Definition
Point of sale (POS) refers to the location and moment at which a customer completes a purchase and payment is made. The POS system is the hardware and software combination used to process that transaction, record the sale, update inventory, and produce a receipt. In modern retail and hospitality, the POS system is the operational hub of the business.
Hardware Components of a POS System
A typical POS setup includes a touchscreen terminal or tablet, a barcode scanner, a receipt printer, a cash drawer, and an integrated payment terminal for processing card and contactless payments. Cloud-based POS systems store transaction data centrally, making it accessible from any device in real time.
What Happens When a Sale is Processed
When a sale is processed, the POS captures the items sold, the price of each, any discounts applied, the payment method used, and the time and date of the transaction. This data feeds directly into inventory management, sales reporting, and the accounting system.
POS for Hospitality
For hospitality, POS systems include additional features such as table management, split billing, kitchen display system (KDS) integration, and course management. A restaurant POS routes orders to the kitchen or bar by section, tracks table occupancy, and allows staff to manage multiple open tabs simultaneously.
Modern Cloud POS Features and Australian Requirements
Modern cloud POS platforms go well beyond transaction processing. Features such as customer loyalty programmes, staff time and attendance management, purchase order generation, detailed sales analytics, and multi-location inventory transfers are now standard in leading systems.
For Australian businesses, POS systems must support EFTPOS, Visa, Mastercard, and increasingly digital wallets (Apple Pay, Google Pay). Integration with accounting software like Xero or MYOB is increasingly expected.