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Transactions

Transaction processing systems (TPS) are used to process routine business transactions like orders, payments, and payroll. TPS ensure accuracy and integrity as they process large volumes of data in real-time or in batches. They maintain databases, generate documents and reports, and allow for inquiry of transaction information. Key objectives of TPS are to accurately process transactions, maintain data integrity, and produce timely information to support business operations.

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113 views16 pages

Transactions

Transaction processing systems (TPS) are used to process routine business transactions like orders, payments, and payroll. TPS ensure accuracy and integrity as they process large volumes of data in real-time or in batches. They maintain databases, generate documents and reports, and allow for inquiry of transaction information. Key objectives of TPS are to accurately process transactions, maintain data integrity, and produce timely information to support business operations.

Uploaded by

anju
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Transactions

Transactions
Basic business operations such as customer orders,
purchase orders, receipts, time cards, invoices, and
payroll checks in an organization

Transaction processing systems (TPS)


Perform routine operations and serve as a
foundation for other systems

ITEC 1010

Information and Organizations

Value of TPS
Efficiency

Paperless Transactions
Reduce manual data entry (errors)
Speed up transaction process
Elimination of redundant steps

ITEC 1010

Information and Organizations

Objectives of TPS

ITEC 1010

Process data generated by and about transactions


Maintain a high degree of accuracy
Ensure data and information integrity and accuracy
Produce timely documents and reports
Increases labour efficiency
Help provide increased and enhanced service
Help build and maintain customer loyalty
Achieve competitive advantage

Information and Organizations

The Major Characteristics of TPS

Large amounts of data are processed.

Large storage (database) capacity is required.

High processing speed is needed due to the high volume.

TPS basically monitors and collects past data.

A high level of accuracy, data integrity, and security is needed.

High reliability is required.

Inquiry processing is a must.

ITEC 1010

Information and Organizations

Data Processing Activities


Common to TPSs
A transaction processing cycle
Data collection
Data editing
Data correction
Data manipulation
Data storage
Document production

ITEC 1010

Information and Organizations

Original data
Data
collection
Data
edit

Data
correction

Data
manipulation
Data
storage
Document
production

ITEC 1010

Information and Organizations

Batch vs. On-Line Transaction


Processing
Two types of TPS:

Batch processing
A system whereby business transactions are
accumulated over a period of time and prepared
for processing as a single unit or batch

On-line transaction processing (OLTP)


A system whereby each transaction is processed
immediately, without the delay of accumulating
transactions into a batch
ITEC 1010

Information and Organizations

Batch Processing

Transaction
Data

Trans.
File

Data
Processing

Old
Master
File

ITEC 1010

Information and Organizations

Documents/
Reports

New
Master
File

On-line
Terminal
Terminal

Terminal

Output

Immediate
processing
of each
transaction

Terminal

Terminal
Terminal

ITEC 1010

Information and Organizations

Processing Cycle

ITEC 1010

Information and Organizations

Processing Cycle
Data Entry
Collecting and capturing transactions
No longer manual

ITEC 1010

Information and Organizations

Processing Cycle
Transaction Processing
Transactions can include:

Banking, Financial, Stocks, etc.


Purchases & Orders (phone, Internet, direct)
from Airline reservations to Toll Booth
Operations

ITEC 1010

Information and Organizations

Processing Cycle
Database Maintenance
TPS helps ensure the databases are up-todate and correct.
Multiple databases
A single purchase

decreases quantity Inventory Database


decrease credit Credit Card Database
increase sales Sales Database
ITEC 1010

Information and Organizations

Processing Cycle
Document/Report Generation
Examples
purchase orders
pay checks
sales receipts
invoices
bank statements

ITEC 1010

Information and Organizations

Processing Cycle
Inquiry Processing
Examples
when was a purchase made
does a customer have any credits on their account
was an item scheduled for delivery
was a package signed for

ITEC 1010

Information and Organizations

TPS Applications
Order Processing
Purchasing
Accounts Receivables & Accounts
Payables
Receiving & Shipping
Inventory on Hand
Payroll
General Ledgers
ITEC 1010

Information and Organizations

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