ACTIVITY 1

Introduction to AIS

1. What is the meaning of point-of-sale system?

Point of sale systems are systems that enable the business transaction between the
client and the company to be completed. POS system is a computerized network that
consists of the main computer linked with several checkout terminals and supported by
different hardware features starting from barcode scanners and ending with card
payment terminals.
It is the combination of tools that facilitate payment processing and other retail
management functions for businesses. POS systems make it possible for businesses to
carry out transactions with customers and manage their business. The term point of sale
refers to the moment a transaction is made between a consumer and business. This can
occur in-person at a brick-and-mortar retail location, or it can occur online through an e-
commerce outlet. POS systems can consist of both hardware and software components.
This can include credit card readers, cash registers, barcode scanners, and payment
processing software.

2. What is EDI and how it works?

EDI or Electronic Data Interchange is a computer-to-computer exchange of standard

business documents such as purchase orders, invoices, inventory levels and shipping
notices. EDI software solutions facilitate the exchange of business documents and data
across a variety of platforms and programs. What before would be manual processes
that used phone calls, faxes, or paper as communication between companies ordering
or selling goods, is now all done through EDI. It joins manufacturers, distributors, and
retailers, through their information systems, in a worldwide business-to-business
network.
Both the suppliers and clients have specific requirements as to how they do business.
Things like ship-to addresses, unique pricing, and so on, that are determined when a
deal is made and must be considered when transactions take place. This is the data that
gets used by EDI solutions to facilitate trading between businesses. EDI uses the
standard of data (ANSI or EDIFACT) to ensure requests from one party are compatible
with the supplier’s information system so that the supplier can fulfill orders placed. It
helps companies doing businesses with each other, particularly suppliers that can
consistently meet the requirements and terms of their clients, like retailers and
distributors. This is all organized during the implementation of EDI software, when fields
are mapped to each other so that the relevant data is used. When a request is received,
the data is converted to fit the system of the recipient and crucial information for the
transaction is used to generate all incoming and outgoing documents.