# Time Series Methods and Business Intelligent Tools for Budget Planning--Case Study
## 3 Analysis of the Budgeting Process and Its Support with ERP Systems Tools
### Challenges and Constraints in Budgeting in ERP Systems  
The budgeting modules in ERP systems, despite their advanced features, often have certain limitations and drawbacks that can reduce their effectiveness [20; 40]. There are some common challenges and constraints in this area:  
* Limited Flexibility and Customization--Many ERP systems offer budgeting modules with a fixed set of features that may not meet the specific requirements of a company. For example, the budgeting process in a service-based company can differ significantly from that in a manufacturing firm. High standardization in ERP can make it challenging or costly to adapt to the unique financial models of a company. Customization and report tailoring often require the involvement of developers.
* Limitations in Advanced Analytics and Forecasting--Many ERP systems focus more on historical budget data than on advanced forecasting models. These modules do not always support modern predictive techniques, such as machine learning-based analysis. More advanced tools, such as scenario analysis or dynamic financial modeling, are often limited or require additional modules and tools, e.g., analytical solutions outside the ERP system.
* Scalability and Performance--ERP systems may encounter performance issues when processing large volumes of budgetary and analytical data, especially when used on older hardware or without proper configuration.
* Scaling for Larger Organizations: Larger companies with more complex structures often face challenges in creating consolidated budgets, particularly when aggregating data from multiple divisions or regions. Complexity of Use and Training Needs
* Complex Interface: The budgeting modules in ERP are often extensive and have complex interfaces that require user training. Understanding and efficiently using budgeting functions takes time, and user errors can lead to inaccurate budgeting.
* High Entry Barrier: Non-technical users may struggle with complex budgeting and reporting functions. Companies often need to invest in training or hire dedicated ERP specialists.
* Limited Reporting and Visualization Capabilities: Visualization features in ERP systems are often limited compared to dedicated BI tools such as Power BI or Tableau, which restrict the ability to create clear and interactive reports for management.  
* High Implementation and Maintenance Costs: Most budgeting modules, especially those with complex configurations, come with high costs for licensing, technical support, and periodic updates.
* Issues with Integration with External Data. Although most of the necessary data for budgeting data can be accessed in an ERP system and large ERP systems include functions to support budgeting, there are generally no tools available for advanced budget forecasting and simulation, such as the following:
* Advanced demand forecasting;
* Forecasting with dynamic product groupings;
* Budget simulation in response to changes in costs, e.g., energy, materials, or currency rates;
* Long-term material planning, with the ability to account for incomplete planning BOMs.