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CHAPTER I
INTRODUCTION
Project Context
In the era of technology and with its development, people produce things which
helped them at every stage; people are using computers with the help of software-based
solutions to perform different tasks quicker and easier. The use of these solutions has
spreadsheets or using software. They need to implement some form of inventory control
Nowadays, businesses replaced their manual sales and inventory management system
with the automated system because of its many advantages. These advantages provide
Moreover, inventory software now on the market can monitor changes in unit
costs, calculate when reordering and analyzing inventory levels on an item-by-item basis.
It can even control inventory right at the cash register with point-of-sale (POS) systems.
No matter what type of business, adopting a POS (point of sale) system can turn the
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Development of a Web-Based Point of Sale System
POS software records each sale when it happens, so the inventory records are always up-
products commonly sold to customers directly on an order basis. They cater to private
entities, government, and walk-in customers. Some of their products that make up much
of their floor space are electronics such as home appliances, computers and cameras;
gadgets like smart phones and tablets; office and party supplies.
The business has five employees including the owner. The manager/owner is in
charge of monitoring the overall operation of the business. The secretary manages
pertinent documents, receives phone calls from clients, makes calls on behalf of the
manager and carries out routine clerical tasks. The supervisor is in-charge in the
procurement of products from suppliers, maintains quality control and ensures that their
products are fulfilling customers’ needs. The accountant performs basic accounting
functions, maintains financial records and prepares reports. The driver is in-charge of
At present, Joshua and Caleb General Merchandise is one of the businesses that
utilizes the manual type of processing its transactions. This requires continuous
monitoring to ensure that each transaction is accounted for and that products are
In the ordinary course of the business, there are two different kinds of transaction:
cash sales and credit sales. Cash sales apply walk-in customers, wherein cash are
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Development of a Web-Based Point of Sale System
exchanged for goods. This creates an inflow of cash or revenue and a corresponding
outflow of product inventory. Another transaction is credit sales, wherein the customers
are divided into two, private and government entities. Credit sales to private entities are
straightforward in its treatment in the book of accounts, the sale just being recorded
taking into consideration the gross and vatable sales, and the accounts receivable from the
sales upon payment, which is of different computation to the value added tax required by
law to be imposed.
Using a manual POS system relies heavily on the actions of people, which
increases the possibility of human error. One disadvantage of a manual system is that the
highly labor-intensive to operate. This is mostly the case in Joshua and Caleb Gen.
Merchandise, where customers come in and out every few minutes and orders are usually
in bulk. It can be a difficult task, as one employee may misplace the list of items sold or
forget to write down a sale which is possible due to the jumbling of files and records on a
busy days work while attending to customers and meeting deadlines, too.
It is for these reasons that the researchers were prompted to develop a Web-Based
Point of Sales System that is useful in managing and monitoring the business operation; a
system that is secured, accurate and fast that lessens the manual operation of the business
transactions.
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Development of a Web-Based Point of Sale System
The main objective of this study is to develop a Web-Based Point of Sales System
The system ran on a private network, accessible only to the employees of the
business. The proposed system covered mainly the sales and inventory operation of the
business like monitoring of sales transactions; computing for total sales and taxes;
printing and generating reports for the manager to evaluate the status of the business, as
The proposed system did not cover the tracking of order, dealing with damaged
products delivered by suppliers and monitoring of product warranty. Also, the propose
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Development of a Web-Based Point of Sale System
system did not include the generation of official receipts (OR) to customers. All overhead
sales operation of the business such as viewing sales history and inventory and in adding,
ledgers, recording sales transactions and in generating sales/charge invoices and reports
information and pertinent documents like receipts, invoices, sales and inventory ledgers
and reports.
The Future Researchers. The study serves as a reference for future researchers
especially for those who will be conducting similar studies and to be able for them to
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Development of a Web-Based Point of Sale System
Definition of Terms
the study.
Charge Invoice. This term refers to the authorized government document which
serves as a record of sale, printed by the secretary and is given to the customer as a
proof of transaction.
Compensating Value Added Tax (CVAT). This term refers to the five percent
Creditable Income Tax (CIT). This term refers to the one percent (1%)
Inventory. This term refers to the itemized lists of all the products that Joshua
Product status. This term refers to the specifying of number or percentage of the
Point of sale. This term refers to capturing of data and customer payment
information at a physical location when goods or services are bought and sold in Joshua
Revenue. This term refers to the total amount received by Joshua & Caleb
which serves as a record of sale, printed by the secretary and is given to the
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Development of a Web-Based Point of Sale System
Retail price. This term refers to the gross price of products inclusive of VAT
Tax withheld. This term refers to the taxes that government entities are required
to withhold on all transactions with Joshua and Caleb General Merchandise that is
Wholesale. This term refers to the sale of goods to customers in large amount.
VATable sales. This term refers to the sales price exclusive of the 12% VAT