Transaction Processing
When many hundreds or thousands of transactions are being done each day, and whenever there is human input involved, error accounts are necessary to keep the audit trail intact. Error accounts also play a role in improving customer service. GAAP recommends daily or weekly monitoring of error accounts depending on volume and transaction size. It is typically up to the company or applicable government department's accounting department to monitor the error accounts that it has in place.
Error accounts, if not monitored correctly, can lead to disaster as in Nick Leeson's use of an error account at Barings Bank.
Error accounts can be implemented in manual accounting as well, but this is much less common in the developed world since personal computers became pervasive.
Read more about this topic: Error Account
Other articles related to "processing, transaction processing, transaction, transactions":
... System/360's hardware and operating systems were designed for processing batch jobs which in extreme cases might run for hours ... As a result they were unsuitable for transaction processing, in which there are thousands of units of work per day and each takes between 30 seconds and a very few minutes ... In 1968 IBM released IMS to handle transaction processing, and in 1969 it released CICS, a simpler transaction processing system which a group of IBM's staff had developed for a ...
... houses the central reservations system, which runs under Transaction Processing Facility ... The main problem was to tie CONFIRM's transaction-processing facility-based central reservation system with its decision-support system ... the system's user interface, mainframe transaction processing and mainframe database did not adequately communicate with one another ...
... Standard transaction-processing software, notably IBM's Information Management System, was first developed in the 1960s, and was often closely coupled to ... As the number of transactions grew in response to various online services (especially the Web), a single distributed database was not a practical solution ... model where the single server could handle the transaction processing ...
... Multiplatforms is a distributed CICS (Customer Information Control System) online transaction processing (OLTP) environment for mixed language applications ... TXSeries is a transaction server available on AIX, Windows Server, Solaris and HP-UX ... TXSeries for Multiplatforms is a distributed CICS Online Transaction Processing (OLTP) environment for mixed language applications ...