SlideShare a Scribd company logo
TRANSACTION PROCESSING SYSTEM
An Overview of the Transactional Processing System




                                                     1
Transaction Processing System (TPS)

• A transaction processing system (TPS) provides data for other
  business processes


   – Management information system/decision support system
     (MIS/DSS)


   – Special-purpose information systems




                                                                  2
Figure 9.1: TPS, MIS/DSS, and Special Information
Systems in Perspective




                                                    3
Transaction Processing System (Continued)

• TPSs


   – Process the detailed data necessary to update records about
     the fundamental business operations


   – Include order entry, inventory control, payroll, accounts
     payable, accounts receivable, the general ledger, and more




                                                                   4
Traditional Transaction Processing
Methods and Objectives

• Batch processing system: method of computerized processing in
  which business transactions are accumulated over a period of time
  and prepared for processing as a single unit or batch


• Online transaction processing (OLTP): computerized
  processing in which each transaction is processed immediately,
  without the delay of accumulating transactions into a batch



                                                                   5
Traditional Transaction Processing
Methods and Objectives Performance Reviews
(Continued)
• Online entry with delayed processing: transactions are entered
  into the computer system when they occur, but they are not
  processed immediately

• Organizations expect their TPSs to:

   – Process data generated for and about transactions

   – Maintain a high degree of accuracy and integrity
                                                              6
   – Produce timely documents and reports
Traditional Transaction Processing
Methods and Objectives Performance Reviews
(Continued)
• Organizations expect their TPSs to (continued):


   – Increase labor efficiency


   – Help provide increased service


   – Help build and maintain customer loyalty


   – Achieve competitive advantage
                                                    7
Figure 9.2: Batch Versus Online Transaction
Processing




                                              8
Transaction Processing Activities

• TPSs

   – Capture and process data that describes fundamental business
     transactions

   – Update databases

   – Produce a variety of reports

• Transaction processing cycle: the process of data collection,
  data editing, data correction, data manipulation, data storage, and
  document production
                                                                    9
Figure 9.5: Data Processing Activities Common to
TPSs




                                                   10
Figure 9.4: A Simplified Overview of a Transaction
Processing System




                                                     11
Transaction Processing Activities (Continued)
• Data collection

   – The process of capturing and gathering all data necessary to
     complete transactions

• Data editing

   – The process of checking data for validity and completeness.

• Data correction

   – The process of reentering miskeyed or misscanned data that
     was found during data editing.
                                                                    12
Transaction Processing Activities (Continued)
• Data manipulation

   – The process of performing calculations and other data
     transformation related to business transaction.

• Data storage

   – The process of updating one or more databases with new
     transactions.

• Document Production

   – The process of generating output records and reports.
                                                              13
Table 9.2: The Systems That Support Order
Processing, Purchasing, and Accounting Functions




                                                   14
Order Processing Systems

• Order entry system: captures the basic data needed to process a
  customer order


• Sales configuration system: ensures that the products and
  services ordered are sufficient to accomplish the customer’s
  objectives and will work well together


• Shipment planning system: determines which open orders will
  be filled and from which location they will
  be shipped
                                                                 15
Figure 9.7: Order Processing Systems




                                       16
Figure 9.8: Data Flow Diagram of an Order Entry
System




                                                  17
Order Processing Systems (Continued)

• Shipment execution system: coordinates the outflow of all
  products from the organization, with the objective of delivering
  quality products on time to customers


• Inventory-control system: updates the computerized inventory
  records to reflect the exact quantity on hand of each stock-keeping
  unit




                                                                     18
Order Processing Systems (Continued)

• An invoicing application looks up the full name and address of the
  customer, determines whether the customer has an adequate
  credit rating, automatically computes discounts, adds taxes and
  other charges, and prepares invoices and envelopes


• Customer relationship management (CRM) system: helps a
  company manage all aspects of customer encounters, including
  marketing and advertising, sales, customer service after the sale,
  and programs to retain loyal customers


                                                                   19
Figure 9.12: Customer Relationship Management
System




                                                20
Order Processing Systems (Continued)

• Routing system: determines the best way to get products from
  one location to another


• Scheduling system: determines the best time to pick up or
  deliver goods and services




                                                                 21
Figure 9.13: Purchasing Transaction Processing
System




                                                 22
Purchasing Systems

• Inventory control


• Purchase order processing system: helps purchasing
  departments complete their transactions quickly and efficiently




                                                                    23
Figure 9.16: Financial Systems




                                 24
Purchasing Systems (Continued)

• Receiving system: creates a record of expected receipts


• Accounts payable system: increases an organization’s control
  over purchasing, improves cash flow, increases profitability, and
  provides more effective management of current liabilities




                                                                      25
Accounting Systems

• Budget transaction processing system: automates many of the
  tasks required to amass budget data, distribute it to users, and
  consolidate the prepared budgets


• Accounts receivable system: manages the cash flow of the
  company by keeping track of the money owed the company on
  charges for goods sold and services performed




                                                                26
Figure 9.17: An Accounts Receivable Statement




                                                27
Accounting Systems (Continued)

• Payroll system prepares:


   – Payroll check and stub


   – Payroll register


   – W-2 statements


• Asset management transaction processing system: controls
  investments in capital equipment and manages depreciation for
  maximum tax benefits                                          28
Accounting Systems (Continued)

• General ledger system: designed to automate financial reporting
  and data entry




                                                               29
Control and Management Issues

• Business continuity planning: identification of the business
  processes that must be restored first in the event of a disaster and
  specification of what actions should be taken and who should take
  them to restore operations


• Disaster recovery: actions that must be taken to restore
  computer operations and services in event of disaster




                                                                    30
Transaction Processing System Audit

• Does the system meet the business need for which it was
  implemented?


• What procedures and controls have been established?


• Are these procedures and controls being used properly?


• Are the information systems and procedures producing accurate
  and honest reports?


                                                                  31
Figure 9.3: Integration of a Firm’s TPSs




                                           32
Transaction Processing System Audit

• Does the system meet the business need for which it was
  implemented?


• What procedures and controls have been established?


• Are these procedures and controls being used properly?


• Are the information systems and procedures producing accurate
  and honest reports?


                                                                  33
International Issues

• Issues that multinational corporations face in planning, building,
  and operating their TPSs


    – Different languages and cultures


    – Disparities in information system infrastructure


    – Varying laws and customs rules


    – Multiple currencies
                                                                       34
“Life is full of uncertainty, just go and deal with it.”

                                            JAYSON C. JUECO
                                       BS Electrical Engineering
                                                        Reporter



                                                             35

More Related Content

What's hot

Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)
Chandan Kumar
 
Chapter 1 introduction to information system
Chapter 1 introduction to information systemChapter 1 introduction to information system
Chapter 1 introduction to information system
AG RD
 
Types o f information systems
Types o f information systemsTypes o f information systems
Types o f information systems
Bimbashree K.G
 
Concepts and components of information system
Concepts  and components of information systemConcepts  and components of information system
Concepts and components of information systemRohit Kumar
 
Transaction processing system
Transaction processing systemTransaction processing system
Transaction processing system
Vidhu Arora
 
Business Process
Business ProcessBusiness Process
Business Process
Saurabh Goel
 
Business information system with explaination
Business information system with explainationBusiness information system with explaination
Business information system with explaination
Alana Abraham
 
Introduction to information system
Introduction to information systemIntroduction to information system
Introduction to information system
PROF.JITENDRA PATEL
 
Management information systems
Management information systemsManagement information systems
Management information systemsnavin1
 
Tps presentation
Tps presentationTps presentation
Tps presentation
kushal arora
 
Transaction Processing System (TPS)
Transaction Processing System (TPS)Transaction Processing System (TPS)
Transaction Processing System (TPS)
Anvesh Sharma
 
Lecture 01 mis
Lecture 01 misLecture 01 mis
Enterprise Systems
Enterprise SystemsEnterprise Systems
Enterprise Systems
Saurabh Goel
 
MIS - IT Infrastructure (Part I)
MIS  - IT Infrastructure (Part I)MIS  - IT Infrastructure (Part I)
MIS - IT Infrastructure (Part I)
Soetam Rizky
 
MIS-CH02: Global e-Business and Collaboration
MIS-CH02: Global e-Business and CollaborationMIS-CH02: Global e-Business and Collaboration
MIS-CH02: Global e-Business and Collaboration
Sukanya Ben
 

What's hot (20)

Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)Foundations Of Information Systems In Business(97 2003)
Foundations Of Information Systems In Business(97 2003)
 
Chapter 1 introduction to information system
Chapter 1 introduction to information systemChapter 1 introduction to information system
Chapter 1 introduction to information system
 
Types o f information systems
Types o f information systemsTypes o f information systems
Types o f information systems
 
Concepts and components of information system
Concepts  and components of information systemConcepts  and components of information system
Concepts and components of information system
 
Transaction Processing System
Transaction Processing SystemTransaction Processing System
Transaction Processing System
 
Transaction processing system
Transaction processing systemTransaction processing system
Transaction processing system
 
The role of information system
The role of information system The role of information system
The role of information system
 
Business information system
Business information systemBusiness information system
Business information system
 
Business Process
Business ProcessBusiness Process
Business Process
 
Business information system with explaination
Business information system with explainationBusiness information system with explaination
Business information system with explaination
 
Introduction to information system
Introduction to information systemIntroduction to information system
Introduction to information system
 
MIS 201 ch1.ppt
MIS 201 ch1.pptMIS 201 ch1.ppt
MIS 201 ch1.ppt
 
Management information systems
Management information systemsManagement information systems
Management information systems
 
Tps presentation
Tps presentationTps presentation
Tps presentation
 
Transaction Processing System (TPS)
Transaction Processing System (TPS)Transaction Processing System (TPS)
Transaction Processing System (TPS)
 
Lecture 01 mis
Lecture 01 misLecture 01 mis
Lecture 01 mis
 
Enterprise Systems
Enterprise SystemsEnterprise Systems
Enterprise Systems
 
MIS - IT Infrastructure (Part I)
MIS  - IT Infrastructure (Part I)MIS  - IT Infrastructure (Part I)
MIS - IT Infrastructure (Part I)
 
Ethical and social issues in information systems
Ethical and social issues in information systemsEthical and social issues in information systems
Ethical and social issues in information systems
 
MIS-CH02: Global e-Business and Collaboration
MIS-CH02: Global e-Business and CollaborationMIS-CH02: Global e-Business and Collaboration
MIS-CH02: Global e-Business and Collaboration
 

Viewers also liked

Transaction processing system
Transaction processing systemTransaction processing system
Transaction processing system
uday sharma
 
Mis lelavati hos (dss,mis.tps)
Mis lelavati hos (dss,mis.tps)Mis lelavati hos (dss,mis.tps)
Mis lelavati hos (dss,mis.tps)17791
 
Information And Decision Support System
Information And Decision Support SystemInformation And Decision Support System
Information And Decision Support System
megat zainurul anuar
 
Mis & Decision Making
Mis & Decision MakingMis & Decision Making
Mis & Decision MakingArun Mishra
 
TPS Characteristics
TPS CharacteristicsTPS Characteristics
TPS Characteristics
bmasawan
 
Office Automation & System
Office Automation & SystemOffice Automation & System
Office Automation & System
currencycountingmachine
 
Office automation system report
Office automation system reportOffice automation system report
Office automation system reportAmit Kulkarni
 
Tps Presentation
Tps PresentationTps Presentation
Tps PresentationApex
 
Management information system
Management information systemManagement information system
Management information systemAnamika Sonawane
 
Transaction processing systems
Transaction processing systems Transaction processing systems
Transaction processing systems greg robertson
 
Advantages and Disadvantages of MIS
Advantages and Disadvantages of MISAdvantages and Disadvantages of MIS
Advantages and Disadvantages of MIS
Neeti Naag
 
Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & control
Bandri Nikhil
 
Office automation system
Office automation systemOffice automation system
Office automation system
Milan Padariya
 
MIS Presentation
MIS PresentationMIS Presentation
MIS Presentation
Dhiren Gala
 
Management Information System (Full Notes)
Management Information System (Full Notes)Management Information System (Full Notes)
Management Information System (Full Notes)
Harish Chand
 
Management information system
Management information systemManagement information system
Management information system
Sikander Saini
 
Decision Support System(DSS)
Decision Support System(DSS)Decision Support System(DSS)
Decision Support System(DSS)Sayantan Sur
 

Viewers also liked (20)

Transaction processing system
Transaction processing systemTransaction processing system
Transaction processing system
 
Mis lelavati hos (dss,mis.tps)
Mis lelavati hos (dss,mis.tps)Mis lelavati hos (dss,mis.tps)
Mis lelavati hos (dss,mis.tps)
 
Information And Decision Support System
Information And Decision Support SystemInformation And Decision Support System
Information And Decision Support System
 
Mis & Decision Making
Mis & Decision MakingMis & Decision Making
Mis & Decision Making
 
TPS Characteristics
TPS CharacteristicsTPS Characteristics
TPS Characteristics
 
Office Automation & System
Office Automation & SystemOffice Automation & System
Office Automation & System
 
Office automation system report
Office automation system reportOffice automation system report
Office automation system report
 
Tps Presentation
Tps PresentationTps Presentation
Tps Presentation
 
Management information system
Management information systemManagement information system
Management information system
 
Transaction processing system
Transaction processing systemTransaction processing system
Transaction processing system
 
Office Automation System
Office Automation SystemOffice Automation System
Office Automation System
 
Transaction processing systems
Transaction processing systems Transaction processing systems
Transaction processing systems
 
Advantages and Disadvantages of MIS
Advantages and Disadvantages of MISAdvantages and Disadvantages of MIS
Advantages and Disadvantages of MIS
 
Office automation sysmtems
Office automation sysmtemsOffice automation sysmtems
Office automation sysmtems
 
Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & control
 
Office automation system
Office automation systemOffice automation system
Office automation system
 
MIS Presentation
MIS PresentationMIS Presentation
MIS Presentation
 
Management Information System (Full Notes)
Management Information System (Full Notes)Management Information System (Full Notes)
Management Information System (Full Notes)
 
Management information system
Management information systemManagement information system
Management information system
 
Decision Support System(DSS)
Decision Support System(DSS)Decision Support System(DSS)
Decision Support System(DSS)
 

Similar to Transaction processing system

ch09.ppt
ch09.pptch09.ppt
ch09.ppt
ShailyDas3
 
Fis 2011-w2
Fis 2011-w2Fis 2011-w2
Fis 2011-w2
oktazia
 
MIS Wk-78.ppt
MIS Wk-78.pptMIS Wk-78.ppt
MIS Wk-78.ppt
NasirMehmood666923
 
Mc leod9e ch08 information in action
Mc leod9e ch08 information in actionMc leod9e ch08 information in action
Mc leod9e ch08 information in action
sellyhood
 
20959.pptx
20959.pptx20959.pptx
20959.pptx
NARESHKUMAR279816
 
Mba ewis ii u ii implementation, evaluation and maintenance
Mba ewis ii  u ii implementation, evaluation and maintenance Mba ewis ii  u ii implementation, evaluation and maintenance
Mba ewis ii u ii implementation, evaluation and maintenance Rai University
 
IS740 Chapter 09
IS740 Chapter 09IS740 Chapter 09
IS740 Chapter 09
iDocs
 
Lecture 3 MIS.pptx
Lecture 3 MIS.pptxLecture 3 MIS.pptx
Lecture 3 MIS.pptx
FarhanaMariyam1
 
managment information system
managment information systemmanagment information system
managment information systemamanuel lemma
 
MIS and TPS
MIS and TPSMIS and TPS
MIS and TPS
Shubham Khandale
 
13 - Building Info Systems
13 -  Building Info Systems13 -  Building Info Systems
13 - Building Info SystemsHemant Nagwekar
 
Decision making with is
Decision making with isDecision making with is
Decision making with is
Online
 
Decision making with information system
Decision making with information systemDecision making with information system
Decision making with information system
Online
 
6. Information Systems in the Enterprise CSE-212.pptx
6. Information Systems in the Enterprise CSE-212.pptx6. Information Systems in the Enterprise CSE-212.pptx
6. Information Systems in the Enterprise CSE-212.pptx
dadiengalfred18
 
Computer chp 10 on books of Nickerson
Computer chp 10 on books of NickersonComputer chp 10 on books of Nickerson
Computer chp 10 on books of Nickerson
Maha Islam
 
Computer chp 10 on books of Nickerson
Computer chp 10 on books of NickersonComputer chp 10 on books of Nickerson
Computer chp 10 on books of Nickerson
Maha Islam
 

Similar to Transaction processing system (20)

ch09.ppt
ch09.pptch09.ppt
ch09.ppt
 
Fis 2011-w2
Fis 2011-w2Fis 2011-w2
Fis 2011-w2
 
Week 6 ch09 c
Week 6 ch09 cWeek 6 ch09 c
Week 6 ch09 c
 
MIS Wk-78.ppt
MIS Wk-78.pptMIS Wk-78.ppt
MIS Wk-78.ppt
 
Mc leod9e ch08 information in action
Mc leod9e ch08 information in actionMc leod9e ch08 information in action
Mc leod9e ch08 information in action
 
20959.pptx
20959.pptx20959.pptx
20959.pptx
 
ITE 101 - Week 3
ITE 101 - Week 3ITE 101 - Week 3
ITE 101 - Week 3
 
Mba ewis ii u ii implementation, evaluation and maintenance
Mba ewis ii  u ii implementation, evaluation and maintenance Mba ewis ii  u ii implementation, evaluation and maintenance
Mba ewis ii u ii implementation, evaluation and maintenance
 
Case mis ch02
Case mis ch02Case mis ch02
Case mis ch02
 
IS740 Chapter 09
IS740 Chapter 09IS740 Chapter 09
IS740 Chapter 09
 
Lecture 3 MIS.pptx
Lecture 3 MIS.pptxLecture 3 MIS.pptx
Lecture 3 MIS.pptx
 
managment information system
managment information systemmanagment information system
managment information system
 
MIS and TPS
MIS and TPSMIS and TPS
MIS and TPS
 
13 - Building Info Systems
13 -  Building Info Systems13 -  Building Info Systems
13 - Building Info Systems
 
Mis lecture 2
Mis lecture 2Mis lecture 2
Mis lecture 2
 
Decision making with is
Decision making with isDecision making with is
Decision making with is
 
Decision making with information system
Decision making with information systemDecision making with information system
Decision making with information system
 
6. Information Systems in the Enterprise CSE-212.pptx
6. Information Systems in the Enterprise CSE-212.pptx6. Information Systems in the Enterprise CSE-212.pptx
6. Information Systems in the Enterprise CSE-212.pptx
 
Computer chp 10 on books of Nickerson
Computer chp 10 on books of NickersonComputer chp 10 on books of Nickerson
Computer chp 10 on books of Nickerson
 
Computer chp 10 on books of Nickerson
Computer chp 10 on books of NickersonComputer chp 10 on books of Nickerson
Computer chp 10 on books of Nickerson
 

Recently uploaded

June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Levi Shapiro
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Atul Kumar Singh
 
Sha'Carri Richardson Presentation 202345
Sha'Carri Richardson Presentation 202345Sha'Carri Richardson Presentation 202345
Sha'Carri Richardson Presentation 202345
beazzy04
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
Sandy Millin
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
Jisc
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
joachimlavalley1
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
MysoreMuleSoftMeetup
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
TechSoup
 
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
BhavyaRajput3
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
camakaiclarkmusic
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
Special education needs
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
DeeptiGupta154
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
Vikramjit Singh
 
How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17
Celine George
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
GeoBlogs
 
Operation Blue Star - Saka Neela Tara
Operation Blue Star   -  Saka Neela TaraOperation Blue Star   -  Saka Neela Tara
Operation Blue Star - Saka Neela Tara
Balvir Singh
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
Jean Carlos Nunes Paixão
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
Jisc
 

Recently uploaded (20)

June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
 
Sha'Carri Richardson Presentation 202345
Sha'Carri Richardson Presentation 202345Sha'Carri Richardson Presentation 202345
Sha'Carri Richardson Presentation 202345
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
 
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
 
How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
 
Operation Blue Star - Saka Neela Tara
Operation Blue Star   -  Saka Neela TaraOperation Blue Star   -  Saka Neela Tara
Operation Blue Star - Saka Neela Tara
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
 

Transaction processing system

  • 1. TRANSACTION PROCESSING SYSTEM An Overview of the Transactional Processing System 1
  • 2. Transaction Processing System (TPS) • A transaction processing system (TPS) provides data for other business processes – Management information system/decision support system (MIS/DSS) – Special-purpose information systems 2
  • 3. Figure 9.1: TPS, MIS/DSS, and Special Information Systems in Perspective 3
  • 4. Transaction Processing System (Continued) • TPSs – Process the detailed data necessary to update records about the fundamental business operations – Include order entry, inventory control, payroll, accounts payable, accounts receivable, the general ledger, and more 4
  • 5. Traditional Transaction Processing Methods and Objectives • Batch processing system: method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit or batch • Online transaction processing (OLTP): computerized processing in which each transaction is processed immediately, without the delay of accumulating transactions into a batch 5
  • 6. Traditional Transaction Processing Methods and Objectives Performance Reviews (Continued) • Online entry with delayed processing: transactions are entered into the computer system when they occur, but they are not processed immediately • Organizations expect their TPSs to: – Process data generated for and about transactions – Maintain a high degree of accuracy and integrity 6 – Produce timely documents and reports
  • 7. Traditional Transaction Processing Methods and Objectives Performance Reviews (Continued) • Organizations expect their TPSs to (continued): – Increase labor efficiency – Help provide increased service – Help build and maintain customer loyalty – Achieve competitive advantage 7
  • 8. Figure 9.2: Batch Versus Online Transaction Processing 8
  • 9. Transaction Processing Activities • TPSs – Capture and process data that describes fundamental business transactions – Update databases – Produce a variety of reports • Transaction processing cycle: the process of data collection, data editing, data correction, data manipulation, data storage, and document production 9
  • 10. Figure 9.5: Data Processing Activities Common to TPSs 10
  • 11. Figure 9.4: A Simplified Overview of a Transaction Processing System 11
  • 12. Transaction Processing Activities (Continued) • Data collection – The process of capturing and gathering all data necessary to complete transactions • Data editing – The process of checking data for validity and completeness. • Data correction – The process of reentering miskeyed or misscanned data that was found during data editing. 12
  • 13. Transaction Processing Activities (Continued) • Data manipulation – The process of performing calculations and other data transformation related to business transaction. • Data storage – The process of updating one or more databases with new transactions. • Document Production – The process of generating output records and reports. 13
  • 14. Table 9.2: The Systems That Support Order Processing, Purchasing, and Accounting Functions 14
  • 15. Order Processing Systems • Order entry system: captures the basic data needed to process a customer order • Sales configuration system: ensures that the products and services ordered are sufficient to accomplish the customer’s objectives and will work well together • Shipment planning system: determines which open orders will be filled and from which location they will be shipped 15
  • 16. Figure 9.7: Order Processing Systems 16
  • 17. Figure 9.8: Data Flow Diagram of an Order Entry System 17
  • 18. Order Processing Systems (Continued) • Shipment execution system: coordinates the outflow of all products from the organization, with the objective of delivering quality products on time to customers • Inventory-control system: updates the computerized inventory records to reflect the exact quantity on hand of each stock-keeping unit 18
  • 19. Order Processing Systems (Continued) • An invoicing application looks up the full name and address of the customer, determines whether the customer has an adequate credit rating, automatically computes discounts, adds taxes and other charges, and prepares invoices and envelopes • Customer relationship management (CRM) system: helps a company manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers 19
  • 20. Figure 9.12: Customer Relationship Management System 20
  • 21. Order Processing Systems (Continued) • Routing system: determines the best way to get products from one location to another • Scheduling system: determines the best time to pick up or deliver goods and services 21
  • 22. Figure 9.13: Purchasing Transaction Processing System 22
  • 23. Purchasing Systems • Inventory control • Purchase order processing system: helps purchasing departments complete their transactions quickly and efficiently 23
  • 25. Purchasing Systems (Continued) • Receiving system: creates a record of expected receipts • Accounts payable system: increases an organization’s control over purchasing, improves cash flow, increases profitability, and provides more effective management of current liabilities 25
  • 26. Accounting Systems • Budget transaction processing system: automates many of the tasks required to amass budget data, distribute it to users, and consolidate the prepared budgets • Accounts receivable system: manages the cash flow of the company by keeping track of the money owed the company on charges for goods sold and services performed 26
  • 27. Figure 9.17: An Accounts Receivable Statement 27
  • 28. Accounting Systems (Continued) • Payroll system prepares: – Payroll check and stub – Payroll register – W-2 statements • Asset management transaction processing system: controls investments in capital equipment and manages depreciation for maximum tax benefits 28
  • 29. Accounting Systems (Continued) • General ledger system: designed to automate financial reporting and data entry 29
  • 30. Control and Management Issues • Business continuity planning: identification of the business processes that must be restored first in the event of a disaster and specification of what actions should be taken and who should take them to restore operations • Disaster recovery: actions that must be taken to restore computer operations and services in event of disaster 30
  • 31. Transaction Processing System Audit • Does the system meet the business need for which it was implemented? • What procedures and controls have been established? • Are these procedures and controls being used properly? • Are the information systems and procedures producing accurate and honest reports? 31
  • 32. Figure 9.3: Integration of a Firm’s TPSs 32
  • 33. Transaction Processing System Audit • Does the system meet the business need for which it was implemented? • What procedures and controls have been established? • Are these procedures and controls being used properly? • Are the information systems and procedures producing accurate and honest reports? 33
  • 34. International Issues • Issues that multinational corporations face in planning, building, and operating their TPSs – Different languages and cultures – Disparities in information system infrastructure – Varying laws and customs rules – Multiple currencies 34
  • 35. “Life is full of uncertainty, just go and deal with it.” JAYSON C. JUECO BS Electrical Engineering Reporter 35