Following are the commonly used methods for transaction processing:
- On-line processing
In online processing, transactions are entered online, validated and if found valid, are processed immediately. After processing the input data, the system gives some signal or confirmation to the user as to the completion of processing.
Online processing system is that type of processing in which data can be directly entered into the system and results are available immediately. Under online processing system transaction can be recorded in the related files and the existing file can be updated.
On-line processing system is highly suitable for processing banking transactions. Customer’s accounts can be updated after each deposit and withdrawals.
- Batch processing
in a batch processing system transactions are collected and accumulated over a period of time and processed periodically. such as weekly or monthly. Under batch processing the data collected is not put for processing immediately, rather waits for accumulation of such data.
Batch processing system can be effectively utilized in the baking industry. Batch processing is more economical method of data processing. However batch processing is also not free from defects. Most often master files are remain outdated and therefore immediate response are not obtained.
- Real time processing
Under the real time processing system data is processed immediately as it is originated without waiting to accumulate batches of data. Data is fed directly into the system from on-line terminals.
Real time processing aims at not only processing data immediately but the results available to control an ongoing process. The essential feture of real time system is that the input data to be processed quickly so that further action can be taken immediately on the basis of output. Ex: traffic signal control, flight control.
Real time system of data processing can be effectively used in the following application areas.
- The latest position of account balances of customers of bank can be ascertained within few seconds.
- The method can successfully use for inventory management since latest position of stock can be displayed at any time.
The Commerce Lecturer 