~TRANSACTION PROCESSING SYSTEM~

Transaction Processing System (TPS) also called Data Processing System (DPS)

• It function to make up a database that records the transactions of the company.
• It also used to support Management Information System (MIS), Decision Support System (DSS) and Executive Support System (ESS)
• One of the most important for every organization is in the area of accounting

This is description for TPS

Now we want tell you these six activities used TPS:-

1) Sales order processing- it records the customer request for the company's products or services

sales order processing overview

2) Account receivable-records money received from or owed by customer

3) Inventory  control system-records of number of each kind of part or finished good in the warehouse

flow of Inventory management system

4) Account payable-refers to money the company owes its suppliers for materials and services it has received

5) Payroll-concerned with calculating employee paychecks.

6) General ledger-keep track of all summaries of all foregoing transaction.it can produce income statement and balance sheet

Example of balance sheet

Example of income statement