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Transaction Processing System

The document discusses transaction processing systems (TPS). It defines a TPS as a system that manages business transactions and records them in a database. A TPS processes simple, repetitive transactions like ATM withdrawals, online payments, and trading stocks. It captures transaction data, validates the data, processes the transactions, and maintains the database by updating it with the results. A TPS is essential for conducting business as it brings transaction data into an organization's databases to support decision-making.

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Agrippa Mungazi
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690 views3 pages

Transaction Processing System

The document discusses transaction processing systems (TPS). It defines a TPS as a system that manages business transactions and records them in a database. A TPS processes simple, repetitive transactions like ATM withdrawals, online payments, and trading stocks. It captures transaction data, validates the data, processes the transactions, and maintains the database by updating it with the results. A TPS is essential for conducting business as it brings transaction data into an organization's databases to support decision-making.

Uploaded by

Agrippa Mungazi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Management information systems

Transaction Processing System (TPS)


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In this tutorial, we are going to learn about the Transaction Processing


System: The transaction processing system is also known as information
systems for decision making. This article describes the TPS and its necessary
activities.
Submitted by IncludeHelp, on December 24, 2019

A transaction is a simple process that takes place during business operations.


The transaction processing system (TPS) manages the business transactions
of the client and therefore helps a company's operations. A TPS registers, as well
as all of its consequences, a non-inquiry transaction itself in the database and
generates transaction-related documents.

TPS manages and records transactions. It is the automation of the simple,


repetitive processing used to support business operations.

Many real-time advantages for every company are offered by transaction


processing systems. TPS uses data and creates reports as shown in the diagram
below. To find out the key insights for decision-making, it offers graphical or
condensed textual data.
TPS was previously referred to as the Management Information System. Data
processing was conducted manually or with simple machines before computers.
TPS's domain is at the lowest level of an organization's management hierarchy.

A transaction processing system is a form of computer processing that takes


place in the presence of a computer user and allows a user request or
transaction to be answered immediately. Some examples of processing systems
for transactions include,

 ATM transactions
 Credit Card system
 Electronic Commerce
 Online Payments
 Online Trading Stocks
 Self-checking stations
TPS is needed to conduct business in nearly any organization today. TPSs bring
data into the databases of the organization; these systems are also a basis on
which management-oriented information systems are based.

Transaction Processing Activities


The processing of individual transactions depends, of course, to some extent on
their nature. The transaction processing general elements include,

1. Capturing and validating data


2. Transaction-steps of processing
3. Maintenance of the database

Data Capture
Data capturing denotes to the storage of data through source data automation.
Transaction processing systems are increasingly relying on the interchange of
electronic data. These systems provide for computer-to-computer communication
without repeated data entry by replacing paper documents with formatted
transaction data sent over telecommunications networks.

Data Validation
Validation includes checking for missing data items, valid codes and valid values.
More extensive validation may involve transaction authorization based on the
record of the customer and the inventory available.

Transaction-steps of processing
Processing of data inputted by users into automated machinery system, it shows
logical and mathematical operations and stores processed results into the
system.

Database Maintenance
System files or databases need to be updated after transactions other than
inquiries. Thus, the data collected by TPSs serves as a source of detail for
management-oriented information system components.

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