App Engine Row Insert/update

Hi,

I am trying to design an app engine program that selects data from Table A and then inserts it into Table B. If the data already exists Table B, data will be written in error Table C. otherwise a flag in Table A will be updated. The issue I am having is that, in the first run (where Tables B and C are empty), both Table B and Table C are getting populated. Can someone please take a look and let me know where the issue is?

Here is my current peoplecode action ( After Do Select action). Fields 1,2, & 3 are the only key fields in all tables: