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Transaction Processing System

This document provides an overview of transaction processing systems (TPS). It defines TPS as systems that record, process, validate and store business transactions for future use. The document outlines the meaning and characteristics of TPS, including rapid response, reliability, and treating all transactions equally. It also describes the two main types of TPS: real-time processing and batch processing. Finally, it lists the major functional areas that TPS supports, such as sales, marketing, production and finance.

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Mohammed Jaffer
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76 views

Transaction Processing System

This document provides an overview of transaction processing systems (TPS). It defines TPS as systems that record, process, validate and store business transactions for future use. The document outlines the meaning and characteristics of TPS, including rapid response, reliability, and treating all transactions equally. It also describes the two main types of TPS: real-time processing and batch processing. Finally, it lists the major functional areas that TPS supports, such as sales, marketing, production and finance.

Uploaded by

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

System

P r e p a r e d b y : M u h a m m e d J a ff e r
Peshawa Saeed khdir
Hazhar Jamal

Supervisor : M r s . N a j a t Yo h a n a D a n h a
2020 - 2019
OUTLINE
o Introduction
o Meaning
o characteristics
o Types of transaction processing system
o Functional areas of transactional processing system
o Purpose of TPS

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INTRODUCTION
 Generally every business involves transactions , that is when ever
people make an exchange it is called as transaction.
 Transaction processing system supports day to day operations of the
business.

 Examples of transactions include:


o purchases at store
o withdrawing money from bank
o making payments

This system help the companies to conduct the operations and keep track of activities
It was first developed in 1950 in accounting departments of major corporation

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MEANING
 The primary purpose of transaction processing system is to record, process,
validate, and store transactions that take place in the various functional
areas of a business for future retrieval and use.

 Transaction processing system is a cross functional information system


that process data resulting from the occurrence of business transactions.

example:
MC Donald's which sells a large number of hamburgers every day orders raw materials
from its suppliers each time the company places an order with a supplier, a
transaction occurs and TPS records information such as name, address, credit rating,
invoice amount etc.

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CHARACTERISTICS

 Rapid response fast performance with rapid results.

 Reliability well designed backup and recovery with a low failure rate.

 Inflexibility treat every transaction equally.

 Controlled processing maintain specific requirement for the roles and


responsibilities of different employees.

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CHARACTERISTICS
Transaction processing qualifiers

 Atomicity

 Consistency

 Isolation

 durability

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Characteristics of TPS
The processing of transaction is vital for the success of any enterprise.

In the face of advancing technology customer demand for immediate


action.

TPS systems are designed to process transactions virtually and instantly to


ensure that customer data is available whenever they require it.

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Information Systems Engineering Department
steps in processing a transaction
 Data entry
 Data Capture
 Data validation
 Processing and revalidation
 Storage
 Output generation
 Query

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Types of Transaction Processing System

 Real Time Processing

 Batch-processing system

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Real Time Processing
 Real time processing is where all details of the transaction are recorded
and changed at the time as it occurs

 Ex:- ATM’s

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Real Time Processing :-
 Advantages
 Error correction can be immediate
 Data is processed as demand
 No time delay

Disadvantages
 Standardization may not exist or may be more difficult
 Processing needs make control difficult
 System hardware and software is expensive
 Security is critical

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Batch-processing system:-
 This is a second type of TPS, where transactions are grouped together
and processed as a unit.

 Ex:- cheque processing system in a banks.

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Batch-processing system:-
 Advantages
 control over time of processing
 Standardization
 Reduced setup and processing costs

Disadvantages
 time delay in gathering data , storing and bulk processing
 Operation cost may increase
 Only identical data is processed in one batch
 Errors are corrected after the processing of data

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FUNCTIONAL AREAS
SALES/MARKETING PRODUCTION SYSTEM FINANCE HR
SYSTEM
MAJOR BUDGETING PAY ROLLS
FUNCTIONS MARKET RESEARCH PURCHASING BILLING BENEFITS
OF SYSTEM PROMOTION SHIPPING COST COMPENSATION
PRICING ENGINEERING ACCOUNTING
NEW PRODUCT OPERATIONS
SCHEDULING

SALES ORDER MATERIAL RESOURCE SYSTEM BUGETING LABOUR RELATIONS


MAJOR
APPLICATION MARKET RESEARCH QUALITY CONTROL SYSTEM FUND EMPLOYEE RECORDS
AREAS SYSTEM PURCHASE ORDER SYSTEM MANAGEMENT CAREER PATH SYSTEM
SYSTEM
PRICING SYSTEM PERSONNEL PLANNING
SYSTEM

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Purpose of TPS

 To keep records about the state of the organization.

To process transaction that affects the record.

To produce output that reports on transaction that have occurred.

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Thank You.

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