POINT OF SALES OF KSERVICO TRADE

INC.

By:
RUTH PAULA SHEMEI U. ORIJUELA
CARLO M. MIRANDILLA

Background of Study
Most todays businesses utilize the power of technology to compete
and advanced in the competition of the market. One of the products of this
technology is automation of existing systems of business and establishments
to provide faster and more accurate service.
Point of Sale (POS) system is an electronic that provides businesses
with capability to retrain and analyse a wide variety of inventory and
transaction data on a continuous basis. POS System has been touted as
valuable tools for a wide variety of business purposes including refining
target marketing strategies, tracking supplier purchases, determining
customer purchasing pattern, analysing sales (on a daily, monthly, or annual
basis) of each inventory item, department or supplier, and creating reports
for use in marketing purchases, records, etc.. Basic Point of Sale Systems
currently includes standalone electronic registry also known as ECRs; ECRbased network system and controller based systems. All function essentially
as sales and cash management tools, but each has features that are unique.

Project Objective
The objective of this study is to proposed a POS System that will help
the employees of KServico Trade Inc. to perform tasks faster, more
accurately and more efficiently. The main goal is to develop a system entitles
Point of Sales System of KServico Trade Inc. Specifically, the objectives are:
1. The system must analyse sales data
2. The system must figure out how many items are sold and adjust
purchasing levels accordingly.
3. The system must maintain a sales history to help adjust buying
decisions for seasonal purchasing trends.
4. The trends of the system must reduce buying mistakes.

5. The system must be able to monitor the sales, account, and inventory
of the company.
6. The system must generate accurate reports of the sales and inventory
of the company.

Current Situation
KServico Trade Inc. is committed to be a leading growth-oriented,
modern, efficient and customer-focused retail company. Their mission is to
market high-quality, competitive products, and a first-rate and satisfactory
customer service in selling motorcycle and household appliance industries
through a network of chain stores.
KServico Trade Inc. in Legazpi City still uses the manual system of
issuing of receipt, cash registry and inventory of their products. The cashier
is in charge on the sales and issuing PR (Official Receipts) to the customer.
The store coordinator orders and receives the product ordered from the
supplier.
The records of the products are recorded on notebook. When new
items arrive, the cashier will write the date on the notebook. The store
coordinator will update the records and checks if there were items sold.

Problems
After years of servicing people, the company noticed that demands
were getting bigger and so as the customers. Records of daily transactions
are limited to a few copies and once lost, it cannot be retrieved. The major
problems of the KServico Trade Inc. are identified as follows:
1. Unable to identify account shortage ahead of time.
2. Bulky papers of old records containing important data have the
possibility to be misplaced.
3. Files were not properly filed and recorded.
4. Updating of records of the products is well-organized.

5. Inaccurate data produced in the ordering and receiving of products

form the other branch.
6. Forms, files and receipts are not secured.
7. Serving the customers and transacting business with them takes a
lot of time

Constraints
The KServico Trade Inc. has its manual system on their company. The
possible constraints that may effect on the proposed system are:
a.) The adaptability and the budget needed for the Point of Sale of
KServico Trade Inc.
b.) The invalid input which may be manipulated by the user may lead to
inaccurate data production.
c.) In case of power breakdown and system shutdown, the POS will not
work.

Recommendation
The proponents choose KServico Trade Inc. to apply this new and
modernized

way

inventories,

and

of

transacting

generating

business

reports

in

stores,

immediately

doing
when

real-time
prompted.

Implementing this type of system would improve the companys market

growth and productivity.
Specifically, the objectives of the system are: to analyse sales data; to
figure out how many items are sold and adjust purchasing levels accordingly;
must maintain a sales history to help adjust buying decisions for seasonal
purchasing trends; to monitor the sales, accounts, and inventory of the
company.
In the system, three key entity are involved: the cashier, the store
coordinator, and the main branch. The store coordinator and the cashier can
update the sales to the database (Daily POS table). The store coordinator can
also update the entry in the same database (Product Entry table). In every

POS transaction, the database updates (Inventory table). The store

coordinator can generate report to Microsoft Excel, extracted from the
database. The generated report can either be printed for hardcopy or to be
sent to the main branch, via e-mail and internet, as a weekly or monthly
report. Tha main branch shall receive the generate report once the data are
sent.
For the system to run efficiently and to maximize its use, requirements
for the hardware and software specifications are detailed. Knowing the
system requirements is very important in order to successful implement the
system and lessen the risk of errors and system cash while running the
systems application.
The implementation of the proposed system will be of great help to the
Store Coordinator because it will accomplish the tasks faster. Point of Sale
System for KServico Trade Inc. will create convenience, efficiency and
security in the business establishment. The computerization of the current
system will also be a great help to the companys business when it comes to
competition in market environment. It will improves the monitoring system of
the products going in and out of the store. It will also help prevent errors
committed buy the users and suppliers.
Point of Sale System is not absolute system the can address all the
problems encountered by KServico Trade Inc. However, it can improved by
adding new features depending on the needs of the users. Upon developing
the system, there are recommendations to be considered by the department,
employees and for future researchers who will also study this kind of system.
For the Department:
a.) Security of the system should be maintained or checked regularly to
prevent system malfunctions.
b.) Use this system to make a better quality of service to the customers of
KServico Trade Inc.

c.) Only authorized person should have access to the system in order to
secured the records.
For the Employee:
a.) Adding and updating of records must be accurate.
b.) Take advantage of this computer-based system to lessen clerical works.
c.) Maintain proper use of the system, including the hardware and
software, to obtain maximum performance of the system itself.
For the Future Researchers:
a.) This study is used as a guide for the future researchers of the same
study of the system.
b.) This study can be used as a basis to develop new studies.
c.) The POS (Point of Sale) System may expound its scope on the credit
card merchant card service.

Budget estimate and Financial Analysis

Total Project Cost
Developing an IT application is an investment. Profits can be monetary
or in the form of an improved environment.
Given the specifications of the system requirement, the hardware and
the software should be trusted, high-quality brand to avoid inconvenience of
the equipment while in use. This also prevents incompatibility among system
requirements failures.

Table 3. Estimated Project Cost

Software
Windows XP Pro SP3 (OEM)
Norton Antivirus
Visual Basic 2008 Express Edition
Total

Cost
Php 7,195.00
Php 1,125.00
Php 10,248.00
Php 18,568.00

The software above are the applications compatible to the hardware

present. These are the software necessary to develop a fully functional
application. These chosen requirements are affordable and assures a quality
output if the program is correctly and logically coded.

Operational Cost
The operational cost is the recurring expenses related to the proposed
system. It also includes the technical maintenance, security of the system
and the cost of the system requirements once the proposed system is
implemented.
Table 4. Operational Cost
Operating Expenses
System and programmer
System Upgrade
Maintenance
Total Expenses

Cost
Php 20,000.00
Php 5,000.00
Php 1,000.00
Php 26,000.00

The table shows the software and hardware installation and the
training cost once the system is implemented. The system programmer
works entirely on coding the program of the system. He is the person
responsible for whatever the output of the program is. These both keep the
system functioning and prevent troubles while the system is in process.

Payback Analysis
Payback analysis in business refers to the period of time required for
the return on an investment to repay the sum of the original investment.
The payback period calculation is as follow:
Payback Period (PP)

= The Cost of Project

Annual Cash flow

PP

65,657.00

950,000.00
PP

0.069

The annual cash flow of the company is an estimated cast because all
data figures are very confidential for the company. The proponents will not
provide with any exact data of the companys annual income.

Potential Risk
When the Point of Sale System of KServico Trade Inc.
implemented, the company will eliminate employees because the
system will replace then which can provide fast transaction and
lessen the wages for employees. And if a company offered
upgrade of either would not solve the problem, new equipment
and/or software would have to be purchased at a future date.
Case Analysis
The proposed system will provide great investment in terms
of supplies and materials that are being used every day. Less
paper works means more work can be done. It can be said that
from the daily adapting the point of sale system can be very
helpful in terms of their daily routine. This system produces
productive output that will benefit not only the personnel handling
the task but also to the customers, maximizing allowable time in
the whole process of the transaction. Also the system would

contribute to the growth of the target company in terms of time,

money and effort.