WALLIS, Franchelle P.

AE 111 AIS
COA BLK2A WSAT 1:30-5:30

MANUAL PAYROLL PROCESSING SYSTEM - FLOWCHART

START OF THE
MANUAL PAYROLL
PROCESSING SYSTEM

NO. OF
BASE UNITS SOLD
SALARY PER
AMOUNT OF
EMPLOYEE COMMISSION
PREPARATIO PER UNIT
N OF SOLD
NECESSARY
DOCUMENTS

COMPUTE
FOR THE
EE’S SALARY COMPUTE
TIME CARDS DEDUCTIONS FOR THE
/ADDITIONS EMPLOYEE’S
BASED ON COMMISSION
THE DATA
PROVIDED

MUST ADD THE

INCLUDE CUMULATI PROVIDE
RECORDS OF VE PREPARE PAYSLIP WITH
OT/UD/ABS AMOUNT THE PROPER
DISLOSURE
OF THE NET EMPLOYEE’ AND
PAY AND S PAYSLIP TRANSPARENC
THE Y
COMMSION

END OF
PAYROLL
WALLIS, Franchelle P. AE 111 AIS
COA BLK2A WSAT 1:30-5:30

COMPUTERIZED PAYROLL PROCESSING SYSTEM - FLOWCHART

START OF THE COMPUTERIZED

PAYROLL PROCESS

OVERTIME/HOLIDAY PAY
BASE SALARY MANDATORY DEDUCTIONS COMMISSION RECORDS
TIMECARDS RECORDS

AUTOMATIC
INPUT DATA ON
PAYROLL ACCOUNTING COMPUTATION OF
PAYROLL ACCOUNTING
SYSTEM
DATA NET PAY AND
COMMISSION

ERROR
PAYROLL
REGISTER
ARRIVE AT THE
LOCAL BANK CUMULATIVE
VOUCHERS FINAL PAYROLL AMOUNT OF NET PAY
PROCESSING
AND COMMISSION

PAYSLIPS DULY SIGNED

BY THE AUTHORIZED
PERSON

EMPLOYEES
WALLIS, Franchelle P. AE 111 AIS
COA BLK2A WSAT 1:30-5:30

INSTRUCTION: Briefly explain each flowchart and point out their differences.

The Manual Payroll Processing System (refer to flowchart) provides the procedures in conducting the payroll process in a manner where human
intervention is basically a need. The flowchart above suggests that there are only few steps in completing the payroll processing. When data/documents, such as
the records regarding an employee’s overtime, under time, absences, and even his or her data regarding his/her working time during holidays, are readily
available, the assumption that the manual payroll processing system requires fewer steps is likely true. However, work can be rigorous since it requires a great
amount of time for it to be completed since every step is done manually. On the other hand, it is least likely exposed to errors since when there is enough human
intervention which monitors every single detail carefully and properly. It can also be observed that the shapes used in the flowchart are actually shapes used to
describe manual processes which is quite different as compared to the shapes used in a Computerized Payroll Processing System Flowchart.
The Computerized Payroll Processing System, on the other hand, provides the procedures of the payroll process where most of the work is done by the
computer, specifically, the Payroll Accounting System. As compared to the manual flowchart, the computerized system requires more data which are all to be
utilized by the computer or the system, thus, resulting to lesser human intervention. Although the computerized system’s flowchart shows more symbols than the
manual system’s flowchart, it is to be emphasized that the computerized flowchart’s system lessens the amount of time needed to complete the process since most
of the work is now done automatically. However, one of the disadvantages of this system is that it is more likely exposed to undetected risks since there is lesser
intervention from humans, wherein if that is the case, details could be monitored properly.
The main difference of these two systems is the process on how every work is done. The Manual System, of course, requires lots of manual works such as
manual computations and manual listing of the things needed, as well as a huge amount of time in order to finish the payroll process. When compared to the
Computerized System, it also requires the same data, but would only need several manual inputs from some personnel and would eventually compute all the items
needed, as long as all items are placed in the computerized system, in a more efficient way, thus saving more time for the worker who is assigned to do the job. In
a nutshell, the Manual Payroll Processing System Flowchart may show lesser symbols and procedures but would actually require a lot of effort while the
Computerized Payroll Processing System Flowchart will show more symbols but would actually require lesser amount of effort and time from the workers.