Transaction Processing & ERP Systems

An agreement between two entities to exchange goods or services, typically involving a monetary value.

The process of recording and managing information related to a transaction.

The steps involved in collecting, processing, storing and retrieving transaction data.

Economic events within a business that can be measured.

The parties involved in a transaction. The buyer receives goods/services and the seller provides them.

The items or services traded during a transaction.

The economic value exchanged.

Information describing the transaction, including the parties involved, the goods/services, and payment.

ERP stands for Enterprise Resource Planning. It's a software system that integrates all aspects of a business, like production, payroll, sales, purchasing, and financial reporting.

Traditional AIS uses multiple independent systems, leading to data redundancy and integrity issues. ERP uses a single system for all data, minimizing these problems. This gives a clear view of the entire supply chain.

ERPs provide a unified view of company data, reducing redundancy and improving data integrity. They streamline operations, enhance efficiency, and offer better insights.

Implementing ERP can be costly and time-consuming, and users may resist change. It requires careful planning and training to ensure successful adoption.

Data integrity means making sure the information you're using is accurate and consistent. This is vital to make good decisions and avoid errors in your business.

Storing transaction data in a structured manner, typically using computer-based files or databases, to ensure information is accessible and reliable.

A traceable record of a transaction's journey through a data processing system, from its origin to final output or vice versa. It helps track the sequence of events.

It helps maintain data accuracy, validates ledger postings, facilitates security, and ensures legal compliance.

There are four main types: data collection, data input, data processing, and data output. These encompass the entire process of transforming raw data into useful information.

A system focused solely on financial data and accounting transactions, recording and processing information like sales, purchases, and payments.

It involves recording financial details about a sale, such as date, debit/credit entries, and customer information, while also capturing non-financial data like time and store location.

This includes data like timestamps, store location, and customer demographics that don't directly relate to financial values. It offers a broader context for the transaction.