- 19
- February
A recurring problem in many organizations — the budget runs out before year-end. Before Q3 even ends, some budget categories are already depleted, forcing budget transfers, additional approvals, or project delays. The annual budget seemed sufficient when it was set, but somehow it never is.
Problems with Tracking Budgets Using Excel
Many organizations still use Excel spreadsheets as their primary budget tracking tool, which has several structural problems:
1. Data Is Not Real-Time
Excel requires manual updates. Procurement issues a PO but hasn't informed the budget team yet. The budget team opens the file and assumes there's still budget remaining, when in reality it's already been committed.
2. Multiple Versions, Multiple Editors
The accounting team opens "Budget_v3_final_revised.xlsx" while procurement opens "Budget_v3_final.xlsx" — different versions with mismatched figures, and nobody knows which one is the real version.
3. No Commitment Tracking
This is the biggest problem — most Excel files only record "how much has been spent" but not "how much has been committed"
Example: A 1 million baht budget with 400,000 spent appears to have 600,000 remaining. But there are already issued POs worth 500,000 (not yet paid). The actual remaining budget is only 100,000
What Is a Commitment?
Commitment (obligation) refers to funds that have been "reserved" but not yet actually paid, such as:
- PR (Purchase Requisition) — Request submitted, PO not yet issued = Pre-Commitment
- PO (Purchase Order) — Purchase order issued, payment not yet made = Commitment
- Payment — Actually paid = Actual
4. No Automatic Budget Blocking
In Excel, nothing enforces that "this category's budget is depleted — PO creation is blocked". Staff continue issuing POs without knowing the budget has been exceeded. There are no system alerts, and the overspend is only discovered at month-end when the budget team runs its reconciliation.
The Figures You Need to Track — Not Just "How Much Was Spent"
| Amount | Meaning | Can Excel Do It? |
|---|---|---|
| Allocated Budget | Budget allocated to the organization | Yes |
| Pre-Commitment | PR amounts submitted but PO not yet issued | Difficult — requires manual work |
| Commitment | PO amounts issued but not yet paid | Difficult — requires manual work |
| Actual | Actually paid out | Yes |
| Available Budget | Allocated Budget - Pre-Commitment - Commitment - Actual | Not possible — missing the two middle figures |
The Solution: Automatic Budget Control
- Budget Reservation — Every time a PR or PO is created, the system immediately "reserves" the budget. The Available balance decreases the moment a purchase request is made.
- Budget Check — Before creating a PO, the system checks whether sufficient budget remains. If not, PO creation is blocked until special approval is obtained.
- Budget Warning — Alerts are triggered when spending reaches 70%, 80%, or 90%, so you don't have to wait until the budget is fully depleted.
- Budget Transfer — If budget needs to be transferred between categories, it's done through the system with full approval workflows and a complete audit trail.
How Saeree ERP Controls Your Budget
| Features | Details |
|---|---|
| Budget Control | Set budgets by category, department, or project with automatic spending limits |
| Commitment Tracking | Track Pre-Commitment / Commitment / Actual in real-time |
| Budget Check on PO | PO creation blocked automatically when budget is insufficient |
| Budget Alert | Alerts triggered when spending reaches configured thresholds |
| Budget Report | Reports comparing allocated budget / actual spending / remaining balance across all dimensions |
Saeree ERP — Budget overruns will never happen again
Saeree ERP features Budget Control that tracks commitments from the PR stage onward — every purchase request immediately reserves budget. Remaining balance is always real-time. If budget is insufficient, the system blocks PO creation until special approval is granted. There is no way to "overspend without knowing" ever again.
Conclusion
The problem of "budget running out before year-end" isn't about receiving too little funding — it's about not realizing you've overspent. Excel only tells you "how much was spent" but not "how much was committed." By the time the combined total exceeds the budget, it's already too late.
A good ERP system must enforce budget controls from the PR stage, not wait until after payment to discover the budget is depleted.
