Lesson4 Transaction

7/29/2019 Lesson4 Transaction

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Transaction Processing System


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TransactionAn exchange involving goods or services


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Computerized system that performs and records the daily routine

transactions necessary to conduct the business; these systems

serve the operational level of the organization

Information system used to support and record transactions

TPS is the backbone of an organizations information systems.

It monitors, collects, stores, processes & disseminatesinformation for all routine core business transactions.

Transaction Processing Systems (TPS)


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Transaction Processing System Functions

Input function Capture input data

Enter input data Validate input data

Processing function: perform computation

make decision

Output function: produce screen output

print output

Storage function: stored data

Access data

Update data


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Data entry & input

ProcessingDocuments

& reports

Database

Internally generatedtransactions:

shipped orders

purchase orders

employee time cards

Externally generatedtransactions:

customer orders

vendor invoices

customer payments

Database update:

customer orders

inventory purchase orders

customers

suppliers

Documents:

pick list

cheques to vendors

receiving notices

paycheques

Operational reports:

finished productinventory status

raw materials; packingmaterials; spare parts;inventory status


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DATABASE MAINTENANCEA major activity of transaction processing systems.

An organizations database must be maintained by its

transaction processing system so that they are

always correct and up-to-date.


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1.Data collection(DataEntry

Traditional DataEntry

Source Data Entry2. Data editing

3. Data correction

4. Data manipulation

5. Data storage

The Transaction Processing Cycle


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The system then processes data in one of the following

ways:

Batch processing

the firm collects data from transactions as theyoccur, placing them in groups or batches. The

system then processes the batches periodically

Online processing

data are processed as soon as a transaction

occurs.

Hybrid system

collects data as they occur but process them at

specified intervals.

Transaction Processing Types


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Performance Continuous availability.

Data integrity

Ease of use

Modular growth

Transaction Processing System Features


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Order processing systemSupports the sales of goods or services to

customers

Purchasing system

Supports the purchase of goods and raw

materials from suppliers.

Different Transaction Processing for Different Needs


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Primary goal of TPS To provide all the information needed by law and/or

by organizational policies to keep the business

running properly and efficiently.

Objectives of TPS


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Specific objectives of a TPS

To allow for efficient & effective operation of the

organization.

To provide timely documents and reports.

To increase the competitive advantage of thecorporation.

To provide the necessary data for tactical & strategic

systems, such as Web-based applications.

To ensure accuracy & integrity of data & information. To safeguard assets & security of information.

Objectives of TPS


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To Keep records about the state of theorganization

To process transactions that affects the record.

To produce output that reports on transactions

that have occurred

The Purpose of TPS


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1. Action Documents2. Information Documents

3. Turnaround Documents

4. Control Listings

5. Edit Reports

DOCUMENT AND REPORT GENERATION


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Questions?Clarifications?