If you've never used a POS system before, the first few days can feel a little confusing.
You have the POS machine, touchscreen, barcode scanner, receipt printer, cash drawer, products, employees, and customers all moving at the same time.
The good news is that once everything is properly configured, using a POS system is usually much simpler than it looks.
A modern POS system can do much more than calculate a customer's bill. It can help you process sales, manage inventory, accept payments, track employees, generate reports, and monitor your business operations.
If you're completely new to POS technology, our guide on what is a POS system is a good place to start.
In this guide, we'll walk through how to use a POS system step by step, from opening your system at the beginning of the day to closing your shift at the end.
What Is a POS System?
POS stands for Point of Sale.
Simply put, a POS system is the combination of software and hardware that businesses use to process customer transactions.
A typical POS setup may include:
- POS software
- Touchscreen monitor or tablet
- Barcode scanner
- Receipt printer
- Cash drawer
- Payment terminal
- Internet or local network connection
Modern POS systems can also manage inventory, employees, customers, discounts, reports, and multiple branches.
For example, when a customer buys a product from your store, the cashier can scan the barcode, the POS calculates the total, the customer pays, and the transaction is recorded.
At the same time, the system can update inventory.
That's what makes modern POS technology much more useful than a traditional cash register.
What Do You Need Before Using a POS System?
Before processing your first customer, there are a few things you need to prepare.
POS Hardware
Your hardware depends on the type of business you operate.
A retail store might need:
- POS terminal
- Touchscreen monitor
- Barcode scanner
- Receipt printer
- Cash drawer
A restaurant might also need:
- Kitchen printer
- Kitchen Display System
- Customer display
- Order-taking tablet
A small business or mobile seller may only need a tablet or mobile POS device.
If you want to understand the setup process in more detail, check out our guide on how to set up a POS system.
POS Software
The software is where most of the work happens.
Depending on your provider, POS software can manage:
- Sales
- Products
- Inventory
- Customers
- Employees
- Discounts
- Payments
- Reports
- Branches
- User permissions
When choosing POS software in the Philippines, make sure the features actually match the way your business operates.
There's no reason to pay for features you'll never use.
How to Use a POS System Step by Step
Now let's get into the actual process.
Step 1: Log In to Your POS
Start by logging into your POS account.
Most businesses give employees individual accounts or PINs so that transactions can be associated with the correct employee.
For example:
- Cashier 1 logs in using their account
- Cashier 2 uses a different account
- Manager uses an administrator account
This can make it easier to track employee activity and control access to sensitive settings.
Avoid giving every employee administrator access.
A cashier generally doesn't need permission to change product prices, delete transactions, or modify important system settings.
Step 2: Check Your Register and Starting Cash
If your business accepts cash, check the cash drawer before starting your shift.
Enter or verify the starting cash amount if your POS requires it.
For example, you might start the day with:
₱5,000 starting cash
Throughout the day, the POS records your cash sales.
At closing time, you'll compare the expected amount with the actual cash inside the drawer.
This helps identify discrepancies early.
Step 3: Find or Scan the Product
Once a customer is ready to purchase, add the products to the transaction.
There are usually several ways to do this.
Scan the Barcode
For retail stores, the fastest option is often a barcode scanner.
Simply scan the product and the POS should identify the item.
The system may display:
- Product name
- Price
- Available stock
- Quantity
- Discount
- Total
Search for the Product
If a barcode isn't available, you can search for the product manually.
For example, if a customer is buying a specific phone accessory, you can search the product name in the POS.
Select the Product From the Screen
Some businesses have frequently sold items displayed directly on the POS interface.
This is especially useful for restaurants and cafés.
Instead of scanning products, employees can tap:
Burger → Large → Add Cheese → Iced Tea
The POS then calculates the order automatically.
Step 4: Review the Customer's Order
Before collecting payment, review the order.
Check:
- Products
- Quantity
- Price
- Discounts
- Add-ons
- Taxes
- Total amount
This is a simple step, but it's important.
A quick review can prevent problems such as:
- Wrong quantity
- Wrong product
- Incorrect discount
- Missing item
- Incorrect price
A few seconds of checking can save you from correcting a transaction later.
Step 5: Apply Discounts and Promotions
If your business offers discounts, apply them before collecting payment.
Depending on your setup, your POS may support:
- Percentage discounts
- Fixed-amount discounts
- Product promotions
- Customer-specific discounts
- Senior Citizen discounts
- PWD discounts
- Promotional pricing
For Philippine businesses, make sure your discount configuration follows the applicable requirements for your business.
Don't simply create random discount buttons because they're convenient.
Your POS configuration should reflect your actual pricing and compliance procedures.
Step 6: Choose the Payment Method
Once the order is complete, select the customer's payment method.
Common options include:
- Cash
- Credit card
- Debit card
- QR payments
- E-wallets
- Other supported digital payments
For cash payments, enter the amount received.
For example:
Total: ₱850
Customer gives: ₱1,000
The POS can calculate:
Change: ₱150
This reduces the need for manual calculations.
For digital or card payments, follow the instructions displayed by your payment terminal or integrated payment system.
Step 7: Complete the Transaction
Once payment has been successfully processed, complete the sale.
The POS should record the transaction.
Depending on your system, it may also:
- Deduct inventory
- Record payment information
- Update sales reports
- Save customer information
- Record employee activity
The transaction is now part of your business data.
Modern POS systems can bring sales, inventory, customer, and payment information together instead of keeping each record separately.
Step 8: Give the Customer a Receipt
After completing the sale, provide the customer with their receipt.
Depending on your setup, this may be:
- Printed receipt
- Digital receipt
- Email receipt
- SMS receipt
For businesses subject to Philippine tax and invoicing requirements, make sure your POS setup and receipt/invoice process are configured appropriately.
The BIR's Revenue Regulations No. 11-2025 addresses electronic invoicing and electronic sales reporting requirements, including provisions affecting taxpayers using POS systems. Businesses should verify the requirements applicable to their specific setup.
You can also read our guide to a BIR-accredited POS system in the Philippines for more information.
How to Use a POS System for Inventory
One of the biggest advantages of using a POS system is inventory management.
Instead of manually updating a spreadsheet after every sale, your POS can automatically record inventory movements based on transactions.
For example, imagine your store has:
100 bottles of juice
A customer buys 3.
After the transaction, your POS may show:
97 bottles remaining
This gives you a much clearer view of your stock.
Monitor Low Stock
Many POS systems can alert you when products reach a certain stock level.
For example:
Low Stock: 5 units remaining
You can then reorder before the product completely runs out.
Check Product Performance
Your reports can also show which products are selling quickly and which ones are sitting on the shelf.
This information can help you make better purchasing decisions.
Manage Multiple Branches
If you operate multiple stores, centralized inventory management becomes even more useful.
Instead of asking every branch for a manual inventory report, you can use the POS system to monitor stock across locations.
How to Use a POS System in a Restaurant
Restaurants use POS systems a little differently from traditional retail stores.
Instead of scanning barcodes, employees usually select menu items.
A typical restaurant transaction might look like this:
Customer orders → Staff enters order → Kitchen receives order → Food is prepared → Customer pays → Sale is recorded
A restaurant POS system in the Philippines may also support:
- Table management
- Menu management
- Modifiers
- Add-ons
- Dine-in orders
- Takeout orders
- Delivery orders
- Kitchen printers
- Kitchen displays
- Inventory
- Employee management
- Sales reports
Using a Kitchen Display System
If your restaurant uses a Kitchen Display System (KDS), orders can be sent digitally to the kitchen.
For example:
A cashier enters:
Chicken Burger + Fries + Iced Tea
The order can appear on the kitchen display.
Kitchen employees can then prepare the order and update its status.
This can help reduce reliance on handwritten tickets and verbal communication.
How to Use a POS System for Retail Stores
Retail businesses typically rely heavily on product catalogs, barcodes, inventory, and customer transactions.
A typical retail workflow looks like this:
Scan product → Review cart → Apply discount → Accept payment → Print receipt → Update inventory
If you're running a clothing store, grocery store, convenience store, electronics shop, or specialty store, a POS system for retail stores can help organize these processes.
For larger stores, you may also want:
- Product variations
- SKU management
- Barcode management
- Purchase orders
- Supplier management
- Stock transfers
- Stock adjustments
- Multi-branch inventory
- Customer profiles
- Sales analytics
How to Use a Mobile POS System
A traditional POS is usually located at a checkout counter.
A mobile POS system gives you more flexibility because sales can be processed using portable hardware such as tablets, smartphones, or dedicated mobile POS terminals.
This can be useful for:
- Restaurants
- Food stalls
- Pop-up stores
- Events
- Retail sales floors
- Delivery businesses
- Small businesses
For example, a restaurant employee can take an order directly at the customer's table instead of writing it down and returning to the cashier.
A retail employee could also check product information or complete a transaction directly on the sales floor.
How to Use POS Reports
Once you've processed several transactions, your POS becomes a valuable source of business information.
Instead of only asking:
"How much did we sell today?"
You can start asking:
- Which products sold the most?
- Which employee processed the most transactions?
- Which branch performed better?
- What were today's total sales?
- Which payment methods were used?
- Which products are running low?
- What time of day had the highest sales?
Common reports include:
Daily Sales Report
Shows sales activity for a particular day.
Product Sales Report
Shows which products are selling and how frequently.
Inventory Report
Shows available stock and inventory movement.
Employee Report
Provides information about employee transactions and activity.
Payment Report
Shows transactions grouped by payment method.
These reports can help business owners make decisions based on actual sales data rather than guesswork.
How to Close Your POS at the End of the Day
Using a POS isn't finished when the last customer leaves.
You also need to properly close your shift or register.
Count the Cash
Count the physical cash in the drawer.
Compare Expected and Actual Cash
Compare the physical amount with what the POS says should be there.
If there's a difference, investigate it.
Review Transactions
Check for:
- Voided transactions
- Refunds
- Discounts
- Cancelled orders
- Unusual transactions
Review Sales Reports
Take a quick look at your daily sales report.
You don't necessarily need to study every number every night, but reviewing the basics can help you spot unusual activity.
Close the Register
Follow your POS provider's closing procedure to finalize the shift.
A proper closing process helps keep your records organized.
Shopify's current POS guidance similarly recommends counting the drawer, reconciling discrepancies, closing the register, and reviewing sales reports at the end of a session.
Common Mistakes When Using a POS System
Even a good POS system can cause problems if it's configured or used incorrectly.
Here are some common mistakes to avoid.
Giving Everyone Administrator Access
Only authorized employees should have access to sensitive settings.
Not Training Employees
Don't assume employees will automatically know how everything works.
Give them practical training.
Skipping Test Transactions
Always test your system before opening.
Try different payment methods and transaction scenarios.
Ignoring Inventory
Don't use your POS only as a cash register.
Take advantage of its inventory features if they're available.
Not Reviewing Reports
A POS generates valuable business information.
If you never look at your reports, you're missing one of the main benefits of the system.
Failing to Prepare for Internet Problems
Internet interruptions can happen.
If your business depends heavily on internet connectivity, ask your POS provider whether offline transactions or other backup options are available.
How to Train Employees to Use a POS System
Your employees don't need to understand every technical detail.
They simply need to know how to perform the tasks relevant to their role.
Training should cover:
- Logging in
- Starting a transaction
- Adding products
- Applying authorized discounts
- Accepting payments
- Printing receipts
- Processing returns
- Handling common errors
- Closing a shift
For managers, training can also include:
- Sales reports
- Inventory management
- Employee permissions
- Product management
- Discounts
- Branch monitoring
It's also helpful to create a simple internal guide.
For example:
Problem: Receipt printer isn't working.
Step 1: Check the paper.
Step 2: Check the connection.
Step 3: Restart the printer if necessary.
Step 4: Contact support if the issue continues.
Simple instructions like these can save time during busy hours.
How to Choose a POS System
If you haven't purchased a POS system yet, don't choose based on the machine's appearance alone.
Look at the entire system.
Consider:
Business Type
A restaurant has different requirements from a pharmacy or retail store.
Features
Identify the features you actually need.
Hardware
Check whether the provider offers compatible and reliable hardware.
Inventory
If inventory is important to your business, make sure the system can handle your product structure.
Reporting
Look for reports that help you understand your business.
Payment Integration
Check which payment methods and integrations are supported.
Offline Capability
Consider what happens when your internet connection is interrupted.
Support
Ask how technical support works and how quickly you can get help.
Pricing
Look at the total cost, including software, hardware, installation, support, and additional modules.
You can also research different POS system providers in the Philippines before making your decision.
How Divergent POS Can Help
For Philippine businesses, Divergent POS provides POS solutions designed for different industries, including restaurants, cafés, retail stores, grocery businesses, pharmacies, salons, spas, laundries, and other businesses.
The system can help businesses manage areas such as:
- Sales
- Inventory
- Payments
- Employee management
- Reporting
- Multiple branches
- Business operations
Divergent POS also offers cloud-based and on-premise POS options depending on the business setup.
If you're comparing systems, you can also check the latest Divergent POS pricing to see the available plans and options.
The important thing is to choose a system that fits the way your business actually operates.
Frequently Asked Questions
How do you use a POS system step by step?
Log in, start your register, add products to the transaction, review the order, apply discounts if applicable, select the payment method, complete the payment, issue the receipt, and close the register at the end of the shift.
Can I use a POS system without internet?
Some POS systems support offline transactions, but this depends on the provider and setup. Ask your POS provider how offline transactions work and how data is synchronized once connectivity returns.
What equipment do I need for a POS system?
Depending on your business, you may need a POS terminal, touchscreen, barcode scanner, receipt printer, cash drawer, payment terminal, tablet, or kitchen display.
Is a POS system difficult to learn?
Most modern POS systems are designed to be relatively straightforward for employees. Proper setup and training can make the learning process much easier.
Can a POS system manage inventory?
Yes. Many modern POS systems can track products, stock levels, inventory movements, and low-stock items.
Can a POS system be used in a restaurant?
Yes. Restaurant POS systems can support menu management, table orders, modifiers, kitchen operations, payments, inventory, and reporting.
Final Thoughts
Learning how to use a POS system doesn't have to be complicated.
The basic workflow is simple:
Log in → Add products → Review order → Apply discounts → Accept payment → Issue receipt → Update records → Close shift
The real value comes from everything happening behind that transaction.
A good POS system can connect sales, inventory, payments, employees, and reports in one place. That means less manual work and better visibility into what's happening in your business.
If you're still comparing options, take the time to look beyond the POS machine itself. Consider the software, features, hardware, support, pricing, inventory tools, reporting, payment integrations, and compliance requirements.
And if you're looking for a POS solution built for Philippine businesses, you can explore what Divergent POS has to offer and request a demo for your business.
Helpful External Resources
For additional reading, you can also explore Shopify's guide on how to use a POS system, which covers the basic retail POS workflow from logging in and processing sales to payments and closing procedures.
Square also provides an overview of what a POS system is and how it works, including common hardware, software, payment, and inventory functions.
For Philippine businesses, it's also useful to review the latest BIR POS and electronic invoicing requirements and confirm which requirements apply to your business and POS setup.
