Transaction Processing System For MBA, MCA students.

Q1. Define transaction processing system?

* It Process data resulting from business transaction.
* E.g.:- Process sales, purchase and inventory changes to update database.
* Produce customer statements, employee paychecks, sale receipt, tax form and financial statements.
* It capture and process data describing business transactions, update files and database and produce a variety of information products for internal and external use.




Q2. How transactions are proceed in a system?

There are two methods:-

* Batch Processing: - In batch processing data is accumulated over a period of time.
* Real Processing: - In Real (online) processing data is processed immediately after a transaction occurs.




Q3. Define Transaction processing cycle?

There are five steps in transaction processing life cycle:-

* Data Entry.
* Transaction Processing i.e. either Batch or Real time.
* Database.
* Documentation and report generation.
* Inquiry processing.




Q4. How many types of transaction document are there in transaction system?

1. Action document: - That initiate transaction (e.g. paycheck, purchase order) on receipt.
2. Information document: - These documents relate, conform or prove to recipient that transaction has occurred.
3. Turnaround document:-
* Forms designed to be read by optical scanning equipments are known as turnaround documents.
* These are designed to be returned to the sender.




Q5. How many types of transaction report are there in transaction system?

1. Control listings (Transaction logs):- It describes each transaction occurring during a period.
2. Edit reports: - It describes errors detected during processing e.g. invalid account number, missing data.





Q6. Define Batch processing?

* Transaction data are accumulated over a period of time and proceed periodically.
* It gathers source documents (originated by business transactions e.g. sales orders, invoice) into groups called Batches.
* It sorts the transaction in a transaction files.
* Process data and create an upload master file and a variety of document and reports.




Q7. Define Real time processing?

* Data is processed immediately after they are generated and can provide immediate output to end users.
* It is also Known as Online transaction processing (OLTP) system.




Q8. Explain remote job entry?

* In the remote job entry we capture and stores batches of transaction data at a remote sites and then transmitting them periodically to a central computer for processing.