Category: articles

REGON number – what is it, what is it used for, and who assigns it?

Post author By Maksymilian Śniegocki
Post date September 5, 2024

Table of contents

What is the REGON number?
REGON number – what is it used for?
Who assigns a company’s REGON?
REGON number – how many digits does it count?
How to find a company’s REGON?

What is the REGON number?

The REGON (National Economy Register) number is a unique identifier assigned to businesses and institutions in Poland, used to identify them in administrative and statistical systems. It is one of the critical pieces of information used by offices, institutions, and other entities to track economic activity at the national level. What is REGON? Many entrepreneurs ask themselves this question, especially at the beginning of their business. REGON is essential in creating business records and facilitating contact with various institutions and public services.

REGON is not only an important tool in monitoring the national economy but also an essential element in the day-to-day operation of businesses. Registering a company in the REGON register allows the state administration to formalize the business entity. This makes it possible to conduct business by the applicable law and take advantage of various reliefs and public services.

REGON number - what is it used for?

The REGON number serves many functions in administrative and economic areas. First, it allows for tracking business activity and statistically classifying companies according to their type of activity. It is also used by both public and private institutions to identify a business entity.

With the REGON number, offices can monitor and analyze economic activity at various levels. The Central Statistical Office (CSO) can use it for statistical research and company records at other public institutions. The REGON number is also used to register companies in banking systems, payment systems, and contractor databases.

It is also worth mentioning that the REGON number is required when submitting many business-related documents, such as applications for grants and tax returns, and when cooperating with other companies. In practice, the REGON number becomes a critical element enabling a company to operate effectively in the market.

Who assigns a company's REGON?

The Central Statistical Office (CSO) assigns the REGON number. It is this institution that registers businesses in the REGON system. REGON enrollment occurs automatically when registering a company in the Central Register of Business Activity and Information (CEIDG) or the National Court Register (KRS).

Entrepreneurs do not need to submit a separate application for a REGON number, as the entire procedure is carried out automatically during business registration. The CSO assigns the REGON number within a few working days after the company is registered with the relevant institution. This process is entirely free of charge.

However, it is worth remembering that the REGON number is assigned not only to companies but also to public institutions, foundations, associations, and other organizations operating in Poland. Any entity that wants to operate legally and by Polish law must be registered in the REGON register.

REGON number - how many digits does it count?

It is worth noting the structure of the REGON number. Each REGON number consists of nine digits. The first eight digits are the identification number, which is unique for each entity. The last, ninth digit, has a control function, which is calculated based on unique mathematical algorithms to detect any errors in the number.

For large entities, such as limited liability companies, public institutions, or other organizations with larger-scale operations, assigning a REGON number with a length of 14 digits is possible. In this case, the first nine digits are the primary identification number, and the remaining five digits allow for further detailed designation of internal units of the company, such as branches or subsidiaries.

Therefore, the question “REGON, how many digits?” has two answers: for most companies, the REGON number has nine digits, while for larger entities and their organizational units, the number can be 14.

How to find a company's REGON?

A company’s REGON number can be found in several ways. The simplest way is to use the search engine for business entities available on the Central Statistical Office website. Enter a company’s name, tax ID number, or KRS number to access REGON number information.

Alternatively, the REGON number can be found on company documents, such as invoices, contracts, or other official letters in which the company must provide its registration data. The REGON number is also available in the CEIDG registration certificate, which every entrepreneur receives after registering his business.

For companies registered with the National Court Register (KRS), the REGON number is also available in the KRS’s public database, which can be retrieved after providing the relevant company information.

If you’re wondering how to find a company’s REGON, the above-mentioned sources can provide quick access to this crucial information.

articles Business knowledge

APS system – what is it, what function does it perform, and how can it be integrated with ERP?

Post author By Maksymilian Śniegocki
Post date September 5, 2024

Table of contents

Functions of an APS system in an enterprise
Benefits of implementing an APS system
How do you integrate an APS system with ERP?
Examples of APS system applications in various industries

APS (Advanced Planning and Scheduling) is an advanced IT tool that assists companies in planning and scheduling production. Its main goal is to optimize production processes by using resources more efficiently, reducing lead times, and minimizing operating costs. Unlike traditional planning methods based on static data, APS systems enable dynamic and precise production management based on current data and changing conditions.

Functions of an APS system in an enterprise

The APS system performs several vital functions invaluable in modern production management. First and foremost, the APS program enables the creation of detailed production schedules that consider constraints related to the availability of resources such as machinery, people, materials, or tools. APS systems analyze various production scenarios, identifying the most efficient solutions and allowing optimal time and cost management.

Another function APS-class systems perform is monitoring and controlling production execution. Thanks to the integration with other IT systems, such as ERP (Enterprise Resource Planning), progress can be tracked in real-time, allowing quick responses to problems or delays. In addition, APS systems allow forecasting material requirements and planning deliveries, which minimizes the risk of production downtime due to raw material shortages.

Benefits of implementing an APS system

Implementing an APS system in a company brings several benefits that can significantly improve operational efficiency and competitiveness. One of the most essential advantages of an APS system is the ability to plan production faster and more precisely. Thanks to advanced algorithms, APS systems can consider numerous variables and changing conditions, translating into more flexible and reality-adapted production schedules.

Another benefit is the reduction of operating costs. APS systems allow better utilization of available resources, which minimizes waste and downtime. In addition, more efficient inventory and supply management can reduce costs associated with warehousing and logistics.

Another significant benefit is improved customer service. With precise production planning, companies can reduce lead times, translating into higher customer satisfaction and greater brand loyalty. Implementing an APS system can also contribute to a company’s flexibility, allowing it to respond more quickly to changing market needs.

How do you integrate an APS system with ERP?

Integrating an APS system with an ERP system is a key step in implementing this solution. ERP systems, which manage a company’s resources, financial, and operational data, provide essential information that the APS system uses to optimize production. To ensure smooth cooperation between these systems, it is necessary to conduct a thorough analysis of business processes and determine which data are crucial for production optimization.

The first step in integrating APS and ERP systems is to set up a data exchange interface between them. Today’s APS programs are usually equipped with integration modules that enable seamless communication with ERP systems. The key element here is to ensure data consistency—the information transferred from the ERP system to the APS must be up-to-date and accurate so that the APS system can properly optimize production processes.

The next step is to adapt the APS system’s configuration to the company’s specifics. This includes defining which production processes the system will manage and what input data will be used to create production schedules. This often requires close cooperation with the IT team and consultants responsible for the ERP implementation.

Ultimately, integrating the APS system with the ERP should be tested on various production scenarios to ensure the two systems work together correctly and deliver the expected results. Once the testing phase is complete, the APS and ERP systems can be put into the entire operation, allowing the company to realize the full potential of both solutions.

Examples of APS system applications in various industries

APS systems are used in a wide variety of industries wherever efficient production management is crucial to a company’s success. In the automotive sector, APS can manage complex production processes involving hundreds of different components and suppliers. Thanks to precise scheduling, car production times can be shortened and costs associated with parts storage reduced.

In the food industry, APS-class systems are often used to manage food production with a short shelf life. Precise scheduling allows for optimal use of raw materials and minimization of losses associated with expired products. In addition, APS systems allow for quick adjustment of production to changing market trends and consumer demand.

In the pharmaceutical industry, the APS system can manage drug production, which requires strict adherence to quality standards and legal regulations. With advanced monitoring and control functions, APS systems help ensure regulatory compliance and high product quality.

In summary, APS systems are invaluable tools in production management, and they are used in a wide range of industries, from automotive to food to pharmaceuticals. Integrating APS with ERP allows the full potential of both systems to be realized, resulting in greater operational efficiency and competitiveness for the company in the market.

articles Business knowledge

Production planning and accounting – how do you do it right?

Post author By Maksymilian Śniegocki
Post date August 29, 2024

Table of contents

Production cost accounting – what does it consist of?
Accounting for production step by step
Production cost accounting – what should be kept in mind?
Accounting for production costs with an ERP system

Production cost accounting - what does it consist of?

Accounting for production costs involves identifying, recording, and analyzing all costs associated with the production process. These costs can be divided into several main categories:

Direct costs: These are costs that can be directly attributed to a specific product or service. They include the costs of materials, raw materials, and direct labor.
Indirect costs: These are costs that cannot be directly attributed to a specific product but are necessary for production operations. Examples include machine maintenance costs, administrative costs, and energy costs.
Fixed costs: These remain constant regardless of production volume, such as the cost of renting production space or depreciation of equipment.
Variable costs: These are costs that change in proportion to the production volume, such as raw material or energy costs.

Accounting for production step by step

The process of accounting for production can be divided into several steps that help to monitor accurately and control costs:

Production planning: At this stage, the need for raw materials, production schedules, and human and machine resources is determined. It is crucial that the planning be realistic and consider any potential obstacles.
Cost recording: All costs related to production must be accurately recorded, including both direct and indirect costs.
Assigning costs to products: Costs must be assigned to specific products or production batches. This allows accurate cost tracking throughout the production process.
Cost analysis: Once cost data is collected, analysis follows to identify areas that need to be optimized. This analysis can include comparing actual costs with planned costs and identifying deviations.
Reporting and conclusions: Based on the cost analysis, reports are created to help make decisions about further production management. The analysis's conclusions can lead to changes in production processes to increase efficiency and profitability.

Production cost accounting - what should be kept in mind?

Production cost accounting is a vital part of the cost accounting process. Here are some aspects to keep in mind when keeping production cost records:

Data accuracy: All cost data must be accurate and up-to-date. Record-keeping errors can lead to incorrect analysis and decisions.
Completeness of recording: It is essential to record all costs related to production, both direct and indirect. Omitting any cost can falsify the picture of actual production costs.
Transparency of records: Cost records should be kept clearly and understandably, facilitating analysis and reporting. It is advisable to use standard methods and tools for cost recording.
Regular updates: Cost records should be updated regularly to reflect the current production situation. This allows you to monitor costs in real-time and react quickly to any irregularities.

Accounting for production costs with an ERP system

ERP (Enterprise Resource Planning) systems are a tool that significantly facilitates the management and accounting of production costs. With an integrated platform, an ERP system allows you to effectively manage all aspects of production, from planning to cost recording and analysis.

Process automation: the ERP system automates many of the processes involved in recording and analyzing production costs, which minimizes the risk of errors and increases efficiency.
Integrated data: ERP provides a central data repository for easy access and real-time production cost information analysis.
Real-time cost tracking: With ERP, production costs can be monitored in real-time, allowing you to react quickly to deviations from the plan.
Reporting and analysis: the ERP system generates detailed reports on production costs, making it easier to make management decisions and identify areas for optimization.
Integration with other modules: ERP integrates manufacturing cost management with different modules, such as procurement, sales, and human resource management, which ensures data consistency and improves overall business management efficiency.

articles Business knowledge

How can inventory and warehouse management be done effectively with an ERP system?

Post author By Maksymilian Śniegocki
Post date August 22, 2024

Table of contents

What is inventory management?
What are the methods of inventory control?
Key objectives of inventory management
Inventory management systems for businesses
Inventory management with ERP – how to do it?

What is inventory management?

Inventory management is the process of monitoring and controlling the amount of products and raw materials in stock. It involves planning, ordering, storing, quality control, and inventory distribution to confirm that the company has the right amount of products available at the right time and place. Effective inventory management helps avoid excess inventory, which generates storage costs and shortages, leading to lost sales and dissatisfied customers.

What are the methods of inventory control?

Several inventory control methods can be used depending on a company’s specific operations and needs:

ABC method: Classification of inventory into three groups (A, B, C) according to its value and importance to the company. Group A includes the most valuable products, which account for a small percentage of the total number of inventories but have the greatest impact on the value of inventory.
Just-in-Time (JIT) method: a system of ordering raw materials and products exactly when they are needed in the production process, which minimizes storage costs and reduces the risk of excess inventory.
Economic Order Quantity (EOQ) method: optimizing order quantities to minimize the costs associated with ordering and storing inventory. EOQ helps determine the most efficient order quantity.
FIFO (First In, First Out) method: an inventory management system in which the oldest products are sold or used first, which is especially important in industries with limited shelf life.
LIFO (Last In, First Out) method: an inventory management system in which the newest products are sold or used first. This method can be used in cases where older inventory has a longer shelf life.

Key objectives of inventory management

Inventory management aims to achieve several key objectives:

Increase product availability: Ensure that the right products are available at the right time and place to meet customer demand and avoid production downtime.
Minimizing warehousing costs: Optimizing inventory quantities to reduce the costs associated with storing, insuring, and handling products.
Improving operational efficiency: streamlining inventory ordering, storage, and distribution processes to increase operational efficiency and reduce lead times.
Risk management: minimize the risks associated with excess inventory, reduced product quality, and lost sales due to a lack of available products.
Working capital optimization: Effective inventory management helps free up capital frozen in inventory, enabling better use of funds for other business purposes.

Inventory management systems for businesses

Inventory management systems are software that helps companies monitor and control inventory in real time. Such systems can stand alone or be part of a more extensive ERP system. Critical functions of inventory management systems are:

Monitoring inventory levels: This feature tracks the number of products in stock in real time, allowing you to monitor your inventory.
Automatic ordering: This method generates automatic orders based on set minimum and maximum inventory levels, helping avoid shortages and overstocking.
Quality control: monitor inventory quality and identify defective or out-of-date products, which helps maintain product quality.
Data analysis: generate reports and analysis on inventory, which enables better decision-making and optimization of inventory management processes.
Integration with other systems: integrating with ERP, CRM, and other business applications, ensuring data consistency and facilitating business process management.

Inventory management with ERP - how to do it?

An ERP system integrates all business processes into a single platform for better inventory and warehouse management. Here’s how to manage inventory with ERP:

Central data management: an ERP system provides central management of inventory data, allowing easy access to information about inventory, orders, and deliveries.
Process automation: ERP automates many processes related to inventory management, such as order generation, quality control, inventory updating, and returns processing.
Demand forecasting: the ERP system uses advanced algorithms to forecast product demand, which helps plan orders and minimize the risk of shortages or excess inventory.
Warehousing optimization: ERP supports optimizing warehouse processes, such as product placement, warehouse space management, and inventory turnover control.
Performance monitoring: The ERP system allows you to monitor key performance indicators (KPIs) related to inventory management, allowing you to assess the effectiveness of your processes on an ongoing basis and make needed improvements.
Integration with suppliers and customers: ERP facilitates integration with supplier and customer systems to improve communication and collaboration in the supply chain.

Summary

Inventory and warehouse management are critical components of any company’s efficient operations. ERP systems for inventory management allow for data centralization, process automation, demand forecasting, storage optimization, and performance monitoring. This will enable companies to achieve higher levels of operational efficiency, minimize costs, and increase customer satisfaction. Choosing and implementing the right ERP system is an investment that brings tangible benefits in better inventory and warehouse management.

articles Business knowledge

OEE ratio – what is it, and how do you calculate production efficiency?

Post author By Maksymilian Śniegocki
Post date August 15, 2024

Table of contents

What is the OEE indicator?
OEE indicator – formula
How do you calculate production efficiency?
Calculating production efficiency with an ERP system
The most common mistakes in calculating the OEE indicator
How can we improve the OEE rate in the production process?

What is the OEE indicator?

The OEE (Overall Equipment Effectiveness) indicator is a key indicator used in production management to assess how efficiently machinery and equipment are used. OEE measures how well production resources are used to their full potential, eliminating losses due to unplanned downtime, low productivity, and quality defects. With the OEE indicator, companies can accurately monitor and optimize their production processes, increasing efficiency and competitiveness.

OEE indicator – formula

The calculation of the OEE indicator is based on three main components: availability, productivity, and quality. Each component is crucial in assessing a machine’s or production process’s efficiency. The formula for the OEE indicator is as follows:

OEE = Availability x Productivity x Quality

Availability =

Production time – Downtime

Production time

Productivity =

Actual performance

Theoretical performance

Quality=

Number of good products

Total number of products

How do you calculate production efficiency?

Calculating production efficiency using OEE is critical to understanding and improving production processes. To do so accurately, it is necessary to consider the various aspects that affect machine uptime, machine capacity, and the quality of the products produced.

Calculating production efficiency with an ERP system

ERP (Enterprise Resource Planning) systems are invaluable in managing production efficiency. By integrating data from different areas of a company’s operations, ERP systems enable accurate tracking and analysis of critical indicators, such as OEE. Using an ERP system to calculate production performance allows you to:

Automation of data collection - The ERP system automatically records data on machine uptime, downtime, the number of products produced, and quality, eliminating errors resulting from manual information entry.
Real-time analysis - The data collected by the ERP system is available in real-time, allowing the company to monitor production performance in real-time and respond quickly to problems.
Process optimization - The ERP system enables the identification of bottlenecks and areas for improvement, which allows the implementation of optimization measures and increases production efficiency.

The most common mistakes in calculating the OEE indicator

Despite its simplicity, the calculation of the OEE indicator can be subject to errors that lead to an incorrect assessment of production efficiency. The most common mistakes include:

Incomplete data - The need for complete and accurate data on machine hours, downtime, the quantity of products produced, and quality defects can lead to incorrect OEE calculations.
Improper definitions - unclear or inconsistent definitions of the various components of the OEE indicator (availability, productivity, quality) can lead to misleading interpretations of the results.
Neglecting the impact of changes - Failing to consider the effects of changes in production processes, such as technological modifications, changes in work organization, or differences in operator skills, can falsify the results of OEE indicator calculations.

How can we improve the OEE rate in the production process?

Improving OEE is crucial for any company seeking to increase production efficiency. Here are some practical steps you can take to enhance OEE:

Regular inspection and maintenance of machines - Regular inspection and maintenance of machines minimize the risk of unplanned downtime and increase availability.
Operator training - investing in training for machine operators increases their skills and efficiency, which translates into higher productivity and production quality.
Process optimization - Analyzing and optimizing production processes allows for identifying and eliminating bottlenecks, increasing productivity.
Data monitoring and analysis - continuous monitoring and analysis of OEE data allows you to identify areas for improvement on an ongoing basis and implement appropriate corrective actions.
Implementation of Lean Manufacturing tools - Lean Manufacturing tools and methods, such as 5S, Kaizen, or TPM (Total Productive Maintenance), support continuous improvement of production processes and the OEE indicator.

In summary, the OEE indicator is a critical tool in manufacturing performance management, allowing an accurate resource efficiency assessment. Calculating the OEE indicator with ERP systems enables automation and accuracy, and implementing optimization measures allows continuous improvement of production processes. Improving the OEE indicator translates into higher efficiency, quality, and competitiveness of the company in the market.

articles Business Central Recommended

Want to reduce paperwork to a minimum? Choose Continia Document Capture with OCR technology.

Post author By Maksymilian Śniegocki
Post date August 14, 2024

Spis treści

Reduce the number of documents by using Continia Document Capture
Document scanning and processing
PDF processing
OCR technology in Continia Document Capture
Support for different types of documents
Document analysis and processing
Approval of purchase invoices
Backup and archiving
What is Document Capture and OCR technology for?
Range of features
Benefits

Reduce the number of documents by using Continia Document Capture

Document Capture is an innovative business solution based on OCR (Optical Character Recognition) technology designed to optimize business processes.

By integrating Continia Document Capture with Microsoft Dynamics 365 Business Central, you can instantly scan invoices as soon as they are received. The scanned documents are automatically uploaded to Microsoft Dynamics 365 Business Central, meaning all items on the invoice are imported, stored, and assigned to the corresponding purchase order in the ERP system. If the invoice needs approval, the responsible person receives an email notification. The invoice can be approved in the Microsoft Dynamics 365 Business Central application and via a web browser. In addition, the approval process is recorded in detail, allowing purchasing managers to track the entire document approval process.

Document scanning and processing

Thanks to OCR technology, Document Capture enables the rapid scanning of all documents and their immediate distribution within the organization. The process begins when the documents are received. Once scanned and recorded, the documents are automatically sent to the ERP system – Microsoft Dynamics 365 Business Central. Document scanning can be performed using multifunctional devices and dedicated scanners.

PDF processing

Purchase invoices and orders are most often received in PDF format. With Document Capture, such files can be directly uploaded to Dynamics 365 Business Central from specific file server folders or directly from email. Moreover, the application can simultaneously import and process encrypted PDF files, eliminating the need to print and manually scan them.

OCR technology in Continia Document Capture

Document Capture uses one of the most recognized OCR technologies on the market, ABBY FineReader, to accurately recognize text in documents. This advanced technology effectively identifies barcodes, characters, and letters in as many as 180 languages.

Support for different types of documents

Document Capture is designed to work with a variety of document formats. Users can define custom templates for processing such documents as purchase orders, contracts, certificates, diplomas, or agreements. Creating rules that specify what data will be processed during document capture is also possible.

Document analysis and processing

Document Capture’s advanced document processing mechanism analyzes scanned files, extracts relevant information, and sends them to the appropriate templates. Documents are automatically assigned to the correct templates based on their source. These templates can be further optimized by applying validation rules and other requirements, ensuring the data complies with the standards and best practices in the ERP system, Microsoft Dynamics 365 Business Central.

Approval of purchase invoices

The relevant person receives an automatic email notification if a purchase invoice requires approval. The document can only be approved and processed once all responsible persons approve. During approval, these individuals can view the original document on their devices, add notes, and attach additional files. Document Capture also allows you to track the entire approval history, providing tools to help manage the process.

Purchase orders can be integrated with scanned invoices, automating approval, provided value differences are within set limits.

Backup and archiving

All scanned documents are stored in PDF/A format and can be accessed directly from Microsoft Dynamics 365 Business Central. Documents are easy to locate with account or dimension numbering. It is also possible to use full-text search based on the content of the papers. This feature lets you quickly search the registered template fields and the full text of documents to find relevant information about suppliers or contracts. All original documents are securely stored in the Data Capture archive.

Want to simplify your administrative processes? Choose Document Capture with OCR technology and reduce paperwork to a minimum!

What is Document Capture and OCR technology for?

Document Capture technology, based on advanced OCR solutions, is becoming increasingly popular among companies in various sectors. It is an excellent tool for organizations of any size and industry.

OCR technology is designed to reduce paper documents and streamline company administrative processes.

Range of features:

the ability to scan documents remotely and locally, directly into Dynamics 365 Business Central,
automatically download and register PDF files without the need to install additional software,
built-in ABBYY FineReader OCR technology recognizes text in 180 languages and dialects,
processing of encrypted PDF files possible without unlocking them,
automatic recognition of vendors registered in the ERP system - Dynamics 365 Business Central,
improved financial management, including control of VAT amounts and payment terms,
automatic assignment of approvers based on supplier, dimensions, and invoice amount,
possibility of temporary registration of invoices with full automation of the process,
automatic linking of purchase orders to invoices, with an automatic approval option,
accountants and approvers can adjust dimensions, and G/L accounts directly on the lines,
documents are indexed by the date of the original document,
full-text search in documents directly in Dynamics 365 Business Central,
support for multiple document types.

Benefits:

Accelerated and more efficient execution of administrative processes,
instant access to digital versions of documents,
optimized workflow,
improved communication and collaboration within the team,
reduced costs associated with backup archiving.

If you would like to learn more about our offer, please get in touch with us. We will be happy to provide you with detailed information

articles Business knowledge

Split payment – what is it, and what is the split payment mechanism?

Post author By Maksymilian Śniegocki
Post date August 8, 2024

Table of contents

What is the split payment?
How does split payment work?
Split payment mechanism – what goods does it cover?
Split payment – when is it mandatory?
Split payment mechanism – how do you make a transfer?

What is the split payment?

Split payment, or split payment mechanism, is a VAT settlement system introduced in Poland to reduce fraud and tax evasion. It involves splitting payments for goods and services into the net and VAT amounts. Thanks to this solution, VAT goes directly to a particular VAT account held by a bank, making tax fraud more difficult. Split payment was introduced in Poland in July 2018 and has since been applied to many transactions.

How does split payment work?

The split payment mechanism works as follows: when the buyer pays for an invoice, the net amount goes to the seller’s current account, while the VAT amount is transferred to a particular VAT account. This account is maintained by a bank or SKOK and is used exclusively for VAT-related settlements. In this way, VAT is kept separate from the company’s current funds, which reduces the risk of its misuse.

An example of how split payment works:

1. the buyer receives an invoice for PLN 10,000 net + PLN 2,300 VAT.

2. When making the payment, the buyer transfers PLN 10,000 to the seller’s current account and PLN 2,300 to the seller’s VAT account.

3. the bank automatically divides the payment, transferring the VAT amount to the corresponding account.

Split payment mechanism - what goods does it cover?

The split payment mechanism covers certain goods and services vulnerable to tax fraud. The list of these goods and services is included in Appendix 15 of the VAT Law and includes, among others:

Businesses that trade in these goods or provide these services must use the split payment mechanism.

Split payment - when is it mandatory?

Split payment is mandatory in certain situations, according to the VAT Law. It mainly applies to transactions that meet the following criteria:

The seller must include the annotation “split payment mechanism” on the invoice in such cases. Failure to make such an annotation may result in the imposition of sanctions by the tax authority.

Split payment mechanism - how do you make a transfer?

Making a transfer under the split payment mechanism is simple but requires accuracy and attention. To make a payment, follow the steps below:

1. Select the split payment option in electronic banking: In the electronic banking system, select the option of split payment transfer or transfer to a VAT account.

2. Enter the transfer data: In the transfer form, enter the net amount, the VAT amount, the invoice number, and the vendor’s tax ID number.

3. Checking the data: Before approving the transfer, carefully checking all entered data is a good idea to avoid errors.

4. Approval of transfer: Approve the transfer after entering and checking the data. The bank will automatically split the payment, transferring the VAT amount to the seller’s VAT account.

The split payment mechanism significantly improves transaction transparency and reduces the risk of tax fraud. Sellers and buyers are equally obligated to use split payment, so both parties must know their responsibilities.

Summary

Split payment is an effective tool in the fight against tax fraud, which involves splitting the payment for goods and services into a net amount and VAT. This mechanism is mandatory for certain transactions involving goods and services listed in Appendix 15 of the VAT Act and exceeding a gross value of PLN 15,000. Entrepreneurs must remember to mark invoices and correctly execute split payment transfers properly. By doing so, they can avoid sanctions and ensure the transparency of their business operations.

articles Business knowledge

Technical manufacturing cost (TMC) – what is it, and how can it be calculated?

Post author By Maksymilian Śniegocki
Post date August 1, 2024

Table of contents

What is TMC’s technical manufacturing cost?
Technical manufacturing cost – what does it consist of?
How to calculate the technical cost of production – formula
TMC – How do we calculate production costs with the help of an ERP system?

Technical manufacturing cost (TMC) is an essential financial indicator for manufacturing companies to determine product production costs. In this article, we will explain what technical manufacturing cost is, what elements make it up, how to calculate it, and how to use ERP systems to calculate manufacturing costs accurately.

What is TMC's technical manufacturing cost?

Technical manufacturing cost (TMC) is the sum of a company’s costs in producing a specific product. It includes the cost of materials, labor, and other direct and indirect costs associated with the production process. The technical cost of production is necessary for setting sales prices, budget planning, and assessing the profitability of production.

Technical manufacturing cost - what does it consist of?

Technical manufacturing costs consist of several essential elements that must be considered to determine production costs accurately. These are:

Direct material costs - include all raw materials and materials directly used in producing a product. Examples include steel for machinery, wood for furniture, or ingredients for food production.
Direct labor costs - refer to the wages of workers directly involved in the production process, such as machine operators, assemblers, or production line workers.
Indirect production costs - include costs that cannot be directly attributed to a specific product but are necessary for its production. Examples include machine maintenance, electricity, equipment depreciation, and production management costs.
Auxiliary costs - may include other expenses necessary for the production process, such as internal transportation, warehousing, or quality control.

How to calculate the technical cost of production – formula

The calculation of technical manufacturing cost requires including all the above components. The formula for calculating the technical manufacturing cost is as follows:

TMC = Costs of direct materials + Costs of direct labor + Indirect production costs + Additional costs.

Example of calculation:

If a company incurs the following costs:

Direct material costs: PLN 100,000
Direct labor costs: PLN 50,000
Indirect production costs: PLN 30,000
Additional costs: PLN 20,000

Then, the technical cost of production (TMC) is:

TMC = PLN 100,000 + PLN 50,000 + PLN 30,000 + PLN 20,000 = PLN 200,000.

TMC - How do we calculate production costs with the help of an ERP system?

ERP (Enterprise Resource Planning) systems are indispensable for managing production costs. They integrate all aspects of a company’s operations, enabling accurate and efficient monitoring and calculation of production costs. Here’s how an ERP system can help calculate the technical cost of manufacturing:

Automation of data collection - The ERP system automatically collects data on material consumption, labor time, and other production-related costs. This eliminates the need for manual data entry and reduces the risk of errors.
Accurate cost allocation - ERP allows you to allocate costs to individual products, allowing you to more accurately determine what costs are associated with the production of a particular item.
Real-time monitoring - ERP systems allow real-time monitoring of production costs. The company can control expenses in real-time and make the necessary adjustments to optimize production.
Reporting and analysis - The ERP system generates detailed reports and studies on production costs. This allows users to identify areas where costs can be reduced and make more informed business decisions.
Integration with other modules - The ERP system integrates with different modules, such as warehouse management, sales, and accounting. This ensures all data is available in one place, making management and business planning easier.

In summary, the technical cost of production (TMC) is a crucial indicator for manufacturing companies. It includes the cost of materials, labor, and other costs associated with the production process. Calculating TMC is essential for product pricing, budget planning, and assessing production profitability. ERP systems significantly facilitate production costing by providing accuracy, automation, and real-time monitoring of costs. They enable companies to manage their resources more efficiently and increase business profitability.

articles Business knowledge

Whitelist of VAT taxpayers – what is it, and how can we get on it?

Post author By Maksymilian Śniegocki
Post date July 25, 2024

Table of contents

VAT whitelist – what is it?
How to report an account to the whitelist of VAT taxpayers?
VAT whitelist – how do I check if I am on it?
Why is it a good idea to be on the whitelist of VAT payers?

The whitelist of VAT taxpayers was introduced in Poland to increase transparency and security of business transactions. Below are details on the whitelist, such as how to report an account to it, check if you are on it, and why you should be on it.

VAT whitelist - what is it?

The VAT whitelist is an official register maintained by the National Tax Administration that contains information about VAT taxpayers. It includes data on companies registered as active VAT taxpayers and those that have been removed from the register or re-registered. The list was introduced on September 1, 2019, as part of the Law on Amendments to the VAT Law and Certain Other Laws. Its primary purpose is to enable businesses to check the reliability of their contractors and reduce the risk of tax fraud.

How to report an account to the whitelist of VAT taxpayers?

To report an account to the whitelist of VAT taxpayers, you must first ensure that the business account you want to report is a checking account held at a bank or SKOK. Then follow a few simple steps:

Register the business - Every entrepreneur must register as an active VAT taxpayer. To do this, submit a VAT-R registration application to the tax office.
Report the bank account - The company's bank account should be reported to the tax office. This can be done by submitting an NIP-8 form (for sole proprietors) or an NIP-2 form (for other entities). These forms are available on tax offices' websites and on the e-Declarations service.
Update data in CEIDG or KRS - If the bank account changes, the entrepreneur must update his data in the Central Register and Information on Economic Activity (CEIDG) or the National Court Register (KRS).

The data will be automatically transferred to the VAT whitelist once the bank account is declared and the business is registered.

VAT whitelist - how do I check if I am on it?

Checking whether you are on the VAT whitelist is very simple. This can be done in several ways:

Tax portal - The National Tax Administration's official website has a dedicated tax portal where you can check the status of your account. To access it, you need to enter your company's VAT ID or REGON number.
Banking services - Many banks offer their customers the ability to check whether their accounts are on the whitelist of VAT taxpayers. It is a good idea to contact your bank and ask about such a service.
Accounting programs - Some accounting software and ERP systems have a function to verify accounts on the VAT whitelist. This allows businesses to monitor their accounts' status in real time.

Why is it a good idea to be on the whitelist of VAT payers?

Being on the VAT whitelist has several benefits that can significantly affect a company’s operations. Here are some of them:

Credibility in the eyes of contractors - Businesses on the whitelist are seen as reliable and trustworthy business partners. Contractors are assured that the company is registered as an active VAT payer and meets all formal requirements.
Security of transactions - Conducting transactions with companies on the whitelist reduces the risk of tax fraud and abuse. As a result, unpleasant legal and financial consequences can be avoided.
Settlement facilitation - Businesses on the whitelist can benefit from simplified settlement procedures. For example, they may be exempt from sending additional documents or VAT statements.
Protection from sanctions - Transactions conducted with companies outside the whitelist may involve the risk of sanctions by the tax authority. Therefore, it is worth ensuring that we and our contractors are on the VAT whitelist.

In conclusion, the VAT whitelist is an essential tool that helps entrepreneurs run safe and transparent businesses. It minimizes the risk of tax fraud and ensures your credibility in the eyes of your contractors. If you still need to submit your account to the whitelist, it is worth doing so as soon as possible to enjoy all the benefits of being on the list.

articles Business knowledge

ERP versus WMS – differences and comparison

Post author By Maksymilian Śniegocki
Post date July 18, 2024

Table of contents

WMS in logistics
ERP system – what is it?
ERP vs. WMS – the differences
ERP versus WMS – which system should you choose?

WMS in logistics

WMS system – what is it?

A WMS (Warehouse Management System) is advanced software for warehouse operations. It supports processes such as goods receipt, storage, order picking, and shipping. What does a WMS logistics system mean? The system is a crucial component of warehouse management that allows you to optimize warehouse space, increase operational efficiency, and improve inventory accuracy.

Critical functions of the WMS system

Good receipt and storage: the WMS enables efficient management of goods receipts, automatically assigning warehouse locations to optimize space.
Order picking: the WMS supports the order picking process by guiding warehouse employees to the appropriate locations, increasing the speed and accuracy of order fulfillment.
Inventory: the WMS enables real-time inventory taking, reducing errors and allowing rapid response to inventory changes.
Shipping: the WMS supports the management of the shipping process, automatically generating shipping documents and managing the loading schedule.

ERP system - what is it?

An ERP (Enterprise Resource Planning) system is integrated software that supports the management of all resources and business processes in a company. ERP integrates different areas of a company’s operations, such as finance, production, sales, purchasing, human resources, and logistics, into one cohesive platform. The goal of an ERP system is to centralize data and processes, leading to better coordination, operational efficiency, and informed business decisions.

Critical functions of the ERP system

Finance and accounting: the ERP system manages the company's finances, including accounting, budgeting, management accounting, and cash flow.
Manufacturing: the ERP supports production planning, inventory management, scheduling of production tasks, and monitoring of production performance.
Human Resources: ERP integrates human resource management functions such as recruitment, training, compensation management, and employee evaluation.
Sales and purchasing: ERP facilitates customer relationship management, order processing, inventory management, and purchasing planning.

ERP vs. WMS - the differences

ERP vs. WMS – differences in functionality

An ERP system is a comprehensive tool for managing a company’s resources and business processes. It covers various functions, from finance to human resources and sales. ERP centralizes data from different departments, eliminating information redundancy and reducing the risk of errors.

A WMS, on the other hand, is a specialized tool focused on warehouse operations. It optimizes processes related to receiving, storage, order picking, and shipping goods. The main goal of a WMS is to increase the warehouse’s operational efficiency and improve inventory accuracy.

ERP vs. WMS – differences in data integration

An ERP system integrates data from different company departments, allowing for better coordination and more informed business decisions. The centralization of data in ERP eliminates the need for manual information entry and reduces the risk of errors.

A WMS focuses on detailed data about warehouse operations. A WMS may need to be integrated with an ERP system to ensure a smooth flow of information between different company departments.

ERP vs. WMS – differences in process automation

An ERP system automates various business processes, including managing finance, production, human resources, sales, and purchasing.

A WMS automates warehouse processes such as goods receiving, storage, order picking, and shipping. It uses technologies such as barcode scanners and RFID systems to improve the accuracy and efficiency of warehouse operations.

ERP versus WMS - which system should you choose?

The choice between ERP and WMS depends on a company’s specific needs.

Scope of business: An ERP system will be more suitable if a company needs comprehensive management of all resources and business processes. A WMS will be a better choice if the main goal is to optimize warehouse operations.
Size of the enterprise: Large enterprises composed of many departments may benefit more from an ERP system that integrates all business aspects. Smaller companies, focused mainly on logistics and warehousing, may prefer a WMS.
Budget and resources: ERP systems are typically more expensive and complex to implement than WMS systems. Companies need to assess their financial capabilities and the resources needed to implement and maintain them.
Integration with existing systems: if a company already uses other management systems, it is worth considering which system (ERP or WMS) will integrate better with existing tools.
Specific logistics needs: companies with extensive warehouse operations that require advanced warehouse management may need a specialized WMS. Conversely, companies needing extensive integration of all business functions may choose ERP.

Summary

ERP and WMS systems play different but complementary roles in business management. An ERP system offers a broad spectrum of functions and integrates all aspects of a company’s business, while a WMS focuses on optimizing warehouse operations. The choice between the two systems depends on the specific needs, scope of operations, company size, budget, and particular logistics requirements. Understanding the differences and functions of the two systems is crucial in making an informed decision that will bring the most significant benefit to the company. In many cases, integrating the two systems may be the best solution, allowing you to realize the full potential of advanced warehouse management and comprehensive management of your company’s resources.