Real-Time Budget Burn & Hard-Stop Controls

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Real-Time Budget Burn & Hard-Stop Controls within SmartERP.

Enforce automated budget checks at requisition, purchase order, and invoice entry, preventing project over-expenditures.

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2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_ngo_grants, smarterp_humanitarian, smarterp_fund_accounting
• Security Groups:
  • Grant Officer (Technical ID: smarterp_ngo.group_grant_user)
  • Finance Director (NGO) (Technical ID: smarterp_ngo.group_grant_manager)
  • Field Relief Distribution Officer (Technical ID: smarterp_ngo.group_field_officer)
• Master Data Dependencies: Donor profiles (USAID, EU, UN, FCDO), multi-currency grant agreements, restricted fund accounts, ACSO 80/20 cost allocation categories, and beneficiary rosters.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the NGO & Grants app icon.
4. From the top navigation bar, open NGO & Grants → Grants & Projects → Donor Agreements / Budget Burn / Relief Distributions.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Grant Agreement Reference (Mandatory): Official donor contract number and co-funding arrangement
   • Funding Currency & Budget (Mandatory): Donor currency (USD/EUR) and restricted ETB counterpart account
   • Start & End Dates (Mandatory): Contractual grant operational window and closeout timeline
   • ACSO Cost Ratio Classification (Mandatory): Operational program expenditure vs. administrative overhead allocation
3. Configure optional operational parameters and localized tags as required:
   • Co-Funding Share (Optional): Percentage split across multiple donors or institutional match
   • Target Beneficiary Woreda / Kebele (Optional): Geographic location of humanitarian intervention
   • Relief Item Voucher (Model 20) (Optional): Distribution schedule for emergency food or non-food items (NFI)
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft Agreement → Approved / Funded → Active Implementation → Budget Burn Monitored → Grant Closed).
• Ledger & System Impact: Expenditures debit grant-restricted project accounts and credit vendor payables/cash; foreign currency conversions record realized and unrealized FX variance.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Real-Time Commitment & Budget Burn Accounting#

SmartERP tracks grant funds across three distinct stages:

1. Committed Funds: Approved purchase requisitions and open purchase orders awaiting delivery.
2. Actual Expenditures: Fully posted vendor invoices and general ledger cash disbursements.
3. Available Budget: Uncommitted balance remaining for future activities.

$$\text{Available Budget} = \text{Total Approved Budget} - \text{Actual Expenditures} - \text{Committed Orders}$$

Automated Hard-Stop Enforcement Gates#

When a user submits a transaction (Purchase Requisition, Payment Voucher, Travel Per Diem):

1. The budget validation engine queries the specific budget line and grant envelope.
2. If $\text{Transaction Amount} \le \text{Available Budget}$:
   • Transaction submits successfully; commitment buffer increments.
3. If $\text{Transaction Amount} > \text{Available Budget}$:
   • Hard-Stop Block: The system blocks submission immediately and displays an error modal: "Transaction Rejected: Budget Line 'Field Team Travel' has only 12,400 ETB available; requested amount is 35,000 ETB."
4. Overrides require formal donor budget amendment or authorized virement approval from the Finance Director.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • NGO: Calculate ACSO 80/20 cost ratio compliance (smarterp_ngo.ir_cron_acso_ratio): Runs weekly to flag any operational overhead drift above 20% limit
  • Grants: Reconcile foreign currency funding variance (smarterp_ngo.ir_cron_fx_reconcile): Runs monthly to revalue restricted foreign currency bank accounts
• Custom Print Templates & Reports:
  • ACSO Statutory Annual Financial Statement (80/20 Rule)
  • Donor Financial Expenditure Report (Multi-Currency)
  • Beneficiary Relief Distribution Voucher (Model 20 SIV)
  • Time-and-Effort Personnel Timesheet Allocation Summary
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#