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Introduction To Transaction Processing
Introduction To Transaction Processing
Introduction To Transaction Processing
Transaction Processing
TPS applications process financial transactions. A financial transaction was
defined in Chapter 1 as An economic event that affects the assets and equities of
the firm, is reflected in its accounts, and is measured in monetary terms.
The most common financial transactions are economic exchanges with
external parties. These include the sale of goods or services, the purchase of
inventory, the discharge of financial obligations, and the receipt of cash on account
from customers.
Financial transactions also include certain internal events such
as the depreciation of fixed assets; the application of labor, raw materials, and
overhead to the production process; and the transfer of inventory from one
department to another.
Financial transactions are common business events that occur regularly. For
instance, thousands of transactions of a particular type (sales to customers) may
occur daily. To deal efficiently with such volume, business firms group similar types
of transactions into transaction cycles.
Three transaction cycles process most of the firm’s economic activity:
I. the expenditure cycle,
II. the conversion cycle
III. the revenue cycle.
Journals
Ledgers
Source Documents
Product Documents
Turnaround Documents
Economic events result in some documents being
created at the beginning (the source) of the transaction.
DFDs are used to represent systems at different levels of detail from very
general to highly detailed
An entity relationship (ER) diagram is a documentation technique used to
represent the relationship between entities
Disadvantages:
The information content of the block code
is not readily apparent.
Are used to represent a complex items or
events involving two or more pieces of
related data. The code consists of zones or
field that posses specific meaning.
Disadvantages:
Limited ability to represent items within
a class.
Batch System- Assemble transactions into
groups for processing
Real Time Systems- process transactions
individually at the moment the event occurs
Real Time Processing can create operational
inefficiencies even handling large volumes of
transactions
Batch Time Processing however needs to
eliminate unnecessary activities to improve
operational efficiency
Real tine processing is a choice when immediate
process access to the current information is
required