Role of Information Technology in Transaction Processing System

Abstract

The earlier transaction processing systems were manual systems. Clerks would record transactions in a journal or on numbered multi part forms. These transactions would latter be transferred, manually, to a central system of hand written records or file folders representing individual customers or suppliers. These records would be set up to trigger statements to customers or checks of suppliers. Many small businesses still operate with manual transaction processing systems; however, inexpensive and easy to use computer technology is finding its way into more small businesses. To most businesses, manual systems present numerous problems that are solved by computer and communication technologies. This paper will cover some general properties o f transaction processing systems, special transaction processing subsystem-pay roll, order entry, inventory, accounts receivable, accounts payable and others. Information technology fundamental Computers are an essential part of modern information systems, and it is virtually impossible to study information system today without knowing some thing about them and how they operate. In fact, without computers, it is unlikely that information system would even be considered a serious field of study. Following are the some basic components of computer based information system (Mahar, 2003). Components of computer based information systems A computer based information system is an information system in which a computer plays an important role. Such a system consists of the following elements (Mahar, 2002): Hardware The term hardware refers to machinery, this category includes computers itself, which is often refer to as the central processing unit (CPU), and all of its support equipments. Among these supporting equipments are input and output devices, storage device, and communication devices.