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

1.1PROJECT OVERVIEW

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Payslip Generation
Payroll Report
Generation

Salary
Computation

Payroll System
Deductions and
Taxation Calculation

In and out Attendance

using Barcode ID

Financial
Reports

The proposed system is mainly involved in computing, calculations and

summarization of all financial records of salaries of the companys current manpower.

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

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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.
b.
c.
d.
e.
f.

Effectiveness
Efficiency
Flexibility
Security
Speed
User-Friendly

5.) How do the IT Experts evaluate/assess the proposed system?In terms

of:
a.
b.
c.
d.
e.
f.

Effectiveness
Efficiency
Flexibility
Security
Speed
User-Friendly

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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.

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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

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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

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.

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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.

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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

Bestlink College of the Philippines

Airline Payroll System