A transaction processing system (TPS) collects, stores, and processes data about business transactions like sales and purchases. It performs activities such as calculating, storing, retrieving, classifying, summarizing, and sorting transaction data. TPS exist across all areas of an organization and use stored data on files and databases along with various programs to keep records, process transactions, and produce reports on past transactions to support daily operations and provide data for higher-level management decisions.

2.  A TPS collects and stores information about
transactions, controls some aspect of transactions.
 It includes the activity like calculation, storage and
retrival,classification, summarization, sorting.
 It process the data about transactions, which affects the
business, such as the sale or purchase of goods.
 It also known as standard operating procedures.
 It exist all areas of an organization, and in all areas of
organization and all types of organizations.
 TPS use stored data on both files and databases,and
many types of programs.

3. Keep records about the state of the organization.
Process transactions that affects these records
Produce outputs that report on transactions that have
occured.

4.  To serve the most elementary day to day activities of an
organization.
 To support the operational level of the business
 Supplies data for higher level management decisions.
 To helps strategic consequences
 To provide summarized information for higher levels of
management .