capelco documentation 1st cretic

Chapter I

INTRODUCTION


Background of the Study


Nowadays, all establishment are becoming modernized. They use modern technologies to make their transaction fast, easy, and accurate in order to avoid waste of time and for the sake of safety and security. It helped human to solve and understand complex problem and analysis such us the computational need. For business establishment or corporation processing enormous data and complex transaction. Payroll is an example of a complex transaction because it is a critical business operation that deals with numerous accounts and produces plenty of confidential files. Payroll encompasses every employee of a company who received regular wages or other compensation from the company.
Applying manual procedure on a payroll transaction involving a vast number of employee is a difficult and time consuming process. The answer in that problem would be computer because computer can process enormous data and complex transaction in a fast and efficient way. It can generate numerous accounts and data accurately.
A Computerized Payroll System will not only provide accurate calculation and fast process of Payroll transaction but also secure data through security implementation and accordingly arrange files provided by a well designed database that will produce a paperless environment.

Capiz Electric Cooperative is government regulated by Electric Regulatory Commission (ERC). Capiz Electric Cooperative is headed and managed by a General Manager from National Electrification Administration (NEA).
Capiz Electric Cooperative is formed by the National Electrification Administration last June 07,1971 and registered with NEA last June 16, 1971. Several projects were proposed and granted by NEA and the cooperative rapidly expanded. On February 16, 1978, National Electrification Commission (NEC) certificate of franchise NO. 004 issued to Capiz Electric Cooperative the license to operate electric light and power for 50 years in area comprising Roxas City and the sixteen town of Capiz namely Panay, Panitan. Pontevedra, Maayon, President Roxas and Pilar, Ivisan, Sapian, Jamindan, Mambusao, Sigma, Dao, Cuartero, Dumarao, Dumalag Tapaz and the City of Roxas. Capiz Electric Cooperative has six Area Offices: Roxas City, President Roxas, Mambusao, Dao, Dumalag and the main office is in Timpas, Panitan.
Presently, Capiz Electric Cooperative (CAPELCO) is practicing the manual process on their Payroll System. It has separate manual process for the Regular Employees and Job-Order employees. The total number of employees in Capiz Electric Cooperative is 339. The regular employees are 299 and 40 job-order employees.

The proposed Computerized Payroll System for Capiz Electric Cooperative needs to have a methodology because methodology will provide comprehensive guidelines to follow for completing activity including specific model, tools and techniques. The proponents choose Fourth Generation Techniques as the methodology of the study.

Statement of the Problems

1. Time consuming process of manual payroll preparation.

The Capiz Electric Cooperative is used the manual method of payroll process. A lot of jobs were assigned to the payroll makers which cause an inconvenience to their services. This method it will needs more time and manpower to complete the payroll of the employees.

2. Laborious payroll process that results to the delay in generation of payroll reports.

Nobody could admit the inescapable fact that what makes the manual procedure take a long time to finish the task is due to the many steps and processes to undergo. There is the collection of data such as DTR, remittances, and individual manual calculation of payroll. Individual data is transferred through sheets, encoding and double checking after calculating. All this process requires labor and effort to complete the task.

3. Misposting and understating of employee’s data.

The logical process of manual procedure resulted to too much time consumption. It oftentimes resulted to misposting and understating of each employee’s data that are hard to accommodate.


Objectives of the Study

This study intended to develop a Computerized Payroll System for Capiz Electric Cooperative for calendar year 2010.

Specifically, this study aim to:


1• Minimize the time consumed in processing and preparing Payroll Slip, Forms and reports.
2• Automate the process of payroll computation for an accurate and convenient generation of payroll reports.
3. Organize employee’s data and payroll records through a well-managed database and a reliable security scheme for proper storage of all payroll-related information.



Significance of the Study


Accounting Department and Payroll Maker of Capiz Electric Cooperative

The proposed system would help the Finance Department of Capiz Electric Cooperative especially the Payroll maker and the Finance Officer. It will help lessen the time and effort of the payroll maker in preparing the payments of employees. The System can accommodate changing figures and produce a paperless environment through well design database.

Proponents

This study would help the proponents to enhance their ability on how to create an easily understandable computerized system. This will serve as a challenge for the proponents to do a better system.

Other Researcher

This study gave knowledge to the researcher on how to create a Computerized System in understandable way. This will serve as a fresh ground for the researcher whose study will be related in the field of Information Technology.

Scope and Limitation

Scope

This study is designed to develop a Computerized Payroll System for Capiz Electric Cooperative. It covers the processes of preparing the pay slip of the regular and job order employee, keeping of records, computing the wages and generating. The stored report list which includes monthly salary, basic salary, overtime, gross payment, net pay, and Deduction such as withholding tax, SSS and Medicare, SSS loan, Advances, Multi-purpose Loan, PAG-IBIG Contribution, CAPELCO Loan, Cash Advance, Bond, Energy Sales, Motorcycle Loan, Canteen, Under time, WEBECA, Union loan, Lot/housing loan and Maxicare.

The proposed Payroll System for Capiz Electric Cooperative is expected to generate Pay Slip of Employees, Report list of employees, Payroll register of regular and job-order employees, and Payroll form for every pay period.

Limitation

The proposed Computerized Payroll System for Capiz Electric Cooperative does not support network topology implementation and online program or online transaction.