Executive Summary

Buklod Diwa Multi Purpose Cooperative (PBDMPC) is an entity which

financially assists women residing at Paniqui, Tarlac in particular, through money
lending, accompanied by low interest charges compared to commercial lending
institutions. The primary purpose of PBDMPC is to promote their livelihood.
PBDMPC offers the following types of loan; productive loan, providential loan,
emergency loan, appliance loan and commodity loan.

Currently, the PBDMPC adopts manual recording of its transactions. The balances
of accounts pertaining to its day to day operations are supported by subsidiary ledgers,
invoices and receipts. Five employees work at its principal office consisting of a
manager, clerk, book keeper, collector and a secretary. The Credit Committee conducts an
investigation regarding the credit capacity of the loan applicant that is later forwarded to
the Board of Directors for final approval.

Interests, dues and customer balances are computed and recorded manually. The
entity uses aging of accounts receivable in determining uncollectible amounts but there is
no schedule of aging or accounts receivable form upon inspection. The findings show that
the manual processing of membership registration, loan application, recording of
transactions and updating of outstanding balances of the borrowers consume a lot of time
considering the fact that there are only five employees.

The current system prolongs the approval of loan, membership processing, and
determination of outstanding balances thereby delaying the collection of dues from its
borrowers. Various uncollectible accounts are seen on its records that may somehow
threat the existence of PBDMPC. The proposed system focuses on these difficulties.
Recording of day to day transactions will be entered into the computer using software
that will automatically update the outstanding balances of the borrowers. The software
will also provide an easy access on the information about the borrower or member.
Hence, it will minimize the time consumed in determining the balances of the accounts
pertaining to different transactions of the entity. Subsidiary ledgers, cash books and other
related books will serve as back ups and references.