Application Processing
After data and transaction processing, the data finalized in
these two stages gets posted on the affected files. Application processing is designed to
process more than one type of transactions to bring out the specific business
results in one or more business functions.
This processing is carried out once the transaction is processed for its
validity.
Let us take an inventory application which requires the
receipt and issue transactions duly validated for inventory processing. When
these two transactions are processed, the inventory is updated for receipts and
issues giving the net balance at the end of the processing for each item in the
inventory is updated for receipts and issues giving the net balance at the end
of the processing for each item in the inventory.
The application processing means the use of transaction data
for bringing out a particular status. The application could be designed to
change the number of different files holding a variety of information.
The application can be designed for status updation and the
status triggered actions in the related field of the application. For example,
if the number of work orders are on `hold' for no material to process.
The scope of application processing can be made diverse by
incorporating different transactions from the same application area or
associated areas. For example, the
inventory and purchase application can be processed together for vendor
evaluation, item valuation and payable accounting. The scope of the application
can be made diverse, if it is foreseen from the design stage. At this stage necessary inputs are
provided in the transaction which can be used at a later data in the other
application.
The advent of communication technology and its embedded use
in application processing extended its scope beyond the boundaries of the
organization. The application can be designed for processing the results,
updation of the business status, for triggering predefined actions and also
communicating with the affected agencies located within the outside the
organization.