Category: Business knowledge

CRM system – what is it, what is it used for, and how does it differ from ERP?

Post author By Maksymilian Śniegocki
Post date April 3, 2025

Table of contents

What is a CRM? What does the acronym stand for?
CRM system – what does it consist of?
Application of CRM systems
CRM system – types
Capabilities of CRM systems
CRM vs ERP – what is the difference?

Modern companies increasingly use tools to improve customer relationships and business process management regardless of industry. One key solution is a CRM system, which helps build and maintain long-term customer relationships. What exactly is a CRM? What are its types and capabilities? Most importantly, how does it differ from ERP?

What is a CRM? What does the acronym stand for?

CRM stands for customer relationship management. A CRM system is an IT tool that assists companies in serving customers, collecting sales data, and automating marketing processes.

With a CRM system, a company can monitor the history of interactions with customers, analyze their behavior, and personalize offers. Thus, the key function of CRM systems is to build and maintain lasting relationships with customers through effective data management and sales processes.

CRM system - what does it consist of?

A CRM system centralizes and organizes customer information in one place. It is a database containing the history of contacts, transactions, complaints, and customer preferences and needs.

This allows sales, customer service, and marketing staff to:

The main goal of the CRM system is to increase the efficiency of sales activities and improve the quality of customer service.

Application of CRM systems

CRM systems are used in various industries and sectors of the economy. Companies use CRM for, among other things:

Customer database management - CRM allows for the storage of contact information, purchase history, and customer preferences.
Automating sales processes - The system helps plan sales activities, generate offers, manage the sales funnel, and report results.
Customer service - CRM enables efficient customer requests, complaints, and technical support management.
Marketing and promotional campaigns - CRM systems allow you to segment customers, target advertising campaigns, and analyze the effectiveness of marketing activities.
Data analysis and reporting - Advanced CRM systems provide tools for analyzing sales, forecasting market trends, and monitoring team performance.

CRM system – types

There are many different CRM systems available on the market, which can be divided into three main categories:

Operational CRM focuses on automating sales, marketing, and customer service processes. It helps sales teams in their daily work and improves the quality of service.
Analytical CRM processes and analyzes customer data. It enables customer segmentation, analysis of sales performance, and forecasting of market trends.
Campaign CRM is mainly dedicated to marketing departments and supports running advertising campaigns and automating promotional activities.

Some CRM systems combine features of different types, offering comprehensive solutions tailored to a company’s specifics.

Capabilities of CRM systems

Modern CRM systems offer various functionalities that help manage customer relationships and improve sales processes. Here are some of them:

Contact management - a customer database with filtering, sorting, and segmentation capabilities.
Sales process automation - the CRM system can generate offers, remind follow-ups, and record customer interactions.
Handling customer requests - manage complaints, inquiries, and service requests.
Tracking customer activity - monitor e-mails opened, website visits, and purchase history.
Reporting and analysis - generating sales reports, analyzing the results of marketing campaigns, and forecasting trends.

With these features, CRM allows companies to operate more efficiently, minimize the risk of losing customers, and increase loyalty.

CRM vs ERP - what is the difference?

Many entrepreneurs wonder how a CRM system differs from an ERP system. Both solutions help manage the company but have different goals and functionalities.

Main differences between CRM and ERP:

In practice, many companies integrate CRM and ERP to automate business processes further.

A CRM system is indispensable for companies that want to manage customer relationships effectively. It allows companies to automate sales processes, analyze data, and personalize offers.

Different types of CRM systems are available on the market and can support operational customer management and analytical data processing.

Although CRM and ERP are often confused, they perform different functions – CRM focuses on the customer, while ERP focuses on company resources. Integrating the two systems usually allows for even better business management.

With modern CRM systems, companies can increase sales, improve customer service, and build long-term relationships, which translates into market success.

articles Business knowledge

Opting out of VAT – how do you opt-out?

Post author By Maksymilian Śniegocki
Post date March 27, 2025

Table of contents

When is it possible to opt out of VAT?
Can VAT be waived during the year?
How to opt out of VAT?
Return to VAT exemption – when is it possible?
VAT resignation and fixed assets
VAT opt-out – what should be kept in mind?

VAT is compulsory for many businesses, but not everyone has to pay it. Some companies can take advantage of VAT exemption or, under certain conditions, opt out of paying it. Is it possible to opt out of VAT? What conditions must be met to return to VAT exemption? Is it possible to opt out of VAT during the year?

When is it possible to opt out of VAT?

Not every entrepreneur has to be a VAT payer. The law provides for the possibility of VAT exemption for companies that meet certain conditions. VAT opt-out is possible in two cases:

If the company meets these conditions, it can apply to opt out of VAT and return to exemption.

Can VAT be waived during the year?

Many entrepreneurs wonder whether VAT opt-out is possible at any time during the fiscal year. The answer depends on the basis on which the company became a VAT taxpayer:

If a company has voluntarily registered as a VAT payer, it can opt out after at least one year of registration.
If the company exceeds the turnover limit (200.000 zlotys) but then its revenues fall, it can return to the exemption from the new fiscal year.
Resignation from VAT during the year is possible if the business no longer meets the conditions for being a VAT taxpayer, such as when the nature of the business changes and the company starts providing VAT-exempt services.

Resignation from VAT during the year is possible if the business no longer meets the conditions for being a VAT taxpayer, such as when the nature of the business changes and the company starts providing VAT-exempt services.

How to opt out of VAT?

An entrepreneur must complete certain formalities to opt out of VAT and return to exemption. The process involves several steps:

Checking whether the company meets the conditions for exemption - the most important criterion is the turnover limit of PLN 200.000.
Submission of an application to the tax office - the entrepreneur must submit a VAT-Z form, which informs of ceasing to be a VAT taxpayer.
Updating the entry in CEIDG—If the company operates as a sole proprietorship, it may be necessary to update the entry in the Central Register and Information on Economic Activity (CEIDG).
VAT settlement—Before giving up VAT, the entrepreneur should close all tax liabilities, including showing VAT on fixed assets and goods purchased earlier with a tax deduction.

Remember that the tax office may inspect the company to confirm whether the VAT resignation complies with the regulations.

Return to VAT exemption - when is it possible?

An entrepreneur who was an active VAT taxpayer but wants to return to exemption must meet certain conditions. A return to VAT exemption is possible when:

The entrepreneur must file a notice of return to exemption with the tax office, preferably before the start of the new tax year.

VAT resignation and fixed assets

One of the most critical aspects of VAT resignation is the issue of fixed assets previously purchased with a VAT deduction. What happens to them after returning to exemption?

If an entrepreneur has deducted VAT on the purchase of a fixed asset, and its value exceeds PLN 15.000, they may be required to adjust the VAT deducted.
The VAT adjustment applies to fixed assets for 5 years and real estate for 10 years. Thus, if a company enjoyed a VAT deduction for 3 years, it must return a proportional part of the tax for the remaining 2 years when giving up the VAT.
For smaller purchases (less than PLN 15.000), VAT adjustment is not required, meaning the entrepreneur does not have to return the previously deducted tax.

Before deciding to give up VAT, it is worthwhile to carefully analyze the value of fixed assets and the potential tax consequences.

VAT opt-out - what should be kept in mind?

The decision to opt out of VAT should be well thought out, as it can affect the company’s financial situation and relations with contractors. Here are some key points to keep in mind:

Inability to deduct VAT - a business, not a VAT payer, cannot deduct tax from purchase invoices.
Changing contractors' attitudes - Some companies prefer to work with VAT payers because they can deduct VAT on purchased services and goods.
Obligation to adjust VAT on fixed assets - in the case of expensive investments, the company may have to refund part of the deducted tax.
Changes in accounting records - once a business has opted out of VAT, it must issue invoices without the tax and use appropriate markings on sales documents.
Possibility to return to VAT - If the company again exceeds the turnover limit or decides to register as a VAT taxpayer, it must make the appropriate application to the tax office.

Resignation from VAT is possible for companies that meet the conditions for subjective exemption or are engaged in subjectively exempt activities. Resigning from VAT one year after registration or if the company has not exceeded the PLN 200,000 annual turnover limit is possible.

However, entrepreneurs should consider the potential tax consequences, especially regarding fixed assets and the adjustment of deducted VAT. Before deciding to opt out of VAT, it is advisable to consult an accountant and carefully analyze the impact of this change on your business.

articles Business knowledge

Production scheduling – what it is, types, and application

Post author By Maksymilian Śniegocki
Post date March 13, 2025

Spis treści

What is a production schedule?
For what purpose is a production schedule created?
Types of production schedules
Master production schedule – tasks
Master production schedule – examples
Tools to help create a production schedule

Effective production scheduling is crucial to the smooth operation of any manufacturing enterprise. The production schedule is one tool that facilitates the management of manufacturing processes. Thanks to it, it is possible to precisely determine the sequence of tasks, optimize the use of resources, and minimize delays.

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An application that changes the approach to production planning.

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Something that used to take all day takes 10 minutes. Magic.

Optimize production planning schedules to perfection with artificial intelligence integrated directly into your Microsoft Dynamics 365 Business Central ERP system.

OptiFlow scheduling application

What is a production schedule?

A production schedule is a plan that defines the course of manufacturing processes in each period. It contains detailed information about the various stages of production:

The production schedule can cover short and long periods – from a few days to several months, depending on the scale and specifics of the company’s operations.

For what purpose is a production schedule created?

The development of a production schedule brings several benefits to the company:

Optimization of resource utilization: Scheduling the availability of machinery, people, and raw materials helps avoid downtime and overload.
Minimizing delays - clearly defined deadlines for individual operations help avoid backlogs.
Increased production efficiency - through better planning, wastage of time and raw materials is reduced.
Better cost control - proper management of production processes helps avoid excessive expenses associated with faulty planning.
Improved on-time delivery - precise scheduling reduces the risk of delays in fulfilling customer orders.

Types of production schedules

Depending on the specifics of the enterprise and the nature of production, there are several types of production schedules:

The long-term schedule covers several months to several years and defines the overall production strategy. It is mainly used in strategic planning and allows predicting future raw materials, machinery, and human resources needs.
The medium-term schedule covers several weeks or months. It is more detailed and determines, for example, the division of production into batches, the allocation of resources, or priorities for executing individual orders.
The short-term schedule covers a few days or weeks and details the scheduling of machines, operators, and raw material deliveries. It is updated on an ongoing basis, depending on the production situation.
The Master Production Schedule (MPS) is the most essential document in production planning. It contains the schedule for producing specific products in each period.

Master production schedule – tasks

The master production schedule plays a key role in the management of the enterprise. Its main tasks are:

Determining production priorities - indicates which products are the most important and must be made first.
Managing resource availability: The schedule allows you to distribute the work of machines and operators accordingly, eliminating overloads and downtime.
Synchronization of raw material deliveries - with proper scheduling, the company avoids material shortages, minimizing downtime risk.
Monitoring the timeliness of orders: The scheduling allows you to control production progress and identify potential delays.
Optimization of costs - better production scheduling reduces costs associated with excessive storage, emergency deliveries, or misuse of resources.

Master production schedule – examples

To better illustrate how a master production schedule works, let’s consider some practical applications:

Automotive industry: An automobile manufacturing company plans its production schedule for the next three months, considering the availability of components from suppliers, the assembly time for each model, and the expected number of orders.
Food production: A dairy plant schedules the daily production of milk, yogurt, and cheese, considering the expiration dates of raw materials and delivery dates to retail chains.
A cell phone manufacturer schedules production in the electronics industry based on sales forecasts, semiconductor availability, and factory capacity.

Tools to help create a production schedule

Creating a production schedule can be a complicated process, so it makes sense to use modern tools and supporting systems:

ERP (Enterprise Resource Planning) systems - integrated software that combines data from different areas of the company and allows the creation of precise schedules. Examples: SAP, Microsoft Dynamics 365 Business Central, Oracle NetSuite.
APS (Advanced Planning and Scheduling) - programs that consider dynamic changes in production and allow for optimal resource planning.
Project management software—e.g., Microsoft Project, Asana, and Trello—allows visualization of the production schedule and monitoring of work progress.
Integrated MES (Manufacturing Execution System) - monitors and analyzes actual production data, allowing you to update schedules in real-time and eliminate potential delays.

Effective production scheduling is a key element in the smooth operation of a company. Production scheduling allows for optimal resource management, on-time delivery of orders, and cost control. The master production schedule defines production priorities and tasks, which enables effective management of the entire process. Modern digital tools make creating precise schedules easier, allowing companies to dynamically adapt to changing market conditions.

articles Business knowledge

What is financial modeling? Tools and examples

Post author By Maksymilian Śniegocki
Post date March 6, 2025

Table of contents

Financial models – definition
What should a financial model contain?
Financial modeling methods
Financial models – examples
Financial modeling in Excel
Financial modeling in Power BI
Best practices in financial modeling

Financial models – definition

Financial modeling creates mathematical representations of financial situations that help make business and investment decisions. Financial models allow the simulation of future results based on historical data and assumptions about the future. Their primary purpose is to assess the profitability of projects, analyze risks, and forecast financial performance. Analysts, managers, and investors use economic models to make strategic business decisions.

What should a financial model contain?

A well-constructed financial model should include the following elements:

Inputs - historical financial results, market indicators, and key assumptions about the future.
Assumptions - realistic parameters for growth, inflation, costs, and revenues.
Calculations - mathematical formulas to transform inputs into financial forecasts.
Reporting and visualization - clear tables, charts, and KPIs (Key Performance Indicators) to help interpret results.
Sensitivity analysis - testing the impact of changes in key assumptions on model results.
Scenarios - developing different options (optimistic, pessimistic, realistic) to predict potential risks.

Financial modeling methods

Various methods of analysis and forecasting are used in financial modeling:

Discounted cash flow (DCF) method - involves calculating the present value of future cash flows.
Ratio analysis - comparing key financial indicators, such as profitability, debt, or liquidity.
Benchmarking - relating financial performance to competitors or market standards.
Monte Carlo simulations analyze risk by randomly generating multiple scenarios.
Scenario analysis - testing various possible futures.

Financial models – examples

Financial models can have various applications:

Business valuation model - used in merger and acquisition processes.
Revenue forecasting model - used to plan sales for future years.
Budgeting model - used in corporate financial planning.
Investment analysis model - to assess the profitability of capital investments.
Risk assessment model - analysis of potential risks and their impact on company performance.

Financial modeling in Excel

Excel is one of the most widely used tools for financial modeling. It offers several functions to facilitate data analysis:

Pivot tables - facilitate analysis and aggregation of large data sets.
Financial functions include NPV (net present value) and IRR (internal rate of return).
Scenarios - the Scenario Manager tool allows you to test different options.
Solver - a tool for optimizing business decisions.
VBA macros - will enable you to automate financial analysis.

Financial modeling in Power BI

Power BI is a data analysis and visualization tool for dynamic financial modeling. Power BI advantages:

Integration from various data sources - import data from ERP, CRM, and Excel.
Interactive reports - ability to dynamically analyze data.
Reporting automation - saving time and updating data on an ongoing basis.
Predictive analysis - use of AI algorithms to forecast trends.

Best practices in financial modeling

For a financial model to be effective, it is helpful to apply the following principles:

Simplicity and clarity - avoiding unnecessary complexity.
Flexibility - allowing data to be easily edited and updated.
Documentation - describing key assumptions and methodologies.
Testing and validation - verifying the model's validity by analyzing historical data.
Security - protecting data by limiting access and using backups.

Financial modeling plays a key role in business management, helping to make sound decisions. Excel and Power BI are indispensable tools in this process, enabling practical analysis, visualization, and forecasting of financial results.

articles Business knowledge

Technological process – everything you need to know

Post author By Maksymilian Śniegocki
Post date February 27, 2025

Table of contents

Technological processes – what are they?
Technological process – examples
Production technology
Manufacturing technologies

A technological process is a set of orderly operations that transform raw materials, materials, or components into a finished product. Any process of this type involves a series of operations that may include mechanical, chemical, thermal, or physical processing.

Technological processes - what are they?

Technological processes are the foundation of any manufacturing industry, and their efficiency is crucial to the quality of the final product, its cost, and its environmental impact. Modern manufacturing technology uses traditional methods, as well as modern automation and artificial intelligence solutions.

Within the technological processes, several key stages can be distinguished, such as:

Preparation of raw materials - includes selection and pretreatment of materials.
Proper processing - transformation of raw material according to technological requirements.
Quality control - checking product compliance with standards and specifications.
Packaging and distribution - preparing products for sale and transportation.

Technological process – examples

Technological processes vary depending on the industry and the product type. Here are some examples illustrating how the technological process works in different fields:

Each technological process example may have different specific steps, but the key principles remain the same: quality control, efficiency, and cost optimization.

Production technology

Production technology includes the tools, machinery, and methods used to manufacture products. There are several main types of production technology:

Unit technology produces single, unique products (e.g., machine prototypes and ships).
Serial technology - production of more identical items (e.g., cars, furniture).
Mass technology - large-scale production using automated processes (e.g., beverage production, electronics).
Continuous technology - the production process occurs without interruption (e.g., refineries, chemical power plants).

Different production technologies are used to achieve certain quality and performance parameters depending on the industry. Modern technologies, such as 3D printing and artificial intelligence, are revolutionizing technological processes and increasing efficiency.

Manufacturing technologies

Manufacturing technologies are methods and systems used in industry to produce products. There are several key types of manufacturing technologies:

Automation and robotics - using industrial robots and control systems to optimize production.
3D printing - used in prototyping and production of parts with complex shapes.
CNC machining - precision manufacturing of components using computer-controlled machines.
Nanotechnology - the use of materials and processes at the atomic and molecular level.
Green technologies - production using renewable energy sources and minimizing waste.

The dynamic development of manufacturing technologies allows companies to increase efficiency, reduce costs, and adapt to changing market requirements. Modern technological processes are moving toward greater automation, reducing environmental impact, and improving the quality of manufactured products.

The technological process plays a key role in every industry. Understanding production technology and applying modern manufacturing technologies allows companies to increase productivity, reduce costs, and meet growing market demands. Implementing innovative methods and automating technological processes is the future that shapes modern industry.

articles Business knowledge

Production costs – what are they?

Post author By Maksymilian Śniegocki
Post date February 20, 2025

Table of contents

Cost of production – what is it?
Production costs – how to calculate?
Calculation of production costs
Cost of production formula

Production costs are a key component of business management. Proper analysis and optimization allow companies to achieve higher profitability and better compete in the market. We explain production cost, how to calculate it, and what formulas can be used in production costing.

Cost of production - what is it?

Cost of production is the total financial outlay incurred by a company to produce goods or services. It includes both direct and indirect expenses related to the production process. Depending on the specifics of the business, production costs can vary significantly, but they always consist of key elements, such as:

Direct costs - refer to raw materials, materials, and wages of workers directly employed in production.
Indirect costs include management, machinery maintenance, energy, logistics, and other expenses supporting production.
Variable costs - their amount depends on the scale of production, e.g., raw material consumption and energy cost.
Fixed costs are independent of the volume of production, such as rent for the production hall and depreciation of machinery.

Production costs - how to calculate?

Calculating production costs is key to the enterprise’s effective financial management. There are several methods to determine the expenses associated with producing products or services accurately. The basic approach to the calculation includes:

Identifying direct and indirect costs - the first step is to identify all costs associated with production.
Dividing costs into fixed and variable allows a more precise calculation of unit costs.
Calculating unit cost: The unit cost of production is calculated by dividing total production costs by the number of units produced.
Consideration of indirect costs—The method of allocating indirect costs based on established allocation ratios is often used.

Calculation of production costs

Production costing is necessary to determine the profitability of operations. The most common methods of production costing are:

Apportionment calculation - used in mass production- divides total costs into product units.
Additive calculation - used in unit and small batch production, where costs are added to a specific order.
Standard costing - involves comparing actual production costs with normative costs to analyze deviations.

Correct calculation of production costs allows companies to accurately determine the selling price of products, which is crucial for their competitiveness.

Cost of production formula

To accurately calculate the cost of production, the following formula can be used:

KP = KB + KZ + KS

Where:

In addition, the unit cost can be calculated according to the formula.

Where:

Production costing formulas and methods allow companies to budget more effectively and optimize expenses. Companies that systematically monitor and analyze production costs can better manage their resources and maximize business profitability.

articles Business knowledge

ERP integration – nesting what is it and what purpose does it serve?

Post author By Maksymilian Śniegocki
Post date February 13, 2025

Table of contents

ERP Nesting – what is it?
What is nesting?
ERP nesting – how does it work?
Nesting software

Integrating ERP (Enterprise Resource Planning) systems with nesting technology is becoming increasingly important in today’s dynamic business environment. As an advanced optimization technique, Nesting plays a key role in managing resources and production processes. This article will discuss nesting, how it works in the ERP context, and the benefits of using nesting software.

ERP Nesting - what is it?

ERP Nesting integrates ERP systems with nesting technology to optimize materials and resources in production processes. This integration allows companies to manage resources more effectively, minimize waste, and increase production efficiency.

What is nesting?

Nesting is an optimization technique that maximizes the use of available materials by properly arranging elements on the material’s surface. In practice, this means that components are arranged to minimize waste and maximize the use of available material. Nesting is used in various industries, such as metal, wood, and textiles, where precise cutting of materials is crucial to production efficiency.

ERP nesting - how does it work?

Integration of nesting technology with ERP systems allows automation and optimization of production processes. The ERP system collects data on orders, available resources, and production schedules and then passes this information to the nesting program. The nesting program analyzes this data and generates optimal material-cutting plans, considering available resources and production requirements. This allows companies to reduce production time, reduce costs, and increase operational efficiency.

Nesting software

Nesting programs like OptiFlow offer advanced optimization features that integrate directly with ERP systems such as Microsoft Dynamics Business Central1. This allows users to automatically retrieve data from the ERP system, create optimal production plans, and monitor and manage production processes in real-time. These programs use advanced algorithms and artificial intelligence to maximize the use of available resources and minimize material waste.

In addition, nesting programs can be customized to meet the specific needs of different industries. For example, these programs can consider different thicknesses and types of metals in the metal industry, allowing for even more precise cutting planning. Nesting programs can optimize wood cutting in the wood industry, considering its natural flaws and grain, allowing for maximum raw material utilization. In the textile industry, nesting programs can optimize the placement of patterns on fabrics, minimizing waste and increasing production efficiency.

It is also worth noting that nesting programs offer a variety of features that can be tailored to companies’ specific needs. For example, some programs enable the simulation of production processes, allowing potential problems to be anticipated and resolved. Other programs offer reporting and analysis functions to monitor production performance and identify areas for improvement.

Nesting programs can integrate with other production management systems, such as MES (Manufacturing Execution System) or PLM (Product Lifecycle Management). This makes it possible to gain complete control over production processes, from planning and scheduling to execution to monitoring and analyzing results. Integration with MES systems allows you to continuously monitor the condition of machines and equipment, enabling you to react quickly to any failures and minimize production downtime. Integration with PLM systems, on the other hand, makes it possible to manage the product life cycle, from the design phase through production to service and disposal.

In summary, nesting programs are key to optimizing production processes and managing resources. With advanced features and the ability to integrate with other systems, companies can achieve higher efficiency, reduce costs, and minimize material waste. It is worth investing in modern technological solutions that support growth and competitiveness in the market.

articles Business knowledge

Receipt with TIN – up to what amount?

Post author By Maksymilian Śniegocki
Post date February 6, 2025

Table of contents

Receipt with TIN – what is it?
Receipt with TIN up to what amount can be obtained.
Up to what amount is a receipt with a TIN?
Fiscal receipt up to what amount?

A receipt with a TIN is an essential document in day-to-day business, especially in simplified transactions between entrepreneurs. It lets you quickly and easily document a purchase made for business purposes. We explain what a receipt with TIN is, how much it can be issued, and what regulations govern the process.

Receipt with TIN - what is it?

A receipt with TIN is a special type of fiscal receipt that includes the purchaser’s tax identification number (TIN) and the standard data, such as gross amount or VAT. Such a receipt can act as a simplified VAT invoice, which means it can be included in accounting as proof of a purchase made for business purposes.

Key features of a receipt with a TIN:

Receipt with TIN up to what amount can be obtained.

According to Polish regulations, a receipt with a TIN can be treated as a simplified invoice, but only up to a certain amount. The limit is 450 PLN gross or 100 euros gross. Transactions exceeding this value must be documented with a full VAT invoice.

When can you issue a receipt with a TIN?

When is a receipt with a TIN not enough?

Up to what amount is a receipt with a TIN?

The regulations indicate how much a receipt with a TIN can be used as a simplified invoice. The limitation to 450 zlotys gross or 100 euros gross is based on simplifying procedures for small transactions while ensuring adequate tax control.

Benefits of a receipt with a TIN up to this amount:

Worth remembering:

Fiscal receipt up to what amount?

A fiscal receipt with a TIN is a document with a limited transaction value of 450 PLN gross or 100 euros gross. However, it is worth noting that not every fiscal receipt with a TIN can be considered a simplified invoice. It must meet specific requirements, such as:

What should you avoid when issuing fiscal receipts with TIN?

Why is the limit on the fiscal receipt with TIN critical?

What amount is allowed for a receipt with a TIN? The regulations indicate a limit of 450 PLN gross or 100 euros gross, above which a full VAT invoice is necessary. This document allows entrepreneurs to settle transactions in accounting, saving time and paperwork quickly. Knowledge of the rules for issuing receipts with TIN and the amount limit is crucial for the correct functioning of both sellers and buyers in business transactions.

articles Business knowledge

Fiscal cash register – what limit applies?

Post author By Maksymilian Śniegocki
Post date January 30, 2025

Table of contents

Fiscal cash register limit – what applies?
Limit to the fiscal cash register.
Sales limit without a fiscal cash register
From what amount is a fiscal cash register mandatory?

A fiscal cash register is one of the key tools in business, especially for companies serving individual customers. In Poland, the law sets limits beyond which entrepreneurs are required to use a fiscal cash register. By reading below, you will learn what limit applies, who must use a fiscal cash register, and what amount is required.

Fiscal cash register limit - what applies?

In Poland, the regulations clearly define when an entrepreneur is required to introduce a fiscal cash register in his business. The budgetary cash register limit applies to the annual value of sales to non-business individuals and flat-rate farmers.

Currently, the limit for the fiscal cash register is PLN 20,000 net of annual sales to individuals and flat-rate farmers.

For entrepreneurs starting a business during the year, the sales limit is calculated in proportion to the number of business days. For example, if the company has been operating since the middle of the year, the limit is half the amount, or PLN 10,000 net.

Limit to the fiscal cash register.

The limit to the fiscal cash register is an essential threshold for entrepreneurs who do not want to incur the costs of purchasing and operating a budgetary device. However, it is worth remembering that not all types of businesses can benefit from this limit. The regulations indicate industries and services that are required to use fiscal cash registers regardless of the amount of sales.

Who does not benefit from the fiscal cash register limit?

For these activities, the obligation to have a fiscal cash register follows directly from the type of services or goods performed, and the sales limit does not apply.

Sales limit without a fiscal cash register

Entrepreneurs who do not exceed the annual sales limit of PLN 20,000 can operate without a fiscal cash register. However, it is worth noting that there are some exceptions and conditions:

Sales to businesses: The fiscal cash register limit does not cover transactions with other companies, as they involve B2B relationships.
Record-keeping: Entrepreneurs taking advantage of the limit on sales without a cash register must keep detailed sales records for individuals to document the sales value.
Industries excluded from the limit: Some industries must use a fiscal cash register regardless of their turnover.

Example: If a businessman’s annual sales amount to PLN 18,000 net, he is not required to use a fiscal cash register if he does not provide services or sell products that require mandatory fiscalization.

From what amount is a fiscal cash register mandatory?

A fiscal cash register is mandatory for most entrepreneurs after exceeding the annual sales limit of PLN 20,000 net. However, it is worth remembering that for new entrepreneurs who start a business during the year, the limit is proportional to the number of days of business. For example, a company operating for 6 months has a limit of PLN 10,000 net.

When is a fiscal cash register mandatory, regardless of the limit?

What happens when the limit is exceeded? If an entrepreneur exceeds the sales limit, he must purchase and activate a fiscal cash register within two months of the month the overrun occurred. Failure to meet this obligation may result in sanctions from the tax authority.

The fiscal cash register limit is a key threshold determining when an entrepreneur must begin to fiscalize his transactions. For most businesses, the limit is PLN 20,000 net annually, but some exceptions require using a cash register regardless of turnover. Knowing the regulations on the sales limit without a fiscal cash register allows entrepreneurs to plan their financial and operational activities, avoiding unpleasant legal consequences.

articles Business knowledge

Cost of products sold

Post author By Maksymilian Śniegocki
Post date January 23, 2025

Table of contents

How do you calculate the cost of products sold?
Cost of products sold formula
Cost of goods sold in the comparative variant
Cost of products sold under the calculation variant

The cost of products sold (COP) is a key indicator in a manufacturing company’s financial management. It includes all expenses incurred in manufacturing products sold in a given period. Correctly calculating the cost of products sold allows you to accurately determine your business’s profitability and is essential when preparing financial statements. We will present how to calculate the cost of products sold, explain the formula for its calculation, and discuss two variants of its accounting: comparative and calculation.

How do you calculate the cost of products sold?

Cost of goods sold includes all costs associated with producing goods sold during the period. To calculate the COP, it is necessary to consider three main elements:

Direct costs: raw materials, materials, wages, and salaries of production workers directly attributable to the products produced.
Indirect production costs: costs necessary for the production process's operation but cannot be directly attributed to a specific product (e.g., energy costs, machinery depreciation).
Change in inventory: the difference between the cost of manufactured products and the inventory of finished products.

The process of calculating the cost of products sold consists of the following steps:

Cost of products sold formula

The formula for calculating the cost of products sold is as follows:

KWSP = Cost of products sold in the period ± Change in inventory.

Example: Suppose the cost of finished goods in each period is PLN 100,000. At the beginning of the period, inventory was PLN 20,000; at the end, it was PLN 10,000. Then:

KWSP = PLN 100,000 + (PLN 20,000 – PLN 10,000).

KWSP = PLN 100,000 + PLN 10,000 = PLN 110,000.

Cost of goods sold in the comparative variant

The comparative variant of the cost of products sold involves presenting the financial result by comparing sales revenues with the cost of their manufacture. This analysis method benefits companies with many sales transactions and those that want to focus on core operating activities.

Elements of the cost of products sold in the comparative variant:

The comparative variant is more complex, requiring accounting for inventory changes and additional costs. However, it is more detailed and accurately reflects the company’s financial results.

Cost of products sold under the calculation variant

The costing variant differs from the comparative approach to accounting for costs. In this case, the cost of products is allocated on an ongoing basis to products sold, which allows for more accurate tracking of costs associated with specific transactions.

Cost elements in the costing variant:

The imputed variant is advantageous in companies with complex production processes, where allocating costs accurately to individual products or transactions is necessary.

The cost of goods sold is a key financial indicator in manufacturing companies, influencing profitability assessment and strategic decision-making. Comparative and imputed variants have advantages and applications depending on the company’s business.

Understanding how to calculate the cost of goods sold, use the right formula, and choose the correct accounting variant allows entrepreneurs to manage costs more effectively and make better business decisions. In comparative and calculation variants, KPI analysis provides invaluable information about the company’s operation and ability to generate profit.