BUSINESS LOGIC
By: Christian Alfred M. Villena, LPT, MIT
BUSINESS LOGIC

What Is Business Logic
Business logic is the custom rules or algorithms that handle
the exchange of information between a database and user
interface. Business logic is essentially the part of a computer
program that contains the information (in the form of business
rules) that defines or constrains how a business operates.
Such business rules are operational policies that are usually
expressed in true or false binaries. Business logic can be
seen in the workflows that they support, such as in
sequences or steps that specify in detail the proper flow of
information or data, and therefore decision-making. Business
logic is also known as "domain logic."

KEY TAKEAWAYS
• Business logic refers to the logic and algorithms
serving as the foundation of code in business
software.
• Business logic can be seen in the workflows that
they support, such as in sequences or steps that
specify in detail the proper flow of information or
data
• Business logic exists at a higher level than the
type of code that is used to maintain basic
computer infrastructure.

Understanding Business Logic
Put another way, business logic is real-world business rules put into
computer code and shown in a computer program via a user interface.
Business logic is most evident in its role in creating workflows that pass
data between users and software systems. Business logic determines how
data may be shown, stored, created, and altered. It provides a system of
rules that guides how business objects (parts of software that control how
data is transported) work with one another. Business logic also guides how
business objects within software are accessed and updated. It exists at a
higher level than the type of code that is used to maintain basic computer
infrastructure, such as how a database is displayed to a user or as basic
system infrastructure.
The algorithms involved in business logic perform behind-the-scenes data
processing that is invisible to the user but is critical to keeping things
running smoothly in a modern economy.

Business Logic vs. Business Rules
Business rules are useless without business logic
to determine how data is calculated, changed, and
transmitted to users and software. But without
business rules to create a framework, business
logic cannot exist. Business logic is any part of a
business enterprise that makes up a system of
processes and procedures, whereas anything else
is an example of a business rule.

Business Logic Example
A credit card issuer's business logic may specify that out-
of-state credit card transactions above a certain limit, say
$500, be flagged as suspicious and the issuer contacted
as soon as possible to confirm the authenticity of the
transaction. The policy of flagging such a transaction is
an example of a business rule; the actual process of
flagging the transaction is an example of business logic.
Given that millions of credit card transactions are
conducted every single day, business logic enables such
transactions to be checked and processed in an efficient
and timely manner.