TRANSACTION PROCESSING SYSTEMS

SANU MATHEW

Transaction processing systems (TPS) are the basic business systems that serve the operational level of the organisation.A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry , hotel reservation systems, payroll, employee record keeping. At the operational level, tasks, resources, and goals are predefined and highly structured.

A symbolic representation for a payroll TPS

Payroll master file Data elements in payroll master file Employee Number Name Address Dept Gross pay Earnings (year to date) Withholdings Federal income tax State tax FICA Other Employee data(various departments) salaries To general ledger:wages and

Payroll system

Management reports

Government documents Online queries: earnings Employee Employee Number Name 46848 Stoker, K Employee checks Earnings Gross Federal State FICA (year to Tax pay tax 140.00 date) 50.00 2000.00 400.00 6000.00

It depicts a payroll TPS, which is a typical accounting transaction processing system found in most firms. A payroll system keeps track of the money paid to employees .The master file is composed of discrete pieces of information(such as a name, address, or employee number) called data elements.

Data are keyed into the system , updating the data elements . The elements on the master file are combined in different ways to make up reports of interest to management and government agencies and to send paychecks to employees . These TPS can generate other report combinations of existing data elements.

Managers need TPS to monitor the status of internal operations and the firms relations with the external environment.TPS are also major producers of information for the other types of systems.

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