Transaction Processing

In: Computers and Technology

Submitted By cw600rr
Words 1216
Pages 5
In the world of business and commerce, transactions take place on a daily basis. The needs of companies have also been evolving and increasing as more and more business models, sales and distribution channels increased. With the increase in the amount of transactions taking place, and advancements in computer hardware and software, transaction-processing systems have evolved as well.

Frist let’s examine what a transaction processing system does. “Transaction processing systems capture and process the detailed data necessary to update records about the fundamental business operations of the organization.” (Stair & Reynolds 2013, pg. 257). The system is responsible for processing various types of transactions including but not limited to sales orders, inventory updates, payroll, accounts payables and receivables. “The result of processing business transactions is that the organization’s records are update to reflect the status of the operation at the time the last processed transaction.” (Stair & Reynolds 2013, pg. 257) The results of the updated records for the organization are so that management is able to understand where the company stands at a specific point of time. Transaction processing systems works with a large amount of data and many times is integrated into an organizations other systems and share common databases. It is able to provide detailed sales reports, payroll reports and inventory status updates.

So how far have transaction processing systems evolved? Well let’s first take a look at transactions in the early 90s and take a typical bank transaction as an example. A business we’ll call Company X sells its many products and received a bunch of checks in the mail for the payment of the items. The accounts receivables clerk has to manually gather all the checks and match it up to the sales invoices and mark the invoice as…...

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