TRANSACTION
PROCESSING SYSTEMS
contents
Introduction
Transaction processing cycle
Data entry process
Transaction processing activities-two
ways
Data maintenance
Document and report generation
Inquiry processing systems
Transaction Processing
Systems
Transaction processing systems(TPS) are
information systems that process data
resulting from the occurrence of business
transactions. This play a vital role in
supporting the operations of an organisation.
ex; withdrawal of money
Transaction Processing Cycle
The five stages cycle of TPS are ;
1. Data entry activities
2. Transaction processing activities
3. File and database processing activities
4. Document and report generation
5. Inquiry processing activities
Transaction
processing
Document and
Batch report
Data entry
Online/real generation
time
database
maintenance Inquiry
processing
Data Entry Process
The input activity in transaction processing systems
involves a data entry process. In this process, data are
captured or collected by recording, coding and editing
activities.
Traditional data entry;
This method rely on the end user of an information system
to capture data on source documents. These source
documents are then usually accumulated in to batches and
it is periodically entered into a computer system.
Source data automation;
use of automated methods of data entry
are called source data automation.
reduce many of the activities, people,
and data media.
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Example; sales transaction processsing
•Captures data as early as possible after a transaction or other event
occurs by using data entry terminals.
•Captures transaction data as close as possible to the source that
generates the data. Salespersons at data entry terminals capture and
edit data right on the sales floor .
• captures data by using machine-readable media initially (bar-coded
tags and magnetic, or mag , stripe credit cards), instead of preparing
written source documents.
• Captures data that rarely changes by prerecording it on machine-
readable media, or by storing at in the computer system.
• Captures data directly without the use data media by optical scanning
of bar code package
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.
(2)real time processing ,where data are
processed immediately after a transaction
occurs.
Batch processing
Gathering source documents originated by
business transactions such as sales orders and other
information's, into groups called batches.
Recordingtransaction data on some type of input
medium such as magnetic disks or magnetic tape.
Sorting the transactions in a transaction file in the
same sequence as the records in a sequential
master file.
Processing transaction data creating an updated
master file and variety of documents.
Example; Batches of deposited checks
are accumulated and processed daily in
the
b banking
R industry
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Real Time processing
This capability allows transaction data to be
processed immediately after they are
generated and can provide immediate output
to end users. Full fledged realtnime systems
for transaction processing are popularly
called online transaction processing.
It depends on the internet, extranet and
other networks to provide
telecommunications link between the
transaction terminals, client PC’s servers and
other computers.
Real time order
processing
order Corporate
databases
processing
Supermark Customer
Oracle and databases
et buyers
DBMS inventory Finished
PC’s goods
control
inventory
programs database
Document and final report
generation
1. Generation of information products such as
documents and reports.
2. Transaction documents:
Action documents.
Information documents.
Turnaround documents.
Action documents: these are documents
that initiate actions or transactions on the part
of their recipient .ex;purchase order
Information documents: these
documents relate, confirm, or prove to their
recipient that transactions have occurred. ex;
sales receipts, sales order conformations
Turnaround documents: transaction
documents are designed to be read by
magnetic or optical scanning equipment.
Inquiry processing
Itcan be provided by either batch or real
time processing.
making inquiries and receive responses
concerning the results of transaction activity.
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