This document discusses transaction processing systems (TPS). It defines a TPS as an information system that processes large volumes of routine business transactions like orders and payments in a time- and cost-efficient manner. The document outlines key characteristics of TPS like high data volumes, structured data, accuracy, and reliability. It also describes common TPS applications, and contrasts batch and online processing models. A TPS model is presented showing typical data input, processing, storage and output functions.

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