Presentation on

transaction processing
system

BY
SOWMYA
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:

Ø purchases at store
Ø withdrawing money from bank
Ø 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

ØAtomicity
ØConsistency
ØIsolation
Ødurability
 Characteristics of transaction
processing system
The processing of transaction is vital for the success of any
enterprise.

In the face of advancing technology customer demand for

immediate action.

Tpssystems are designed to process transactions virtually and

instantly to ensure that customer data is available whenever
they require it.
Ø Reliability:
TPS system is designed to ensure that all transactions are entered in
sequential and systematic manner.

Ø Standardization:
Transactions must be processed in the same way each time to
maximize efficiency and effectiveness.

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

Ø 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).

Ø 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:

Øa. Data entry

Øb. Data Capture
Øc. Data validation
Ød. Processing and revalidation
Øe. Storage
Øf. Output generation
Øg. 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