Using multiple currencies for global project costing
Global projects sometimes require that reporting be done in multiple currencies. This can be a complex task when different currencies continuously fluctuate relative to one other. A fundamental rule of global cost management is not to convert currencies without a good reason. Bids in euros from two subcontractors can be compared without converting them into U.S. dollars. If a contract requires a project to be run in dollars, bids from European subcontractors may be requested in dollars. The article addresses other currency conversion issues such as: when to convert, how to convert, special rules governing currency exchange among member states, methods to help produce time-phased budget reports, and how to forecast currency fluctuations.