1. Transaction Processing Systems
What is a TPS?
Characteristics of TPS
a Transaction Processing Model
POS(Point Of Sale) Transaction Processing System
Batch Processing vs. On-line Processing
TPS Applications

2. What is a TPS?
an information system designed to process routine business transactions
seeks time- and cost-efficiency by automating repetitive operations in large volumes
interfaces with an organization’s other information systems, such as IRS, DSS, EIS
centers around accounting and finance transactions
e.g,, airline reservation systems, order entry/processing systems, bank’s account processing systems

3. The Major Characteristics of TPS
Large amounts of data are processed.
The sources of data are mostly internal, and the output is intended mainly for an internal audience.
The TPS processes information on a regular basis: daily, weekly, monthly, etc.
Large storage (database) capacity is required.
High processing speed is needed due to the high volume.
TPS basically monitors and collects past data.
Input and output data are structured (i.e., standardized).
Low computation complexity is usually evident in TPS.
A high level of accuracy, data integrity, and security is needed.
High reliability is required.
Inquiry processing is a must.

4. A Transaction Processing Model
Data Input
Data Processing
Output Generation
Data Storage

5. POS(Point Of Sale) TPS Customer Receipt UPC & Inventory QuantityDB
Information
Reporting System
UPC
POS
TPS
Barcode Scanner
Product, Quantity,
Date, Time,
Price
Quantity,
Date,
Time
Exception
Reports
UPC
Price
Purchasing DB
Product DB

6. Batch Processing Data Transaction Processing Trans. Data File
Documents/
Reports
New
Master
File
Old
Master
File

7. On-line Processing Transaction Data On-line Data Processing Documents/
Reports
Transaction
Data
Inquiries/
Reponses
Transaction
Data

8. TPS Applications Order Processing Purchasing
Accounts Receivables & Accounts Payables
Receiving & Shipping
Inventory on Hand
Payroll
General Ledgers