CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter presents the introduction to the study on development of an automated invoice processing system. It presents background of the study, statement of the problem, aim and objectives of the study, significance of the study, scope of the study, organization of the research and definition of terms.
An invoice processing system is a system that facilitates recording of sales transaction and processing of sales transaction so that an invoice can be printed for customer. A bookshop is where books are sold. Â Every business organization seeks for more efficient ways to carry out their duties. Invoice management is a very sensitive aspect of every business organization and hence there is need for the adoption of computers to aid the computation and recording of invoice information. Financial information accounting has long been an organizational function especially with the advent of non owner managers who need to update what is happening in the organization. Maintaining, preparation and presentation of invoice is crucial for business success. However, manual invoice processing is still in place there was inefficient financial reporting due to loss of invoice records, delay in preparation of invoice records and its associated problems. This situation necessitates the implementation of an automated invoice processing system (Baars and Kemper, 2018).
1.1 Background of the study
An automated invoice processing system is a system that facilitates the capturing, generating and storage of sales invoice information. The system aids the easy retrieval of needed information pertaining to sales in a book store. A book store is a shop were books and other accessories are sold. To efficiently manage a bookshop a invoice generating system is needed. A point of Sales (POS) software records each sale when it happens, so, inventory records are always up-to-date and invoice can be generated for customers. By running reports based on this information, you can efficiently manage the bookstore (Baars and Kemper, 2018). With a POS invoice generating system:
- You can analyze sales data, figure out how well all the items on your shelves sell, and adjust purchasing levels accordingly.
- You can maintain a sales history to help adjust your buying decisions for seasonal purchasing trends.
- You can improve pricing accuracy by integrating bar-code scanners and credit card authorization ability with the invoice generating system.
There are plenty of popular invoice generating software and hardware (printer) systems that enable you to use add-on devices at your checkout stations, including electronic cash drawers, bar-code scanners, credit card readers, and receipt or invoice printers. invoice generating packages frequently come with integrated accounting modules, including general ledger, accounts receivable, accounts payable, purchasing, and inventory control systems. In essence, a POS system is an all-in-one way to keep track of your business’s cash flow (Khan, 2018).
At the point of sale in a shop such as a book store, the seller calculates total cost of books bought and an invoice is issued to the customer. After receiving payment, receipt for the transaction, which is usually printed will be issued to the customer. The point of sale (POS) is often referred to as the point of service because it is not just a point of sale but also a point of return or customer order (Khan, 2018).
One of the ways to improve sales management in a book shop is by implementing a computer based invoice generating system. For effective sales management an automated system such as book shop invoice generating system is needed to enable the bookshop maintain proper record of sales so that reports of sales can be easily provided when needed.
Processing: To perform mathematical and logical operations on data according to programmed instructions in order to obtain the required information.
DEVELOPMENT OF AN INVOICE PROCESSING SYSTEM USING KINGSELLA BOOKSHOP IN UYO AS CASE STUDY
