Transaction Processing & Enterprise

Resource Planning Systems

CHAPTER 5 (I)
An Overview of Transaction
Processing Systems

2
TPS, MIS/DSS, and Special
Information Systems

3
 Traditional Transaction Processing
Methods & Objectives

• Batch processing systems

• On-line transaction processing (OLTP)
• On-line entry with delayed processing
• Process data generated by and about transactions
• Process data generated for and about transactions
• Maintain a high degree of accuracy and integrity
• Produce timely documents & reports

4
 Traditional Transaction Processing
Methods & Objectives

• Increase labor efficiency

• Help provide improved service
• Help build and maintain customer loyalty
• Achieve competitive advantage

5
Batch versus On-Line Transaction Processing

6
Integration of a Firm’s TPSs

7
Examples of Transaction Processing

8
Transaction Processing Systems

9
 Transaction Processing Activities

• Data collection
– Should be collected at source
– Should be recorded accurately, in a timely
fashion

• Data editing
• Data correction

10
Document Production and Reports

11
 Control & Management Issues

• Business resumption planning

• Disaster recovery
– Backups

12
 Transaction Processing Audit

• Does the system meet its business

requirements?
• Are there procedures and controls?
• Are the procedures & controls properly used?

13
 Order Processing Systems

• Order entry
• Sales configuration
• Shipment planning
• Shipment execution
• Invoicing
• Customer relationship management (CRM)
• Routing and scheduling
• Scheduling systems

14
Document Production Reports

15
 Traditional Transaction
Processing Applications
Order Processing Systems

17
Order Processing Systems

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Order Entry System

19
Shipment Planning

20
Inventory Status Report

21
Invoicing

22
Customer Relationship Management

23
The 15 Top-Rated CRM
Software Packages

24
 Purchasing Systems

• Inventory control
• Purchase order processing
• Receiving
• Accounts payable

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Purchasing Systems

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Accounts Payable

27
Accounts Payable

28
Accounting Systems

29
Accounts Receivable

30
Accounts Receivable Aging Report

31
Typical Paycheck Stub

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Payroll Journal

33
General Ledger

34
General Ledger

35
ERP Software Vendors

36
 International Issues

• Different languages and cultures

• Disparities in information systems infrastructure
• Varying laws and custom rules
• Multiple currencies

37
Enterprise Resource
Planning
 Enterprise Resource Planning

• Real-time monitoring of business functions

• Supports human resources, sales, and
distribution
• Accommodates the different ways each
company runs business

39
 Advantages of ERP

• Eliminates costly, inflexible legacy systems

• Improved technology infrastructure
• Improved work processes
• Increased data access for decision making

40
 Disadvantages of ERP

• Expense & time

• Radical change
• Integrating with other systems
• One vendor risks

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ERP System

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 Business Application
Programming Interface (BAPI)

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