Paper details:
Many of the newer accounting systems will record the transaction in real time so all information about transactions is available immediately. This process seems to be catching on in the banking industry. I think only one of the banks I use still has the old 2:00pm cut-off for recording transactions on any given day. However, it does not seem to be expediting all phases of the banking operations – one of the more common advantages for real time processing. Despite knowing the current balance in an account at a particular location, if not a client of the bank many banks (most all?) will not cash a check drawn on the bank. In other words, I used to be able to take a client’s check to his or her bank and get it cashed (yes, I have a couple of clients with severe cash flow management issues), but now I must have an account to do so and run the cost of a bounced deposit, then charging the client a fee to pick up the check plus they pay a fee to their bank for bouncing a check. Why might this be the case?
Batch processing occurs when similar transactions are accumulated over time and processed together. Real time processing captures each event or transaction and processes it before engaging in another transaction. If transactions are independent of one another, such as the processing of daily cash receipts, then batch processing is appropriate. If transactions are dependent on one another, such as credit sales, ticket sales, etc., then real time processing is more appropriate.
Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice.
Resource use is one characteristic used to distinguish between batch and real-time systems. Explain.
Discuss how batch processing may be used to improve operational efficiency.
If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?
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