IT 9626

1. 5 Data processing
(Master File / Transaction File)
Let us consider the payroll system of a company that pays its workers weekly.

One file is called the master file, which contains all the important data that does not
change often, such as name, works number, department, hourly rate, and so on.

The other file, called the transaction file, contains the data that changes each week,
such as hours worked.

The master file would already be sorted in order of the key field so that processing is
easier to perform. The transaction file would probably be
in the order that the transactions were collected. Before these two files can
be processed together to produce the payroll, the transaction file needs to be
sorted in the same order as the master file and will also need to be checked for
errors using validation checks.

Describe the information that will need to be stored about the

temporary workers on the:
(i) master file
Name
Contact details i.e.phone/address
Tax history
National Insurance history
Pay so far this year
Holiday entitlement
Pension contributions
Rate of pay
Tax code
Job title
Employee number/id number/payroll number/works number
Social scurity/national insurance number
Department worked in
Date employed
Bank details
Payment method
Date of birth

(ii) transaction file

worker’s number and hours worked
When the payroll application is run using the transaction file in
the current system, some of the master file data will change for
each worker every time the payroll application is run
Give two examples of master file data that will be
changed.
Wages so far this year
Income tax so far this year
Employer insurance contribution so far this year
Employee insurance contribution so far this year
Pay date
Pension contributions so far this year

Give three examples of data in the master file that will

remain unchanged.
Name
Contact details i.e. phone/address
Holiday entitlement
Rate of pay
Tax code
Job title
Employee number/id number/payroll number/works number
Social security/national insurance number
Department worked in
Date employed
Bank details
Payment method
Date of birth

Describe, using examples based on the

scenario(Employees), three types of transaction which
would be included in the second transaction file.
1 Deletion of a record such as a worker leaving employment
2 Change/amendment to a record such as a worker changing address/job
title/phone
3 Addition of a record such as when a new employee starts with the company
The existing payroll system stores the data in an ordered
sequential manner so that it can be updated monthly.
Describe how the master payroll file is updated using a
transaction file containing details of workers’ records for
amendments, deletions and insertions.
The transaction file is sorted
First record in the transaction file read
Reads first record in the old master file
If records don’t match computer writes master file record to new master file
If it matches transaction is carried out

if transaction relates to calculation of pay:

Pay is calculated…
….using data from the transaction file
Processed record is written to master file

if transaction relates to deletion, amendment(changes) or insertion:

If deletion or amendment old master file record not written to file
If amendment, data in transaction file written to master file
Process is repeated until end of old master file
Remaining records of the transaction file are added to the master file.

Describe, using examples of data from the master and

transaction files, five steps in the processing used in the
production of payslips.
Batch processing is used
At the end of each pay period…
…transaction file is sorted into same order as master file
Sorted on employee number

First record in the transaction file is read and first record in the old master file is read
Computer calculates the pay
Using rate of pay from master file
Using hours worked from transaction file

Computer calculates the income tax/insurance/pension contributions

Computer subtracts these from pay

Processed record is written to new master file

Payslip printed (to file)
Process is repeated until end of old master file
Master file is updated
Payslips are printed
System Flowchart / Payroll application
The steps involved in updating a master file using a transaction file
Batch Processing in Payroll
Batch Processing in Customer order
 Online processing in EFT (ATM)

Online processing in EFT (EFTPOS)

Online processing in Automatic Stock Control

Online processing in online stores

Real-time system (Central heating system)

Real-time system (Air-conditioning system)