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Transaction Processing Systems

Transaction processing systems (TPS) support the routine, day-to-day business operations of an organization like processing customer purchases, billing, and ordering supplies. TPS are characterized by handling high volumes of structured, repetitive tasks like accounts receivable/payable and inventory control. Transactions can be processed in batches, like banks processing deposits nightly, or in real-time as with airline reservation systems updating seat availability. The core functions of a TPS include data entry, processing transactions, generating documents/reports, and inquiry processing to support operational tasks. Common TPS subsystems include payroll, order entry, inventory, invoicing, and accounts receivable.

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41 views9 pages

Transaction Processing Systems

Transaction processing systems (TPS) support the routine, day-to-day business operations of an organization like processing customer purchases, billing, and ordering supplies. TPS are characterized by handling high volumes of structured, repetitive tasks like accounts receivable/payable and inventory control. Transactions can be processed in batches, like banks processing deposits nightly, or in real-time as with airline reservation systems updating seat availability. The core functions of a TPS include data entry, processing transactions, generating documents/reports, and inquiry processing to support operational tasks. Common TPS subsystems include payroll, order entry, inventory, invoicing, and accounts receivable.

Uploaded by

Raza6216
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Transaction Processing Systems

A TPS supports the processing of a firms business transactions. TPS is the routine, day-to-day operations e.g. TPS of a department store can record customer purchases, prepare billings to customers and order merchandise from suppliers. e.g. TPS of university, tasks as enrolling students courses, billing students for tuition Include accounts receivable, accounts payable, inventory control, and many other operations.

Characteristics of TPS

Serves the most elementary day-to-day activities of an organization. Supports the operational level of the business. Supplies data for higher level of the business. Most suitable for predefined, structured tasks. Usually has high volumes of input and output. Mostly repetitive in nature.

Types of TPS Batch vs. Real-Time Processing

Batch Processing: In these system, transactions are collected, or batched, and periodically processed against a master file. e.g. Banks collect records of customer deposits made throughout the day and batch these nightly against the master file of account balances.

Real-Time Processing: with real-time processing, updates are made to files or databases as soon as they take place. e.g. airlines passenger reservations systems. As soon as a seat is sold on a flight, for instance, the flights remaining seat count is updated immediately so that all agents using the system will know exactly how many seats are left on the flight.

TP Cycle

Data Entry

Transaction Processing

Documents and Report Generation

Print

Inquiry Processing

Transaction Processing Subsystems


Payroll Order Entry Inventory Invoicing Shipping Accounts Receivable Purchasing Receiving

Payroll

Payroll are the most common Transaction Systems in


organizations Basic purpose is to produce paychecks for organizational employees By-products for this system could be tax statements, social security notices, insurance documents Usually seen as an independent and straightforward system in most organizations Employees Work Information is the key: Hrs (Time period calculated, that may be in days) Rate per Hour (depend upon the type of employee I.e. permanent Vs. contractual) Tax deductions (if applicable) Net or Total Income (Eventually Transferred to General Ledger)

Employees Payroll

General Ledger

Rate Hours Taxes Accruals Organization/ Management

Banks

Transaction Processing System (TPS) :

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