HRM 3400 Lecture Notes - Lecture 27: Order Processing, General Ledger, Accounts Payable

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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
ustoer’s desired reeipt 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 iforatio is also set to the aouts reeivale syste to update the ustoer’s
account.
When the customer pays the invoice, the payment information is also used to update
the ustoer’s aout.
The necessary accounting transactions are sent to the general ledger system to keep
track of amounts owed and amounts paid.
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