Retail notes Apply point of sale procedures Important notes The point-of-sale (POS) area is where customers can

purchase goods and/or services. It is usually the last place in the shop visited by the customer. According to the Primary & Recency Theory the service received here will leave the customer with a lasting impression of the store. It is therefore important to make customers feel comfortable and process their transactions as efficiently and effectively as possible, in line with store policies and procedures. The type of equipment that can be found at the point-of-sale depends largely on the type of retail outlet; however one piece of equipment all stores rely on is the cash register or point-of-sale terminal. The type of store will largely determine the level of sophistication of the cash register or point-of-sale terminal employed. For example, large department stores employ sophisticated computerised point-of-sale terminals which collect information for management as well as processing customer transactions. Smaller specialty shops may only have one cash register with limited functions. Many other items of retail equipment are found at the point of sale area, depending on the size of the store and which operations are carried out at the point-of-sale area.

Point of sale operations All equipment must be operated in accordance with manufacturers instructions. Team members must also follow store policy and procedures when operating point-of-sale equipment. On the job training may be required to operate the more sophisticated equipment as retailers often customise systems to suit their needs. However, other equipment operations are common to all retailers, for example EFTPOS.

Common equipment at point of sale

The type of equipment used is as varied as the different types of retail outlets. Some common equipment can include:

Cash registers used to record transactions and collect other data as required by management. They store cash securely. Point-of-sale terminals networked to other computers and operate in much the same way as cash registers. Scanners read bar codes where price information and other data is stored. EFTPOS (Electronic Funds Transfer Point Of Sale) terminals used to transfer payment electronically directly from the customers bank account to the retailers bank account. Scales used to weigh out items for sale, for example fruit and vegetables which are sold per kilogram. Conveyor belts used predominantly in supermarkets to move goods up to the sales assistant. Security detachers used at point-of-sale when security tags need to be removed from merchandise, for example tags on clothing and DVDs. Personal announcement (PA) systems used in larger stores to communicate information. Clearance chutes used to clear excess cash safely from point of sale area. Imprint machines used to process sales on credit cards. However they are rarely used today as eftpos has largely made them redundant. They may be used as a back up to process credit card sales when eftpos terminals are down.

Point-of-sale terminals (POST)

Point-of-sale operational procedures and policies will vary from store to store, as will the technology employed. It is important for team members to be familiar with the operation and functions of such equipment to ensure the customer receives the best possible service. Most large retailers have expensive computerised point-of-sale systems whereas many smaller retailers still rely on manual systems. As well as processing transactions efficiently, it is each team members responsibility to ensure the last point of contact in the store is a pleasant experience for the customer. With manual electronic cash registers the sales assistant is required to type in information using the keyboard. Information may include, price, item code, department, sales assistant identification number and amount tendered. More sophisticated input includes scanners (hand held or fixed) and touch screens. With scanners, each item has a bar code that is embedded with product information that might include, price, item code, department and markdowns. When the sales assistant scans the bar code it inputs this information into the computer system. Touch screens require the sales assistant to touch information displayed on a screen, and again the same type of information is collected. Team members must be accurate when using point-of-sale terminals. Information collected is vital to management and assists managers in the decision making process. Common information collected includes:

date and time of sale total sales for the day/week/month quantity and description of goods sold price of goods sold stock name or code of each item sold sales assistant identification number stock statistics amount of cash tendered and change required to be given

Opening, closing and clearing the register

Opening the register
At the commencement of trade each day certain team members will be required to open the cash register or terminal. The cash drawer is usually stored empty in the register and in an open position. This is to deter potential thieves from damaging the expensive equipment. Typical procedures at the commencement of trade might include:

Collect the key and float for the register/terminal from the supervisor. Count the float into the cash drawer, separating denominations. Close the cash drawer. Insert the key and turn the register/terminal on. Log on using a staff identification number.

Closing the register

This usually takes place at the end of an individuals shift or at the close of trade for the day. Typical procedures for closing the register might include:

Remove the cash and other documents from the cash drawer. Print out a Z read. Separate the cash from the cash float. Count and record totals for cash and non-cash documents on a cash drawer reconciliation slip. Secure cash and other documents and keys. Return empty cash drawer to register/terminal, leaving it open.

Clearing the register

Throughout the day cash may build up in the cash drawer. To reduce the amount of cash in the drawer, thereby reducing the security risk, team members must be familiar with cash clearance procedures. Most large supermarkets and department stores clear excess cash via a vacuum-driven clearance chute. Cash is recorded and placed into a capsule. This capsule is then sucked up the chute directly into a secure cash room.

Cash handling
Handling cash is a very important task undertaken at the point-of-sale area. However, since the introduction of EFTPOS, the amount of cash handled has been reduced as funds are transferred electronically directly from the customers bank account to the retailers bank account. This has had the effect of making the point-of-sale area less vulnerable to theft. However, theft still occurs, as well as honest mistakes, when handling cash. Team members must be very accurate when handling cash. Mistakes when handling cash, honest or otherwise, can upset the customer leading to a loss of future sales. When customers tender cash for a purchase it is important to follow a few simple steps to help ensure accuracy in cash handling. These might include:

calling the amount of the purchase clearly to the customer calling clearly the amount of cash tendered placing the cash tendered on top of the register drawer (not in it) counting out the required change from the cash drawer (first count) counting out the change clearly to the customer (second count)

placing the cash tendered in the drawer issuing a receipt to the customer farewelling the customer in a sincere and courteous manner

Anywhere cash is stored there is an increased risk of theft from dishonest staff and customers. To help reduce the risk of theft sales assistants should:

shut the cash drawer when not in use avoid being distracted by others when cash drawers are open keep the register locked if unattended always remove the key from registers which are not in use be alert when handling cash be observant of others around you and report suspicious behaviour never leave cash outside the cash drawer

Maintaining a float
The cash float is the amount of change in the cash drawer at the commencement of trade. The cash is broken down into a range of denominations, enabling the sales assistant to give change to customers from the commencement of trade. There is no set amount for cash floats that suits all retailers, nor is there a magic breakdown of denominations. The size and breakdown of the float will largely be determined by factors such as:

store policy and procedures the size of the store the time of day

After trading for the day or when the shift is complete the cash float will be removed from the cash draw and the balance of money and other documents reconciled against the Z readout (takings or sales for the day/shift). An example of a cash float can be seen below.

Notes $100.00 $50.00 $20.00 $10.00 $5.00

Number 1 4 10 15 10

Amount $100.00 $200.00 $200.00 $150.00 $50.00

Coins $2.00 $1.00 $0.50 $0.20 $0.10 $0.05

Number 15 25 20 40 40 40

Amount $30.00 $25.00 $10.00 $8.00 $4.00 $2.00 $79.00 $779.00

Total Notes Total Float

$700.00

Total Coins

Ordering change

It is the responsibility of the team member operating the point-of-sale terminal/register to ensure adequate supplies of coins are available to give customers change. Although a float is placed in the cash drawer at the commencement of trade, shortages of coins do occur from time to time. Remember, customers dont want delays at the point of sale area. If it becomes necessary to order more change it should be done during a quiet period where possible. If it is necessary to top up coins during rush periods, explain the situation to the customer, thank them for their patience and perform the task as quickly as possible. Change is obtainable from banks and other financial institutions in the following lot sizes.

Coins $2.00 $1.00 $0.50 $0.20 $0.10 $0.05 $50.00 $20.00 $10.00 $4.00 $4.00 $2.00

Amount

When ordering change internally it is usually recorded on a change slip. An example of a change slip is following.

Change slip Date: Change $100.00 $50.00 $20.00 $10.00 $5.00 $2.00 $1.00 $0.50 $0.20 $0.10 $0.05 $ Time: Register No:

Total

Transaction errors
From time to time even the most proficient sales assistant will make a mistake at the point-of-sale. Sometimes errors arise as a result of variables outside the control of the sales assistant, for example if the customer has insufficient funds to pay for their purchase or item prices scan incorrectly. Common transaction errors include:

incorrect data keyed in incorrect price keyed in or scanned wrong change given customer deciding not to proceed with the purchase equipment failure

It is important that team members acknowledge errors and try to rectify them as soon as possible, with as little inconvenience to the customer as possible. Stores will have policies and procedures governing transaction errors. It is crucial these are followed and the necessary adjustments made to the journal roll on the point of sale terminal. Typically, sales assistants are not authorised to carry out corrections in relation to transaction errors. Usually a supervisor or manager will need to be called to assist. Supermarkets subscribe to the Code of Practice for Computerised Checkout Systems. Therefore, when correcting pricing errors for scanned products they must also abide by this code. A copy of the code is available through the Australian Retailers Association (ARA) and also the Australian Competition & Consumer Commission (ACCC). Documentation of some form is usually required when correcting transaction errors. Therefore team members must ensure they have adequate supplies of documentation at the point-of-sale terminal to effect a quick correction and inconvenience the customer as little as possible.

Documentation used at point-of-sale

Documentation is very important to any retail organisation. It helps keep track of goods and/or services and provides information to management on finances, stock control and distribution of goods. The type of documentation used will vary from retailer to retailer as documentation often reflects the different types of goods and services offered by the retailer. For example not all retailers provide layby or repairs and so will not have documentation for these services. Common documentation required at the point of sale includes:

cash sales dockets invoices credit notes delivery documentation customer return forms stock transfer forms repair documentation lay-by documents order forms

credit card vouchers change order forms cheque verification forms

Team members must complete all documentation in accordance with store policies and procedures. Accuracy is important and hand writing, if required, must be neat and legible.

Delays at point-of-sale
Any delays at the point-of-sale area impact directly on the customer. It is therefore essential that all team members perform their duties efficiently and effectively to ensure minimum delay. When experiencing a delay, team members should apologise to the customer, inform them of the nature of the delay and, where appropriate, interact with the customer so they are not left just standing there. Some reasons for delays and suggested corrective action to be taken by the team member at the point-of-sale area include:

Waiting for EFTPOS transactions engage the customer in small talk and they will not notice the delay so readily. Ordering change or consumables apologise to the customer for the delay, inform them why there is a delay and take action to correct the delay as quickly as possible, then thank the customer for their patience. Transaction errors explain the delay to the customer and correct the error as quickly as possible. Thank the customer for their patience. Queues forming apologise for the delay and thank customers for their patience. Equipment breakdown take corrective action where possible or suggest an alternative point of sale terminal or method of payment.

Remember, the point-of-sale area is usually the last place in the store visited by the customer. It is therefore essential that all team members conduct themselves in a professional and caring manner. This last image left with the customer needs to be a positive one, so delays should be dealt with quickly and efficiently.