Today Software - Corporate Controller

            (Integrated Retail Management System - Design and Benefits)

Front End Systems First

Most Accounting Systems are designed as horizontal market packages written with a top down approach. Their strengths are in the power and integration of the financial modules. Their weaknesses are in the integration of the middle and lower levels, when used in environments that deal with volume transactions and require specialised front end systems designed for that market.

Today Software’s systems are written with a bottom up approach designed primarily for the retail and distribution markets. Before any retail system can be interfaced to an accounting system, it must first deliver the day to day operational tools that provide the retailer with the flexibility to promote their individuality and enhance their competitive capabilities and points of difference.

Today Software’s approach was to first develop a powerful, flexible and robust POS system. POSperfect II provides this and encompasses Point of Sale, Inventory Control, CRM, Accounts Receivable, and other specialised retail system modules.

For a simple small store environment, even some accounting package provide basic POS functionality. However, in multi-branch, high volume sales, and specialised retail store environments, accounting packages simply do not have the speed, flexibility and user interfaces suited to the shop-front operation.

Information Accuracy Paramount

Before an accounting system can be interfaced to a retail system, the retail systems information must be accurate. That is by far the most difficult challenge of retail management as it relies on people, often with limited skills and experience, to perform tasks that significantly impact on the accuracy of the information. An effective retail system must therefore have the ease of use, flexibility and controls that minimise the exposure to incorrect operation and dishonesty.

The Purchasing Cycle

A retail management system must also minimise the labour intensive tasks such as those within the purchasing cycle, i.e. Purchase Ordering, Stock Receipting, Accounts Payable, Stocktaking and Product Line performance reporting. These functions span a significant number of staff responsibilities, but in order to avoid costly double handling and double checking, the systems must be integrated and provide an automated data path between the modules.

It is this Purchasing cycle where most retail systems fail. Especially where the Accounting system and Retail system are purchased as separate packages. Most small to medium size retailers end up with a gap that is very difficult to bridge. Many IT budgets are drained through vain attempts to do so. In the end the user has a unique expensive hybrid system that carries a high maintenance cost.

Systems Integration the Key

The reason these systems fail is integration. Sales and Accounts Receivable need to be integrated, as do Purchasing, Stock Receipting and Accounts Payable. Where these modules are split across two different systems, integration is lost!

In order to achieve good stock control, accountability is critical, so each branch should be accountable for their stock. The traditional architecture was an online system with  branch terminals online to a Corporate Server. This is the simplest architecture but it means the Corporate Server must hold all stock information, so there is then the demand for online sales transaction processing in order to have up to date stock information. But online transaction processing does not have the performance and redundancy that is demanded in most checkout environments. PC POS Technology has provided that.

Corporate Controller – Integrated Systems

POSperfect II and the Corporate Controller systems provide a complete suite of POS, Retail Management and Accounting applications. These systems are not heavyweights when compared to highly specialised Merchandising, Distribution and Accounting systems, but their power is their integration and design to efficiently manage the challenging multi-branch retail  environment.

Eliminate Double Entry, Increases Accuracy and Reduce Staff Work-loads

The Corporate Controller comprises an extensive suite of retail management modules encompassing centralised maintenance, inventory management, reporting and accounting. One of the advanced features is the Central Purchasing module. This provides automatic (or manual) generation of single, or consolidated multi-branch, purchase ordering. Purchase orders are automatically and electronically downloaded to the branch systems for easy receipting when the stock is delivered.

Stock receipting functions then automatically update the central purchasing system so Accounts Payable staff can efficiently reconcile the deliveries against suppliers invoices. Invoice details are automatically created from the original Purchase Order and Branch Receipting, so there is no paper work or double entry. From the original Purchase Order or from the Vendors Invoice, the AP clerk can drill down to see the stock line details and costs for each store’s delivery.

Inter-branch Transfers (IBT)  Control

Store to Store Transfers are similarly managed being created once only (normally at the source store) and electronically transferred to the destination system for easy checking and receipting. The Corporate Controller provides Inventory in Transit Reporting to detect transfers where the stock receipted does not match the stock transferred.

Financial Applications

The Sales interfaces provide for customer and account transactions and enquiries at POS, interfaced to the central debtors ledger in the Corporate System. The system can be configured to receive payments at the branch or directly into the Corporate Controller.

The General Ledger is integrated with all systems. The Accounting administrator may post each store’s stock, sales, debtors and creditors transaction data for any given period. Data can be reposted multiple times if necessary.

One of the key benefits of a fully integrated system is the ability to drill down from the Accounting modules through successive layers to individual POS transactions and stock movements. The Corporate Controller offers this level of integration and functionality.

Summary

The Corporate Controller combined with the POSperfect branch system is ideal for medium and large retail chains (5-100 stores) that demand a high level of integration. While the individual modules such as merchandising and accounting are not intended to compete with high end specialised applications, the advantage of the Corporate Controller is integration and cost. An end to end system supported by one organisation provides major cost savings in both the initial implementation and the ongoing support and maintenance of the system. 

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