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COMPONENTS OF TRANSACTION PROCESSING SYSTEMS

A computer-based transaction processing system has the following sixcomponents:

1. Input.
2. Data capture
3. Data validation
4. Processing and revalidation
5. Storage and Output generation
6. Query support

1. Input:- Various Inputs of a TPS are in the form of source documents such as customer
orders,purchase orders, invoices, employee time cards, etc.These documents serve the following
purposes in a TPS:
 Capturing of data.
 Facilitating operations by communicating data and authorizing another operation in the
process.
 Standardizing operations by indicating what data are required for recording and what
actions need to be taken.
 Providing a permanent file for future use if documents are retained.

Methods for Data Entry:
• Keyboard/video display terminals
• Optical character recognition (OCR) devices, such as optical scanning wands and
grocery check-out scanners.
• Magnetic ink character recognition (MICR) devices, such as MICR reader/sorters used
in banking for check
• Other technologies, including electronic mice, light pens, magnetic stripe cards, voice
input, and tactile. Input also be used as input device depending upon the application requirement

2. Data Capture
Transaction data as close as possible to the source that generates the data. Salespersons
capture data that rarely changes by prerecording it on machine-readable media, or by storing it
on the computer system.

Ways of Data Capturing

• Capture data by using machine-readable media initially (bar-coded and magnetic stripe
credit cards), instead of preparing written source documents
• Captures data directly without the use of data media by optical scanning of bar codes
printed on product packaging. It ensures the accuracy and reliability of data by comparing

3.Data Validation

There are two steps in validation:
Error detection
Error correction