- Inputs: Typically the source documents obtained from transactions that serve as inputs to an accounting system. Examples of these are invoices and customer order slips.
- Processing system: This component breaks down the information contained in the inputs into a format that the computer can understand.
- Storage device: This component is that part of the computer’s memory where the processed information is saved in the form of a ledger or report.
- Outputs: These refer to all the records or reports generated by a transaction processing system.