Software Requirements Specification (SRS) for Point of Sale (POS) System

1. Introduction

In today's fast-paced business environment, the need for efficiency and accurate

record-keeping has never been more critical. The advent of digital technology has

revolutionized how businesses operate, particularly through the development of Point

of Sale (POS) systems (Hayes, 2024). A Point of Sale (POS) system is a software and

hardware solution used to manage sales transactions in various businesses, such as

retail stores, restaurants, and hotels. It involves the use of a computer or mobile

device to process transactions, manage inventory, and generate reports

(Inettutor.com,2023).

As the business landscape evolves, so too have POS systems. Today, these

systems are fully digitalized, allowing businesses to check out their customers using

various devices such as smartphones or tablets. Modern POS systems have

transcended their original purpose of merely processing payments; they now serve as

the central hub of any business. With capabilities extending to inventory management,

customer information collection, staff management, and more, these systems offer

comprehensive solutions that streamline operations and enhance overall business

efficiency (Feemster, 2024).

Despite the advancements in POS technology, many small businesses, including

those on educational campuses, continue to rely on manual methods for inventory

management and transaction recording. This reliance on outdated methods poses

significant challenges, particularly in terms of efficiency and accuracy. For instance,

at our campus, the lack of a digital transaction and sales information system makes it
difficult for businesses to gauge their growth. Additionally, manually managing

inventory is time-consuming and prone to errors. Adopting a modern POS system

tailored to the needs of campus businesses could significantly improve operational

efficiency and provide valuable insights into sales performance and inventory

management, ultimately contributing to the growth and success of these enterprises.

A Point of Sale (POS) system offers numerous advantages to businesses,

streamlining operations and enhancing overall efficiency. Key benefits include a more

efficient checkout process, reducing human error and shortening wait times to

improve customer experiences. POS systems provide real-time inventory

management, reducing stockouts and overstocking while maintaining up-to-date

records. They also generate detailed sales reports, enabling data-driven decisions

(Dixon, 2023). It increases productivity by centralizing processes and providing alerts

for tasks like inventory restocking or employee scheduling. The modern, sleek design

of POS systems also projects professionalism, positively influencing customer

perception. They provide valuable data-driven insights, helping businesses identify

strengths, weaknesses, and opportunities for improvement (O'Sullivan, 2024).

1.1 Purpose

The purpose of this document is to specify the functional and non-functional

requirements for the Point of Sale (POS) system. This system is designed to facilitate

the processing of sales transactions, inventory management, and reporting for retail

businesses. The document serves as a guide for developers, testers, and stakeholders

to ensure that the system meets the intended business needs.

1.2 Intended Audience and Intended Use

This SRS document is intended for:

 Students: To understand the POS system's requirements and functions,

particularly if they are involved in developing, testing, or using the system for

academic or practical purposes.

 Stakeholders (including business owners and marketing teams): To ensure

the system meets business objectives and user expectations.

 Future Researchers: To provide a reference point for future studies related to

POS systems, including their development, application, and impact on

businesses.

1.3 Product Scope

The POS System will allow businesses to efficiently process payments, manage

inventory, generate sales reports, and perform customer management tasks, but with a

focus solely on cash transactions. By simplifying the payment process to cash only,

the system reduces complexity, speeds up transaction times, and minimizes the need

for costly integrations with payment processors or financial institutions.

1.4 Definitions and Acronyms

1. Point of Sale (POS) System: A software and hardware solution used to

manage sales transactions in various businesses, such as retail stores, restaurants,

and hotels. It is used to process transactions, manage inventory, and generate

reports.

2. Software Requirements Specification (SRS): A document that specifies the

functional and non-functional requirements for a software system. It serves as a

 guide for developers, testers, and stakeholders to ensure the system meets the

intended business needs.

3. Inventory Management: The process of ordering, storing, and using a

company's inventory, which includes raw materials, components, and finished

products.

4. Transaction Processing: The process of capturing, processing, and

recording financial transactions, such as sales, purchases, and payments.

5. Sales Reports: Detailed summaries generated by the POS system that

provide insights into sales performance, trends, and other relevant metrics to help

businesses make data-driven decisions.

6. Digital Technology: The use of electronic tools, systems, devices, and

resources that generate, store, or process data, including computers, smartphones,

and other digital devices.

7. Inventory Restocking: The process of replenishing inventory levels to

ensure there are sufficient products available for sale, preventing stockouts or

overstocking.

8. Real-Time Inventory Management: A system that allows businesses to

track and update inventory levels instantly as sales and restocking occur,

providing accurate and up-to-date information.

1.5 References

1. Dixon, D. (2023, May 6). 25 advantages of a POS system – Key benefits for
businesses. GoFTX.
https://goftx.com/blog/advantages-of-a-pos-system/#:~:text=25%20Advantages%20of
%20a%20POS%20System%20%E2%80%93%20Key,8%208.%20Reduced
%20Human%20Error%20...%20More%20items
2. O'Sullivan, I. (2024, March 12). What is a POS (point of sale) system? Tech.co.
https://tech.co/pos-system/pos-systems-guide

3. Feemster, J. (2024, June 11). Point of sale systems 101: What is POS & how does it
work? POS USA. https://www.posusa.com/what-is-pos/

4. Hayes, A. (2024, July 16). What is a POS system, and how does it work?
Investopedia. https://www.investopedia.com/terms/p/point-of-sale.asp

5. Inettutor.com. (2024). Capstone project topics for point of sale 2024.

https://inettutor.com

2. Overall Description

2.1 Product Perspective

The POS system is a standalone application that integrates with existing business

systems, such as inventory management and customer relationship management

(CRM) software. It will be deployed on various hardware devices, including tablets,

desktops, and dedicated POS terminals.

2.2 Product Functions

The key functions of the POS system include:

 Transaction Processing: Handle sales, returns, and exchanges.

 Inventory Management: Track stock levels, manage reorders, and provide

alerts for low stock.

 Sales Reporting: Generate daily, weekly, monthly, and yearly sales reports.

 Customer Management: Maintain customer information and track purchase

history.

2.3 User Classes and Characteristics

 Cashiers: Primary users of the POS system, responsible for processing

transactions.
  Store Managers: Use the system for reporting, inventory management, and

staff oversight.

 Administrators: Manage system settings, user permissions, and maintain the

overall system.

2.4 Operating Environment

The POS system will operate on:

 Operating Systems: Windows, iOS, Android.

 Hardware: Tablets, desktops, and dedicated POS terminals.

2.5 Design and Implementation Constraints

 Security Requirements: The system must comply with PCI DSS (Payment

Card Industry Data Security Standard) for secure handling of payment

information.

 Scalability: The system should be scalable to support multiple store locations.

 Performance: The system must process transactions within 2 seconds under

normal operating conditions.

2.6 Assumptions and Dependencies

1. The POS system will be used by cashiers, store managers, and inventory staff

who are familiar with basic computer and POS operations.

2. Required hardware (barcode scanners, receipt printers, cash drawers, and

computers) will be available, compatible, and connected through necessary

hardware drivers.

3. The system will track real-time inventory and depend on an up-to-date

inventory database to alert users about low or out-of-stock items.

4. Customization will be possible to fit the needs of various businesses, such as

retail, restaurants, or service-based businesses.

 5. User authentication and role management will depend on either an internal or

external authentication system to control access for cashiers, managers, and

inventory staff.

3. Functional Requirements

3.1 Transaction Processing

 The system must allow cashiers to process sales, returns, and exchanges.

 The system must generate a receipt for each transaction, which can be printed

or emailed to the customer.

 The system should support discounts, promotions, and loyalty programs.

3.2 Inventory Management

 The system must track inventory levels in real-time.

 The system must generate alerts for low stock levels.

 The system must allow managers to add, update, and remove products from

the inventory.

3.3 Sales Reporting

 The system must generate daily, weekly, monthly, and yearly sales reports.

 The system should provide visual data analysis tools, such as graphs and

charts.

 The system must export reports in various formats (e.g., PDF, CSV).

3.4 Customer Management

 The system must store customer information securely.

 The system should track customer purchase history and preferences.

3.5 Employee Management

 The system must track employee login/logout times.

  The system should generate reports on employee sales performance.

 The system must allow administrators to set user permissions based on role.

4. Non-Functional Requirements

4.1 Performance

 The system must process transactions within 2 seconds under normal load.

 The system should handle up to 100 simultaneous users without performance

degradation.

4.2 Security

 The system must comply with PCI DSS standards for payment security.

 The system must encrypt sensitive data, such as payment information and

customer details.

4.3 Usability

 The system should have a user-friendly interface that is easy to navigate.

 The system must provide on-screen help and tooltips for users.

4.4 Reliability

 The system must have an uptime of 99.9%.

 The system must include backup and recovery features to prevent data loss.

4.5 Scalability

 The system must support scaling to multiple store locations without requiring

significant changes.

5. System Models

5.1 Use Case Diagrams

[Insert use case diagrams showing the interactions between users and the system.]

5.2 Data Flow Diagrams

[Insert data flow diagrams illustrating how data moves through the system.]
5.3 Entity-Relationship Diagrams

[Insert ER diagrams showing the relationships between different entities in the

system.]

6. External Interface Requirements

6.1 User Interfaces

 The system must have a graphical user interface (GUI) for cashiers, managers,

and administrators.

 The system must be responsive and accessible on various screen sizes and

devices.

6.2 Hardware Interfaces

 The system must interface with receipt printers, barcode scanners, and cash

drawers.

 The system should support integration with payment card readers.

6.3 Software Interfaces

 The system should integrate with third-party payment gateways for processing

card transactions.

 The system should interface with existing inventory management and CRM

systems.

6.4 Communication Interfaces

 The system must support HTTP/HTTPS protocols for secure communication.

 The system should support RESTful APIs for data exchange with external

systems.

7. Other Non-Functional Requirements

7.1 Performance Requirements

  The system must maintain acceptable performance levels under peak usage

conditions.

7.2 Safety Requirements

 The system should include safeguards to prevent data corruption and

unauthorized access.

7.3 Security Requirements

 The system must provide role-based access control (RBAC) to protect

sensitive data.

7.4 Software Quality Attributes

 The system should be maintainable and easily upgradable.

 The system should be portable across different hardware platforms.