Database Updation
The next phase in the transaction processing cycle is database updation. To keep the database correct and up-to-date, it has to be regularly updated by the organization's transaction processing systems. For example, there should be a decrease in the account balance of the company and a corresponding increase in the amount of inventory on hand as a result of credit purchases made from the suppliers. The database should be maintained in such a way that these changes are immediately reflected in the data records stored in the company's database.
In addition to the maintenance of the database, data resulting from miscellaneous adjustments need to be recorded on a file or a database. For example, changes in address, names, etc. need to be incorporated. At times, a database updating log is also maintained. This contains information on the date, time, etc., of updation.
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