Question

What are the three primary functions performed by the transactions processing system? Elaborate thoroughly on your answer with explanations.

Answer 1

Transaction Processing System:-

• To run any organisation it is very important to record the transaction and system which is useful for recording such transaction is called TPS.
• It demands information in a detailed form.
• It is developed for bottom level people or operational level people in the organisation. Example of TPS is Tally

Functions of TPS:-

1. Data entry - The first step of TPS is to capture business data.
2. Transanction Processing - It processes data in two ways ie. Batch processing and Online processing. In batch processing data are accumulated over a period of time whereas in Online processing data are processed immediately after a transaction occurs.
3. Database Maintenance:- Organisations database must be updated by its TPS systems so that they are always correct and up-to-date.
4. Report Generation:- The last step is to generation of report. The TPS system generates variety of reports such as sales receipt, invoices and customer statements etc.
   Data entry Report Generation Transaction processing • Batch Processing • Online Processing Database maintenance