Business glossary
Point of sale (POS)
The place or system where a customer completes a purchase and payment is recorded.
Example
A customer buys a product for $40 at a shop and pays immediately. The POS system records the transaction, payment and receipt, and may update inventory.
How it differs from related terms
Point-of-sale records usually concern immediate purchases. An invoice can request payment later. Reconcile POS sales, refunds and processor settlements before treating a bank deposit as the day's full revenue.
Frequently asked questions
What is an example of point of sale?
A customer buys a product for $40 at a shop and pays immediately. The POS system records the transaction, payment and receipt, and may update inventory.
How should point of sale be interpreted?
Point-of-sale records usually concern immediate purchases. An invoice can request payment later. Reconcile POS sales, refunds and processor settlements before treating a bank deposit as the day's full revenue.