Bestlink College of the Philippines

Chapter I INTRODUCTION

An ENTERPRISE RESOURCE PLANNING (ERP) is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. ERP gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management, tied together by ERP applications software and a common database maintained by a database management system. ERP systems track business resources (such as cash, raw materials, and production capacity) and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll), no matter which department (manufacturing, purchasing, sales, accounting, and so on) has entered the data into the system. ERP facilitates information flow between all business functions inside the organization, and manages connections to outside stakeholders. This PAYROLL SYSTEM is a part of an ERP. This system involves calculations and registering of cash payment of the company to their employees (which involves Salaries, Incentives, Benefits and Taxation) as stated by the law itself. Even though PAYROLL is normally under Human Resource Department of a company, yet this system makes it much more independent from the core of the said department. A PAYROLL is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations

Airline Payroll System

Bestlink College of the Philippines

1.1PROJECT OVERVIEW

Payslip Generation Salary Computation Payroll Report Generation

Payroll System
Deductions and Taxation Calculation

Financial Reports
In and out Attendance using Barcode ID

The proposed system is mainly involved in computing, calculations and summarization of all financial records of salaries of the companys current manpower.

Airline Payroll System

Bestlink College of the Philippines

1.2THE PROBLEM DOMAIN

1.2.1 Statement of the problem 1.) What are the problems encountered by the existing payroll system? In terms of: a. Accuracy b. Speed c. Efficiency d. Effectiveness e. Usability f. User-friendliness 2.) What are the processes in developing a proposed payroll system? 3.) Is there any concept/diagrams/illus. that shows the development of the proposed system? 4.) How do the respondents evaluate/assess the existing and the proposed system? In terms of: a. Effectiveness b. Efficiency c. Flexibility d. Security e. Speed f. User-Friendly 5.) How do the IT Experts evaluate/assess the proposed system?In terms of: a. Effectiveness b. Efficiency c. Flexibility d. Security
Airline Payroll System

Bestlink College of the Philippines

e. Speed f. User-Friendly

Airline Payroll System

Bestlink College of the Philippines

1.3 OBJECTIVES OF THE PROJECT

The proposal aims to create a system that could provide the necessary database for all the payroll records and the systems expected storage consumption. It is because the system must be able to cope to all data bulk the payroll system needs to receive and store. Second, it also involves fast, accurate and seamless computation of salaries of all the current employees of the expected client. This is to make the system more user-friendly, secure and unbiased by any external reasons. Lastly, to create a system that will be able to generate reports of all payroll transactions. In conclusion, this proposal must be able to meet all the characteristics a standard, non-faulty and expandable system has.

Airline Payroll System

Bestlink College of the Philippines

1.4 SIGNIFICANCE AND SCOPE OF THE PROJECT

The PAYROLL SYSTEM within the Airline Management ERP is primarily focused on the airline crews and personnels salaries, taxations, etc. The systems processes accuracy and legitimacy is highly crucial for it could affect the net income of the company.

SCOPE: 1.) Clean, Clear and Accurate Salary Computing This proposal is mainly concerned in computing the accumulated salary of the companys current manpower (either contractual or regular) and it is computed based on the companys salary guidelines and employees attendance. 2.) Accurate and seamless employee attendance monitoring The proposed system is equipped with a Barcode ID attendance monitoring system which makes unbiased attendance reports. This is used to automate the use of the DTR system and to hasten the relaying the datum to be used in computations. 3.) Payslip Generation The proposed system automatically creates the salary summary or basically called as the payslipper employee. 4.) Deductions and Taxation Computing The proposed system can be used to compute not only the salary but also the deductions and taxes which is included. 5.) Payroll Report Generation This involves the systems capability to produce a document which discloses the summary of all the payslip transactions. 6.) Financial Report Generation The proposed system is also equipped with the capability of automatically creating a report file which includes financial reports to be relayed to the finance and accounting system
Airline Payroll System

Bestlink College of the Philippines

Chapter II Review of Related Studies and Literature

2.1 Related Studies
2.1.1 Foreign Studies Based on the research study entitled "PAYROLL ERP SYSTEM" of Advantos Systems (2013), explains that it is vital that a payroll system must allow the user to set up an employee paycheck record. It also emphasized the use of separate salary record for each employee and the proper maintenance of data on tax rates and exemptions. Based on the system study entitled "INFONETICS PAYROLL SYSTEM"(2012), emphasizes that a payroll system must be user-interactive in all its processes (including maintenance of payroll records ad payroll reports and checks printing). It also explains that the system must be capable of maintaining accuracy of tax tables and deductions using a concrete formula.

2.1.2 Local Studies Based on the research study entitled computerized payroll system of Department of Health (DOH) (2007) explains that a computerized payroll system is a window based program which is specially designed to facilitate and simplify the monthly preparation of general payroll and related reports. Also that is must be flexible to provide option which allows the user to hold additional fields for other compensations and deduction which was unique to an office the company. Based on the undergraduate study made on Cagayan De Oro City Hall entitled "Cagayan De Oro City Hall Computerized Payroll System" stated that is important that the system must be easily accessible, fast-tracked and secure.

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2.2 Related Literature

2.2.1 Foreign Literature

According to the book "System Documentation" (2010), states that a computerized payroll system must have the ability to update and maintain employee information and to generate required outputs including paychecks, reports to management and to the government.

According to a blogged article in blastasia.com (2007), says that a computerized payroll system is designed to help human resource professional as well as finance and accounting personnel to manage employee compensation, deductions, allowances, and benefits in an organization.

According to the definition of Enterprise Resource planning on Wikipedia.com, stated that "organizations perceive ERP as a vital tool for organizational competition, as it integrates dispersed organizational systems and enables flawless transactions and productions". This statement serves as basis of this proposed systems capability and flexibility to integrate to other subsystems within the airline system.

Airline Payroll System

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2.2.2.1 Local Literature

According to the book of Trias(2010)entitled What is a Payroll System?, emphasized the importance of accurate calculations in a successful payroll system. It is that a payroll system is defined as a system programmed to calculate taxes and deductions, which can also be internet-based or offsite.

In the book of Musa (2009), entitled Philippine Based-Payroll System, emphasized the major elements or variables that a Computerized Payroll System consists. The author indicated the specific items the database of a PhilippineBased Computerized Payroll System must have.

According to the book of Lamberte, entitled Philippine Payment System, stated that basic and essential parts of any payment related system, the flow of information providing payment instructions and the flow of funds. He also emphasized that this flows requires an instrument to convey the information about the transactions, this is where a computerized payment system(in this case a Payroll System)comes in.

Airline Payroll System

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2.3 Synthesis of the Related Literature/Studies

The proponents made a relative comparison of the studies and literature in earlier sections of this chapter. As concluded, this proposal has based some of its concepts from such documents. The proposed system uses master lists coming from the Human Resource Department, yet the attendance relies on the system itself. One of these concepts is to use the so-called Barcode ID System for the automation of the companys attendance. Taxation data maintenance is also one of the main concerns of this proposal for its accuracy and unbiased result plays a big role with systems reliability.

Airline Payroll System