Transaction Processing and Management Reporting Systems
Functions of Transaction Processing Systems
A transaction is
an elementary activity conducted during business operations. Transaction
processing systems (TPS) process the company's business transactions and
thus support the operations of an enterprise. A TPS records a non-inquiry
transaction itself, as well as all of its effects, in the database and produces
documents relating to the transaction.
TPS are necessary to conduct business in almost any
organization today. TPSs bring data into the organizational databases, these
systems are also a foundation on which management oriented information systems
rest.
Transaction Processing Modes
Transaction
processing may be accomplished in one of two modes:
1. On-line
mode
2. Batch
mode
Characteristics of on-line transaction
processing:
1. Each
transaction is completely processed immediately upon entry.
2. OLAP is
the most common mode of used today
3. More
costly than batch processing
4. Database
is always up to date
5. Require
the use of fast secondary storage such as magnetic disks
Characteristics of batch transaction
processing:
1. Relies on accumulating transaction data over a period of
time and then processing the entire batch at once.
2. Batch processing is usually cyclic: daily, weekly, or
monthly run cycle is established depending on the nature of the transactions
3. Cheaper than on-line processing
4. Easier to control than on-line processing
5. Database is constantly out of date
6. Batch processing is now being captured using disk files
Transaction Processing
Subsystems in a Firm
Overall transaction processing, also known as data
processing, reflects the principal business activities of a firm. The principal
transaction processing subsystems in a firm are those supporting:
·
Sales
·
Production
·
Inventory
·
Purchasing
·
Shipping
·
Receiving
·
Accounts payable
·
Billing
·
Accounts receivable
·
Payroll
·
General ledger
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