K2 software

The aim of entrepreneurship is to realize a profit. In order to have some profit, you have to sell. In order to be able to sell, you have to either buy or produce something. In order not to buy or produce too much, or too little, you need to know what you have in stock. You need to have an overview of the orders status; about what, when and from whom you have to order; when the ordered goods are going to be delivered; what you have and what you don’t have enough material for; how much you spent on the production, or the purchase of something; whether your contractors adhere to the prices; and mainly what your profit from individual contracts is. Do you know that or don’t you? If you don’t, what is missing?

Examples of states or complications from real life which can lead to your not knowing what you need to know can be the following: goods which are not on the order are delivered; an invoice includes some goods in addition to those which were received; invoices contain prices different from those for which the goods were received. These are the cases which occur when the primary documents are being processed. In the case of purchase, the following documents can be affected: the order, invoice and receipt card. In the case of sale: the invoice, delivery note and release note. These states can be dealt with in several ways. In practice, there are information systems with three different approaches:

The system surely works but this solution is applicable with certain limitations. When more demanding requirements appear, it is hardly applicable and also dangerous for the company as the required information is not given and the overview of the company’s management is thus misrepresented. In this case, the information about non-standard movements cannot be interconnected, which leads to the inability to evaluate.

This solution has the fundamental technical problems solved and is applicable. But it is not optimal either. The mutual links among the items enable the individual states and prices to be exactly followed. But, in this case, the evaluation is very demanding due to the necessity of searching in a large quantity of links.

This solution seems to be optimal; it features the best performance and high stability. The description of the K2 CBI technology functionality is the following: The items of all the sale (purchase) documents are common, i.e. physically identical. Eventual differences between documents are solved by splitting the given item quantity into as many lines as how many differences there are. If a change is made to any document, the states of all the interconnected documents are taken into account.

The Compact Business Items (CBI) technology is developed separately for the purchase documents (Order, Delivery confirmation, Receipt card, and Invoice) and separately for the sale documents (Contract, Order confirmation, Reservation, Release note, Delivery note, and Invoice). The difference between the invoice price and the receipt stock price of the purchase items is the price deviation of the given item’s income. The difference between the invoice price and the release stock price of the sale items is the gross business profit.

The K2 CBI technology derives its inspiration from real life, from our customers’ experience, from what is really happening, from what all of us encounter in our common lives or our companies. The presumption that in the beginning none of the mentioned complications occur in the orders is unrealistic. It is the same as if you were producing cars without a differential gear—not caring about the fact that there are turnings on the road. The fact that the overwhelming majority of the ERP systems belong to the first category does not necessarily mean that all systems work in this way, or that you personally must use such a system. Thanks to the unique link between primary documents, you can very easily and practically immediately display the overview of the orders status, their coverage, profitability, etc.

In the beginning, we defined the aim of the entrepreneurship as the realization of a profit. With K2 CBI, profit can be perceived in two spheres: financial and non-financial. In the financial sphere, profit is understood as the difference between earnings and costs. But only with K2 CBI is the information about costs correct. In the non-financial sphere, we talk about profit in the sense of gaining some extra time thanks to the quicker, easier and superior processing of an order. You can judge yourself whether the K2 CBI technology—as it is designed—is able to contribute to the increase in the profit of your company.