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Transaction processing subsystems

Transaction processing subsystems
Some of the major transaction processing subsystems found in most firms. In larger organization most of operations are computerized. Each sub system serves a variety of purposes (Thomas, 1993).

Pay roll
The transaction processing subsystems used to produce paychecks for employees are called payroll-processing systems. These systems also must produce data for tax purposes. Additionally, payroll-processing system must keep track of such items as Social Security payments, union dues, and group insurance deductions.

Order entry
The order entry system is transaction processing subsystem that processes customer orders. Orders may come from variety of sources –perhaps by mail, phone, and fax-from customers who are ordering on demand basis.

The quantity of product that a merchandising has available to sell at any given time is called inventory. An inventory system monitors the quantity of each product available for sale and helps ensure that proper stock levels are maintained.

The invoicing in the transaction processing subsystem that creates invoices and some times, packing slips. A packing slip shows little more that what products are contained in shipment; prices are either hidden or missing.

The shipping system is conceptually simple. Sealed, address packages of goods are received from inventory, often with shipping instructions. Technology has affected the shipping operation in several ways. Computer and communication systems make it much easier to succeed in the over night package delivery business.

Account receivable
In many firms, customers pay by credit card or have goods charged to their accounts. The account receivable system in the transaction processing system that manages customer purchase records, payments, and account balances.