Point of Sales (PoS) Stocks Monitoring System for Realmed Pharmacy

A Project
Presented to the Faculty of
Information and Communications Technology Program
STI College Global City

In Partial Fulfilment
of the Requirements for the Degree
Bachelor of Science in Information Technology

San Pablo ,Bernie Joshua B.

Ongyot, Earl Kevin
Elmido, Kim
 Ⅰ

INTRODUCTION

A point of sale (POS) is a physical or virtual place where sales transactions are
made, typically a cash register or online shopping cart. In other words, this is the
place where the customer pays for an item and purchases it from the seller.

Computerized system is very essential to make use of technology as a powerful tool

to improve the processing of every services and daily routines within a business.
No one can doubt that technology modernizes the typical manual system that a
certain business practices. Modern society accepted the fact that technology
continuously evolved in limited time.

(www.google.com, copyright@2019 MyAccountingCourse.com)

https://www.myaccountingcourse.com/accounting-dictionary/point-of-sale

We, the developers aims to develop a system called “Point of Sales (POS) with
Stocks monitoring system” for Realmed Pharmacy. It is a pharmacy retail shop
which provides prescription drugs, medicine and other related products. Realmed
Pharmacy uses a manual system to run the business.

Background of the study

Pharmacy (Tanyag branch) is a pharmacy retail shop that sells drugs and other
related products. It is currently using a manual system for processing of sales and
monitoring the stocks. The pharmacist uses a calculator for computation and
manual typing using excel for recording. Realmed Pharmacy is owned by Lea A.
Char located at #2 Mayor Tanyag Avenue Zone 6 South Signal Village Taguig City
and was established on April 2009. Realmed Pharmacy has twelve (12) branches
and more than 50 employees with a working hour from 8:00 Am to 10: pm, but
most employees’ work 8 hours a day from 8:00am-5:00pm Open from Monday to
Sunday. Aside from selling drugs Realmed Pharmacy also sell other products such
as milk and beauty products. The pharmacy has own warehouse for stocks. In terms
of selling Drugs realmed pharmacy has a policy “No prescription NO antibiotics”
means the customer has to provide prescription when buying antibiotic, some
customers provide wrong prescription in this case the pharmacist will not accept
the prescription, instead the pharmacist will tell the customer to go back to the
doctor and recheck the prescription, or call the doctor to clarify the information
stated on the prescription. Wrong prescription happens on specifying the brand
name of antibiotic. Realmed Pharmacy also offer discounts per boxes of antibiotic
which is 32% for seniors’ citizen and persons with disabilities (PWD) and 20% for
other customers.

Realmed Pharmacy is currently having a problem in running the business due to

the use of the manual system such as delays and inaccurate record in monitoring
the products, selling the products, ordering the products and even making reports.
Base on the information provided by the Pharmacy, the Developers were able to
determine the problems, The Developers aim to develop a Point of sale System
(POS) with stock monitoring that will satisfy the needs and solve the problems of
Realmed Pharmacy.

Business process

Request product

Realmed Pharmacy request products from the warehouse owned by the company
using a request form send through email online. However, since the main office
regularly deliver stocks two (2) times a week. Requesting of products only happens
if necessary. Like for instance the delivered stock is good for three (3) days but it
was sold out in just two days, in that case the assistant pharmacist must request for
additional stock of that specific product.

Stock in
When the stocks are delivered, the assistant pharmacist will count the number of
each product to check if the products are complete or correct based on the request
form. If so, the assistant pharmacist will manually add the number of each product
on the “stock in” inventory using Microsoft excel. Otherwise, the pharmacist will
call the responsible person in the main office to inform about the discrepancy of
requested products so that the main office will do action to fix the mistake.

Product Inventory
Realmed Pharmacy run the Inventory quarterly each year, the assistant pharmacist
will count the total number of available products then record it manually on the
tally sheet by typing it on Microsoft excel for references and backup.

Customer order
In purchasing medicine, the customer can ask the cashier for the available stock of
medicines based on the prescription given by the doctors. Then the cashier can start
the transaction once they check for the available medicine in the stock. Then the
cashier can now print the receipt with the price and the discount if the buyer is an
elderly.
In purchasing other products that is not an antibiotic like milk and beauty products,
the pharmacy doesn’t require a prescription. Pharmacist will welcome the walk in
customer then the customer will tell the pharmacist what product the customer
want to buy. Then the pharmacist will continue to check the stock availability.

Stock Availability
In this process, the pharmacist will check the stock availability of the product. If
the product is available, the pharmacist will ask how many pieces the customer
wants to buy specially for customers’ with prescription. If the customer wants just
half of the prescribed quantity the pharmacist will subtract the quantity of the drug
bought on the prescription, to be able to easily determine how many more pieces
the customer will buy on the next purchase. However, if the product is out of stock
the Pharmacist will offer a generic product to the customer. For other products such
as milk and beauty products the pharmacist will just simply check the stock
availability. If the stock is available the pharmacist will continue the process.
Otherwise, pharmacist will inform the customer about the stock unavailability.

Offer discount
This process is for senior citizen and PWD (Person with Disability) customers only.
The pharmacist will offer a discount which is 32% for maintenance medicine and
20% for each box of medicine purchased of any antibiotics for other customers. To
be able to avail discount customer must present senior citizen ID and maintenance
receipt, as proof for the maintenance medicine. If the customer cannot present any
of the requirements the customer will not able to avail discount and the process will
continue to settle the payment.

Payment
Realmed Pharmacy manually processes the payment using a carbon copy official
receipt for the customer and Pharmacy copy as reference for record keeping. It has
the name of the customer, date, product quantity, product unit, unit price, amount,
the total amount due, less discount and signature of the cashier/pharmacist. In this
process the cashier will fill up the receipt and give it to the customer, remain the
other copy for record keeping.

Generation of Report
At the end of the day the assistant pharmacist will get all the receipt of sold out
products and record it manually on the computer using Microsoft excel, for
references and back up in making reports weekly, tally the number of sold out
products together with the total amount and send it to the main office through email
online.
The cashier/pharmacist will able to generate weekly sales report by summarizing
all the daily sales that is recorded on the computer for the whole week. Using
Microsoft Excel the cashier/pharmacist will compute the total sales amount and the
number of product sold out for one week then save it and sent it to the main office
through email online.

Statement of the Problem

General Problem
To develop and implement a computerized Point of Sale system with Stock
Monitoring that will enhance the current system of Realmed Pharmacy.

Specific problem

Poor Monitoring of products

Realmed pharmacy doesn’t have real-time monitoring and experiences dilemma
such as product loss and product shortage.

Manual issuing of receipt and calculation of discount

Realmed Pharmacy uses a carbon copy official receipt, the cashier/pharmacist
manually fill out the receipt using pen and compute the total amount and discount
using calculator which is very hassle if they have many customers to deal with. This
is also not convenient specially when making reports due to manual computations
and record keeping.
Slow generating reports
Realmed Pharmacy only generates weekly sales reports, because making daily
reports is hassle for them due to manual calculation and keeping records. Other
reports such as daily and monthly are not able to generate.

Overview of the current state of the technology

General Objective :

The general objectives of the Study are to develop a Point of Sale (POS)
system with Stock Monitoring for Realmed Pharmacy (Tanyag branch) that
will solve the problems encountered on the current system of the Company,
Providing a much reliable and time efficient system.

Specific Objectives:

To develop a module that will monitor the entire information of products and will
show the critical level of each product.
This will monitor the stock in, stock out, returned products for damage and the
product description. That also display warning when product reached its critical
level, this is monitored by its optimal level whether under-stock, overstocked or out
of stock.

To develop a module that will automatically calculate customer discount and

provide printed receipts.
The module is design for automatic calculations of payment and discounts, which
can help lessen the human error caused by manual calculations and provides
accurate printed receipts.

To develop a module that can generate and print reports.

The module is design for producing sale and inventory printed reports. The sales
report can generate the daily, weekly and monthly profit While an inventory reports
tackle for the in and out of products, returned products and the lost items/products.
Through this reports management can easily determine the flow of the business and
the most profitable products.

Scope and limitations of the study

Scope:

The system can help monitor the inventory to check stocks of medicine and other
goods the Realmed Pharmacy is selling

The cashier now can access and check if a medicine is still available in stock
without doing it manually.

And there are easy to access reports to see or check the inventory and the sales on
daily, weekly or monthly basis.
Limitations:

The system can only access offline, cannot receive amounts on a credit card basis,
will not cover any reservation of product, will not cover Employee Salary,
Employee Scheduling, membership of the customer, Lan, Biometric, and Face
recognition. The system will not cover the monitoring of product expiration
and transportation fee of the delivery.
 Ⅱ

LITERATURE REVIEW

Review of related literature, studies or systems

This chapter includes the ideas, finished thesis, generalization or conclusions,

methodologies and others. Those that were included in thus chapter helps in
familiarizing information that is relevant and similar to the present study.

Foreign Literature

Point of sale (also called POS or checkout, during computerization later becoming
electronic point of sale or EPOS) is the place where a retail transaction is
completed. It is the point at which a customer makes a payment to the merchant in
exchange for goods or services. At the point of sale where the retailer would
calculate the amount owed by the customer and provides options for the customer
to make payment. The merchant will also normally issue a receipt for the
transaction. (http://en.wikipedia.org/wiki/Point_of_sale)

Sales management is the process of hiring, training and motivating sales staff,
coordinating operations across the sales department and implementing a cohesive
sales strategy that drives business revenues. Sales are the life blood of any
organization and managing the sales process in one of the most important functions
of any business.
In recent years, that process has changed dramatically as the vast majority of sales
take place online or over the phone instead of in person. And in response, sales
management systems have become more technologically sophisticated.
(https://www.salesforce.com/eu/learning-centre/sales/sales-management/)

Related Studies

Foreign Studies

Switch is a brand name wholly owned by CG Computers Sdn Bhd. CG

Computers Sdn Bhd was founded on 1995 by Mr. Li Chau Ging. The main
business of the company is selling Apple Products under the brand name Switch,
which focuses their business in retail store, education and enterprise market.
Currently, there are five Switch outlets,

Two of the stores are Apple Premium reseller, which have more demos of Apple
products in the store for customers to “test drive” compare to Apple Authorized
Reseller. As one of the leading Apple Premium Reseller in Malaysia, Switch also
provide training course which is called CofeeMUG to teach customers on how to
use or “enjoy” the product which they have purchased.

CG Computers Sdn Bhd is also an Apple Authorized Gold Service Provider,

which provide service and repair for Apple products, any Switch store is a “Drop
Point” if the customer have problem with their Apple product which they
purchase from any Apple Store around the world.

The founder of CG Computers Sdn Bhd name his store Switch is because the
company wants the more users to “Switch” to Mac, by delivering the best
customer service to the customer and demonstrating ” The Beauty of a Mac”.
Switch’s employees called themselves Switcher, which is trained to serve
customer on the best they could. Every Switcher will be trained on product
knowledge of Apple products on Apple Sales Training Online (ASTO) by Apple
Inc. and will be certified as a Apple Product Professional and Apple Sales
Professional.

Sales management control systems (SMCSs) are designed to align salespeople's

activities and actions with organizational objectives. This article reviews and
synthesizes over 50 SMCS articles published in sales, marketing, and
management journals over the past 30 years. We begin by building a
comprehensive framework that enables us to classify prior research into digestible
categories (e.g., SMCSs as antecedents, SMCSs as consequences). Next, we
present an analysis of gaps in the literature. Among other findings, our analysis
reveals that there is an overwhelming focus on the use of formal (specifically
behavior- and outcome-based) controls as compared to their informal control
counterparts. Finally, we suggest avenues for future research: (1) mapping and
understanding the full spectrum of control mechanisms, (2) developing a fuller
understanding of the often-overlooked forms of control (e.g., input and cultural
controls), and (3) more thoroughly analyzing how controls operate (or do not
operate) as an integrated system. (https://www.ukessays.com/essays/computer-
science/literature-review-on-point-of-sales-system.php)

Local Studies

According to 5istors (200/), in her study sales monitoring system, the accelerated
work structure of the company proper monitoring is essential in order to keep track
of the company’s sales activities. Her system aims to come up with an efficient,
and accurate mechanized system of preparing invoices that will keep track of the
daily transaction and generate reports. Important information will be provided by
this studying order to prove that the computerization of the company’s operation
and achieve $ore reliable and efficient means of monitoring day to day activities.
Her system focuses on the analysis and design of the sales monitoring system which
will monitor the stacks inventory of the sales departments. This system of hers is
somewhat related to our study but our system focuses more on the inventory
monitoring system of a trading company.

Lewis (2002), stated that: the reason for using computers vary from person to
person. Some of the computers in business are to perform accuracy, to be
productivity, to decrease bottle necks or hassles, to alter cash flows, or to simply
elevate your status.
(https://www.tandfonline.com/doi/abs/10.1080/08853134.2017.1407660)

Synthesis

The foreign and local literatures mentioned above are related to the proponent
proposed system in terms of using joint of sales, and Inventory system on their
business or establishments. The Financial Management system can be used in
different business establishment engaged in sales. The said foreign and local studies
contribute ideas to the proponent in order to originate the proposed literature.

Theoretical Framework
Realmed PharmacyPoint of Sales(POS) with Stocks Monitoring System
Overview of the Project:

Realmed Pharmacy Point of Sale (PoS) with Stock Monitoring is an automated

system for monitoring products and calculations in an easier, more efficient, faster
and better way than the current manual system which would be implemented in
RealmedPharmacy (Tanyag Branch).

The system will have different forms for every user to secure the identity and files
of each one. It will produce report and records of transactions done by every user
to keep track of the products and prevent loss. Point of Sale with Stock Monitoring
strives to eliminate all the problems encountered in manual system while also
making it easier to use by the clients. System Design

System Specification:

Admin:

The admin is the only one in-charge in registration of the users of the proposed
Realmed Pharmacy Point of Sale with Stock Monitoring. The admin is also in-
charge of maintaining the system.

Assistant:

The assistant in in-charge in checking the product inventory, requesting a products,

making a reports and also the maintaining the products.

Cashier:
The cashier is in-charge in using the Point of Sale for customer transactions, the
cashier can also add, update and delete in product inventory, the cashier records the
customers information regarding to the discounts and also the sales report of the
company.