Memory issue in Transactional Replication I want to replicate a data of 500 GB through transactional replication once in a day, so my query is this, will it create a new file in the snapshot folder on daily basis of 200-300 GB or will update it only.

What can I do if i don't have too much memory for this file, can we not transfer our data without generating this file.
The SQL Server Snapshot Agent will use BCP to create an initial snapshot of the data and objects to be replicated.

These are stored on disk in the default installation folder. You can specify a different location if you are concerned about space issues in the default location.

Once the snapshot has been distributed to the subscribers, subsequent changes will be stored in the distribution database and sent to the subscriber at the frequency you choose. 

If you don't need to create and send a snapshot every day you might save time and bandwidth only sending the differences for a while before refreshing the snapshot.