Report On

An Overview of ELECTRONIC POINT OF SALE (EPOS) accounting software

system of Meena Bazar.

Independent University, Bangladesh

Submitted to

Abu Bakar Emran Salah-Uddin School of Business

Independent University, Bangladesh

Submitted by

Farabi Ahmed ID: 121-121-8

Date of Submission: 15th July, 2014

Letter of Transmittal

15th

July,2014.

Emran Salah-Uddin

Faculty Member of School of Business,

Independent University Bangladesh.

Subject: Submission of group project on Accounting Information System of Meena Bazar.

Dear Sir,

We are very grateful to you for the fact that you assigned us such a topic to work-on that has

increased our knowledge and idea about the subject matter. Moreover, we found our study very

interesting because in this project we dealt with the Accounting Information System (EPOS) of

Meena Bazar and get to know many important issues related to our course. The course content

incorporates most important aspects of business environment thus making clear understanding of

business and implications of theories and models of management in business

We are happy that we have been able to submit the report before deadline. Although we were

under pressure when we did the study, but we always enjoyed working on this topic. It gave us

pleasure and created interest to do further study on topics like this.

We hope you would like the project work and appreciate the way we have described it as we had

put our best efforts to prepare the report.

Yours sincerely,

Name: ID:

Acknowledgement

We would like to thank our course Instructor, name of the faculty, for giving us time and for

providing us with all kinds of support by suggesting us about accumulating and completing the

report. We would also like to thank him for assigning us such a topic that has helped us to

enhance our knowledge in a truly unique way.

Our heartiest thanks goes to Special thanks to the Meena Bazar authority for their infarctions

which helped me a lot to be successful in making the report and special thanks to Iftekhar

Ahmed, who possess excellent knowledge regarding this topic and helped us in explaining

certain things wherever we got stuck. Without all of their cooperation and support it might not

have been possible for us to complete the project.

Executive Summary

Meena Bazar is a new dimensional superstore in Bangladesh. Although there are some

established superstore here but Meena Bazar is formed differently to this country with new ideas.

Others superstore is situated in the famous areas in the city and there product price is very high,

so that general people cannot buy their daily products from there. But Meena Bazar is growing

rapidly and establishing their super shop every area of the city even the whole country. In every

area they are establishing there showroom because they want to reach all of the people in the

country. There product price is similar to the open market and they provide fresh to their

customers. As a new superstore Meena Bazar is facing some problem although they are trying to

overcome it.

Retailing industry in Bangladesh is fragmented and undeveloped. But several Technologies have

been implemented in this growing industry. Accounting Information System became the most

important one. Without AIS we can’t think to start up a business in this industry. Different retail

stores like: Agora, Shopno, Kingshuk,M-Mart, etc in Bangladesh uses different types of AIS

software. Meena Bazar is one of them.

Meena Bazar Super shop is to achieve the leading position in superstore business of the country

through excellence product and service with affordable price by implementing proper

information technology.

Accounting Information systems can be used widely in the super shop for distribution of goods.

Computer systems are used in a variety of ways in the large super shop, from stock control to

maintaining temperatures in fridges and freezers for better organization of their business. In this

section we will look in more detail at these systems in Meena Bazar super shop.Meena Bazar

also use accounting information system software called ELECTRONIC POINT OF SALE

(EPOS) for their daily operations.

Table of Content

What do you mean by accounting information system? 01

Feature of the software 02

Impact on business 02

Technical requirement 02

Technical advantage 03

By this software show us….

A. Order processing System 03-05

B. Inventory Management System 05-06

C. Accounting payable system 06

Challenges of Implementation 06

Conclusion 06

Bibliography 07

Appendix 08-10

Introduction:

Retailing industry in Bangladesh is fragmented and undeveloped. Even compared to its South

Asian counterparts, Bangladesh is behind in terms of development, structure and organization.

However, the last several years has witnessed dramatic changes. This is due to the effects of

globalization, economic and trade liberalization, changing patterns of consumers’ shopping

behavior, substantial increase of middle class consumers and the government’s liberal attitude

towards foreign imported food products and growth of organized superstores. Several

Technologies have been implemented in this growing industry. Accounting Information System

became the most important one. Without AIS we can’t think to start up a business in this

industry. Different retail stores like: Agora, Shopno, Kingshuk, M-Mart, etc. In Bangladesh uses

different types of AIS software. Meena Bazar is one of them.

Meena Bazar is a well-developed super shop in Dhaka City. It is a retailer of the daily goods

includes all the fast moving consumer goods like household, groceries, stationeries and

cosmetics, etc. It offers clean and friendly environment with a wide range of quality products at

affordable prices and it has become the primary channel for distribution of foods and other

household effects on the consumers. . Before we are going to discuss about AIS software we

have to know a little bit about AIS:

Accounting Information System is typically a computer-based and it is used for storing,

collecting, and analyzing a company's financial and accounting data. Accounting information

systems are generally used by executives to make decisions, develop company strategies, and

generate reports for shareholders, internal personnel, and regulatory agencies. Accounting

information systems also streamline accounting cycles and reduce the incidence of accounting

errors. (http://www.investorwords.com/16179/accounting_information_system_AIS)

Mission Statement of Meena Bazar:

The mission of Meena Bazar Super shop is to achieve the leading position in superstore business

of the country through excellence product and service with affordable price by implementing

proper information technology.

AIS infrastructure of Meena Bazar

Accounting Information systems can be used widely in the super shop for distribution of goods.

Computer systems are used in a variety of ways in the large super shop, from stock control to

maintaining temperatures in fridges and freezers for better organization of their business. In this

section we will look in more detail at these systems in Meena Bazar super shop. Meena Bazar

also use accounting information system software called ELECTRONIC POINT OF SALE

(EPOS) for their daily operations.

Feature of the software:

The system contains multiple features essential to Warehouse Management, including an

adaptable workflow engine to allow for process improvement and simple customization without

the need for expensive system modifications. The rules engine can be customized to fit each

client's individual needs. EPOS brings to control to a warehouse environment, and provides

businesses with absolute visibility into the distribution processes. The billing module can create

charge types for each client and automate the billing process while reducing monthly office work

and administrative tasks. This feature in particular is a great fit for large businesses serving

several clients at once. RF/Barcode scanning equipment helps track items within the warehouse,

resulting in maximum efficiency and organization.

Impact on business:

EPOS can track, store, and analyze a multitude of different data types - products, inventory,

sales analyses, multiple store locations, inventory, staff performance and present this information

in real-time to management, so it's a great option for owners with more than one location looking

to grow.

Technical requirement:

To implement ELECTRONIC POINT OF SALE (EPOS) till, the super shop needs some

technologies. This EPOS till comprises; a set of scales, a printer, a credit /debit card reader and

a till drawer,· a keyboard, a digital display,· a scanner which reads bar codes, Each till also has

its own base to which all of the above is attached. It is the base unit which is connected by cables

to the branch computer in the super shop's system office.

Technical advantage

EPOS Software is an all-in-one retail management system for shops, super stores and

departmental stores. It has integrated professional accounting module with easy to maintain

inventory module. Sales screen is optimized to generate invoice and apply various actions e.g.

hold, recall bill / last item, save and print, print old invoices etc. quickly. Feature of auto save

item in bill is also there that save the entry within a second after scanning barcode, selection of

item is not just limited to scan through barcode scanner, you can write barcode manually or write

starting or containing 3 character in item name or open complete item list to select specific item

in bill. All the barcode scanners and many popular types of barcode are acceptable within

software. All the standard EPOS Hardware including Barcode Printer, Label Printer, Cash

Drawer, Touch Screen Monitor etc. can be used with EPOS Software.

How does it work?

D. Order processing System

Meena bazar use ELECTRONIC POINT OF SALE (EPOS) till to develop strategic information

system in their business process. Each product to be sold must have an identifying code number

which is different from that of every other product. Different sizes of the same product even need

different code numbers. These code numbers are printed onto the labels or packaging of the

product in the form of bars codes.

Figure :01

Barcodes are made up of a set of black lines and white spaces. Look at the bar code. We can see

that it is split into two halves, and each half is contained within two thin black stripes.

Figure :02

The diagram shows the pattern of lines for each digit on the bar code. Notice that the pattern for

a digit on the right hand half of a bar code is the opposite of the one on the left hand half. Many

bar codes today use the European Article Number or EAN. This is a thirteen digit number which

can be used to uniquely identify a product. Using the bar code shown as an example:

a) The first 2 digits represent the country from which the company producing the

product comes.

b) The next five digits represent the company which produced the product.

c) The following five digits represent the product.

d) The last number is a check digit. This is used to make sure the bar code has been

read correctly.

The bar codes on products are read by the EPOS tills at the checkouts. This is achieved by using

a scanner, which sends out infra-red laser beams via a set of mirrors, enabling the bar code to be

read at most angles.

When an item is passed over the scanner, the black and white parts of the code are detected by

the laser, as the black parts reflect very little light whilst the white parts reflect most of the light.

This is converted into electrical pulses which are sent along the cables to the branch computer.

The branch computer then searches its stock file for the product matching the EAN number.

When this record is located the price and description of the product is extracted and sent back to

the EPOS till at the checkout which then shows this item and price on the digital display, prints

them on a receipt and adds the price to the total. At the same time, the branch computer records

that one of this item has been sold. We will look at how this is used for stock control on other

pages.

When a bar code has been correctly scanned, the scanner emits a bleep. If no such sound is

made, the item can be passed over the scanner again until it has been correctly read. The

keyboard is used to enter codes of products that will not scan, for example reduced price items.

The scales at the EPOS till are also linked up to the branch computer. All loose fruit and

vegetables are weighed at the checkout. Each product has a code number which, when typed in at

the keyboard, gives the customer a description of the product on the receipt along with the

weight and price of the purchase. The weight of the product is also deducted from the stock file.

As well as printing an itemized receipt, the printer attached to the EPOS till can also print the

name of the super shop, the date and the amount owing on check and debit / credit card vouchers.

This lessens the chance of mistakes as well as minimizing the amount of time a customer has to

spend at the checkout.

Not every customer pays by cash or cheque though. Many now opt to pay by a debit card such as

Switch or Delta. In these cases the customer’s card is swiped through the card reader which reads

the information (such as the account number and date of expiry) held on the magnetic strip on

the back of the card.

The latest in store development has been the arrival of smart card readers at the EPOS. A debit

card with a smart chip is placed in the reader and the customer then enters their PIN to authorize

the money being taken out of their account.

This is much more secure than signing a docket as it cannot be forged This information is then

added to the details of how much the customer has spent and, after checking that sufficient funds

are present, used to transfer this amount from the customer’s bank account to that of the super

shop. This process is called ELECTRONIC FUNDS TRANSFER and works even if the super

shop's bank is different from that of the customer.

E. Inventory Management System:

The inventory management in this system is very powerful, offering users multiple units of

measure to track for each product in each stock location. Inventory module is also not limited

just to record sale and print invoice, it also offers recording purchases, purchase and sale returns

and in return it provides you bundle of reports e.g. Sale / Purchase / Return Reports, Sales /

Purchases Summary. It has a unique feature for manufacturers / producer to re-pack or bundle

the items as deal, to exactly maintain inventory of both source and final products exactly. Stock

Requisition Report will free you from out-of-stock tension and Stock Ledger, Stock Report, Item

wise P/L and Bill wise P/L reports will surely provide you in-depth analyses to examine and

enhance your purchases and sales strategies. The customer handling allows retailers to collect

some basic information right at the point of sale for quick registration, then emails the buyer a

link so that they can navigate to the store's e-commerce site to complete their profile. They can

then view their purchase history for online and offline sales and it's a natural way to introduce

store customers to the website.

F. Accounting payable system:

Accounting module is simply easiest, even non-accountant can maintain accounts like a

professional. Accounting module has almost all the reports needed by an accounting to run

business accurately and company owner to analyze business performance. Some major

accounting reports includes Vouchers Register, Vouchers Printout, Cash / Bank Book, Account

Ledger, Accounts Receivable / Payable with Bill and Day wise Aging, Trial Balance 2 & 6

Columns, Auto Calculated Net P/L and Balance Sheet.

Challenges of Implementation

Meena Bazar had to face some difficulties at different stages of implementation. People who

were more familiar with the traditional system of retail business management, but it would be

mostly technology adverse and showed disbelief about automation. Many products would be

already ordered from suppliers, many verbally, even before the consumption of the solution and

therefore there were problems with initial understanding of orders versus supplies. Most of the

customer of our target market is not familiar with the system, they can not accept positively.

Another challenge is the maintenance cost of the system would be very high.

CONCLUSION

Mena bazaar Super shop would be more developed by implementing Information technology. It

has planned to extend their business by building some other store in various locations in the

country and start internet shopping which allow customer to shop over the Internet, this has

allowed them access to different markets i.e. Every store show should be technologically

advanced to ensure quality and fast service for the people who do not have transport to get to the

store.

Bibliography & References

1. www.wikipedia.com

2. www.meenabazar-bd.com

3. www.bdtradeinfo.com/yellowpages…711

4. www.bdyellowbook.com/catalog/Shopping…info11426

5. bangladeshcorporate.blogspot.com

6. www.velki.com/email.asp?id=8438…20Market

7. www.jalshaghar.com/previous_events05

8. www.bangladesh.com/shopping

9. www.webbangladesh.com

10. www.sciencedirect.com/science/journal

11.The Daily Star

Appendix

Cost Analysis

The super shop need several computers with EPOS which are located in a room known as the

system office and form the super shop own Local Area Network. The total cost of developing

own Local Area Network by implementing EPOS System in the Superstore would be About Tk

5,200,000.

Benefits

Some of the major benefits of using Information Technology in super shops can be broken down

into two sections, the benefits to the customer and the benefits to the super shop and its

management. It must be remembered that changes and improvements come about over a period

of time, for instance, while the introduction of Information Technology may save the super shop

chain money eventually, it requires a good deal of investment, both in terms of resources and

training, initially and throughout its development.

To the customer

Special offers.

Benefits to the super shop passed on in the way of lower prices or increased customer

services.

Various methods of payment.

Chilled or frozen food kept at the correct temperature.

Faster and more efficient checkout services.

Itemized till receipts.

Products more tailored to their needs.

Fresher goods due to low stock levels held by super shops.

To the super shop and its management

Ability to monitor the performance of checkout staff.

Shelf pricing more cost effective than labels on products.

Ability to use electronic funds transfer improves cash flow.

Effective management of chilled and frozen goods.

Efficient stock control, less chance of goods being out of stock.

More efficient checkouts, less chance of errors by staff.

Ability to use sales forecasts and 'profiles', leading to more efficient use of shelf

space.

Little warehouse space required in each super shop due to distribution system

The End