TRANSACTION PROCESSING

SYSTEMS

PRESENTED BY,

MELVIN T MATHEW

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

centers around accounting and finance transactions

e.g; airline reservation systems, order entry/processing systems, bank’s account processing systems

Transaction Processing Systems A transaction is an elementary activity

conducted during business operations (e.g. merchandise sale).

Earliest Information Systems in organizations. Support the monitoring, collection, storage,

processing, and dissemination of the organization’s basic business transactions.

Provides backbone for many other applications involving other support systems.

Data InputData Input Data ProcessingData Processing Output GenerationOutput Generation

Data Storage Data Storage

A Transaction Processing System model

Transaction Processing Systems 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.

The Major Characteristics of TPS

TPS basically monitors and collects past data.

Input and output data are structured (i.e., standardized).

A high level of accuracy, data integrity, and security is needed.

High reliability is required.

Batch Processing

On-line Processing

Types of tps

TransactionData

DataProcessing

Trans.File

NewMasterFileOld

MasterFile

Documents/Reports

Batch Processing

Online TPS (OLTP)

Transactions are processed in real time Required for any “modern” application where

time is critical Well supported by client/server computing

model

On-line Processing

On-lineDataProcessing

Documents/Reports

TransactionData

Inquiries/Reponses

TransactionData

TransactionData

TPS Applications

Order Processing

Purchasing

Accounts Receivables & Accounts Payables

Receiving & Shipping

Inventory on Hand

Payroll

General Ledgers

Business Transactions in a Factory Payroll: employee time cards, employee pay and

deductions, payroll checks. Purchasing: purchase orders, deliveries,

payments (accounts payable) Sales: sales records, invoices and billing,

accounts receivable, sales returns, shipping Manufacturing: production reports, quality-

control reports Finance and Accounting: financial statements,

tax records, expense accounts Inventory management: materials usage,

inventory levels

Transaction Processing in an HRIS

Keep inventory of personnelpayroll preparationcompute salaries and incentive

plans

Accounting Activities TPS