How to handle budgetary control in a volatile ledger currency
Because of the volatile currency rates, budgetary control is inconsistent. Since the budgetary control is done in ledger currency, the budget amounts seem insufficient and require budget version revisions and new approvals even though there is enough budget for a spending in project currency.
The customer is working in a country with an unstable currency. Thus, the budgetary control can be inconsistent.
As an example:
Let us assume for Project123, a budget version is created on 01 Jul 2022 and the budget cost is 100 EUR.
The project currency is EUR and the ledger currency is TRY.
EUR/TRY Currency rate on 01 Jul 2022 is 17,50.