
The input device may be at a remote location and be linked to the system by networks or by telecommunications systems. The term online means that the data input device is directly linked to the TPS and therefore the data are processed as soon as it is entered into the system. Online transaction processing (OLTP): Online transaction processing is the almost instantaneous processing of data.There are two ways to process transactions Processing and revalidation: Once the accuracy and reliability of the data are validated, the data are ready for processing.Error correction: Error correction is performed by another.Error detection: Error detection is performed by one set of control mechanisms.It ensures the accuracy and reliability of data by comparing actual data with predetermined standards or known results. Data validation: Data validation is an essential step in transaction processing.A sales receipt is an example of a source document. Source document: The documents that is generated at the source where the transaction occurs.An ATM receipt for a bank transaction becomes the source document for balancing a checkbook. For example, when a customer returns an item at a store, the sales receipt becomes the source document for the transaction “return item for refund”. There are a number of input devices for entering data, including the keyboard and the mouse. Data entry: To be processed, transaction data must first be entered into the system.

There are six steps in processing a transaction are They are data entry, data validation, data processing, and revalidation, storage, output generation, and query support.


A TPS records internal and external transactions for a company.A transaction processing system meets the needs of operational managers the output of the TPS becomes the input to an MIS.Ĭharacteristics of Transactions Processing Systems Discuss the characteristics and steps of transaction processing systems.Īnswer: A transaction processing system is an information system that records company transactions (a transaction is defined as an exchange between two or more business entities).
