Buying and selling
What is a point of sale (POS) system? Meaning and uses
Definition
Point of sale (POS): Point of sale (POS) is where a customer pays, and the software and hardware a shop uses there to bill items, take payment and print a receipt.
Also called: POS, POS system, POS software, POS billing, Billing counter
What a POS system does
A point of sale system replaces the bill book and calculator at the counter. The cashier scans or picks items, the system adds up prices and GST, takes payment by cash, UPI or card, and prints or sends a receipt. Each sale reduces stock, so the owner knows what sold and what is left without counting the shelves.
A basic setup is a computer, tablet or phone running the POS software, a barcode scanner, and a receipt printer, usually 58 mm or 80 mm thermal paper.
GST billing rules at the counter
A GST-registered shop issues tax invoices for counter sales too, numbered in a consecutive series like any other invoice. Section 31 of the CGST Act lets you skip an invoice for a sale under ₹200 to an unregistered customer who does not ask for one, as long as you issue one consolidated tax invoice for those sales at the end of the day.
When a business customer gives a GSTIN at the counter, print it on their invoice so they can claim input tax credit. For a walk-in customer with no address recorded, the place of supply is the shop's own location, so the bill carries CGST and SGST.
What to look for in POS billing software
The counter is where a slow or confusing system costs you most. Look for:
- Fast scanning, so a long queue on a festival evening keeps moving.
- Split payments, such as part cash and part UPI on one bill.
- A day end total for each payment method, to check the cash drawer every night.
- One stock list shared with purchases, so stock is right without double entry.
- Limited access for counter staff, who should not change prices or see margins.
Worked example
A busy evening at a saree shop
A Surat saree shop bills two sarees at ₹1,890 each and a blouse piece at ₹420, with a 10% line discount on the sarees, and its prices include GST. The sarees come to ₹3,402 and the bill to ₹3,822. The customer pays ₹2,000 by UPI and ₹1,822 in cash. At closing, day end shows the UPI, cash and card totals separately, and the cash total is checked against the drawer.
In managemate
managemate's point of sale runs in the browser on a computer, tablet or phone. Scan with a USB or Bluetooth scanner anywhere on the screen or with the camera, or tap popular products; take UPI with a QR code for the exact amount, cash with change worked out, card, or a split of up to six payments; and print a 58 mm or 80 mm receipt or an A4 tax invoice, or send it on WhatsApp. Every sale gets a number from the same series as your other invoices and records stock and payment together. With your GSTIN set, the receipt is titled Tax invoice with a GST table by rate. Lot QR labels sell from the exact batch, expired lots are refused, the Cashier role sells at catalogue prices without seeing purchases or reports, and day end totals each payment method. It needs an internet connection and does not control cash drawers.
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