CHAPTER 1

INTRODUCTION

1.1 Background of the Study

A Transaction Processing System (TPS) is designed to process routine transactions

efficiently and accurately. A transaction process system (TPS) as defined by techopedia.com is an
information processing system for business transactions involving the collection, modification and
retrieval of all transaction data. The researchers would design a Point of Sale (POS) Information
System that would aid the business enterprise in placing the customers orders as well as billing
them.

According to the website of Point of Sale, POS is the term used for the combination of
computer hardware and software that manages the sales transaction. A point of sale system helps
businesses in sales transaction to collect and restore data of customers information, daily sales
and history of sales for the month ended and year ended. The point of sale system that the
researchers aim to design will include, ease of use for a user-friendly graphical interface, entry of
sales information which allows the user to make a product code, upon entering the product code
the system will show its corresponding price with the running total according to its quantity, it
will also enable the users to update the product information, add or remove a product, update of
price and, modification of product name and code. Additionally, it will include a per transaction
computation of VAT and a running total of VAT payable for the month. Finally, the researchers
want to protect the business information, the point of sale system will include a security feature
that requires you to select which type of user, e.g. cashier or owner, and enter a passcode
correspondingly. The authority of access of information will vary based on the user.

The researchers decided to base the study on Old Woods Caf after experiencing first-
hand one of the business complications. As they help the enterprise analyze some of their
problems through interviews and observations, they discovered the enterprise bills their
customers and records everyday transaction records manually such practice is susceptible to
human errors. The researchers decided to put emphasis on billing and placing the orders of the
customers.

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 Old Woods Caf is a small business enterprise that offers to serve the best meals and
coffee blends. They are located in South Point Cabuyao, Laguna. Opened last July 26, 2016 with 4
employees alongside the supervision of Nevalga, the owner of the said caf.

Billing customers is an integral part of Old Woods Caf for its day to day operations as
well as placing customers orders. The researchers aim to design a program that will help Old
Woods Caf in billing their customers precisely, to avoid miscalculations in billing and to lessen
the time to process a transaction. The system will have a user friendly interface for easy access
including additional features necessary for user/s to navigate the program effectively. The
additional features would allow users to record and to keep track of customers orders and their
table number. Upon billing out, the user would only need to identify the table number of the
customer to know the amount of bill.

1.2 Statement of the Problem

System Development Point of Sale

1.2.1 General Problem

The General problem of this study comes from the manual order system and
existing labor-intensive scheme of Old Woods Caf which made their services slower, the
risk of having erroneous records and information loss.

1.2.2. Specific Problems

Specifically, the study aims to answer the following problems:

Existing manual system is not convenient and time consuming

Old Woods Caf has limited sources of labor with two employees, manual
billing adds another workload and lessen their productivity. Additionally, records
of day to day transaction are stacked until it has been recorded to their respective
journals, which restricts the business to keep track of their sales performance
efficiently.

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 Existing manual system which records transactions is prone to inaccuracy
Manual billing of customers is susceptible to miscalculations, errors and is
subject to data loss.

Existing manual system has a non-confidentiality of records

Due to being a manual system means the entity has to be careful of the
companys receipts. Amassing stock of receipts put the companys records
at high risk of being stolen or lost. Also, the information may be lent to an
unauthorized persons increasing the risk and the need for security which
can be an additional cost.

1.3 Objectives of the Study

13.3.1 General Objective

The general objective of this study is to create a computerized style of ordering

system for Old Woods Caf to accommodate certain aspects regarding its billing
department. This study will help to keep errors of the billing department at minimum,
have a convenient recording system, have a faithful presentation of records and be able
to maintain the confidentiality of records.

13.3.2.1.1 Specific Objectives

Develop a prototype system that will shorten the time it takes in processing
transactions.
Design a system that showcase a computerized record of products with it
corresponding price, a running total per transaction, daily, monthly, and yearly
records of sales. To assist Old Woods Caf to provide services efficiently, and keep
track of their performance.
Design a system that will improve the accuracy towards recording of
transactions preserve the confidentiality of records.
The system intends to aid the enterprise in accurately billing the
customers, by providing system functions to compute the running total amount
of orders, and restore records of transactions. Authority of access to information

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 in the system will vary, specifically between the owner/manager and the
employee to ensure the confidentiality of the business enterprise.

1.4 Significance of the Study

Old Woods Caf has a number of problems as with all businesses. To specify, the
employees manually write down customers orders and bills, leading to numerous risk such as
erroneous computation in billing and/or probable misstatement of orders without encoding said
orders to a system to help keep track of customers orders, important information such as sales
invoice are susceptible to damage, loss or theft as they are only written by means of pen and
paper.

The system will prove useful for the following:

Owners: The program seeks to aid the owners of Old Woods Caf in terms of providing an
overview of the business performance by being able to analyze the amount of sales for a
given period.

Employees: The employees will have an easier time compared to their old point of sale
system due to the fact they will be able to manage customers orders more efficiently
especially during peak hours.

Customers: Customers will also find the program convenient for themselves as they will
have faster transactions with Old Woods Caf as well as having little to no worry of
keeping track of their orders themselves.

By using this system, not only will it benefit the users of the program but the customers
as well and the economy of the Philippines in a larger scale. A proper order and billing system will
keep track of the total amount of sales and will reflect the proper amount so as the owner can
pay the correct amount of business taxes.

The system also has potential to produce new technology insofar as systems
development. Whatever results this proposed system will yield, be it convenience or
inconvenience, makers of new similar systems will have a better understanding of what to include
in the coding or simply an improvement of user interface, in general.

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 In summary, the system seeks everyone concerned in Old Woods Caf. The owners having
a better view of product movement and management of the menu; the employees, having an
easier method of keeping track of orders and a convenient way to bill customers; and the
Philippines, in a large scale, by the correct contribution of taxes by the business.

1.5 Scope and Limitation

1.5.1 Scope

The scope of the proposed system for Old Woods Caf are the following:

Record customers order/s, table number, status and amount due from their orders.
The primary objective of the system as explained earlier. This will yield a better flow of
transactions leaving customers more than satisfied with the service of Old Woods Caf.

Generation of receipts, explicitly stating amount due, total sales and value added tax,
if any. Since it is required by law to explicitly specify the amount of total sales and the amount
of value added tax if present, it would not hurt to add an additional feature to separate these
two components as it will also help Old Woods Caf avoid paying penalties for not complying
with Philippine law.

The user/s can add or remove a product. Businesses are flexible, this means we can
assume that it is most probable that the owners may decide to add or remove certain
beverages, food, formulas and the like. Also, if there are redundancies, they may also edit the
items indicated in the list. In keeping track of orders, customers may change their minds if
they wish to cancel or add orders and the users may then edit further the specific customer
order.

Record and keep track of customers loyalty card/s and beverage consumption.
Customers are given loyalty cards upon purchase of a beverage and upon request of the
customer. As of date of writing, the customer loyalty card is made of plastic, the size and
shape similar to a credit card. It operates on a sticker basis, wherein a customer earns a sticker
for each beverage corresponding to his or her order. Once the sticker is attached to the card,
a signature of the owner is fixed on the sticker and after completing all the stickers to one

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 category of drinks, the stickers are removed and the card is left as if the card has been given
from day one. In general, the customer loyalty program is good on its own. Fortunately,
improvements can be made. The system aims to provide the owner a record of the stickers
issued with a corresponding serial number to avoid forgery; the stickers themselves will also
have serial numbers on them for confirmation purposes with the system.

1.5.2 Limitations

The system has its limitations such as, but not limited to, the following: The right to
use the system is restricted for the owners, the employees and those authorized by the
owner. In addition to these limitations, the system will focus specifically on order keeping,
customer billing and managing the customer loyalty program; it will not dwell on other
aspects of the business such as employee payroll and inventory keeping.

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