TRANSACTION PROCESSING CYCLE Presented to: Mr. Ahmad Tisman Pasha Presented by: Shafaque Mahmood Roll No

Activities of Transaction Processing cycle  Data Entry Activities  Transaction Processing Activities  File and Database Processing  Document and Report Generation  Inquiry Processing

Transaction Processing Systems  Batch processing: inputs data and processes them in groups  On-line transaction processing (OLTP): completes data input and processing for transactions as they occur

Batch Processing

Batch Processing  Transaction data are accumulated over a period of time and processed periodically (example: bank checks processing)  Rationale: the grouping of data and periodic processing of jobs use computer resources more efficiently

Batch Processing  Advantages :  Efficiency  Economy  Control  Disadvantages :  Frequently out-of-date Master file

On-line/Real time processing

Real-Time Processing  Real-time processing systems process transaction data immediately after they are generated and can provide immediate output to end users.

Real-Time Processing  Examples  Airline reservation  Bank electronic processing  Internet E-commerce

Real-Time Processing  Advantage:  Immediate Updating  Disadvantage:  Security  Cost

Database Maintenance  A major activity of TPS  An organization’s database must be maintained by its TPS so that they are always correct and up-to-date  Databases provide the data resources that can be processed and used by MIS, DSS, and executive information systems.

Document & Report Generation  Action Documents: Initiates actions on the part of their recipient.  A purchase order authorize a purchase from a supplier  Information Documents: Relate, confirm, or prove to their recipients that transactions have occurred  Sales receipts, customer invoices  Turnaround Documents: Designed to be read by magnetic or optical scanning equipment  computer-printed invoices to be returned to the sender

Document & Report Generation  Control listings: detailed reports that describe each transaction occurring during a period.  E.g., a payroll register lists  Edit reports: describe errors detecting during processing.  e.g., invalid Account Number, missing data etc  Accounting statements: reports that legally document the financial performance or status of a business  e.g., statements of cash flow, income statements etc.

Inquiry Processing  End users at client PCs and NCs can use the Internet, intranets, extranets, and Web browsers, or  Use database management query languages (SQL) to make inquiries and receive responses  Responses are displayed in a variety of prespecified formats or screens