Question

Briefly describe the elements of the transaction processing cycle.

Answer 1

The goal of the transaction processing systems (TPS) is to improve the routine Company activities all of the organizations rely on. A transaction is any event or operation which affects the organization that is taking place In industry, such as sales, acquisitions, deposits, withdrawals, Refunds and remittances. Common transactions include placing orders, accounting for clients and hiring Employees, and checks to deposit. The types of transactions that are taking place differ from organisation to organisation. Transaction processing, set of transaction processing procedures; Frequently includes such activities as calculation, storage and recovery, classification,

Inputs: These are source records derived from transactions that function as inputs into accounting system examples of the machine are invoices, and customer orders.
Processing: This involves the breaking down of the input material.
Storage: This information is stored in TPS memory, and may be in ledgers form.
Output: Any record produced will serve as output

Processing batch transactions requires the collection and grouping of data by batch. The collected data are stored in batch form and may be processed at any time. In the absence of infotech this long established technique was widely used. Recent innovations in technology have brought about real-time processing. RTP ensures instant data processing with a view to prompt transaction verification. It is highly versatile as it can function effectively as a multi-user interface and can be accessed anywhere an online network exists.

In some convenient unit the transactions are calculated for documentation such as money unit for expenses, hours for labor, etc. The transaction data must be inserted into the program. Typically the source of this data is a document such as customer purchase order, supplier invoice etc., these are called source documents and provide the basic data for TPS. The data is entered using either the traditional data entry methods or the direct data entry methods. In the former system the source documents such as the order of purchase are prepared and typically collected in lots

Inquiry processing is another transaction processing system activity that includes providing current status information such as inventory levels, customer credit limits, customer dues, inbound supply, pre-planned inquiry response, and formatting of the on-screen display or output for the convenience of the requester. A business transaction involves a good or service a customer wants, and the business provides a price. The TPS supports the provisioning process. A series of activities are involved in completing a transaction with an external entity such as customer, supplier etc., such as account checking, current inventory balance, delivery time and price