TRANSACTION
PROCESSING
SYSTEM
NTRODUCTION

A transaction processing system (TPS) is an
information system that records company
transactions. A transaction is defined as an
exchange between two or more business
entities.TPS is cross-functional information
systems that process data resulting from the
occurrence of business transactions. Transactions
are events that occur as a part of doing business,
such as sales, purchases, deposits, withdrawals,
refunds and payments.
Input
Functions
Processing
Functions
Output
Functions
Storage
Functions
PROCESS OF TPS
•Data Entry
•Data Capture
•Data Validation
•Processing and Revalidation
•Storage
•Output generation
•Query Support
GENRIC EXAMPLES
•Accounts Payable–keeps record of money owned by the
organisation.
•Accounts Receivable-keeps record of money owed to the
organisation.
•Personnel-keeps record of all staff employed
•Customers-keeps record of all customers of an organisation.
•Payroll-calculates and records staff salaries and wages.
•Inventory-tracks the movement of items in and out of the store.
•General Ledger-keeps central record of all financial transactions
drawn from accounts, payrolls, inventory.
COMPARISON OF TPS WITH MIS
•MIS stands for Management Information System and
helps in controlling, monitoring and decision making
at the middle level management
•Transaction Processing System and collects, stores,
modifies and retrieves all information about
transactions in the organisation.
•TPS becomes a major source of data for MIS. The
data that is generated through TPS is on the level of
operations such as payroll or order processing. TPS
tracks daily routine transactions that are essential to
conduct business. MIS makes heavy use of data from
TPS though it also utilizes data from other sources.
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