Transaction Processing

System

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Transaction processing systems (TPS)

Perform routine operations and serve as a foundation for other

systems
OR
TPS is an information processing system for all business
transactions involving collection, modification and retrieval of
transaction data

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Transaction:
A business activity between seller and buy to
exchange an asset for payment.
Basic business operations such as customer orders,
purchase orders, receipts, time cards, invoices, and
payroll checks in an organization.

What is a Transaction?
Functions of TPS
Input Functions
Place an order for lunch
Processing Functions
Pizza is being prepared and served
Output Functions
Go to counter for payment, show discount cards, get invoice

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Objectives of TPS
Ensure data and information integrity and accuracy
Produce timely documents and reports
Increase labor efficiency
Help provide increased and enhanced service
Help build and maintain customer loyalty
Achieve competitive advantage

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TWO TYPES OF TPS:
Batch vs. On-Line Transaction Processing
Batch processing
A system whereby business transactions are accumulated over
a period of time and prepared for processing as a single unit or
batch
Manufacturing products, supply chain, salaries
On-line transaction processing (OLTP)
A system whereby each transaction is processed immediately,
without the delay of accumulating transactions into a batch
Real-time transaction
Mostly in Online shopping
Uses PCI cards(Payment Card Industry: MasterCard, Visa,
Maestro, American Express, Discover, )
Paypal

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Batch vs. On-Line Transaction Processing
(Online TPS)

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Batch vs. On-Line Transaction Processing
(Batch Processing)

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Data Entry
Collecting and capturing transactions
Examples
Barcodes.
Credit card reader.
E-commerce website on the internet.

Processing Cycle 9
Database Maintenance
TPS helps ensure the databases are up-to-date and correct.
decreases quantity Inventory Database
decrease credit Credit Card Database
increase sales Sales Database

Example:
Credit sales made to customer will cause customer account balance be increased
and the amount have to be decreased. So Database Maintenance ensures that
these changes are reflected in data records stored in the companys database.

Processing Cycle 10
Document/Report Generation
It produces variety of documents and reports .
Examples
purchase orders
pay checks
sales receipts
invoices
bank statements

Processing Cycle 11
Inquiry Processing
Results of the transaction processing activity.
Examples
when was a purchase made
was an item scheduled for delivery
The amount of stock on the inventory
Status of sales order

Processing Cycle 12
Processing Cycle

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Thank You

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