Answer to Question #240146 in Management for moh

Question

Transaction processing is a cyclical process with five steps.  

Discuss each of these steps.

Answer 1

Data representing business transactions is captured and processed by transaction processing systems. They then update organizational files and databases, as well as develop a number of internal and external information products. In general, transaction processing systems go through a five-stage cycle.

1.     Data Entry

A data entry procedure is used as part of the input activity in transaction processing systems. Data is acquired or collected in this process by recording, coding, and editing actions. The information could then be transformed into a format that can be entered into a computer system. In the use of computers for transaction processing, data entry has always been a bottleneck.

2.     Transaction Processing

Transaction processing systems process data in two ways: batch and real-time processing. Transaction data is amassed over time and processed periodically in a batch processing system. Real-time processing systems process transaction data as soon as it is created and can give end users rapid results.

3.     File and Database Processing

The core tasks of transaction processing systems are file and database processing. These are also referred to as database and file maintenance. This term emphasizes the importance of transaction processing systems maintaining an organization's files and databases so that they are always valid and up to date. Transaction processing systems update and modify corporate databases, which are subsequently utilized to supply data for the production of appropriate information products, as well as data for management information processing systems.

4.     Document & Report generation

The development of information products like as documents and reports is the final stage in the transaction processing cycle. Transaction documents are documents generated by transaction processing systems. Managers utilize transaction processing systems to generate several types of reports. For transaction control purposes, such reports provide an audit trail. Control lists, for example, are thorough reports that document each transaction that occurred over a specific time period. They're also known as logs. A payroll register, for example, keeps track of every pay-cheque produced by a payroll system on a specific payday.

5.     Inquiry Processing

Many transaction processing systems allow us to make questions and obtain responses about transaction processing activities using the Internet, Web browsers, or database management query languages. Responses are typically shown in a number of pre-defined forms or screens. Checking the balance in the A/C, for example, and receiving an immediate response on the PC.