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Functionality of TPS 2

The Transaction Processing System (TPS) records, stores, modifies, and retrieves transaction data from a database. A transaction is any business event like a sale, purchase, or payment. TPS maintains information on organizational assets, activities, customers, and inventories. It also generates reports to share performance details with management and external parties. TPS promotes communication across organizational departments by providing shared access to up-to-date transaction information. It adheres to industry and legal regulations regarding data protection, accounting, and more.

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14 views

Functionality of TPS 2

The Transaction Processing System (TPS) records, stores, modifies, and retrieves transaction data from a database. A transaction is any business event like a sale, purchase, or payment. TPS maintains information on organizational assets, activities, customers, and inventories. It also generates reports to share performance details with management and external parties. TPS promotes communication across organizational departments by providing shared access to up-to-date transaction information. It adheres to industry and legal regulations regarding data protection, accounting, and more.

Uploaded by

danesh baba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Functionality of TPS

The information system known as Transaction Processing System, or TPS for short, is used to
store, modify, retrieve, and compile transaction data. A transaction is any business event, like
a sale, purchase, payment, or transfer, that has an impact on an organization's resources or
activities. TPS has a variety of forms, elements, and advantages and can be applied to both
online and offline transactions.

Some of the functionalities of TPS is to record internal and external transactions of an


organization in a database. It is beneficial to maintain tabs on the organization's assets and
activities, including cash flow, suppliers, customers, and inventories. Adhering to the
regulations and guidelines set out by the government, business, or society facilitates
compliance with legal and regulatory requirements and standards.

Another one of the functionalities is editing and validating data. Through checks, updates,
and corrections, it contributes to ensuring the transaction data's consistency, accuracy, and
completeness. By lowering the volume, intricacy, and redundancy of the data, it aids in
improving the system's performance and efficiency.

Next, TPS can be used to generate reports and summaries of transaction data for management
and external parties. To share information on the organization's performance and
advancement, including sales, income, costs, and profitability. For example, Transaction
Detail Report for Sales by Customer which provides information on each sales transaction
broken down by customer, including the date, invoice number, item, quantity, price, and
amount. It can be applied to the analysis of product demand, consumer behavior, and sales
performance.

TPS is also used to promote cooperation and communication between an organization's many
departments and functions. Improve the caliber and effectiveness of the goods and services
while cutting down on mistakes and hold-ups. To ensure that many departments and
functions have access to and use of the same, up-to-date information such as inventory,
customers, or employees. TPS shares and integrates transaction data throughout the system.
This promotes correctness and dependability by preventing data duplication, inconsistency,
and conflicts.
Moreover, TPS is also used to adhere to norms and regulations set forth by law and
regulation. To safeguard the interests and rights of the company's owners, suppliers, workers,
and other stakeholders, including those related to quality, fairness, privacy, and security.
When recording, editing, validating, and storing transaction data, a TPS complies with
industry, governmental, and societal regulations and policies regarding data protection, tax
compliance, and accounting standards. This helps to prevent mistakes, fraud, or duplication
while also ensuring the transaction data's accuracy, consistency, and completeness.

Lastly, we have concurrency control. To guarantee the accuracy, consistency, and integrity of
the transaction data as well as the effectiveness and efficiency of the system, concurrency
management is essential. For example, When two or more transactions are waiting on one
another to release a resource, such a lock or a data item, and none of them can move forward
or end, this is known as a deadlock. Several techniques, including timeouts, deadlock
avoidance, detection, and prevention, can be used to avoid or end a deadlock.

References

 Indeed Editorial Team. (2022, February 4). What Is a Transaction Processing


System? (Plus Benefits). Indeed Career Guide. https://www.indeed.com/career-
advice/career-development/what-is-transaction-processing-system
 Team, W. (2023, March 2). Transaction Processing System. WallStreetMojo.
https://www.wallstreetmojo.com/transaction-processing-system/
 Database Management System. (n.d.). Retrieved February 18, 2024, from
http://claudiofiandrino.altervista.org/Master_degree/Database_management_system/
concurrency_control.pdf
 White, D. (2019, November 26). Transaction Processing System (TPS) | Techfunnel’s
Complete Guide. Techfunnel. https://www.techfunnel.com/fintech/transaction-
processing-system/

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