UNIT 4 TRANSACTION PROCESSING SYSTEM 4 1 Overview

UNIT 4 : TRANSACTION PROCESSING SYSTEM 4. 1 Overview of Transaction Processing System 4. 2 Transaction Processing methods & objectives 4. 3 Transaction Processing Activities 4. 3. 1. Data Collection 4. 3. 2. Data Editing 4. 3. 3. Data correction 4. 3. 4. Data Manipulation 4. 3. 5. Data Storage 4. 3. 6. Document Production and Reports 4. 4. Traditional transaction processing Applications 4. 4. 1. Order Processing Systems 4. 4. 2. Purchase Systems 4. 4. 3. Accounting Systems

Introduction o Transaction processing was one of the first business process to be computerized & without information system. o System recording and processing business transactions would have consumed huge amount of an organization resources. o The Transaction Processing System also provides employee involved in other business process the Management Information System and special purpose information system to achieve their goals.

o Every organization has manual and automated Transaction Processing System, which process the detailed data necessary to update records about fundamental business operations of the organization.

Transaction Processing methods 1. Batch Processing System 2. On - Line Real Time or On - Line Transaction Processing 3. On - Line Entry with Delayed Processing

Objectives of Transaction Processing System 1. 2. 3. 4. 5. Maintain a High Degree of Accuracy & Integrity Produce Timely Documents and Reports Increase Labor Efficiency Help in providing Service Helps in Building & Maintaining Customer Loyalty 6. Archive Competitive Advantage

Transaction Processing Activities 1. 2. 3. 4. 5. 6. Data Collection Data Editing Data correction Data Manipulation Data Storage Document Production and Reports

Traditional Transaction Processing Applications 1. Order Processing Systems 2. Purchase Systems 3. Accounting Systems

1. Order Processing System A. B. C. D. E. F. G. H. I. Order Entry Open Order Sales Configuration Shipment Planning Shipment Execution Inventory Control Invoicing Customer Interaction Routing & Scheduling

2. Purchase Systems A. Inventory Control B. Purchase Order Processing C. Receiving D. Account Payable

3. Accounting Systems A. B. C. D. E. Budget Accounts Receivable Payroll Asset Management General Ledger