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What is the Difference between point of sale and inventory system?
Wiki User
∙ 8y ago
Typically, Point-of-Sale software is designed to record what sales have been made,usually by some general classification (i.e. a package of mint would be recorded as a candy sale in a convenience store). Point-of-Sale commonly includes a sophisticated input device such as a bar code scanner and/or some kind of receipt printer. Most point-of-sale software systems do not monitor inventory levels - they only monitor what products are sold, kind of like a "transaction recorder."
On the other hand, Inventory Management System softwareis designed to monitor and maintain all factors that affect the inventory at the specific product level. What this means for retailers is that if their inventory is accurately measured, they should be able to identify statistical trends and forecast future needs - that is, retailers should be able to see what products are selling more rapidly, enabling them to order more products to ensure that their inventory is always stocked with popular products. Ideally, a successful and efficient inventory management software system will help to reduce the amount of inventory needed during seasonal periods and also prevent "out of stock" situations - ultimately leading to a very high return on investment (ROI).
pcspos.com.sg
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∙ 8y ago
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Which item is deducted from inventory as it is sold or dispensed?
Point of sale system (POS system)
What is prepetual inventory system?
The perpetual inventory system is a method of accounting of inventory that records the sale or purchase of inventory in near real time, through the usage of computerized point of sale and enterprise asset management systems. It provides a detailed view of inventory changes.
If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
What does an auditor do if there is a material difference between an expected and actual balance?
However, if there is a material difference between the expected and actual balance, the auditor will investigate this difference further. At this point the auditor will develop an explanation for the difference.
How do you work out cost of goods sold?
The cost of goods sold depends on (1) the inventory system used, and, (2) whether or not a cost flow assumption is used (and if so, which one).Inventory systemsThere are two inventory systems: the perpetual inventory system and the periodic inventory system.The perpetual inventory systemWith the perpetual inventory system, the inventory is updated with every purchase and expense. This implies that cost of goods sold is increases with every sale, at the time of each sale. The cost bases depends on the cost flow assumption used (see below)The periodic inventory systemWith the periodic inventory system, purchases are expensed, while with sales, cost of goods sold is not calculated. Hence, there is no system in place that can tell how much inventory there is.The inventory is counted at the end of the period. At this point in time, the cost of goods sold can be computed.Because:beginning inventory + purchases = ending inventory + cost of goods soldthis implies:cost of goods sold = purchases + beginning inventory - ending inventoryThe end of period count is a physical count. The $ value of the goods depend on the cost flow assumption (discussed next)Cost flow assumptionWhen goods are similar in nature (the company is trading coffee, oil, etc), the company can decide to assume some 'flow' of the goods for cost purposes. Common assumptions are:LIFO: Last in, first out: the most recent purchases are sold firstFIFO: First in, first out: the oldest inventories are soldAverage cost: An average cost is computedThe alternative is 'specific identification', meaning that no cost flow is assumed but the actual cost for the goods is determined (this requires some sort of information system).The cost of good soldDepending on choices (1) for inventory system and (2) cost flow assumption different values for cost of goods sold and ending inventory can be possible.For FIFO, the perpetual and periodic inventory will lead to the same cost of goods sold (as well as ending inventory value).For LIFO (as well as average cost), the cost of goods sold could very well differ for the perpetual inventory system and the periodic inventory system. With the periodic inventory system the cost of goods sold is determined at the end of the period. This means that for example purchases after the last sale are included for determining the cost of goods sold. This is not the case with the perpetual inventory system. With the perpetual inventory system this is done for each sale at the time of sale.
What is difference between American 4 point system and Japanese 4 point system in fabric inspection?
Basic difference between American and Japanese 4 point system is points per difects. Japanese 4 point system was introduced earlier and this system contains some soft atitude for the seller. American 4 point system was introduced after the Japanese system and it is more strict than any other inspection system.
Which item is deducted from inventory as it is sold or dispensed?
Point of sale system (POS system)
What is prepetual inventory system?
The perpetual inventory system is a method of accounting of inventory that records the sale or purchase of inventory in near real time, through the usage of computerized point of sale and enterprise asset management systems. It provides a detailed view of inventory changes.
What are the difference between freezing point and boiling point?
what is the difference between freezing and boiling point
What is the difference between a programming language and an Operating system?
They are entirely different things, there is no point in comparing them.
What is difference between melting point and drop melting point?
No basic Difference between melting point and Drop point.
What is the difference between insertion point and cursor?
What is the deference between Insertion Point and Pointers?
What is the difference between Aniline Point and Mixed Aniline Point?
There is no any such difference between Aniline point and mixed Aniline point . . . . .
What is difference between critical temperature and boiling point?
difference between critical temp and boiling point
What is the difference between an initial point of a vector and a terminal point?
The difference is the length of the vector.
How can use a box-and-whisker plot to find the range of a data set?
The leftmost point is the minimum value.The rightmost point is the maximum value.The difference between them is the range.The leftmost point is the minimum value.The rightmost point is the maximum value.The difference between them is the range.The leftmost point is the minimum value.The rightmost point is the maximum value.The difference between them is the range.The leftmost point is the minimum value.The rightmost point is the maximum value.The difference between them is the range.
If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
