Structure, Activity and Functions of Transaction Processing System

TRANSACTION PROCESSING SYSTEM STRUCTURE
  • Inputs to a transaction processing system come from users and other transaction processing systems.
  • Outputs go to users and other transaction processing systems.
  • Transaction processing system files and databases store data about the state of the organization.
  • Transaction processing system software accepts data about transactions, processes it, makes changes in stored data, and produces the outputs
ACTIVITY OF TPS
First, data are collected & entered into the computer via any input device.

The system then processes data in one of the following ways:

Batch processing: the firm collects data from transactions as they occur, placing them in groups or batches. The system then processes the batches periodically

Online processing: data are processed as soon as a transaction occurs.

Hybrid system (a combination of batch & online processing): collects data as they occur but process them at specified intervals.
TRANSACTION PROCESSING SYSTEM FUNCTION
  • Transaction processing systems perform input, output, storage, and processing functions.
  • Input functions include capturing data on a source document, entering the input data into the system, and checking input data for errors, a process called data validation
  • Output functions include producing screen or paper reports, such as detail reports, summary reports, and exception reports.
  • Storage functions include storing data in files and databases, accessing stored data, sorting stored data, and updating stored data.
  • Processing functions involve the manipulation of data, including computation and decision making

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