HRM 3400 Lecture Notes - Lecture 27: Order Processing, General Ledger, Accounts Payable
HRM 3400 Lecture 27 Notes – Traditional transaction processing applications
Introduction
• A TPS typically includes the following types of systems:
• Order processing systems.
• Running these systems efficiently and reliably is so critical that the order processing
systems are sometimes referred to as the lifeblood of the organization.
• The processing flow begins with the receipt of a customer order.
• The finished product inventory is checked to see if sufficient inventory is on hand to fill
the order.
• If sufficient inventory is available, the customer shipment is planned to meet the
ustoer’s desired reeipt date.
• A product pick list is printed at the warehouse from which the order is to be filled on the
day the order is planned to be shipped.
• At the warehouse, workers gather the items needed to fill the order, and enter the item
identifier and quantity for each item to update the finished product inventory.
• When the order is complete and sent on its way, a customer invoice is created with a
copy included in the customer shipment.
• Accounting systems.
• The accounting systems must track the flow of data related to all the cash flows that
affect the organization.
• As mentioned earlier, the order processing system generates an invoice for customer
orders to include with the shipment.
• This iforatio is also set to the aouts reeivale syste to update the ustoer’s
account.
• When the customer pays the invoice, the payment information is also used to update
the ustoer’s aout.
• The necessary accounting transactions are sent to the general ledger system to keep
track of amounts owed and amounts paid.
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