Retail Transaction Posting

This article describes how iVendNext handles transaction posting with a focus on how a POS invoice is recorded.

Introduction

POS invoices are automatically generated upon transaction completion at the point of sale to streamline the checkout process. They temporarily record transactions in a separate "sub-ledger" without immediately updating stock and accounting ledgers, thereby enhancing the system's capacity to handle high transaction volumes. These invoices also ensure smooth data transfer between the POS system and the iVendNext backend.

POS Transaction Stages

Before we deep dive into how a POS POS invoice is recorded and posted it is important for us to understand the key stages a POS transaction goes through.

A Point of Sale (POS) transaction involves several key stages from the opening entry to the closing entry. Here's a breakdown of the typical stages:

Launch the application

Type the iVendNext URL in the browser. Login using your credentials. This will take you to the iVendNext Home screen. Navigate to the Retail section. Then under the Quick Access section click on the iVendNext POS shortcut to launch the POS screen.

POS Opening Entry

Start by specifying the opening amount and selecting the cash drawer. Specifying the opening amount by denomination ensures transparency and accuracy. This process initializes the POS system for the day by setting up the cash drawer, confirming that the POS system is on the network, and verifying that all the hardware devices, such as barcode scanners and receipt printers, are functioning properly.

Upon entering the Opening Amount, selecting the Cash Drawer, and clicking the Start Selling button on the Opening Amount screen, a POS Opening Entry [POS-OPE-2025-00206] is automatically generated in an "Open" state. This opening entry can be seen on the POS Opening Entry List View screen.

Click on the POS-OPE-2025-00206 entry to open the POS Opening Entry Details Screen. Some important piece of information that you can capture on this screen are listed below:

Period Start Date
Posting Date
Cashier
POS Profile
Cash Drawer
Active POS Terminal

Perform Transactions

Performing a transaction at the POS requires you to Select Item(s), and then Process Payment.

Item Selection: The customer selects the items they wish to purchase. These items are scanned or entered manually into the POS system, which then updates the inventory and calculates the total cost.

Payment Processing: The customer chooses a payment method (cash, credit/debit card, gift certificate, etc.). The POS system processes the payment by communicating with the payment processor to authorize the transaction.

When you conduct a transaction in iVendNext, an intermediate POS invoice is generated. This invoice is interim and does not update the stock and accounting ledgers immediately.

For illustration we have performed the following POS Transactions:

POSINV_NY_01725
POSINV_NY_01726
POSINV_NY_01727

For each POS transaction performed an interim POS invoice was created. This can also be verified from the POS Invoice List View Screen.

Receipt Generation

Once the payment is approved, the POS generates a receipt. This receipt can be printed or sent digitally to the customer.

Inventory Update

The POS system automatically updates the inventory to reflect the items sold. This helps in maintaining accurate stock levels.

End-of-Day Reconciliation

At the end of the business day, the POS system reconciles all transactions by verifying total sales and counting the cash in the drawer to ensure that all transactions are accounted for.

Close POS

Finally, the POS system is closed for the day. When the cashier closes the POS session, a single consolidated sales invoice is created by merging all intermediate POS invoices. This entire process is known as POS Invoice Consolidation. During consolidation, combined entries are made in the accounting and stock ledgers. The resulting consolidated sales invoice includes all items purchased by customers from the time the POS opens until it closes.

This includes logging out of the system, securing the cash drawer, and generating end-of-day reports for record-keeping.

When you click the "Close POS" button, a POS Closing Entry [POS-CLO-2025-00237] is created in the "Draft" state.

Click on the POS-CLO-2025-00237 entry to open the POS Closing Entry Details Screen. This will allow you to see the linked POS Interim Invoices.

Count Tender

Click on the Close Shift button to launch the Shift Close screen.

The Shift Close screen presents transactional data in a structured grid format comprising rows and columns.

Each row reflects a Payment Method linked to the POS system.
For every entry, the following details are displayed: Opening Amount, Expected Amount, Closing Amount, Difference, and Count.
Review and select each row individually, then click Submit to update the corresponding Count field.
Once all entries are submitted, click Close Shift to finalize and close the shift.

Close Shift

Click the "Close Shift" button to finalize the POS session. This action changes the previously created POS Closing Entry from Draft to Submitted.

Click on the POS Closing Entry [POS-CLO-2025-00237] to open the POS Closing Entry Details Screen. Some important piece of information that you can capture on this screen are listed below:

Status

Linked Invoices
Currency Denomination Count
Tender Count Detail

POS Invoice Merge Log

There is a section on the POS Closing Entry Details Screen called Connections. You will see a shortcut for POS Invoice Merge Log. ( As shown in the screenshot below)

Click on the POS Invoice Merge Log to reach the POS Invoice Merge Log Screen.

Click on the POS Invoice Merge Log ID displayed in the ID field. This will open the corresponding Consolidated Invoice. The screenshot below shows a consolidated invoice for the Customer ID C00205 (Pepper Potts)

POS Invoice Posting Settings

The moment you perform a transaction in iVendNext, an intermediate invoice called a POS invoice is created based on the POS Invoice Posting Settings. These settings can be found within the Company Setup. These settings play a vital role in determining how POS invoices are posted to the general ledger. It offers three distinct posting settings or methods which can be found within the system under the Company Setup. (Company Setup > POS Invoice Posting Settings)

These settings offer flexibility for different business needs and accounting practices. The POS Invoice Posting setting influences how and when POS invoices impact the general ledger. However, it does not affect their creation process.The options include:

One to One - Real Time Posting:

Each POS transaction updates the ledger immediately.

One to One - On Shift Closure:

Each POS transaction is posted to the ledger at the end of the shift.

Rollup Posting - On Shift Closure:

Multiple POS transactions are consolidated into a single sales invoice and a single purchase/bill for expenses, and posted to the ledger at the end of the shift.

Manual Creation of POS Transactions is not recommended)

While you can manually create a POS invoice, this is not the standard process and is not recommended for several reasons:

Error-Prone: Manually entering data increases the risk of human errors, such as incorrect pricing, quantities, or customer details which can lead to discrepancies in financial records.
Time-Consuming: Creating invoices manually is a time-intensive process that requires significant effort to ensure accuracy. This can slow down the checkout process and reduce overall efficiency.
Lack of Integration: Manually created invoices are difficult to integrate with inventory management, accounting, and customer relationship management (CRM) systems which makes it difficult to maintain accurate and up-to-date records.
Difficulty in Tracking: Keeping track of manually created invoices can be challenging for businesses with high transaction volumes leading to issues in tracking sales, managing returns, and reconciling accounts.
Security Risks: Manual processes are more susceptible to fraud and data breaches.

Impact of POS Invoice on Stock and Accounting Ledger

iVendNext employs a unique method for recording POS transactions, creating an intermediate invoice known as a POS Invoice. Unlike traditional systems where each sale immediately updates the stock and accounting ledgers, iVendNext utilizes a "sub-ledger" system. This means POS invoices do not immediately impact the stock and accounting ledgers.

This approach offers some key benefits:

Enhanced Speed:

By deferring ledger updates, the POS transaction process is significantly faster.

Improved Scalability:

Separating the POS ledger (sub-ledger) from the general ledger increases the system's capacity to handle large transaction volumes.

Faster Data Synchronization:

POS invoices act as a bridge, facilitating a smooth and rapid data transfer between the POS and the iVendNext backend system.

Interim Transaction Record:

They provide a detailed record of each transaction within the POS session, serving as a foundation for the final consolidated sales invoice.

Streamlined Consolidation:

POS invoices are designed for efficient consolidation into a single sales invoice during the POS session closing process.

Tracking Stock During Active POS Sessions

While the stock ledger remains unaffected by active POS sessions, iVendNext offers a real-time view of projected stock levels through the Stock Projected Quantity Report.

You can access the Stock Projected Quantity Report by navigating to: Home > Stock > Stock Reports > Stock Projected Quantity.

This report provides three key insights:

Actual Qty:
Reflects the stock ledger's value, representing the physically available stock.
Reserved for POS Transactions:
Represents the quantity reserved due to active POS sessions, providing a real-time view of stock committed to ongoing but unposted transactions.
Projected Qty:
Consider the "Actual Qty," reserved quantities, and anticipated stock receipts, offering a comprehensive projection of future stock availability.

Note: It's crucial to understand that "Available Qty at Warehouse," displayed in the Item Details view within the POS, does not consider “Quantities Ordered But Not Yet Received”.