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Functional Business Systems: Transaction Processing Cycle

Transaction processing systems capture business transaction data, process it, update organizational databases, and produce various reports. The transaction processing cycle involves: 1) data entry to collect transaction information, 2) transaction processing in batch or real-time modes, 3) database maintenance to update records after transactions, and 4) generation of documents and reports reflecting transaction details. The cycle also allows for inquiry processing so users can check transaction statuses and account balances.

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117 views2 pages

Functional Business Systems: Transaction Processing Cycle

Transaction processing systems capture business transaction data, process it, update organizational databases, and produce various reports. The transaction processing cycle involves: 1) data entry to collect transaction information, 2) transaction processing in batch or real-time modes, 3) database maintenance to update records after transactions, and 4) generation of documents and reports reflecting transaction details. The cycle also allows for inquiry processing so users can check transaction statuses and account balances.

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Enam Pharma
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We take content rights seriously. If you suspect this is your content, claim it here.
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Functional Business Systems

Lecture Notes

Transaction Processing Cycle

Transaction processing systems capture and process data describing business


transactions, update organizational databases, and produce a variety of information
products. You should understand this as a transaction processing cycle of several basic
activities, as illustrated in Figure 7.7.

Data Entry. The first step of the transaction processing cycle is the capture of
business data. For example, transaction data may be collected by point-of-sale
terminals using optical scanning of bar codes and credit card readers at a retail store
or other business. Transaction data can also be captured at an e-commerce Web
site on the Internet.

Transaction Processing. Transaction processing systems process data in two


basic ways: (1) batch processing , where transaction data are accumulated over a
period of time and processed periodically, and (2) real-time processing (also called
online processing), where data are processed immediately after a transaction
occurs. All online transaction processing systems incorporate real-time processing
capabilities.

Database Maintenance. An organizations databases must be updated by its


transaction processing systems so that they are always correct and up-to-date.
Therefore, transaction processing systems serve to assist in maintaining the

Md Nabid Alam NbA Lecturer of MIS


Functional Business Systems
Lecture Notes

corporate databases of an organization to reflect changes resulting from day-to-day


business transactions. For example, credit sales made to customers will cause
customer account balances to be increased and the amount of inventory on hand to
be decreased. Database maintenance ensures that these and other changes are
reflected in the data records stored in the companys databases.

Document and Report Generation. Transaction processing systems produce a


variety of documents and reports. Examples of transaction documents include
purchase orders, paychecks, sales receipts, invoices, and customer statements.
Transaction reports might take the form of a transaction listing such as a payroll
register, or edit reports that describe errors detected during processing.

Inquiry Processing. Many transaction processing systems allow you to use the
Internet, intranets, extranets, and Web browsers or database management query
languages to make inquiries and receive responses concerning the results of
transaction processing activity. Typically, responses are displayed in a variety of
prespecified formats or screens. For example, you might check on the status of a
sales order, the balance in an account, or the amount of stock in inventory and
receive immediate responses at your PC.

Md Nabid Alam NbA Lecturer of MIS

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