Point of sale (POS)

Point of sale is the place or system where a sales transaction is completed. A POS system typically records items, calculates the amount due and processes payment, and may also update stock records.

A POS can range from a simple checkout device to an integrated store system with product lookup, receipts, promotions and customer records. In physical retail, it normally works with barcode scanners, payment terminals and receipt printers. The stock and payment connections determine how quickly other business systems reflect the completed transaction.

For example, selling one blue shirt should reduce that variant's stock rather than the total for every shirt colour. Integration with perpetual inventory helps keep balances current. In omnichannel retail, the POS may also support collecting online orders or returning purchases made through another channel.