turnover is not cash: how not to mix up cash, turnover and receivables

Ask any partner in the network, “How much did you earn this month?” — and almost every one will name turnover. The sum of the orders. A nice figure that… isn't in the account.

This is the main trap of a service business. Turnover is profit on paper, but a business lives on cash in hand. In between are prepayments that haven't been closed by a pickup yet, extra payments that are stuck, refunds, cancellations. The partner looks at the report, sees “all good”, and by the fifth there is nothing to pay royalties and salaries with. Sound familiar?

ERP.Knopka is built to make this trap visible in advance.

money, not the illusion of money

ERP.Knopka separates three things that usually get lumped together:

• Cash — money that has actually come in: to the account, the cash register, the wallet. Everything important is calculated from it: cash flow, royalties, the ability to pay.
• Turnover — the value of services provided, by category. It is needed for the profit report and the average check, but it isn't money yet.
• Receivables — what you are owed: turnover minus cash. It is shown separately so it isn't confused with profit.

The partner sees revenue and cash by day, and location profit for the month: how much actually came in, how much we are still waiting for and how much is left for the location. No self-deception.

the whole economics of a location in one place

• Location profit and cash flow for the month — where the money goes and how much is really left.
• Technician pay by each location's rates — from the output that comes from the CRM. A technician is paid for what they did themselves, not “on average”. How this works is covered in the article how to calculate technician pay by location rates. Payouts are marked in the ERP — in full or in parts, with the advance repaid; the ERP itself does not transfer money.
• Royalties — from cash, not from turnover. They are calculated from the money actually received at the cash register in the month: after discounts and net of refunds. Not from turnover and not from receivables that nobody has paid yet.
• Supplies inventory — minimum stock levels and push notifications, so supplies don't suddenly run out.
• Each location's currency — every location has its own currency in the shared directory: the SneakNFresh network works in 6 countries.

part of the knopka ecosystem

ERP.Knopka is not an island. It is the financial circuit of the ecosystem: the ERP receives orders, payments, refunds and technician output from the CRM. Orders become turnover, payments become cash, output becomes pay, and cash becomes the base for royalties.

CRM, ERP and LMS work under one ID.Knopka account: an employee signs in once and works in all the products with their role at their location.

who it's for

For a partner who wants to see the business at a glance. For a location manager who runs shifts and the supplies inventory. For a head office that keeps the whole network in one window — location comparison and royalties.

ERP.Knopka is being built together with the SneakNFresh network, on live locations, not in a vacuum: every feature is tested against the everyday work of a shoe cleaning shop. The ERP is live at the network's first locations; the rest are being connected in waves.

See every ruble and you grow in the black. That's not a slogan, it's how a location's money should be organized.

frequently asked questions