CHAPTER I

INTRODUCTION

Background of the Study

According to Computer Business Research, Transaction Processing System is a set

of information which processes the data transaction in database system that monitors

programs. It is a computer database system that balances and controls purchase of goods

and services within a business network. It is useful when something is sold for it allows

time delay between when an item is being sold to when it is actually sold.

There are two types of TPS namely: Batch Processing and Real-time Processing.

The former processes several transactions ate the same time, with a time delay. The latter,

on the other hand, deals with the transaction at a time and does not have a time delay.

A TPS, aside from its advantage of making transactions easier in the business

network, also has its disadvantages. The handling of several thousand operations at once

because the system must be able to simultaneously coordinate small to gigantic information

and recording processes of the business; occurrences of viral security breaches in the

system since there are scenarios in transaction processing system that involves private

information of the customers held within the database; also mostly of the transaction

processing systems are using a web based interface that is why a business should always

be able to provide a stable internet connection for a faster access; sometimes a transaction

processing system also requires technical maintenance that should be available twenty four
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hours a day, seven days a week for a flawless integration of the daily business transactions

and procedures and also to avoid difficulties in obtaining data; etc. (Fitzpatrick, 2006).

TPS features: (1) rapid response, since response time of a transaction processing

system is important because a business cannot afford to have their customers waiting for

long periods of time before making a transaction; (2) reliability, for it must be reliable

enough so that they will be able to gain and maintain a good number of customers; (3) in

flexibility, where the TPS must work the same way for every transaction; (4) controlled

processing, that it must be accessible at any time.

TPS has also its functions: system run time functions where it provides an

execution environment that ensures integrity, availability, and security of data. It also

ensure fast response time and high transaction throughout the process; a system

administration function that lets users configure, monitor, and manage their transaction

systems; and application development functions for use in custom business applications,

including functions to access data, to perform inter-computer communications, and to

design and manage the user interface.

A TPS must be accessible to authorized employees or users so that the information

can be easily retrieved and the information must never be deleted to avoid confusion in the

completed transactions. A back up hard drive is a good idea in storing historical files and

older information while not slowing down the server that houses the TPS. Also, to achieve

performance, reliability and consistency, data must be readily accessible in a data

warehouse and backup procedures and recovery process must be in place to deal with

system failure, human failure, computer viruses, software applications or natural disasters

(Technopedia, 2019).
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Statement of the Problem

This study tackles the apparent dilemma in the daily business transaction of the

owner of the RPD Junkshop in Purok 7, Tamacan, Amadeo, Cavite. The problems that

generally occur in the business are:

The lost of the records of some transactions and/or the monitoring of cash flows in

the transaction process of the said business, which is due to the process of recording the

transactions through writing in an ample paper of a notebook and a pen - which is when

substantially lost, no record can be done, or in mere times, a legitimate duplicate of the

prices of scraps is available to the main owners papers, which is misplaced by the owner.

The patent accumulation of negligence of the personnel also contributes to such loss or

through its scribbled penmanship.

Furthermore, the environmental appearance of the business location is also a

contributor. An untidy arrangement of a workplace lends difficulty to distinguish when the

record book is mixed in the surrounding. If one record book is lost, this will result to

misstatement of cash flows that will greatly affects the business itself.

Lastly, the absence of a capable, efficient system to store greater frequency of data

transaction has a big impact to this issue. Since the business involves large scale daily

transactions, manual recording becomes the instrument to record huge amount of

transactions. Thus, creating difficulty for the workers to maintain an accurate record of the

transactions that occurred in daily basis because huge transactions happen day after day

that makes it harder to keep all the records appropriate. (See Appendices: Fishbone

Diagram)
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Theoretical Framework
TRANSACTIONAL
PROCESS SYSTEM

CUSTOMER MODULE
Access  Add Customer
 Edit Customer
 Delete Customer
 View All Customer

SCRAP MODULE
Lists of Customers  Add Scraps
 Update Scraps
 Delete Scraps
OWNER
 View All Scraps
Access
TRANSACTION MODULE
 Buy Scraps
Scrap Data
 Sell Scraps
 Edit Transaction
 Delete Transaction
 View All Transactions

Access
REPORT MODULE

Transaction Data  View All Customers

 View All Bought Scraps
 View All Sold Scraps
Access  View All Transactions

Reports

Update Retrieve

DATABASE

Figure 1. Theoretical Framework of the TPS

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Figure 1 shows how the owner uses the TPS on his business, that shows a flow of

usage and its relationship. As the owner enters into the system, he can either use the

modules for the overall transactions given – the Customer, Scrap, Transaction or Report

Module.

The two primary modules of the systems are the Customer and Scrap Module which

their data are essential for the usage of the rest modules. Once the owner uses the Customer

Module, any update or additions will be saved in the database of the system and can be

retrieved by the owner to views the list of the customers. On the other hand, the Scrap

Module data inputs will be saved also at the database and can also be retrieved by the

owner to view lists of scraps. Both will reflect on the other modules, especially the

Transaction Module.

As the user/owner interact with the system through Transaction Module, upon

entering the sufficient data and saving it, the data will directly update the database and be

retrieve in case the owner wanted to view all the transactions in a specific time period.

Lastly, the user, if necessary, will interact in the system’s Report Module by

viewing all the retrieved data of the system and then, can be used to have a report paper to

assess the business capacity.

Objective of the Study

Generally, this study aims to alleviate the work and to aid the owner of RPD

Junkshop by creating a transaction processing system that will help to counterfeit the

dilemmas of the business. The various goals of the study are beneficial for the business

and these goals are specifically:

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 To aid the lost track of the transactions;

 To monitor an accurate inflow and outflow of cash in the said business;

 To give a better, efficient and effective tracking for the business owner to be

capable of resilient service through the proposed system; and

 To offer more transactions without any disturbances and agitation that the

transactions are not recorded.

Scope and Limitation

This study focuses on the transaction process of the RPD Junkshop, its cash flow

monitoring and efficient tracking of its transactions through a system. This will be

supported by the following:

Customer Module

This module will be used by the owner to add customers - he is having business

with. Furthermore, in case of changes, the owner can use this module to edit or delete

information of the customers and be able to view all the customers he had by the time of

the business. Every customer saved will be reflected in the Transaction Module through a

drop-down function automatically after saving.

Scrap Module

This module will be used by the owner to input variety of scraps in the business to

be able to use in the Transaction Module through a drop-down function. This can also be

used to update the old scraps, in case of changes in value or prices by individual scrap and

can also be used to delete unnecessary scraps that would not be bought by the business.
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Transaction Module

This module will be used by the owner to add transactions of the business. These

transactions are either buying or selling of scraps. Moreover, the owner can edit or delete

the transaction/s if there is an error and/or misstatement of the transaction’s data. Lastly,

the owner can still view all the transactions to further check the information

Report Module

This module refers to the use of the TPS to display information of overall

transactions and customers for the benefit of the owner. Thus, the owner can view the list

of his customers, their transactions and earnings the owner had in a specific customer.

Furthermore, the owner can have the reports of the scraps bought and sold, both

disbursements and receipts, to be able to determine the capacity of the business in a specific

time period.

This study merely focuses on the daily transactions and business cash flow related

to the transactions, thus the expenses and other administratively-related disbursements –

like the salaries of the employee, the daily consumption of the owner’s family, etc., are not

involved in this study, Moreover, this also not taking into account the taxes, the inventories

and the net income of the business thereto.

Significance of the Study

The study of using TPS for large scale junk shop businesses can primarily help

RPD Junk Shop who’s in much need of the results of this research. The user’s performance

toward work on day to day operations will be easier like in managing customers where the

user of the system will be able to issue receipts of the transactions and automatically save
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the records containing about the history of the transactions occurred. Also, it will be

providing cash receipts and disbursements reports to monitor cash flow from the operations

of the business.

The customers, on the other hand, will also benefit from the study since easier

transaction processing is the goal of the research. It will provide faster performance that

the work can be done in a shorter time span therefore guarantee their satisfaction.

The future researchers of the study can also avail its convenience for the purpose

of either continuing or relating this research to their work.

Last, but not the least is the students who can acquire knowledge to this study. It

can be a great help of providing information and ideas about the situations connected to

this research.