PRESENTATION ON

TRANSACTION PROCESSING
SYSTEM
Deekshith
SYNOPSIS
 Introduction
 Meaning

 Characteristics

 Types of transaction processing system

 Functional areas of transactional processing system

 Conclusion
 INTRODUCTION

 Generally every business involves transactions , that is when ever people

make an exchange it is called as transaction.
 Transaction processing system supports day to day operations of the
business.

 Examples of transactions include:

 purchases at store
 withdrawing money from bank
 making payments

 This system help the companies to conduct the operations and keep track
of activities
 It was first developed in 1950 in accounting departments of major
corporation
MEANING
 The primary purpose of transaction processing system is to record, process,
validate, and store transactions that take place in the various functional
areas of a business for future retrieval and use.
Transaction processing system is a cross functional information system that
process data resulting from the occurrence of business transactions.

For example:
MC Donald's which sells a large number of hamburgers every day orders
raw materials from its suppliers each time the company places an order
with a supplier, a transaction occurs and TPS records information such as
name, address, credit rating, invoice amount etc.,
CHARACTERISTICS
 Rapid Processing
 Reliability

 Standardization

 Controlled access

 Transaction processing qualifiers

 Atomicity
 Consistency
 Isolation
 Durability
CHARACTERISTICS OF TRANSACTION
PROCESSING SYSTEM
 The processing of transaction is vital for the success of any
enterprise.

 Inthe face of advancing technology customer demand for

immediate action.

 Tps systems are designed to process transactions virtually

and instantly to ensure that customer data is available
whenever they require it.
 Reliability:

TPS system is designed to ensure that all transactions are entered in

sequential and systematic manner.

 Standardization:

Transactions must be processed in the same way each time to maximize

efficiency and effectiveness.

 Controlled access:
Since TPS also contains confidential matters or data, it acts as powerful tool
for the organization. Hence access must be restricted.

 A TPS is the data life-line for a company because it is the source of data for
other information systems, such as MIS and DSS (Decision Support Systems).

 A TPS is also acts as main link between the organization and external
entities, such as customers suppliers, distributors, and regulatory agencies
 There are six steps in processing a transaction they are:

 a. Data entry
 b. Data Capture
 c. Data validation
 d. Processing and revalidation
 e. Storage
 f. Output generation
 g. Query
Types of TPS(transaction processing system)
1)on-line system
2)Batch-processing system
1) On-line processing system:-
 It involves a direct connection between operator and the TPS program
 They provide immediate result
 They era used to process a single transaction at a time
Ex:- an order arrives by telephone call ; it is processed at that moment and the
result are produced.

2) Batch-processing system:-
• This is a second type of TPS, where transactions are grouped together and
processed as a unit.
Ex:- Cheque processing system in a bank
FUNCTIONAL AREAS
SALES/MARKE PRODUCTION FINANCE OTHERS
TING SYSTEM SYSTEM

MARKET PURCHASING BUDGETING

RESEARCH MAJOR
SHIPPING
PROMOTION BILLING FUNCTION
ENGINEERING S OF
PRICING COST SYSTEM
OPERATIONS
NEW
PRODUCT SCHEDULING ACCOUNTIN
G

MATERIAL
SALES ORDER RESOURCE BUGETING
SYSTEM
MARKET
RESEARCH QUALITY FUND MAJOR
SYSTEM CONTROL MANAGEME APPLICAT
SYSTEM NT SYSTEM ION
PRICING
SYSTEM PURCHASE AREAS
ORDER
SYSTEM
THANK YOU
DEEKSHITH