based POS which employs

software to implement the POS functionality

History of POS

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.

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

Dont 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?

POS Components

Hardware

Computer Hardware
POS Hardware
Communications Hardware

Software

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

POS: Computer Hardware

Mainframe &
terminals

Desktop Computers
& Servers

POS: Computer Software

Operating System

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:

POS software gives the POS system its POS

functionality.

User Interface
Inventory
Reports
Invoicing
Receivables
Accounts Payable
Credit Card Payments
More ...........
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POS Communications
Hardware

Modem
DSL Modem
LAN hardware (Ethernet)
Wiring / Wireless

Modern PCs have built-in

LAN H/W

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POS: Communications
Software

Networking (Included with modern O/Ss)

An issue when dealing with non-Windows or
legacy (DOS) solutions

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POS: Accounting Software

Windows-based POS Accounting Software

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

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

Consider 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

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
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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

Dot matrix

No

Inkjet

Poor

Laser

Good

Reports
Cost

Limited

Very good

$500+

$100+

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POS: Mag Stripe Reader

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 cardholders
name, card
number and card
expire date.

Also contains the Normally not used

cardholders 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

Wireless
Docking station
Cable connected
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POS: Scales

Serial Port I/F to your PC

POS Calculates total
Desktop units / Built-in units

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POS: Check Reader / Printer

Magnetic ink character recognition (MICR)

Requires POS Software support
Requires bank / online authorization service

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POS: Slip Printer

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

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

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

Kitchen displays
GPS terminals (Delivery vans, golf carts..)
RFID tracking devices
Badge scanners
Movie ticket printers

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POS: Summary

POS functionality defined by the Software

Wide variety of POS products defined by the
businesss 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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