Transaction Processing System

Transaction Processing System

Transaction Processing Systems process data generated by day-to-day business operations. A transaction processing performs a series of task whenever a specific transaction occurs. An example of transaction processing includes customer order processing, accounts receivable, warranty claim, processing the system verifies customer data, checks the customer’s credit status, posts the invoice to the accounts receivable system, checks to ensure that the item is in stock, adjust inventory data to reflect a sale, and update the sales activity file.

Transaction processing systems typically involve large amounts of data and are mission-critical systems because the enterprise cannot function without them. Transaction processing are efficient because they process as a set of transaction-related commands as a group rather than individually. To protect data integrity, however, transaction processing system ensure that if any single element of a transaction fails, the system does not process the rest of transaction.

A characteristic of Transaction Processing System includes reliability, performance and consistency. In Computer Science transaction processing means information is divided into individual called transactions .A transaction is essentially a single event that changes something. The result of processing a transaction is that the records of an organization are updated to reflect the new conditions at the time of the last processed transaction.

Consider the example of the electronics store. A customer buys a video game and pays for it with cash at the register. This event is recorded as a sale transaction. However, it also triggers other transactions.

First, the amount of cash at the register has just gone up. Second, the inventory of the particular video game has gone down by one. These transactions are logically linked - they occur on the same day at the same time and involve the same item. Linking the transactions provides improved data consistency since one cannot exist without the other. The amount of cash in the register cannot go up unless some transaction makes this happen.

There are many different types of transaction processing systems, such as payroll, inventory control, order entry, accounts payable, accounts receivable and others. Transaction processing produces valuable input into many other systems in an organization, such as management information systems and decision support systems. A TPS serves as the foundation for these other systems. A TPS tracks routine operations but does not provide much support for decision making.

Another example, in the case of a bank account, a TPS keeps track of all the events associated with a single account: deposits, withdrawals, transfers, fees, interest paid, etc. This provides a good description of the account activity.

Now let's say the customer comes into the bank and requests a car loan. The account activity is useful information but not enough for the bank to make a decision on the car loan. This requires combining information from different sources and analyzing the financial profile of the customer.

Types of Transaction Processing

Batch processing

Batch processing is execution of a series of programs (jobs) on a computer without manual intervention. Several transactions, called a batch are collected and processed at the same time. The results of each transaction are not immediately available when the transaction is being entered; there is a time delay.

Time-sharing  

Time sharing is the sharing of a computer system among multiple users, usually giving each user the illusion that they have exclusive control of the system. The users may be working on the same project or different projects, but there are usually few restrictions on the type of work each user is doing.

Real-time processing

"Real time systems attempt to guarantee an appropriate response to a stimulus or request quickly enough to affect the conditions that caused the stimulus."[9] Each transaction in real-time processing is unique; it is not part of a group of transactions.

Researchers :

Almanon, Trisha Marie

Hidalgo, Rose Mae

Torio, Katherine Joy