Chapter 1: INTRODUCTION

Since the invention of Pascaline and other mechanical computing devices, mankind has never stopped searching for new and advanced forms of technology. This resulted to the creation of computers. Computers are electronic devices capable of performing both simple and complex mathematical and logical operations at the speed of light. Computers can also store large volumes of data and retrieve it at any given time. To maximize the use of computers, several types of computerized systems were introduced to the different fields depending on the nature of its function. These computerized systems in effect facilitated the work of mankind. Information systems are developed for different purposes depending on the needs of the business. Any information system is a collection of people, procedures, and equipment designed, constructed, operated and maintained to collect record process, store, retrieve, and display information. “Transaction Processing Systems (TPS) are computerized information systems that are developed to process large amounts of data for routine business transactions. A TPS eliminates the tedium of necessary operational transactions, and reduces the time required by manual operation, although people are still required for data input”. [KEND1997] A business that has a computerized system has the edge over competitors that still rely on the traditional manual system to address a transaction primarily because a computerized system can finish a number of tasks faster than a manual system can.

1.2 Objectives of the Study

1.2.2 Specific Objectives Specifically this study aims to: 1. Create a function that will maintain the files of the proposed system capable of eliminating data redundancy. 1. Provide a function in the system that will monitor the movement and updating of records to ensure data integrity. 2. Design normalized databases that will serve as permanent storage of information, segregate the items according to its specific classification, and will hold important information to facilitate faster reports generation. 3. Create a function where the user will only be required to key in the product code to avoid erroneous data entry.
1.3 Significance of the Study

The computerization of the point of sales system of is designed to alleviate the problems that beset the following persons or group. The cashier will no longer have to input too much data when purchase is made, thus a number of processes can be made without the usual lengthy data entry and this will make him more productive. The individual counter manager does not have to perform de facto counting to monitor how many products were sold on a specified period. The branch manager who is tasked to accomplish the daily sales report can avoid the tedious process of summarizing the daily sales yet producing the said report accurately. With the computerization of the main office is assured of timely and accurate reports. Faster transaction is not only favorable to the owner but to the customers as well. Customers can save some of their time because service is made faster. Students, who decide to propose a Transaction Processing System, specifically a point of sales system can use this study as their source of reference. will also benefit in the sense that they are able to see the fulfillment of their mission, which is to provide the country with evidence of effective computer education.

Lastly, the researchers will likewise benefit in having earned the knowledge and experience in developing a point of sales system.

4. Scope and Limitations of the System

1. Scope of the System The proposed computer-based point of sales system will contain normalized databases. These databases will be used to hold and maintain the products and suppliers information. The pricing of every item as well as price adjustment will be included in this study. To ensure correct data entry, sales transactions will be carried on through the application of barcode technology. Sales transaction files will be designed to easily separate sales according to its classification. The generation of each item barcode sticker will be provided by the new system approach. The group will provide for the hardware that the proposed system will require, specifically the barcode reader. Computation of sales and discounts as well as issuing a computer-generated receipt with control number and TIN number will also be part of the proposed system. The study will also support return transactions. A password control will be provided for multi-level access. The timeliness of every report to an organization is very important which is why the proponents will create a function for generation of needed reports, such as daily and monthly sales report, reports on returned products, price and stock adjustment reports, delivery history report, reports which contain the list of the products that needs to be ordered as well as the reports that contain details, showing which product is selling well and which one is not. 2. Limitation of the System The proposed system is not designed to run on a network environment. Payments in the form of credit card, checks and gift checks are not included in this proposal.

Return Return transactions are honored as long as the customer still has the official receipt and not more than three days had passed after the purchase. If the product wanted as a replacement is of higher price an additional payment shall be made and it will be considered as sales for that day, however replacements products of lower value is no longer subject to refund.
Fast Moving and Slow Moving Items Branch manager keep track on what item is selling well and which one is not. He does determine it every week through the reports made by his individual counter managers (ICM’s). ICM’s do physical counting of the items on display. The reports received by the manager will then be consolidated to the product masterlist to determine how many items were sold on that period. To be categorized as a fast moving item for that week the item must sold fifteen or more unit, on the other hand items which sold only three or less are categorized as slow moving items.

Modules of the Proposed System
File Maintenance Responsible for maintaining the databases of the proposed system up to date.
Transaction
The heart of the proposed system. Delivery of items, stock adjustment, sales transaction and return transaction are called on this module.
Utilities
Back up and restore databases, cleans and archive databases, generate barcode sticker, change system date/time and price inquiry.
Reports
Generate reports needed by the store such as daily and monthly sales report, delivery report, stock adjustment report, audit trail report, return report, fast and slow moving items report and master list report using Crystal Report Version 8.5.
About
Help topics about the proposed system not present on the store’s current system. Information about the authors of the proposed system can also be seen.
Assumptions
In any case that the customer wishes to return/exchange the product, it is assumed that: Not more than three days have passed after the purchase and the customer still has the official receipt. If the product wanted by the customer as replacement (e.g. different brand) is of higher price, an additional payment shall be made replacements products of lower value is no longer subject to refund.