iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Automatic data processing (ADP) is the use of computers or related machines to perform programmed operations on data, such as storing, retrieving, calculating, sorting, or reporting information. A person or organization defines the task and instructions; the equipment carries out those specified operations.
What automatic data processing means
A technical definition reproduced in a federal information-systems dictionary describes automatic data processing as devices that use common storage for programs or data, execute user-written or user-designated programs, and manipulate symbols. The system may be a standalone unit or several connected units. The American national information-processing dictionary also lists ISO-sourced senses: processing data largely by automatic means, and the field concerned with methods for doing so.
In practical terms, ADP turns data into stored, transformed, or reported information by following programmed steps. Depending on the definition and task, those steps may include arithmetic or logical operations, handling character strings, storage, retrieval, and reporting.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →How the process works—and what “automatic” means
A simple model is input data → programmed operations → stored, transformed, or reported output. A computer may, for example, sort records or calculate totals according to instructions, then store or report the results.
#1 Best Overall
“Automatic” does not mean that no person participates. People choose the task, supply or organize data, write or designate the program, and may review the output. In the cited federal health-program regulation, the emphasis is on interconnected machines arranged to minimize human assistance or intervention—not on eliminating people altogether.
Why definitions vary by context
There is no single wording that controls every use of ADP. A technical dictionary definition, a government program regulation, and a tax rule may describe different aspects of the same broad activity. If the term appears in a statute, contract, procurement document, or tax rule, the definition in that instrument and jurisdiction determines its immediate meaning.
Rank #2
- Wiley
- Language: english
- Book - storytelling with data: a data visualization guide for business professionals
| Source and context | What the definition emphasizes |
|---|---|
| Federal information-systems dictionary reproducing ANSI X3.172-1990 | Devices using common storage, executing designated programs, and manipulating symbols; they may be standalone or connected. Source |
| American national information-processing dictionary, with ISO-sourced meanings | Data processing largely performed by automatic means, or the field concerned with methods for doing so. Source |
| District of Columbia law, § 2–213.01 | Computer use to disseminate, store, retrieve, and report information associated with administrative or managerial functions. Source |
| Federal health-program regulation, 45 CFR § 95.605 | Processing by interconnected electronic or electrical machines arranged to minimize human assistance or intervention. Source |
| Washington Revised Code § 36.92.020 | Using mechanical or electronic machines guided by predetermined instructions to process information into usable information. Source |
| California Regulation 1502, sales and use tax | Automatic data processing services as operations carried out through an interacting assembly of procedures, methods, personnel, and computers. Source |
| Ohio Administrative Code Rule 5703-9-46, sales tax | Processing others’ data and access to computer equipment for processing; the rule’s stated effective date is April 15, 2024. Source |
These definitions differ because they serve different purposes and may focus on equipment, services, or activities. The table is not a substitute for checking the current text that applies to a particular obligation.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsADP, ADP equipment, and ADP services
These related terms are not always interchangeable. In the federal health-program regulation, ADP equipment is hardware that accepts or stores data, processes it, and produces information. The regulation includes digital computers and supporting peripheral, communications, and data-input equipment. ADP services can include operating equipment and system development or support.
Rank #3
District of Columbia law separately defines an automated data system as logically related programs designed to achieve objectives or functions. That specific phrase should not automatically be treated as an exact synonym for ADP.
Is automatic data processing an outdated term?
ADP has a historical computing flavor, but it is not universally obsolete. The federal information-systems dictionary reproduces the ANSI X3.172-1990 definition. Federal legislative material records that specified provisions replaced “automatic data processing” with “information technology” following 1996 amendments, while state and regulatory sources still use ADP terminology in particular contexts.
Rank #4
As a result, the wording may signal an older standard or a specialized administrative, regulatory, or tax context. Its age alone does not establish that a current document is invalid or that the term has one fixed meaning everywhere.
How to interpret ADP in a document
- Identify the document and jurisdiction. Determine whether the term appears in a statute, regulation, contract, procurement document, or technical reference.
- Find the document’s own definition. Check its definitions section and any incorporated standards or rules; those terms govern the document’s use.
- Check what the definition covers. It may concern processing activity, equipment, services, or a particular administrative or tax purpose.
- Use the applicable current text. Laws and regulations can change, so verify the live official text when interpreting a present-day obligation.
A general computing definition can explain the concept, but it cannot replace a jurisdiction-specific definition when a legal or tax requirement is at issue.
Quick Recap
Best Value
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
