what is a point of sale system

A point of sale (POS) system is a set of hardware and software that enables a business to make sales, accept payments, and check out customers. It is the place where a customer makes a payment for products or services at a store. A POS system manages customer purchases, accepts payments, and provides receipts. It is also where the merchant calculates the sale price for the customer, creates a record of the transaction, and provides payment options. Modern POS systems also generate reports, help manage inventory, track employee hours, and perform other functions. A POS system can work in different ways, depending on whether a business sells online, has a physical storefront, or both. POS terminal software may also include features for additional functionality, such as inventory management, CRM, financials, or warehousing. Some POS vendors refer to their POS system as a "retail management system" because it is not just for processing sales but comes with many other capabilities.