What are the steps involved in processing business transactions? Give an example of a specific Business transaction including the propers steps.
Business transactions range from simple and basic, as in a point of sale transaction, to highly complex, as in providing contractor services for construction of a large building. For complex business transactions the steps might involve such things as letters of understanding, legal documents including contracts, preliminary plans, finalized plans, permit applications, subcontractor agreements, financing options, lines of credit with a bank, agreements for architects and project managers, project schedules and timelines, agreements for construction delay penalties, insurance coverage, and many, many more.
To answer your question I will list the steps for a point of sale transaction.
The old fashioned and simplest point of sale transaction would be receiving cash for an item and writing a receipt for the purchaser.
Today, the point of sale transaction could be in a retail store or online.
Step 1 is the offer of the item. This could be done by displaying the item in a retail store, or advertising it online.
Step 2 is the sale itself, which involves receiving payment, documenting the sale and providing the item to the customer.
Payment can be by cash, check, electronic funds transfer (EFT), credit card or debit card.
For checks it is necessary to ensure that the check is properly filled out, dated and signed. For credit cards it is important to note that the card has not expired, and that the bank approves the charge when the card is swiped.
Software is an important part of the modern point of sale transaction. The seller should design her software package to record items sold, amount paid, method of payment, date of sale, and, importantly, demographic information on the buyer that will be useful in advertising, inventory control and future sales.
In addition to the sale of a products, point of sale transactions may also offer warranty extensions and maintenance agreements.