Transaction Processing System

1. TPS
Dr. Kamal Gulati

2. Transaction Processing
Systems
 What is a TPS?
 Characteristics of TPS
 a Transaction Processing Model
 POS(Point Of Sale) Transaction Processing
System
 Batch Processing vs. On-line Processing
 TPS Applications

3. What is a TPS?
 an information system designed to process routine
business transactions
 seeks time- and cost-efficiency by automating
repetitive operations in large volumes
 interfaces with an organization’s other information
systems, such as IRS, DSS, EIS
 centers around accounting and finance transactions
 e.g,, airline reservation systems, order
entry/processing systems, bank’s account processing
systems

4. The Major Characteristics of TPS
 Large amounts of data are processed.
 The sources of data are mostly internal, and the output is intended mainly for an
internal audience.
 The TPS processes information on a regular basis: daily, weekly, monthly, etc.
 Large storage (database) capacity is required.
 High processing speed is needed due to the high volume.
 TPS basically monitors and collects past data.
 Input and output data are structured (i.e., standardized).
 Low computation complexity is usually evident in TPS.
 A high level of accuracy, data integrity, and security is needed.
 High reliability is required.
 Inquiry processing is a must.

5. Data Input Data Processing Output Generation
Data Storage
A Transaction Processing Model

6. Barcode Scanner
POS
TPS
UPC
Product
DB
Inventory
DB
Information
Reporting System
Customer
Receipt
Exception
Reports
UPC Price
UPC &
Quantity
Product, Quantity,
Date, Time,
Price
POS(Point Of Sale) TPS
Purchasing
DB
Quantity,
Date,
Time

7. Transaction
Data
Data
Processing
Trans.
File
New
Master
FileOld
Master
File
Documents/
Reports
Batch Processing

8. On-line Processing
On-line
Data
Processing
Documents/
Reports
Transaction
Data
Inquiries/
Reponses
Transaction
Data
Transaction
Data

9. TPS Applications
 Order Processing
 Purchasing
 Accounts Receivables & Accounts Payables
 Receiving & Shipping
 Inventory on Hand
 Payroll
 General Ledgers