A transaction is a simple task carried out as part of corporate operations. Transaction processing systems (TPS) handle business transactions for the corporation, supporting overall enterprise operations.
A TPS creates papers pertaining to a non-inquiry transaction and records the transaction itself, together with all of its results, in the database.
Today, TPS are required for business operations in practically every firm. TPSs feed information into organizational databases; they also serve as the framework for management-oriented information systems. Source data automation frequently involves direct data entering. Electronic data interchange is being utilized by transaction processing systems more and more. These systems offer computer-to-computer communication without the need for repeated data entry by substituting paper documents with formatted transaction data sent over telecommunications networks.
