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Chapter 1

INTRODUCTION

In the world of business, sales and inventory report has one of the biggest roles in the

field of business industry. Recording data from past to present will calculate every statement and

will help in monitoring the status of the business. Manual data recording of sales and inventory

data are now a thing of the past. Indeed, the world is now inconceivable without computers.

Billions of important data can now be stored and handily retrieved because of the database

technologies that exists today. Precious time should be in properly manage in order to do all the

things that the company or business has. Monitoring and managing the sales and inventory is a

hard task for the manager or the owner.

As the world moves further and faster into a thriving technological age, so must the way

we conduct our business. The Point-Of-Sale (POS) has been created by IT professionals to make

the system of the business easy to manage. It calculates the sales for the day, month and year.

And, inventory system programs now on the market lets you track the usage, monitor changes in

unit costs, calculate it when you need to reorder, and analyze inventory levels in item-by-item

basis. It can even control inventory right at the cash register with point-of-sale (POS) systems.

Point-of-Sale System records each sale when it happens, and the inventory records are updated

automatically. Growing technology has a limitless development, one of the popular IT

Developers companies who transformed Manual Point-of-Sale recording into a more convenient

and easy way on recording the sales per day is International Business Management (IBM) it is

the best sample why do companies mostly trusted to help manage their client’s business/

company.
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PROJECT CONTEXT

AJ Trading Motorparts is one of the well-known motorparts shop here in Tarlac. They

sell motorparts and provide some mechanical services that is needed by the customer. It has

another branch at San Vicente Tarlac City. AJ Trading Motorparts is in service for 20 years, until

now they still have a lot of customers even if there are so many new motorparts shop located in

their vicinity. But AJ Trading Motorparts still lacks on innovative technology. When making

sales the employee looks for the product on their stands then search their current product list to

know its price, he/she will write down the customer’s details on the receipt and then manually

computes using a calculator, it takes about 5 minutes per customer. When new items or stock

comes, the manager will just write it down on his log book that he had received the quantity of

the new items and notifies the owner then put the items on the stands. They don’t have real time

monitoring on their current stocks they just rely on what is on their stands. It has no Point of Sale

nor an Inventory System and only relying on manual paper based system making it a perfect

example for the studies of the researchers. The researchers aim to develop a Point of Sale and

Inventory System for AJ Trading Motorparts that will automate the process of the said branches

(sales) and gives the admin or manager a reliable inventory storing of products and stocks. The

system will also be a computerized solution to the different problem i.e. (unreliable records due

to erroneous or unreadable handwriting and loss of records) encountered because of its paper-

based system.

Point of Sale and Inventory System are used for accurate business reports and for

consistent and secured data storing. The researchers intend to find an innovative point of sale and
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inventory system. Thus, developing a customized Point of Sale and Inventory System that will

solve the problems encountered by AJ Trading Motorparts in its business processes.

The system will aid the existing problems regarding to the Point of Sale, Inventory and

Monitoring of the business. It will lessen the time and effort of both employees and manager

onstoring, retrieving and monitoring of records of the business. The system’s database is more

secure and reliable than the traditional paper-based system making loss of records evitable and

giving the employees easier management of records.

The users can access the systems through their username and password. Manager account

will be default in the system which he can change its password if he wants to. Employee

accounts should be created by the Manager and a separate account for the owner of the business

that will be used to access the monitoring system.

PURPOSE AND DESCRIPTION

The researchers hoped that the findings of the study will be beneficial to the AJ Trading

Motorparts management. This study will serve as a valuable reference to the better development

of Business IT System on various managing techniques and services for businesses.

The researchers will develop a system that would provide greater benefits and ease of use

to the Manager and Employees of AJ Trading Motorparts. The develop system will be a big help

especially in the sales transaction and monitoring of the business.It will also speed up the

processes and will help its employees by saving their time and effort on preparing sales record

and transaction for the day.

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The develop system will give Point of Sale and Inventory functions such as searching

through list of products from the inventory and automatic computing its price and total value

based on the quantity being sold. The Manager can add, update, delete products in the inventory

and also add stocks to products when receiving stocks of the said product.

The develop system can create accounts to be used by employees on the Point of Sale

using the manager feature of the system. The system will generate sales report to be viewed by

the manager of the business along with the inventory and transaction record of the system to

have a data transparency between the management of the AJ Trading Motorparts.

STATEMENT OF OBJECTIVES

The Study was initiated in order to develop a system to be called “Point of Sale and

Inventory System” for AJ Trading Motorparts.

1. To develop a Point of Sale and Inventory System for the branches of AJ Trading

Motorparts with the following modules:

1.1. Manager Module

1.2. Main Register Module

1.3. Inventory Module

1.4. Reports Module

2. To validate the effectiveness of the Point of Sale and Inventory System for AJ Trading

Motorparts by:

2.1.IT Experts
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2.1.1 Efficiency of the System

2.1.2 Security of Information

2.1.3 Database Design

2.2. System Users (Manager, Employee)

2.2.1 Easiness of Use

2.2.2 System Accessibility

2.2.3 Accuracy of Reports

SCOPE AND LIMITATION

The study primarily aimed to design a Point of Sale and Inventory System for AJ Trading

Motorparts. The system focuses on the business processes of the branches which includes; Point-

of-Sale, automatic computing of sales for the day, employee management, and inventory report.

The Manager Account can addEmployee Accounts. The System have a Main Register

that acts as Point of Sale and Cash Register. It can create new sale or discard one,computestotal

purchase, cash receive and change, and the system can only accept cash payments. Sales are then

logged on the Sales history for the employee so he/she can monitor his/her transactions made.

Only the Manager Account can Add/Update/Delete Products in the system but with the consent

of the Owner and Employees for transparency. All products have tags and brands so searching is

more efficient.The System will also provide list of products and their respective prices. The

system willgenerate timely and accurate Reports and print them if needed(Sales for the Day and
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Inventory Report) are accessible to the Manager for monitoring purpose as long as they are

logged-in on the system.The scope of the developed system will only be within the said local

only.

The limitations of the system are as stated, the system does not support barcode scanning

and does not accept payments through credit cards. It can display the receipt of the transaction

but does not print it. Lastly returning and exchanging of sold item/s when customer made an

error of purchasing an item is not supported by the system.

DEFINITION OF TERMS

The following technical terms used in the study to aid the reader to better understand the

research.

Accuracy of Reports. This refers to the accuracy of the reports that are calculated by the system.

Database Design. This is the process of producing a detailed data model of a database. This

logical data model contains all the needed logical and physical design choices and physical

storage parameters needed to generate a design in a data definition language, which can then be

used to create a database.

Ease of Use. This refers to the comfort of using the system that it does not need formal training

for the system to be used.

Effectiveness of the System. This measures the effectiveness of the system in automating the

processes of the said branch and the capability of the users to adapt the system.
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Inventory. Refers to the product or items that are currently in hand. It is use to monitor stocks

that are low on quantity and stocks that needs ordering.

POS. Point of Sale used for making sales, displaying the products quantity and price. It also acts

as a cash register for payment management.

Receipt. Summary of the sale, it includes the product, quantity, total price, money rendered,

change customer name and the sales ID.

System Accessibility. It refers to the accessibility of the system of accounts that have different

features and purpose that are protected by personal passwords.

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the literature and studies that supplied background information to

the study of the researchers.

Foreign Literature

As defined by Carolina Barcode Inc., a Point-of-Sale system is a computer software and

hardware networked together to track sales and inventory as they occur. Point-of-Sale systems

will solve a multitude of problems in your business. It is one of the focal points of any retail or

hospitality business in the cash register. The ability to process transactions and tender cash are
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essential to the efficient operation of the enterprise. If you have a lot of cash transactions,

replacing the cash registers with a Point-Of-Sale (POS) system save you money (2013).

The researchers propose system that has the functionality of a POS and the ability to manage

your stocks by an Inventory System.

As stated in the book entitled Introduction to Information System by Ralph Stair and

George Reynolds. Purchasing Systems is the traditional Transaction processing system that

support the purchasing business function including inventory control, purchase and order

processing. This integrated set of systems enables an organization to plan, manage, track and pay

for its purchases of raw materials parts and services.

The researchers propose a system that will process fast automated transactions and create

reliable sales report of every day, month, and year automatically on a day to day basis. The

researchers develop a system that creates transaction report or log that will help on tracking

transactions when needed.

According to the U.S. Small Business Administration, “Inventory refers to stocks of

anything necessary to do business” (U.S. Small Business Administration, 2010) The U.S. Small

Business Administration publication describes what constitutes successful inventory

management balancing cost versus benefits of inventory, including Maintaining a wide

assortment without spreading the rapidly moving items too thin, Increasing inventory turnover

without sacrificing service, Keeping stock low without sacrificing performance, Obtaining lower

prices by making volume purchases, Maintaining an adequate inventory without an excess of

obsolete items.
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The researchers propose a system that will create accurate and informative sales and

inventory reports pointing out to the products that needs stock and the products that needs to

lower stocks.

Local Literature

According to Gemma Navarro (2012) Computer is general purpose device which can be

programmed to carry out a finite set arithmetic or local operation. Computer has a big rule in our

nation today because of our technology. Wherever you go computer still exist, especially in

business it makes the procedure easy and secure by programming the manual system into a

computerizing system. The rule of technology in our life today has a big impact.

The researchers propose a system that has features and functions based on their current

manual based system.

In this study conducted by Ariel Magat, he stated that the Inventory System of the vital to

any institution, agency, or department. The proper safekeeping, processing and disposal of

records play important roles in the efficient, effective and smooth operation that eventually

would lead to the success attainment of the goal and objectives of institution, agency and

department concerned.

The researchers propose a secure and reliable inventory system storing consistent data

and only showing it to the people who has access to it.

In the study from Averion, Gaela, and Libo (2009) it stated that inventory system help to

minimize the difficulty of the manager in processing inventorybecause physical counting

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products, stocks and computing inventory summarywill be the system job. It will monitor the

availability of products, items to preventunder stocking, over stocking and running out of stocks.

The system will alsosimplify the transaction between dealer and supplier relationship because of

theupdated supplier information and price list of items will correspond tocollaboration with other

supplier.”

The researchers propose a system similar to the article that automatically counts the

current inventory when needed faster and efficient.

Foreign Studies

According to the thesis of Carlo Magno “There was a ground swell to move from paper

signature and documents because the task of record management was huge. We had file cabinets

full of backup materials. By converting from manual process, we would be able to eliminate a lot

of paper. We could go further with the automation of manual process and remove manual

paperwork if people trusted the technology.

According to Mike Toland “We need a better tracking system than excel spreadsheets

and paper”. Paper is too cumbersome and also too limiting, you’ll never know how to specify all

the information that you need.

The researchers propose a system that can store data securely by the use of a local

database on the locales computer.

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Inventory System

By: Wal-Mart

Wal-Mart runs its stores on a perpetual inventory system. This system records the

quantity of items sold as items are purchased. The computer system at Wal-Mart constantly

keeps up with additions or deductions from inventory and tells management what items are on

hand. The organization also conducts counts of employee manual counts of inventory

periodically. When an item arrives at the Wal-Mart distribution center it is scanned into the

inventory system. When the items are purchased by the consumer, the point-of-sale system

reduces the inventory from that purchase. According to Wal-Mart’s Gail Lavielle, a leaner

inventory will help clear out store clutter and help Wal-Mart focus on specific brands and

products that consumers want.

The researchers propose a system that generates report that are manageable trough fast

searching of records of the proposed system.

Local Studies

A study conducted by Mr. Gragasin(2010) et,al. Entitled “A customized Point of Sale and

Inventory System for Anespee Enterprise Hardware Carangian” concluded that the

implementation of the Developed system increases the business efficiency and effectively in

terms of every transaction that they have. Managing the records such as employee, customer,

suppliers and transaction is faster and easier than using the manual paper based system.

The researchers propose a customized system that would likely be adapted by the locale

to speed up its processes and increase the efficiency of the business.

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According to J.De Leon and M. Ferrer (2009) Under the KoreadRedGinseng Enterprise

Sales and Inventory System, the researchers came up with acomputerized sales and inventory

system. The proponents used database toeasy access of files and for easier and faster processing

of the selling andinventory transaction. The program was designated to generate reports such

asmonthly reports, inventory reports, sales invoice and list of items.

The researchers propose a system that can store data securely by the use of a local

database on the locales computer.

Based on the research entitled “Computerized Sales and Inventory systemforRonmon

Trading” (de Alday, Espino, Ragudo),2010, the replacement of themanual system with the

proposed system provided more efficient and accurateprocessing of transaction. The said system

is much reliable, eliminated errorsand inaccurate information, and provided valuable reports with

integrity.

The researchers propose a system that generates report that are manageable trough fast

searching of records of the proposed system.

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Chapter 3

TECHNICAL BACKGROUND

This chapter intends to identify the technical background of the locale’s existing system

and the software and hardware requirements in order to develop the proposed system.

Technical Background

The Point of Sale and Inventory System will aid the existing problems of AJ Trading

Motorparts.

The Business traditional paper-based system uses paper and sales invoice in its business

processes. Employees use sales invoice to record transactions whenever it happens and uses

manual computing by using calculators. At the end of the day the manager reviews and checks

all the sales invoice that have been taken for the sales report.

The table below show the technology or requirement they use in their existing system.

Table 1.

Equipment Description

For computing of transactions specially in sales

Calculator
report

For issuing receipt and use in checking of

Sales Invoice/Paper
employees attendance
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For writing information

Pen

The Table below shows the software specifications that are needed for development of the

system:

Table 2. Software Specification

SOFTWARE Description

Windows 8/7 The operating system that will be compatible to

support the softwares that will be in use.

Visual Basic 2010 A application builder that will be in used to

develop the point of sale and inventory system

of the locale

Microsoft Access A DBMS from Microsoft that combines the

Microsoft Relational Jet Database Engine with
a Graphical User Interface and Software
Development Tools.

The Table below shows the Hardware Specification for the development of the proposed system

Table 3. Hardware Specification

HARDWARE DESCRIPTION
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Laptop/Desktop Intel I3 core processor 2.7 GHz and higher

Hard Disk Drive Minimum of 1gb hard disk space to store the required

installation of softwares to be used in the

development of the proposed system

RAM Memory of 2GB or higher

Minimum Screen Resolution At least 1366x768 or higher

The Table shows the software specifications of the PC/Laptop that will be used as Point Of Sale

and Inventory

Table 4. Software Specification

SOFTWARE DESCRIPTION

Windows 8/7 Operating System that will be in used to support the

platform of the system.

Visual Basic 2010 A application builder that will be in used to run the

point of sale and inventory system of the locale

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Chapter 4

METHODOLOGY

This chapter deals with methods of research used by the researchers in order to come up with a

solution. The research methodology, data gathering tools and process flow diagrams was

elaborated in this chapter.

Type of Research

Research and Development

The software development methodology is a framework used to structure, plan, and control the

process of developing the System for AJ Trading Motorparts.

METHODS OF RESEARCH

The researchers considered the following methods to develop a meaningful and productive

output.

Internet Method. The developers researched on various websites to gather data relevant to the

study. The extensive browsing of the internet provided vital references, studies, articles and

application which are related with the study conducted.

Interview. Interview is one of the most important techniques in gathering information from

individuals through personal interaction. The researchers conducted interviews with the Admin
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and Students regarding to their operations and problems being encountered on their existing

system.

Library. The developers also researched on published reference and unpublished materials such

as thesis and dissertations from the library. The TSU library provided relevant information and

literature used in the study.

Research Studies and Thesis. The researchers synthesized the materials, references and

knowledge acquired from the research conducted which became the basis in the

conceptualization, designing and actualization.

Technical Feasibility

The technical feasibility of the proposed system deals with the technology used in the system. It

deals with the hardware and software used in the system whether they are of latest technology or

not. It happens that after a system is prepared a new technology arises and the user wants the

system based on the technology that are not only available but also technologically in trend.The

proposed system will use windows platform which is compatible to the latest version of the

platform that is available during its development.The software used to build the proposed system

is Microsoft visual basic 2008 which allows the improvements and publication of the previous

builds into newer version of the system. Thus POS & Inventory System is technically feasible.

Operational Feasibility
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The proposed system has been developed in such a way that it became very easy even for a

person with less technical knowledge to operate it. The software is designed to be user friendly

and does not require a highly skilled individual to operate the system. Since the proposed system

has the features of the basic procedures of the operations department and considering that the

locale is only using a manual based system. The use of the proposed POS & Inventory System

for the operationof the locale is an advantage. Being equipped with necessary features of the

locale and the new features their acquired that are effective and user friendly makes this project

operationally feasible.

Schedule Feasibility

Figure 1. Gantt Chart

Shows the amount of work done in certain periods of time by the Researchers in relation to the

amount of time planned for those periods.

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Figure 2. Architectural Design

Shows the Architectural Design of the proposed system “POS & Inventory System for Aj

Trading Motorparts
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Figure 3. Context Diagram

Figure 3. Shows the Context Diagram of the Developed System. The Manager can add Employee

accounts and add products.View list of employee, products and reports. While the employee

account is use for Point-of-Sale

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Figure 4. Data Flow Diagram

Figure 7. Shows the Top Level Data Flow Diagram of the developed system. It shows the flow of

data from inputting of information of sales of the employee to generating the receiptfor the customer

and generation of report that can be viewed by the manager.

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Figure 5. ER Diagram

Figure 5. Shows the Entity Relationship Diagram of the developed system and the relationships

of entity sets stored in a database. It illustrate the logical structure of the database.
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DEVELOPMENT METHODOLOGY

Figure 2. Agile Scrum Methodology

Agile Scrum

The researchers used the Agile Scrum Methodology in software Development. The researchers

chose this methodology to adapt easily to changes, to be able to work side by side with end users

and to make necessary corrections and adjustments quickly when certain requirements are

altered. As Schwaber (2004) pointed out, the Scrum Agile methodology excels on urgent

projects that are critical to an organization. He added that the scrum shortens the feedback loop

between customer and developer, and between wish list and implementation. The process starts

with the researchers interviewing the client for the requirements needed for the design of the
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system. This was followed by the release planning fits nicely into the planning frameworks that

are often offered for scrum and identify the user’s story that they want to put in the release or

sprint backlog. After that, the amount of work has been estimated and several sprints were

created.

Planning

At the first stage of planning the session, the researchers have undergone a brainstorming session

to identify the target locale and discussed the needs and arising problem within. The researchers

discovered that the Aj Trading Motorparts is still using manual based system in making a sale

and managing their inventory.

The researchers listed down the problems that the locale encountered and discussed them with

the locale. After gathering the necessary data and requirements, the researchers created a Project

Backlog to serve as a guide on creating the system. Then after that, the researchers initiated an

estimation and prioritization planning session together with manager and loan officer. After that

meeting, the researchers evaluated all the items that have been selected and then initiated the first

Scrum Planning meeting.

Product Backlog

Product backlog is a part of Scrum terminology representing the prioritized list of requirements

for the project being developed. The product backlog is the list of work the researchers must

address during the next sprint. The list is derived by selecting the backlog items from the top of

the backlog until the researchers feel it has enough work to fill the sprint. The backlog items are

broken down into tasks by the researchers. Tasks on the sprint backlog are never assigned;
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rather, tasks are signed up by the researcher as needed according to the set priority and the

researchers’ skills. This promotes self-organization of the researchers.

In listing the project backlog, the researchers had a meeting to talk over and analyzed the module

that should be prioritized and included in every sprint. After a sprint has been done, the

researchers got the feedback of their locale, and if there were some suggestions that were

possible and can be included to the system, then these were included to the project backlog and

subjected for the next sprint.

DATA DICTIONARY

Table 5. Supplier Table

PK/FK Field Name Data Type Field Set Description

PK SupplierID Int Auto 30

ConFName VarChar 30 Contact Person First Name

ConLName VarChar 30 Contact Person Last Name

ConTitle VarChar 30 Contact Person Title

Phone VarChar 15 Phone Number

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Table 6. Supplier Invoice Table

PK/FK Field Name Data Type Field Set Description

PK SupInvoiceID Int Auto 30

Date VarChar 30 Date of Transaction

FK SupplierID Int Auto 30

Table 7.Supplier Invoice Line Table

PK/FK Field Name Data Type Field Set Description

PK SupDetailID Int Auto 30

UnitPrice VarChar 30 Product Price of the Supplier

Quantity VarChar 30 Quantity of the Product

Date VarChar 30 Date of Transaction

QperProd VarChar 15 Quantity per Product on the list

FK SupInvoiceID Int Auto

FK ProductID VarChar

FK PaymentNo. Int Auto

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Table 8.Payment Table

PK/FK Field Name Data Type Field Set Description

PK PaymentNo Int Auto 30

Amount VarChar 30 Amount to be Paid

Date VarChar 30 Date of the Transaction

Table 9. Product Table

PK/FK Field Name Data Type Field Set Description

PK ProductID Int Auto 30

Pname VarChar 30 Product Name

ProdDescription VarChar 30 Product Description

Prod Price VarChar 30 Product Price

QperProd VarChar 15 Quantity per Products

FK SupInvoiceID VarChar

FK ProductID VarChar

FK PaymentNo. Int Auto

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Table 10. Sales Invoice Line Table

PK/FK Field Name Data Type Field Set Description

PK SalesDetailID Int Auto 30

UnitPrice VarChar 30 Product Selling Price

Quantity VarChar 30 Quantity of the Product

Date VarChar 30 Date of Transaction

QperProd VarChar 15 Quantity per Product on the list

FK SupInvoiceID Int Auto

FK ProductID VarChar

FK PaymentNo. Int Auto

Table 11. Sales Invoice Table

PK/FK Field Name Data Type Field Set Description

PK SalesInvoiceID Int Auto 30

Date VarChar 30 Date of Transaction

FK EmpID Int Auto 30

FK SalesID Int Auto 30

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FK CustomerID Int Auto 30

Table 12. Sales Table

PK/FK Field Name Data Type Field Set Description

PK SalesID Int Auto 30

Description VarChar 30 Sales Description

FK EmpID Int Auto 30

Table 13. Employee Table

PK/FK Field Name Data Type Field Set Description

PK EmpID Int Auto 30

EmpFName VarChar 30 Employee First Name

EmpLName VarChar 30 Employee Last Name

DOB VarChar 30 Date of Birth

FK AccountID Int Auto 30

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Table 14. Account Table

PK/FK Field Name Data Type Field Set Description

PK AccountID Int Auto 30

Username VarChar 30 Account Username

Password VarChar 30 Account Password

Table 15. Costumer Table

PK/FK Field Name Data Type Field Description

Set

PK CustomerID Int Auto 30

CustomerFName VarChar 30 Customer First Name

CustomerLName VarChar 30 Customer Last Name

CustomerMI VarChar 30 Customer Middle Initial