Accounting Information Systems: The Processes and Controls, 2nd Edition

POINT OF SALE (POS) SYSTEMS AND THE RELATED RISKS AND CONTROLS (STUDY OBJECTIVE 8)

Many retail operations use point of sale (POS) systems to capture all relevant sales data at the point of sale: the cash register. You have seen POS systems on your shopping visits to grocery or department stores. As you checked out, the bar codes are scanned on the items you purchased, prices were determined by the accessing of inventory and price list data, sales revenue was recorded, and inventory values were updated. All of these processes occur in real time, and the store can provide to its managers or home office daily summaries of sales by cash register or by product. Many companies adopt POS systems because they enhance customer satisfaction by enabling faster and more accurate checkouts. In addition, POS systems have many features that assist accountants and managers in the company, including the following:

1. Touch screen menus for easy training and use by employees lead to fewer errors and more accurate sales and inventory data.
2. Bar code scanning of products eliminates the need to manually enter product codes, quantities, or prices.
3. Real-time access to inventory and price data allows for more accurate pricing at checkout, as well as quick and efficient price updates. List prices can be changed online by a manager and reflected instantly at the checkout register.
4. Credit card authorizations during the sale save time and help prevent credit card fraud.
5. Real-time update of cash, sales, and inventory ...