Transaction Processing System

The main information systems used in a company for operational support are the transaction processing
systems. Data about transactions are events that have occurred that have impacted the company, such as the selling
or purchasing of goods, which are processed by this method of system. A transaction processing system has three
main purposes. That affect these records, process transactions that affect these records, and produce outputs that
track transactions that have occurred. an inventory control system, for example, monitors inventory records,
processes sales and purchases of inventory, and produces reports about the quantity and value of items on hand, on
order, etc. Integrated transaction processing systems exist in all areas of an organization, and in all types of
organizations. TPSs can be used by staff (order entry) or customers (bank ATMs). they can use a variety of hardware,
applications, and networks. PSs use stored data in both files and databases, as well as many different types of
programs.

 TPS Structure and Functions

Generally, a TPS model consists of a user or other TPS that interacts with TPS software, as well as
stored data used by the TPS. Typically, users of the system are people who work with business transactions, such as
salespeople. Input data comes from users and other TPS. Output includes data back to other TPSs, screens, and
reports. TPSs perform four primary functions, as with other information systems: input, processing, output, and data
storage are all included in the system's input, processing, output, and data storage. Typically, the output function
accepts data for processing from outside the system. The processing output transforms the data in some way. Using
the output function, the processing results are made available outside the system. the data for use is stored in the
storage mode. data about transactions must be obtained from its source before it can be imported into a TPS.
Known as data collection, this step is referred to as data collection. The receiving report is an example of a source
document that is used to perform data entry. data entry involves using a screen similar to the one in this figure. The
data is checked for errors after it is entered, a program performs data validation. Inventories receiving data, on the
other hand, could be analyzed to ensure that all number entries are numeric, that the item is known to the system,
and that quantities are within acceptable ranges. A TPS's most useful output is in the form of reports. TPSs are used
to produce a variety of reports. Detailed reports include information about transactions such as inventory
movement. Several levels of data are summarized in a summary report. Exception reports refer to data that are
exceptions to a particular condition or procedure. Data in a TPS is stored in data files and databases.

TPSs typically contain two types of stored data: transaction and master data. Master data is the main data used by
the TPS. Master data is usually permanent data that remains in the system as long as the system is being used.
Similarly, an inventory system would have an inventory master file with one record for each item in inventory, for
example. Transaction data refers to information about transactions that have occurred. Usually, transaction data is
retained with the system only until the transactions are processed. data is then replaced with other transaction data
for new transactions. Similarly, a transaction file would contain information about inventory transactions in the
inventory control system, for example. that information would be used to update the inventory master file. the
transaction file would be cleared and a new list of transactions would be started once the update was complete.
the TPS can retrieve data from the file or database after the data is generated, a process called accessing the data.
The data is used to create reports, update master files, and other uses., a TPS has to access data in a way that is
useful to the system, which is called sorting. The inventory system may produce a list of the 5 most expensive items,
for example. The item list should then be sorted in ascending order of cost. when a file or database is created, the
information entered into it will become obsolete over time. TPS data must be updated on a regular basis to keep it
up-to-date. Adding new data, updating old data, and deleting old data can be done by adding new data, updating old
data, and deleting old data. Transaction data is used to update master data.

Using a computer program to manipulate information within the system is part of the process. Computation is just
one function that only involves data processing, rather than any of the other functions, such as calculating details
and totals. Decision making, or looking for patterns and acting on them, is another processing function.in a TPS can
be processed using two basic methods:. Batch and online processing is done in batches and online. A TPS may use
both online and batch processing.in batch processing, data for all transactions to be processed are prepared in a way
that is understandable to the computer before actual processing begins. The batch of data is then processed by the
computer, and the resultant output is delivered in a batch. Including overnight payroll check processing and printing
is an example of batch processing.

A user uses a screen and keyboard or I/O device connected to the computer at the time of processing, or OLTP, to
perform online processing, or OLTP. Each set of data for a transaction is loaded directly into the computer. During
the processing, the data is processed, and the result is received before the next input data is entered. Online
processing may also be referred to as interactive processing. Similarly, an airline reservation system is an example of
online processing.

Similarly, the term real-time can be used to refer to online transactions. Real-time means that the processing takes
place immediately after the data is entered. This description isn't exactly correct for online processing. processing
may not begin until after the input has been received by many users of an online system. Depending on the device,
applications, and number of users, the amount of time varies. a manufacturing monitoring system is just one
example of a real-time system. the system alerts operators immediately if cars are being produced and there is a
problem with the computerized assembly line.