LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE

Gen. Trias, Cavite

A
System Proposal Entitled
POINT OF SALES SYSTEM & INVENTORY SYSTEM FOR AMANTES LEATHER
REPAIR SHOP

Submitted By:
Macaspag, Grace Ann
Project Leader
Loyola, Jeremy
Loyola, Jerome
Members

IT-202
Program & Section

Submitted To:
Mr. Genson P. Mendoza
Faculty, DCS

ACKNOWLEDGEMENT

We, the proponents, are using this opportunity to express our unending gratitude to
everyone who supported and helped us throughout the course of this project. We are thankful
for those people for their excellent guidance, priceless constructive criticism, and friendly
advice.
First, we would like to endlessly thank our Almighty God for gifting us with the skills,
patience, knowledge, and strength that we needed to finish this project; for without His
guidance, we never would have gotten this far.
Second, we extend our profoundest gratitude to our project advisers, Mr. Genson P.
Mendoza and Ms. Maricar R. Sucaldito, for pouring out all their knowledge and advice in
every lesson; because all those helped us, the proponents, push this project with grace until
the end.
Another person we would like to extend our gratitude to is the business owner, Mr.
Jetson Amante, for entrusting us with the opportunity of providing his growing business with
a working automated system.
Lastly, we would like to extend our deepest appreciation and gratitude towards our
family, friends, and loved ones for all the support that they had given us to carry out and
accomplish this study.

ABSTRACT

TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

Chapter 1
INTRODUCTION

Introduction
Inventory system is an effective way for monitoring and tracking different
materials that are transferred in and out of a companys warehouse or
establishment usually for accounting purposes. It is also important for a company
to monitor all the transactions and movement of goods in order to keep an account
of all their stocks. However in some establishments, the inventory of materials is
done manually in such a way that an employee writes down the information of
different materials every time it is transferred in and out of the room.
In POS-Inventory System, there is a corresponding form for every incoming
or outgoing item (from the stock room). These forms serve as the basis of
comparison when inspecting, that is the amount of item that goes in or out must
tally with those written in the forms. In addition to the complexity of the process,
the employee responsible on this task also needs to check the stocks once in a
while so as to monitor which items are already getting below the allowable
minimum quantity. Because of the draining work, there were circumstances when
the inventory record in the computer does not tally with the actual amount of the
available items. Another thing to consider in manual inventory is prone to errors
since it is inevitable that the employee assigned to do the inventory would commit
mistakes. Due to the inefficiency of manual inventory, security is also being
risked. If not properly monitored, theft and loss of items can actually take place. It

is also time consuming to take note of several details each time an item is brought
in and out of the stock room.
Since manual inventory consumes a lot of time and is susceptible to errors, it
would be helpful to build a system that will automate the transactions from
acquisition of the product description to updating the inventory database. Work
efficiency of employees is defined as how productive they are in their work. The
automated inventory system will improve employees work efficiency by
automating routinely and time consuming tasks such as the time spent in taking
down product information. As a result, the time can be used in more productive
activities. Accuracy is defined as the correctness of accessing information. The
accuracy of the current system will also be improved, since the automated
inventory system would eliminate the need of constantly encoding lengthy details
of products by having an inventory database.

In a world where business and commerce is now always present, the IT

industry !!!!!! A Point of Sales System (POS) and Inventory System are
fundamentally critical for any business that offers a physical item. The POS for
keeping track of all the transactions occurring inside the business, and the
inventory system to monitor the products and materials the company has
accessible.

Project Context

For this project, our team agreed upon using a POS or Point of Sales System
alongside an Inventory System for a small business called Amante's Leather
Repair Shop run by the owner, Mr. Jetson Amante. This business fine-tunes any
material made of leather; may it be from shoes to bags to wallets and belts.

With a staff composed of not more than five, they are in charge of all the work
done inside the shop. Every process is done manually; meaning all transaction
records are purely paper work and is written down on a log book. This process is
the only way used by Mr. Amantes business ever since his father instituted it.

According to the interview conducted by the researchers last January 20, there
are two main problems in the leather repair shop. These include difficulty in
keeping record of past transactions and struggle of maintaining and monitoring
materials in the inventory. Doing these tasks manually can be really timeconsuming and can even cause trouble and hassle to the people involved in the
business. Due to the absence of a system to do this, Mr. Amante experiences great
inconvenience in record keeping.

Mr. Amantes business provides a strong business case because these two
systems, POS and Inventory, would be very much valuable to his business since
his shop tenders services to people. He will definitely need a Point of Sales
system to record all the transactions most especially the payment of a particular

business transaction after the provision of a specific service that the team can
render.

For the Inventory system, regardless of the way of any business, the owner
should have to monitor the items or materials his company has so as per Mr.
Amante who uses a number of equipment to run his business, he will need this
system specifically to monitor the growth and shortfall of his stocks, and also to
have an over-all control of the goods that goes in and out of his firm. Not only
will the system be very useful, it will also be helpful in the efficiency of the
business, leading to success.

Project Description
Recordkeeping and inventory monitoring are the primary components of the
system. Recordkeeping being concerned with listing down and keeping track of all
the transactions done within the day, and inventory monitoring, on the other hand,
concerned with keeping account of all the supplies or materials used by the workers
to repair items. Besides keeping track of the business deal and the materials needed,
recordkeeping and inventory monitoring is also concerned with maintaining the
records accurately.

From the two features mentioned, the system provides a simple user level for
all the users making use of the system. Each user only sees the feature custom-made
for the user level designated to them. The system administrator will be the owner, Mr.

Jetson Amante, and his user level gives him full control of the whole system
including adding, updating, and deleting items and transactions from the inventory
and point-of-sales component of the system respectively. The employees, on the other
hand, can only add transactions and items in the point-of-sales and inventory.

Objectives of the Project

The project aims to develop an efficient system that will try to increase
productivity in the workstation and alleviate or lessen, at the very least, the
problems that the business are currently experiencing due to the lack of an
effective system that can be used in the firm.

Specifically, the study aims to:

1. Design the system with the following features:
a. Add, update, and delete transactions and items that are present in
the system,
b. Maintain the inventory of the materials by providing a userfriendly inventory component in the system itself,
c. Present a detailed data about a specific transaction by including the
information regarding the customer and the transaction that took
place.
2. Create the system using the following front-end and back-end
programs:

a. Microsoft Visual Studio Express 2012 for the Graphical User

Interface (GUI) of the system,
b. MySQL Workbench 6.3 for the systems database,
c. PhotoScape for editing images.
3. Test and improve the acceptability of the developed system using
selected criteria from ISO 9126:
a. Functionality, which is a set of attributes that bear on the existence
of a set of functions and their specified properties. The functions
are those that satisfy stated or implied needs.
b. Reliability, which is a set of attributes that bear on the capability of
software to maintain its level of performance under stated
conditions for a stated period of time.
c. Usability, which is a set of attributes that bear on the effort needed
for use, and on the individual assessment of such use, by a stated
or implied set of users.
d. Efficiency, which is a set of attributes that bear on the relationship
between the level of performance of the software and the amount
of resources used, under stated conditions.
e. Maintainability, which is a set of attributes that bear on the effort
needed to make specified modifications.
f. Portability, which is a set of attributes that bear on the ability of
software to be transferred from one environment to another.

Scope and Limitations of the Project

This part of the documentation shows the time frame of how the
researchers managed to create the whole system using the time allotted to
finish the project. Kindly refer to Appendix B for the Gantt chart that will
show which activities were done, how long it took, and at which month it was
finished.
There are eight (8) activities done by the researchers in the span of five
(5) months. The longest activity done is the team meeting, which lasted for the
whole span of time allocated for the project since the researchers have to meet
as often as possible to brainstorm and talk about changes regarding the
system. Next up is the System Planning which lasted for two (2) months
because the team had to identify which features to include in the system.
Title proposal happened only on the first month because it only took
days for the researchers to accomplish this task. The next activity is the client
interview that lasted for three (3) months because the client needs to be
informed of the progress and involved as much as possible in whatever change
there may be. Data gathering and System Documentation lasted also for three
(3) months because while the system gets developed every information/data
that was needed gets collected and everything that was done is documented so
the researchers can keep track of their progress. The System Testing and
Evaluation lasted only for the month of March as well as the Defense.
The technical scope of the proposed system includes: storing of
customer details in the database, recording of specific details about a

particular transaction including the date and full description of the business
exchange which includes the service offered and the sales information (cash
tendered, amount paid, change, etc.) and lastly, real-time monitoring of the
inventory condition to fully control and keep up with the stocks of the
materials needed to run the business.

Alongside the scope of the system are the technical limitations as well.
Though the POS System has the capacity of displaying details of a specific
transaction, it cannot print out an Official Receipt (OR) since the system does
not come with the needed hardware to do so. Unlike other POS Systems, the
system we have created specifically for Amantes Leather Repair Shop is not
Web-based. Since the business does not have any other branch, it needs not of
a server to access information using an internet connection. Additionally,
doing so is much too intricate for our team to push it through and we also did
not find the need to create it that way because the business is small therefore
needing only a simple system. Another limitation of the system is its inability
to display the exact time when the transaction was added.

Significance of the Project

The researchers led this study for the benefit of the following people:
the business owner, the employees, the customers, and the developers
themselves.

The business owner handles all the business processes (like the
negotiation with the customer) and executes all the tasks that directly affect
the jobs of his subordinates. With the automation of the system that
complements the manual processes, the business owner can then easily keep
track of the transactions without having to go through stacks of papers.

The inventory portion of the system benefits the workers bigtime

because this will keep them updated about the current status of the materials
in stock; now their work has a meager chance of being delayed because this
system will make sure that the inventory is monitored and is updated realtime.

The system can also benefit the customers because having an

automated system like the one proposed can improve the work of the business
owner and his team resulting into a better service. Lastly, another beneficiary
of the project are the developers of the project for they are given the chance
to enhance and put their skills to good use, treating this project as a training
ground for future assignments.

Chapter 2
CONCEPTUAL FRAMEWORK
Introduction
The chapter presents the review of related literature and studies underlying the
framework of the study. These studies are focused on providing useful information
that will give clarity and understandability in the process of the development of the
system.
Related Literature

Computerized Record Keeping System

A computerized system and a manual system act the same when it
comes to a certain principle, but a computerized system automates all the processes so
it becomes faster and more accurate. MS Money and Quicken are some examples of
the programs that can be used to eliminate manual processes. The users can easily
input information and assign a specific category where it is included so the system
could easily organize all its contents.
How Inventory Management Systems Work
An inventory management system provides customers satisfaction if
the system is regularly maintained. From a scale of big companies to smaller
businesses and vendors, an inventory system is an essential part of the business. It
provides the business a way to easily manage and maintain all their products. For the
customers, the owner of the business can easily show them which of the products they
need are available for purchase. Faster production rates, proper organization of
products and having a wide variety of choices between products are just few factors
that may affect the business.
Inventory Management: Advance Methods for Managing Inventory within
Business Systems
Successful inventory management can expand income, decrease costs,
and enhance cash flows. Inventory Management teaches managers proper
methodologies to take control of their inventory system and guarantee that operations

run smoothly. Looking past the complexity and theory of inventory management,
Geoff Relph and Catherine Milner concentrated on the most imperative choices
managers need to make when managing stocks. They scrutinized how inventory
management ought to function, how to control it, and how to balance it.
Inventory Control System
An inventory control system is utilized as a part of numerous
warehouses to track the area, amount, and status of products that are to be sold.
Dispatching and receiving of items is appointed by an inventory control system.
Inventory control utilizes barcodes and RFID labels to track particular items. An
audit, or a physical check of inventory, is utilized to discover how many items are in
an inventory. Inventory taking is regularly required so as to get a precise count for
accounting valuation purposes. Some inventory components have barcodes attached
or etched on them. These barcodes can be read amid an audit by barcode reading
gadgets.
Perpetual Inventory System

According to article of Rosemary Peavler, a perpetual inventory tracking system is a

method of immediately accounting for inventory sales in the inventory account, if there is no
theft or spoilage. It is an inventory management system where store balances of inventory are
recorded after every transaction. It eliminates the need for the store to close down constantly
for inventory stock-taking as perpetual inventory systems allow for continuous stock-taking.
Perpetual inventory systems keep a running account of the company's inventory.

Perpetual inventory systems involve more record-keeping than periodic inventory

systems. Every inventory item is kept on a separate ledger. These inventory ledgers contain
information on cost of goods sold, purchases, and inventory on hand. Perpetual inventory
management systems allow for a high degree of control of the company's inventory by
management. Perpetual inventory management is generally used by companies who have the
ability to scan the inventory items sold and who use point-of-sale inventory systems.
Related Studies
Foreign
Record Keeping System
The record keeping data that is manually entered is accompanied by
the printed data to ensure that the system is able to produce accurate amounts
of information. By applying this method, the system is able to show all the
information manually given by the users and synchronize them with all the
printed information intended for the system. Each section intended for the

hand entered and printed data are separated do the system can show the users
where to put as the exact information
Local
Korean Red Ginseng Enterprise Sales and Inventory System
Under the Korean Red Ginseng Enterprise Sales and Inventory
System, the researchers came up with a computerized sales and inventory
system. The researchers used database to easy access of files and for easier
and faster processing of the selling and inventory transaction. The program
was designated to generate reports such as monthly reports, inventory reports,
sales invoice and list of items.

In connection with the proposed system, the researchers proposed a

new and faster way of processing business transactions. The system also
helped the user to know the availability of the products. It also helped the
manager to monitor the stocks and to get immediate notice for acquisition
of additional products. The Proponents acquired knowledge about the file
processing and report generations through this study. It also gave the
proponents ideas to create the proposed systems reports in online sales and
inventory system. Automation is mandatory, thus automated report generation
for precise reports is to be included in the proponents proposed system.
Online Supplies & Equipment Inventory System of Bee Gee Machine Shop &
Engineering Works

(Parentela et al., 2012) The Inventory Management System and the

Inventory Control Process provides information to efficiently manage the flow
of materials, effectively utilize people and equipment, coordinate internal
activities, and communicate with customers.
Point of Sale and Inventory System with Online Ordering and Bar Code
Scanner for PhilCom
PhilCom uses an existing manual system in everyday transactions. The
cashier literally writes down the customers order in a common printed receipt
used also by the store or shop without computerized system. Using Microsoft
Excel as the main storage of the companys inventory and sales report will
cause problems such as data redundancy, data lost and data integrity because
anyone can easily access the companys master list. PhilCom is a competitive
business company that exercises manual system in their transactions such as
purchasing of stocks, inventory ordering of products and providing sales
report. Now a days, most of the business depends on the fast-phased changing
of technologies being applied in the business. This technology helps business
to run smoothly and able to make the work easier and more accurate. Having
this technology, the company spends less time in doing such work and can
able to do more jobs in the business.
The study aims to develop a computerized sales and
inventory system for Willyson Merchandising for accurate and
faster transactions such as purchasing of products and

inventory. The only difference is that the proposed system will

include the Point of Sale (POS) system that uses barcode
reader that makes marking down prices and recording the
markdowns easy. The similarity of this system is that they
have inquiries to the supplier for the supply of making their
products.
Proposed Sales Monitoring System
According to the study of Anna Marie Beltran Distor of Proposed
Sales Monitoring System issued 1995, The accelerated work structure of the company
proper monitoring is key in keeping track of the business's sales activities. Her system
targets to come up with an effective and precise mechanized system of providing
receipts that will monitor the everyday transaction in order to generate reports.
Essential data will be given by this study with a specific end goal to prove that the
computerization of the business's operation will bring about a more dependable and
proficient method for observing everyday transactions. Her system concentrates on
the analysis and configuration of the sales monitoring system which will keep an eye
on the stacks inventory of the sales department.
R.M. Supermarket Point of Sale System
(Celis, et al., 2013) A Point of Sale System will keep an accurate count of
every product in a company or establishment. Its easy to see which items are selling
and what needs to be ordered. Using a POS, it makes a business much more efficient,

lowering the cost of running the business while improving customer service and
making the business more pleasant to work in.
Synopsis
Computerized system and a manual system act the same when it comes to a
certain principle, but a computerized system automates all the processes so it
becomes faster and more accurate. The users can easily input information and assign
a specific category where it is included so the system could easily organize all its
contents.
It provides the business a way to easily manage and maintain all their
products. Inventory Management teaches managers proper methodologies to take
control of their inventory system and guarantee that operations run smoothly. Looking
past the complexity and theory of inventory management, Geoff Relph and Catherine
Milner concentrated on the most imperative choices managers need to make when
managing stocks.
Inventory taking is regularly required so as to get a precise count for
accounting valuation purposes. Some inventory components have barcodes attached
or etched on them. These barcodes can be read amid an audit by barcode reading
gadgets.

Perpetual inventory systems involve more record-keeping than periodic inventory

systems. Every inventory item is kept on a separate ledger. These inventory ledgers
contain information on cost of goods sold, purchases, and inventory on hand. Perpetual
inventory management systems allow for a high degree of control of the company's
inventory by management. Perpetual inventory management is generally used by
companies who have the ability to scan the inventory items sold and who use point-ofsale inventory systems.

By applying this method, the system is able to show all the

information manually given by the users and synchronize them with all the
printed information intended for the system. Each section intended for the
hand entered and printed data are separated do the system can show the users
where to put as the exact information.
The program was designated to generate reports such as monthly
reports, inventory reports, sales invoice and list of items.

Conceptual Framework of the Project

Chapter 3
METHODOLOGY
Project Design
Project Development
System Requirements

Operation and Test Procedures

Test Standards/Criteria

Chapter 4
RESULTS AND DISCUSSION
Project Description
Project Structure

Project Capabilities and Limitations

Test Results and Analysis

Chapter 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary of Findings

Conclusions
The system was mainly designed to reduce the manual work of updating and
tracking and also make it easier for the user.
It also provides flexible and powerful reports regarding customer details, issue
details and stock details.
Thus inventory system was implemented successfully.
Recommendations
Therefore, the group recommends Automated Inventory System to eliminate data
redundancy errors and inconsistency of data.
It is also recommended that they had at least two persons that should be trained for
the system