Transaction Processing System (TPS)
A transaction process system (TPS) is a system for processing business transactions’ information that gathers, modifies, and retrieves all transaction data. A TPS’s performance, consistency, and dependability are its characteristics.
Real-time processing and transaction processing are other names for TPS.
A batch process system and batch processing, in which several requests are processed all at once, are sometimes contrasted with a transaction process system and transaction processing. In contrast to batch processing, which doesn’t need user intervention, the former does. Each transaction’s results are not instantly accessible when processing in batches. In addition, there is a lag while the many requests are sorted, saved, and then processed. There is never a wait while completing a transaction, and the outcomes are accessible right away. Errors may arise when batch processing is delayed. Transaction processing faults are rare and acceptable; yet, they do not justify the whole system’s shutdown.
Data must be easily available in a data warehouse, backup plans must be established, and a recovery mechanism must be in place to handle system failure, human error, computer viruses, software programmes, or natural catastrophes in order to achieve performance, dependability, and consistency.
The Transaction Processing System’s Features
A decent transaction processing system has a number of qualities. Below is a description of a couple of these essential elements.
Performance
The idea of TPS is to efficiently produce transaction outcomes in a timely manner. The quantity of transactions they can handle at any one moment determines how effective they are.
Constant accessibility
The transaction processing system has to be very dependable, stable, and unable to crash often. Workplace disruption and financial loss may result from TPS disruption in an enterprise.
Data consistency
Every transaction handled by the TPS must follow the same procedure, and the system must be built to successfully secure data and resolve any hardware or software problems.
Utilization ease
In order to reduce data entry mistakes and promote use, the TPS should be easy to use. Its structure should protect users from making mistakes while entering data while still making it simple to grasp.
Adaptable expansion
It should be possible to change the TPS software and hardware separately without needing to do a whole redesign.
regulated processing
One employee or staff member should only be allowed to use the system at a time, along with approved people.
Different Transaction Processing System Types
Processing in batches
Batch processing is the process of using a computer system to concurrently revise groups of transactions.
While this approach is intended to be effective in decomposing large programmes into smaller, more manageable pieces, it has a flaw in that the transaction result is delayed.
Processing in Real Time
Only real-time processing completes transactions; this approach guarantees a prompt response contingent on the outcome of the transaction. It’s the perfect method for handling one-off transactions.
What is the Operation of a Transaction Processing System?
batch processing
Data gathering and batch grouping are necessary for processing batch transactions. The gathered data are kept in batches and may be processed at any time. In the days before information technology, this time-tested method was extensively used.
Real-time processing
Real-time processing is the result of recent technological advancements. RTP guarantees real-time data processing in order to expedite transaction verification. It is very flexible since it can function as a multi-user interface and be viewed from any location with an internet connection.
The Transaction Processing System’s components
Some of the parts of a TPS are listed below:
Inputs: These are source documents obtained via transactions that are entered into the computer’s accounting system. Invoices and client orders are two examples.
Processing: This calls for dissecting the data that the inputs give.
Storage: This data is kept in TPS memory and might take the form of ledgers.
Output: The output might be any created record.
Transaction Processing System Examples
In addition to gathering transaction data, TPS also starts processing that modifies data that has been saved. Systems for hotel reservations, personnel records, and order processing are a few examples.
Examples of batch transaction processes include the creation of bills and the clearing of checks.
Microfinance lending systems and point of sale terminals (P.O.S.) are two instances of real-time transaction procedures.
Transaction Processing Systems’ Drawbacks
In cases when the organisation is too small to make effective use of the transaction processing system, managing activities using the TPS might become challenging.
For TPS to handle large volumes of data effectively, hardware and software components are required. Because of this capability, TPSs are vulnerable to software security breaches in the form of viruses, and malfunctioning hardware problems like power outages may cause system disruptions.
Sophisticated staff and a connection with affiliated corporate branches are necessary for the successful integration of a TPS into a business operation and to provide a safe flow of information. The company’s everyday operations may become unstable and erratic due to this high need.
Transaction Processing System Functions
Systems for processing transactions are capable of handling input, output, storing, and processing tasks.
I Functions of input
This covers data entry into the system, data validation, and data security on the source document.
(ii) Functions of output
This covers the creation of transaction reports on paper or via a monitor; exception reports, detail reports, and summary reports are a few examples.
(iii) Functions of storage
This is the method used to store data. It comprises information storage as well as data access, organisation, and updating.
(iv) Functions of processing
This involves transforming the data and involves computation, calculation, and appropriate outcome.
Recovery Types
Reversing necessary modifications to a record is possible with backup recovery.
Forward Recovery: transactions completed between the most recent backup and the current time may be preserved using this.
Because it does not need to store every transaction, it is more efficient and functions by creating a backup copy of the database.
An information technology used to gather, store, alter, and retrieve data transactions is called a Transaction Processing System (TPS). Transaction processing systems provide a distinctive solution to user needs, but the amount of data and the nature of the company play a major role in the process of selecting the best approach.