Point-of-sale system (POS)

Definition

A Point-of-Sale system (POS) is a combination of hardware and software that manages sales transactions at the place where goods or services are purchased. It integrates with various components of an accounting information system to track sales, inventory, and financial data in real-time.

5 Must Know Facts For Your Next Test

1. POS systems streamline the sales process by automating transaction recording and receipt generation.
2. Modern POS systems often integrate with inventory management to update stock levels automatically.
3. They can provide detailed sales reports that assist in financial analysis and decision-making.
4. POS systems support various payment methods including cash, credit/debit cards, and digital wallets.
5. Security features in POS systems protect sensitive customer information and transaction data.

Review Questions

Related terms

Accounting Information System (AIS): A structure used by businesses to collect, store, manage, process, retrieve, and report financial data.

Inventory Management:

The supervision of non-capitalized assets (inventory) and stock items.

Sales Ledger: A detailed account that records all sales made by a business within a specific period.