Transaction Processing System

Topic: - Transaction Processing System.

Q1. Define transaction processing system?

·        It Process data resulting from business transaction.

·        E.g.:- Process sales, purchase and inventory changes to update database.

·        Produce customer statements, employee paychecks, sale receipt, tax form and financial statements.

·        It capture and process data describing business transactions, update files and database and produce a variety of information products for internal and external use.

Q2. How transactions are proceed in a system?

There are two methods:-

·        Batch Processing: - In batch processing data is accumulated over a period of time.

·        Real Processing: - In Real (online) processing data is processed immediately after a transaction occurs.

Q3. Define Transaction processing cycle?

There are five steps in transaction processing life cycle:-

·        Data Entry.

·        Transaction Processing i.e. either Batch or Real time.

·        Database.

·        Documentation and report generation.

·        Inquiry processing.

Q4. How many types of transaction document are there in transaction system?

a)     Action document: - That initiate transaction (e.g. paycheck, purchase order) on receipt.

b)    Information document: - These documents relate, conform or prove to recipient that transaction has occurred.

c)     Turnaround document:-

·        Forms designed to be read by optical scanning equipments are known as turnaround documents.

·        These are designed to be returned to the sender.

Q5. How many types of transaction report are there in transaction system?

a)     Control listings (Transaction logs):- It describes each transaction occurring during a period.

b)    Edit reports: - It describes errors detected during processing e.g. invalid account number, missing data.

Q6. Define Batch processing?

·        Transaction data are accumulated over a period of time and proceed periodically.

·        It gathers source documents (originated by business transactions e.g. sales orders, invoice) into groups called Batches.

·        It sorts the transaction in a transaction files.

·        Process data and create an upload master file and a variety of document and reports.

Q7. Define Real time processing?

·        Data is processed immediately after they are generated and can provide immediate output to end users.

·        It is also Known as Online transaction processing (OLTP) system.

Q8. Explain remote job entry?

·        In the remote job entry we capture and stores batches of transaction data at a remote sites and then transmitting them periodically to a central computer for processing.

Keywords: - Transaction processing systems, transaction processing, online transaction processing, information processing system, Batch processing and Real time processing.