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Chapter 1

Background of Study
Farmacia Gentaro is pharmacy of San Juan, Sto. Domingo, Albay nearby
Pugad Lawin Park. Farmacia Gentaro has 3 employees. It was established in
April, 2008, Farmacia Gentaro was serving dominguenios for seven years. The
manager of this company is Mark Gentaro E. Machii. Farmacia Gentaro has a
net income of Php 60,000.00 70,000.00 monthly or 720,000.00 annually
depending on the demand of the products. Their sales increase from day-to-day
Point of sale (POS) is one of the essential components of a successful
business. It is a modern replacement for the cash register in retail application. It
can help to record securely all the sales and customers orders, track products
which are poor on business sales and of course manage inventory. Using
computerized point of sale will give benefits to the business owners, employees,
and to the customers.
Every day, technology upgrades. The proponents decided to propose and
pursue a Point of Sale System for Farmacia Gentaro to alternate their manual
system of serving customers. The main objective of this study is to create and
develop a computerized point of sales system that is completely responsible for
Farmacia Gentaro in support of the daily business transactions.

Based on the problems listed below, Farmacia Gentaro will be benefited of
the system. It can be; Secured data, Better standard of living, Experience In
handling business, Monitor sales transaction easily, Lessen the effort and time
being consumed during transactions and Helpful in manipulating the inventory of
sales and keeping up old records or document reserved for future use.
Problem Statement
Systems for recording financial transaction have always been important in
determining performance and worth of the company. Its been 7 years of serving
people in town of Sto. Domingo, Farmacia Gentaro is using manual based
system in processing sales transaction and they encountered some problems.
Some of these are listed below:
1. Difficulty in conducting the inventory.
2. Miscalculation of sales record.
3. Slow transaction process.
4. Disorganized data keeping and might lead to file lost.
Current Situation
Farmacia Gentaro was 7 years in the business. Currently they are using
manual based system in monitoring and processing sales transaction since it
was established. Sales transaction is recorded manually on a paper. The

employees recorded what customers purchased products in a piece of paper as

a receipt and the manager or cashier collects at the end of the day for
computation and will move to inventory to determine the remaining stocks
When there is a delivery of the products, the manager as well as the
employee list all the number of items and keep the list as a stock record, this
done when the employee carry out monitoring of stocks by counting and writing
down on a piece of paper the number of items or products available on the stock
and the payment of those items. The products were purchased based on the
demand. The stock products was inspect by having inventory when delivery is
give the check list to the manager to check the items sold when it is correspond
to the items available on the stock. The manager examines the products sold on
a day and added it to the stock count of the next day, and the result should be
equal to the previous stock count.
Farmacia Gentaro is having difficulties in billing and monitoring and
issuing of receipts and they are finding ways or solutions to improve their
business and make the business transactions automated. They believe that this
study could offer a great help in improving the business approach to changes
which the economy demands.
General Objectives
The objective of this study is to provide a better security for Farmacia
Gentaro Point of Sale system by developing a system with authorization and to

enable admin or review any transaction and then print-out various types of
reports, and also to get the fulfillment rates of their sale.
Specific Objective

To gain more profit.

To have an accurate sale and inventory reports.
Create a system the will provide faster transaction and operation
To strictly monitor the daily sales of the company.

System Scope and Boundaries

This study focused on the Point of Sale of Farmacia Gentaro. It focused
on the sales transaction. It deals with the customer transaction, data entry and
also inventory. The system is connected to the inventory but will not focus on the
whole inventory of the store, yet it will help the inventory to have accurate data to
sold products using the sales report that is automatically recorded to the
database. The assigned person to monitor and use to system will be the one to
input data in the system.

Items will be scanned through a barcode, it will

automatically recorded in the inventory as item in and out.

The system is also for inventory. The function of this system is to put in
order and arrange sales transaction, also to update the inventory and monitor the
products left for another coming transaction. The assigned person or the
manager will check at the same time update the products at the end of the day.
This system was not operating Payment through credit card. Only the
sales and few parts of inventory are generated. Other transaction and operation
of Farmacia Gentaro such as payroll system or employee information system is

not included in the system. And the system cannot receive amounts on credit
card basis.
The proposed system can be used daily by the business. It can be for a
lifetime transaction by the business. It can be lessen paper works and manipulate
data secured in the system. It minimizes time in just one click. The users who
have rights of using this system will need some practice on how to manipulate
the system.
Operational Chart:

Figure 1. Operational Chart

Manager. The manager has the responsibility to oversee all functions of the
company handle payables and customer relations. Responsible of the money of

company. He is in charge to the decision making of the company. He has the full
control and access of the record in the system.
Cashier. The cashier is the one who is operating the cash register. They are the
one responsible in transacting with the costumer in paying bills and issuing
Salesperson. The salesperson is the one who assist the customer, maintaining
an orderly store and ensure good service specially in locating certain items.
Farmacia Gentaro has possible constraints that may influence on the
proposed system. Some of these are:
1. When the system is bar down, it will not work.
2. When there is an incorrect input by the user it may cause data
3. There is no technician to maintain the system.
Possible Alternatives
The basic alternative is to prevent problems that the system might
occur. It refers to solution in the constraints of the system. These are
possible alternatives:
1. It must be secure when storing files. Also provide administrator to
assigned username and password to secure information.
2. Management must select give responsibility to the persons that will
manage the products

3. Management should hire IT personnel who is reliable to maintain the

system in case it caused break down and malfunctioning of hardware
and software.

Chapter 2
Point of sale system will provide clear, reliable and accurate data and
information in every transaction. The purpose of this chapter is to evaluate the
feasibility of and explore the technical parameters required for Farmacia Gentaro
It also discusses the system hardware and software and its importance on the
proposed system.
System Description
The proposed system in Farmacia Gentaro is Point of Sale with inventory
which can help the company in billing, monitoring the stocks, and issuing of

receipts, importing all the product and goods in a system by using databases. It
will help the system management to avoid errors and optimize the validity of
number of sales, supplies, purchase and their expenses monthly. It monitors the
frequency of theft, or breakage of products received. The manager and the
cashier will have the accessibility for the program.
When a customer approaches the cahier to complete a transaction, the
cashier will likely employ a computer or cash register to collect some basic
information. POS systems either require cashier to manually enter information
about the purchased items using a keyboard or use a bar code scanner to
automatically register product information. The computer system then retrieves
the item price and a basic description from a database, and some systems
automatically deduct the item from the retailer's inventory. When the cashier
indicates that she has registered all of the items in the transaction, the POS
system calculates a subtotal, applies any applicable taxes and presents a total
amount due. Adding items to the invoice updates the inventory.
In payment process, if the customer pays cash, the merchant typically
registers the payment amount with the computer, accepts the currency and
returns the difference between the tendered amount and the amount due in the
form of change. As printing the receipt, the information will be recorded to the
database, including the receipt number.
The user access of the manager allows monitoring and viewing the sales
inventory and transaction made by cashier to the customer. Also, updating the

items, adding new items to the database, and adding new number of stocks of a
certain product. The company can avoid running out of stocks of a product by
means of monitoring the remaining stocks.
System Users.
The focus is who is liable for the system. The one who manage the
system is the one who will have rights.
Manager. The manager has the authority to access the database system,
which allows the manager to acquire the sales report from its pharmacy system.
The manager has also the responsibility to oversee all functions of the system to
handle payables and customer relations. Responsible of the money of company.
Cashier. The cashier is the one who provides the billing receipt to the
customers. The receipt will be printed based on the order made by the
System Data
An entity-relationship diagram (ERD) is a type of data modeling that
shows a graphical representation of objects or concepts within an information
system or organization and their relationship to one another.

Figure 2. Entity Relation Diagram

The admin as owner will create and add salesperson; it includes the first
name, middle name, last name, username and password. Admin will create
products table list include its details, which can view by the salesperson if there is
availability of the product. Then print it with information. Receipt information
includes the receipt ID, date, total, payment amount and the change. A receipt
detail includes the receipt no., product code, product name, product quantity and
product price. And generate report with the sales, expenses and inventory.
Contextual Diagram

Figure 3: Contextual Diagram of the proposed system


On the contextual diagram it shows the process of the system. The

manager have a full access of monitoring the cashiers transaction. The cashier
will input the unique product code and it will display the details of the said
products. The data of the sold items will automatically store in the database
accessed by the manager and proceed to update the sales.
Data Flow Diagram
This is the graphical presentation that will show the Data Flow Diagram of
the Proposed System how process of transaction is made.


Figure 4. Data Flow Diagram of the proposed system

Figure 4 shows the Data Flow Diagram of the proposed system. It starts
from customers purchasing products by asking and assisting the salesperson.
Each product has its unique product code. The cashier will scan the barcode or
input unique product code, and it has details shown in the screen, then input the


quantity of the products that customers wants to buy, system will automatically
compute the ordered items. Payment shall follow. Printed receipt will be given to
the customer. The database will automatically save and update the data gathered
as inventory. The cashier will update the sales to the database and transaction
will be recorded automatically.
Once the data are sent, the manager will receive report about the total
sales. The manager will view the reports for the inventory of the products and
also to update and checked their stocks.

Exploded Diagram

Figure 5. Exploded Diagram

The whole records are managed by the manager. It is the authorized
personnel to add, delete and update of the products information.
The manager can add new products in the store with a unique product
codes. An item can also be removed depending on the manager if it is no longer


needed from the database. Updating an item is also necessary that allows the
user to add new numbers of stock of the products.
Technical Resources
The Technical Resources for the proposed system are categorized into the
hardware and the software.
This also refers to the one who has confident in managing the system, like
professional IT or engineer that will manage and check the system about the
process so that they can easily identify and fix the problems encountered in their
Hardware is a collection of all the parts that can be physically
touched. It includes monitor, mouse, keyboard, motherboard, RAM,
processor, hard disk drive, Automatic Voltage Regulator and other parts
that are tangibles.
Hardware refers to the tangible parts of the system. To avoid
system failure once it is implemented, the system requires compatible
specification for the hardware.
Software is a collection of instructions that enables the user to
interact with a computer or have it perform specific task for them. Without
software computer will be useless.


The software is the intangible part of the computer. The software

requirements are the needed application for development of the system.
System Requirements
The System Requirement for the proposed system is the specifications
requirements. The table below shows the minimum specification and the
recommended in operation.





LCD monitor

LED monitor


Standard wheel mouse

USB Optical mouse


Standard Keyboard



Intel motherboard

Intel Desktop Board



500W APC

500W APC

Hard disk drive

80GB memory




500W AVR

LS-2208A laser

Zebex Z-3110 CCD

Barcode scanner (USB port)

Barcode scanner

Epson TM-T88IV


Barcode Scanner
Thermal Printer

Thermal Printer

Intel Dual Core


Intel Core i3-3210

Processor 3M Cache,
3.20 GHz

Table 1. Hardware
The monitor will display the output and processes made by the users. The
mouse and keyboard are the primary input devices. The motherboard and
memory will be used for the processes of the computer unit. The hard disk will
serve as the memory storage. The processor is used for the speed of the system.

Table 2. Software
Software Specifications



Operating System

Windows 7 ultimate


Programming language

Visual Basic 2010

Visual Basic 2012

Database Software

SQL server 2008

SQL Server 2012

As to the proposed system, the proponents choose windows 7

Professional recommended operating System, Microsoft Visual Basic 2012, as
the programing language and SQL server 2012 for database as the storage of
data, will be used to create the program.
System Interface
The system is divided into two user accesses, one for the manager, and
one for the cashier. There is a separated storage for employee accounts.


Plate 1: Admin and Employee Login Interface

User will assess whether the one who log in is the manager or a
employee. Once the administrator log in clicks, it directs to admin log in shown in
plate 2.

Plate 2: Manager Login Interface

This plate is the log in form of the manager. Once the user log in
successfully, the monitoring system of the manager will show.


Plate 3: Monitoring Interface of Manager

Monitoring Interface used by the manager. It allows the manager to add,
remove, and update the product information. Manager has the full access of all
the records for every transaction of the cashier.

Plate 4: Add Item Form


Plate 4, allows manager to add new items to the database. The item code
must be unique. The system will check the database whether the codes already
exist or not before adding it to the database. The remaining stock depends on the
total stocks of the item since it has just to be added as new item.

Plate 5: update Item Form

Manager can be update by clicking the Update Item button. This plate
allows manager to edit information, and the item will automatically copy to
Update Forms field. Updating items also includes adding new quantity of stocks
of a certain product, also update the price. Once the update is done, time and
date also include for monitoring purposes.


Plate 6: Cashier Log in Form

Plate 6 shows the login interface of the cahier. When the username and
password is valid, it will direct to plate 7.

Plate 7: Cashier Main Form Interface


Every purchased item will be recorded, consist of the receipt number

where it belongs. When removing items from the invoice, it will also remove the
information from the database. System also allows discount for bulk orders. Print
Receipt button will provide the printed receipt for the customer which is also
being recorded. OK! button will clear all the fields and make a new transaction.

Plate 8: Search Item Interface

Search item will help the cashier to easily find products information. By
choosing items from the form and clicking the Select Button, it will quickly add
products to the main form.


Plate 9: Receipt Interface

Plate 9 shows the output of the purchase product, which is the printed
receipt, which serves as the invoice of the customer. It display the cashier name,
cashier id number, and the summary of the purchase product, includes item
description, quantity, price, total amount to pay, amount of pay, and the
difference between the tendered amount and the amount due in the form of


Chapter 3
The purpose of this chapter is to discuss the schedule of the proposed

Preliminary Investigation, Problem Analysis, Requirement Analysis,

System Design, Implementation, Operation and Support.

Preliminary Investigation
Farmacia Gentaro is using manual based transaction, their manual system
will be replaced by the computerized point of sale system. Farmacia Gentaro will
be benefited to make the business transaction accurate, easier and faster if the
proposed system will be implemented.
As the researchers conducted an interview to Farmacia Gentaro, the main
reason is to be able to know the pharmacys current system and the problems
they encounter. This investigation serves as basis in the construction of the
proposed system.
This shows the duration of time needed for the whole study of the system
until the implementation is completed. The illustration below is the Gantt Chart:


Table 3. Gantt Chart of Study


1st Month


2nd Month



5th Month

6th Month

System Design
Review and

Table 3. Shows the development of life cycle of the proposed system.

It consists of 6 non-consecutive months.
Problem Analysis
Farmacia Gentaro, using manual system according to our interview to the
owner of the pharmacy, they cannot specify the exact amount of sales and item
sold, they have complication on sales and inventory due to human errors and
also laboriousness and time consuming when it comes to generating sales and
inventory reports, for obvious reasons that it is done manually.
Manual sales and inventory system turned out to be slow and inaccurate
resulting to problems like running out stocks and slow computations of product
prices being bought by the customers. Papers overload used are difficult to
maintain, it cause loss or damage. The owner of Farmacia Gentaro wants a
computerized system to avoid time consuming for the sales and inventory, so the


developer makes computerized sales and inventory system to solve the problem
encounter by Farmacia Gentaro.
System Design
Farmacia Gentaro will be benefited of the proposed system when it comes
to recording their sales transaction and even inventory management. In system
design, the proposed system focuses on what software they will be using for the
development and how they will perform it.
Upon implementation of the system, the hardware and software should be
checked in order to assure the performance of the system. The owner as
manager has ability to be responsible in using the proposed system. If there are
errors and bugs, debugging will be conducted. There must be someone that will
maintain the system.
Review and Maintenance
This is the last phase of the study. The review and maintenance is the
observation of the user to the system to make sure that the system will be
working efficiently, and to maintain the security of the system will surely cause
less error and time consuming. The break-down of the system must be fixed by
the technician or anyone from the company who is intelligent of fixing encounter
problems on hardware. Maintain must be twice a year after implemented. The
proposed system will be used for lifetime operation.
Chapter IV


Economic Feasibility
The purpose of this chapter is measure of the cost-effectiveness of an
information system solution of Farmacia Gentaro where the system will be
The proposed system main goal is to develop a computerized system that
allows fast transaction and accurate data recording. Famacia Gentaro will be
benefited below:
Tangible benefits:
1. Improves the productivity of process and personnel
2. Lowering the cost of products and services purchased
3. Paper and postage cost reductions
4. Inventory reduction
5. Lead time reduction
6. Reduced stock obsolescence
7. Faster product / service look-up and ordering saving time and money
8. Automated ordering and payment, lowering payment processing and
paper costs


Intangible benefits:
1. Increases organizational transparency and responsibility
2. Accurate and faster access to data for timely decisions
3. Improved customer response
4. Saves enormous time and effort in data entry ;
5. More controls thereby lowering the risk of mis-utilization of resources
6. Facilitates strategic planning
7. Uniform reporting according to global standards
Total Project Cost
This phase explain the capital needed to finance the system in the
implementation of it. This is all about the cost of the designate user of the system
and the casual cost needed in the process.
Table 4. Project Cost


Estimated Project Cost

Thermal Printer


System and Programmer


Barcode Scanner


Total Project Costs

PHP 32,500.00

It is very important to choose the latest unit model so that it will be

guaranteed that the proposed system will work efficiently and accurately and
avoid disadvantages.
It should be a known brand for the hardware and software to achieve the
best performance of the system and also avoid conflict to prevent difficulty and
disruption of the system failures and system requirements.
Project Related Cost
The estimated cost of the system proposal is about Php 32,500.00.
Farmacia Gentaro has an income of Php 60,000.00 - 70,000.00 a month, they
can instantly get back the money spent from the project system, to have an
effortless and continuous transaction to work completely when the proposed
system implemented.
Operational Cost


This phase point out the cost need of the proposed system. When the
system implemented the person who will be managing system will experience
training to maintain the system.
Table 5. Operational Cost

Operational Cost






Total Expenses


Table above shows the operation cost monthly includes supplies and
maintenance that will be using monthly. In supplies it includes the bond paper
and ink. When the system encountered problems on hardware maintenance fee
will be consumed.
Accounting Methods
This phase discussed explanation of the financial cost of the system and
how to handle it expertly. Since Farmacia Gentaro is using manual basis in their
daily business transaction. The proponents are implementing the system to the
pharmacy to automate their POS and make the transaction fast and reliable.
Point of Sales System is designed to develop a faster transaction. It is
flexible in managing the stocks, sales and inventory report, and the new products

accurately. The








economically feasible the system once it is implemented and how long will take
to return the income of the pharmacy after buying the system.

Payback Period Analysis

This deals with the time that it takes for the project to return the
pharmacy investment. All else being equal, shorter payback periods are more
preferable to longer payback periods. Below is the formula for payback period.

Payback Period =

Cost of Project
Annual Cash Flow

Computation for the company:

Payback period = _Cost of Project_ = 32,500.00
Annual Cash Flow


= 0.045 X 365 days

= 16.425 days or 2 weeks and 2.452 days
Therefore, the payback period is 16.425 days or approximately 2 weeks
and 2.452 days.
Using the payback period formula, the pharmacy will gain their investment
in a span of 16.425 days. When the income is constant the case will be like this.
On the other hand, after the system will provide better work, the payback period
will be shorter because the pharmacy will gain more income before 16 monthstime.


Return on Investment (ROI) Analysis

Return on investment isn't necessarily the same as profit. ROI deals with
the money you invest in the company and the return you realize on that money
based on the net profit of the business. Profit, on the other hand, measures the
performance of the business
A performance measure used to evaluate the efficiency of an investment
or to compare the efficiency of a number of different investments. To calculate
ROI, the benefit (return) of an investment is divided by the cost of the investment;
the result is expressed as a percentage or a ratio. Below is the formula:


Gain from Investment x 100

Cost of Investment

In the above formula "gains from investment", refers to the proceeds

obtained from selling the investment of interest. Return on investment is a very
popular metric because of its versatility and simplicity. That is, if an investment
does not have a positive ROI, or if there are other opportunities with a higher
ROI, then the investment should not be undertaken.
On the other hand, Gain from Investment refers to gains of the company
as they applied to the system, and Cost of Investments refers to the project cost.

Computation for the company:

22,000.00 10,500.00 = 11,500.00 (Gain from Investment)


ROI = 11,500.00 x 100



Therefore, the ROI is 35% that means the investment is profitable.

Based from the computation above, 35% of its investment will return to the
company. This proves that the company is capable of buying the system and they
can gain their investment back in a minimal time.

Chapter V
This chapter discusses the summary and findings in the study. The
conclusion and recommendation is provided for the company, the user, and the
future researchers. POS (Point-Of-Sale) machines and cashless transactions are
an integral part of todays shopping experience. It provide businesses with the
capability to retain and analyze a wide variety of inventory and transaction data
on a continuous basis.

This study aims to help Farmacia Gentario with its business process and
make those more civilized. Farmacia Gentaro had continuous business process


for over a years, continuous but salesperson had hard time, good system but not
better for the company for the daily business transaction, manually taken but not
always accurate it always depends on how the salesperson will do this work.
The proposed system is operationally feasible. The needed resources are
available anytime. The hardware and software required is of high quality and of
reputable brand to minimize the time of the system to depreciate.
The proposed system is technically feasible. The transaction process will
become faster, accurate and updated. Unlike the manual process, the company
can only update their stocks after the manual computation. The system will
automate and make the stocks organized.
The proposed system is also economically feasible. The cost of the
system is just right to invest with. The companies can loss thousands of pesos
every year in recording the manual transactions. An investment of Php 32,500 is
nothing compared to what they loss in their manual system. The company will
earn more than their investment and will make the business profitable.
The developer takes the owner problems in the business, to know what
the need of Farmacia Gentaro is. The developer found that the problem of
Farmacia Gentaro is the process of their manual sales and inventory and the
transaction of purchasing item. Because sometimes they cannot monitor if they
have a stock. So sometimes the process takes a long time in searching the
items. Which obstruct in the customer and to the employee? And in terms of


inventory they compute their sales through manual computation, and the owner
does not know if the sales of Farmacia Gentaro will increase or decrease. The
software is focused on the transaction of POS (Point of Sale), Inventory system,
and report that gives benefits to the owner, employee, and to the user.
The software meets the need of owner, the POS now is easier than the
existing system the employee can easily search the number of items they have.
And in terms of Inventory the owner can automatically see the sales of the day,
because the software automatically give reports to the administrator account.

One major concern of the proposed study is the people to benefit from it.
They recommend this system to Farmacia Gentaro for fast process. It is very
useful to same employees who in-charge of the stocks, sales, and inventory in
their company. In using that system the process would be easily and quickly than
the previous process.
After thorough analysis of the system, final recommendations for the
company and the future researchers are included in this chapter.
For the Company:
1. The use of Point of Sale System in the company, Farmacia Gentaro
will be beneficial in its business growth.


2. This study aims to lessen time consumed by the manager and

employee of pharmacy in recording, searching, retrieving of data.
For the Future Researchers:
1. This feasibility study is to improve knowledge and understanding of the
researchers of the system they are manipulating.
2. This study can be used as a basis to develop new studies.