Transaction Processing System Ppt

8/17/2019 Transaction Processing System Ppt

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Transaction ProcessinSystem

TPS is an activity consisting of 3 major subsystem th

the revenue, expenditure, and conversion cycle


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Overview

All of the TPS cycles have the function to• apture !nancial transactions"

• #ecord the e$ects of transactions in accounting re

• Provide transactions info for users to support their activities"

• Produce raw data needed for !nancial statements"

Transactions de!ned

%An economic event that a$ects the assets and e&uities of the !rm, is re'ected iaccounts, and is measured in monetary terms"(


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The 3 cycles

)" *ncurs expendituresin exchange forresources+expenditure cycle"

-" Provides addedvalue through itsproducts or

services+conversion cycle"

3" #eceives revenuefrom outsidesources +revenuecycle"


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.xpenditure ycle

•

Purchases/ Account payable"• places an order when inventory is needed,

• increases inventory and payables as the transaction occurs +receiving good

• ash disbursement• Authori0es payment when the date is due

• 1isburses the funds to vendor

• #educes cash and accounts payable as the transaction occurs

• Payroll• ollects labor usage data for each employee

• omputes payroll

• 1isburses funds to the employees

• 2ixed Asset• #ecording ac&uisition, maintenance, disposal of plant asset


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onversion ycle

•

Production• Planning, scheduling, and physical unit control

• 1etermining raw material re&uirements

• #eleaseing raw materials into production

• 1irecting the movement of the wor4in4process throu

manufacturing stages• ost accounting

• 5onitor cost information for production

• *nventory valuation, budgeting, cost control,

• Provinding performance report, and mae 6 or 6buy

information


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#evenue ycle

•

Sales order processing• Preparing sales order

• 7ranting credit

• Shipping inventory

• 8illing the customer and recording receivable

• ash #eceipts• ollecting cash

• #ecording cash received and reducing receivables

• 1epositing cash into ban


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Accounting #ecords

•

1ocuments+Source, Product, Turnaround

• 9ournal

• :edger

Audit trail 4 #econciling journal, ledger

and transactions


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2lowchart

A system 'owchart is the graphical representationphysical relationships among ey elements of a sy These elements may include organi0ational deparmanual activities, computer programs, hard4copyaccounting records +documents, journals, ledgers

!les, and digital records +reference !les, transact!les, archive !les, and master !les"


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omputer Activity Processing2lowchart)" A cler in the sales department receives a customer order by mail and enters the inform

computer terminal that is networed to a centrali0ed computer program in the computer department" The original customer order is !led in the sales department"

2acts -, 3, and < relate to activities that occur in the computer operations department"

-" A computer program edits the transactions, checs the customers; credit by referencinhistory !le, and produces a transaction !le of sales orders"

3" The sales order transaction !le is then processed by an update program that posts the to corresponding records in A# and inventory !les"


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.diting Program :ogical Steps

)" The program retrieves a single record from the unedited transaction !le and stores

-" The !rst logical test is to see if the program has reached the end4of4!le +.O2 condtransaction !le" 5ost !le structures use a special record or marer to indicate an .O2=hen .O2 is reached, the edit program will terminate and the next program in the sycase, the update program will be executed" As long as there is a record in the unedittransaction !le, the result of the .O2 test will be BBno;; and process control is passed tlogical step in the edit program"

3" Processing involves a series of tests to identify certain errors" .ach test, representdecision symbol, evaluates the presence or absence of a condition" 2or example, an e

be to detect the presence of alphabetic data in a !eld that should contain only nume

" #ecords containing errors are sent to the error !le"

?" The program loops bac to Step ), and the process is repeated until the .O2 condireached"


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• #.O#1 :ACO@T 1*A7#A5S

• #ecord layout diagrams are used to reveal the instructure of the records that constitute a !le or

database table" The layout diagram usually showname, data type, and length of each attribute +oin the record" 1etailed data structure informationeeded for such tass as identifying certain typesystem failures, analy0ing error reports, and destests of computer logic for debugging and auditi

purposes"


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• 1*22.#..S 8.T=.. 8ATD A1 #.A:4T*5. SCST.5S

• *nformation Time 2rame

• 8atch systems assemble transactions into groups for proces@nder this approach, there is always a time lag between the

which an economic event occurs and the point at which it is in the !rm;s accounts" The amount of lag depends on the frebatch processing" Time lags can range from minutes to weeprocessing is an example of a typical batch system" The ecoeventsEthe application of employee laborEoccur continuouthroughout the pay period" At the end of the period, the payall employees are prepared together as a batch"

• #eal4time systems process transactions individually at the mthe event occurs" 8ecause records are not grouped into batcare no time lags between occurrence and recording" An examreal4time processing is an airline reservations system, whichre&uests for services from one traveler at a time while he or


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• #esources

• 7enerally, batch systems demand fewer organi0atiresources +such as programming costs, computer tuser training than real4time systems" 2or example,

systems can use se&uential !les stored on magneti#eal4time systems use direct access !les that re&uiexpensive storage devices, such as magnetic disspractice, however, these cost di$erentials are disapAs a result, busi4 ness organi0ations typically use mdiss for both batch and real4time processing"

• The most signi!cant resource di$erentials are in thof systems development +programming and compuoperations" As batch systems are generally simplertheir real4time counterparts


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• They tend to have shorter development periods and are eaprogrammers to maintain" On the other hand, as much as >percent of the total programming costs for real4time systemincurred in designing the user interfaces" #eal4time systemfriendly, forgiving, and easy to wor with" Pop4up menus, otutorials, and special help features re&uire additional progrand add greatly to the cost of the system"

• 2inally, real4time systems re&uire dedicated processing cap#eal4time systems must deal with transactions as they occtypes of systems must be available -< hours a day whethebeing used or not" The computer capacity dedicated to suc

systems cannot be used for other purposes" Thus, implemereal4time system may re&uire either the purchase of a dedcomputer or an investment in additional computer capacitycontrast, batch systems use computer capacity only when program is being run" =hen the batch job completes procefreed capacity can be reallocated to other applications"


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•

Operational .Gciency• #eal4time processing in systems that handle large

of transactions each day can create operationalineGciencies" A single transaction may a$ect sevedi$erent accounts" Some of these accounts, howevnot need to be updated in real time" *n fact, the tas

doing so taes time that, when multiplied by hundrthousands of transactions, can cause signi!cant prdelays" 8atch processing of noncritical accounts, himproves operational eGciency by eliminatingunnecessary activities at critical points in the proce


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• .Gciency Hersus .$ectiveness

• *n selecting a data processing mode, the designer mustthe trade4o$ between eGciency and e$ectiveness" 2or users of an airline reservations system cannot wait untipassengers +an eGcient batch si0e assemble in the traagent;s oGce before their transactions are processed" =immediate access to current information is critical to thneeds, real4time processing is the logical choice" =hen in information have no detrimental e$ects on the user;sperformance and operational eGciencies can be achievprocessing data in batches, batch processing is probabsuperior choice"


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• :egacy Systems Hersus 5odern Systems

• ot all modern organi0ations use entirely modern information systems!rms employ legacy systems for certain aspects of their data processilegacy systems are used to process !nancially signi!cant transactionsneed to now how to evaluate and test them , legacy systems tend to following distinguishing featuresI they are mainframe4based applicatiotend to be batch orientedJ early legacy systems use 'at !les for data shierarchical and networ databases are often associated with later4erasystems" These highly structured and in'exi4 ble storage systems promsingle4user environment that discourages information integration withorgani0ations"

• 5odern systems tend to be client4server +networ6based and processtransactions in real time" Although this is the trend in most organi0atio

note that many modern systems are mainframe4based and use batch @nlie their predecessors, modern systems store transactions and masrelational database tables" A major advantage of database storage is tof process integration and data sharing that can be achieved"

• Although legacy system con!gurations no longer constitute the de!ninof accounting information systems +A*S, they are still of marginal impaccountants"


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• @pdating 5aster 2iles from Transactions

• =hether batch or real4time processing is being useupdating a master !le record involves changing theof one or more of its variable !elds to re'ect the e$

a transaction" 2igure -4-K presents record structuresales order transaction !le and two associated masA# and inventory" The primary ey +PLEthe uni&ueidenti!erEfor the inventory !le is *H.TO#C @5pri4 mary ey for A# is AO@T @58.#" otice trecord structure for the sales order !le con4 tains a

ey +SA:.S O#1.# @58.# and two secondary e!elds, AO@T @58.# and *H.TO#C @58.#secondary eys are used for locating the corresponrecords in the master !les" To simplify the exampleassume that each sale is for a single item of in4 ven


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.xample of update procedure


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• Prior to each batch update or periodically +for exevery )> minutes, the master !le being updatecopied to create a bacup version of the originalShould the current master be destroyed after the

update process, reconstruction is possible in two2irst, a special recovery program uses the bacucreate a pre4update version of the master !le" Sthe !le update process is repeated using the prebatch of transactions to restore the master to its

condition" 8ecause of the potential ris to accourecords, accountants are naturally concerned abade&uacy of all bacup procedures" *n hapter )examine many issues related to !le bacup"


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8ATD P#O.SS*7 @S*7 #.A:4T*5. 1ATA O::

•

A popular data processing approach, particularlylarge operations, is to electronically capture trandata at the source as they occur" 8y distributing input capability to users, certain transaction errobe prevented or detected and corrected at their

The result is a transac4 tion !le that is free from

the errors that plague older legacy systems" Thetransaction !le is later processed in batch modeachieve operational eGciency


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Transaction Processing System Ppt

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