Conversion of the Transaction Currency

Conversion of the Transaction Currency

Prerequisites

The conversion program first runs the following checks:

All flows with due dates before the key date for the changeover which are relevant for posting must have been posted. Otherwise, the transaction is not converted.
All open payment requests with due dates before the key date for the changeover must have been settled.

Any open payment requests which still exist during the changeover cannot be settled after the changeover.

If these requirements are met, the system posts the following flows:

Money market:

Principal increases

Principal decreases

Foreign exchange:

Purchase and sale flows

OTC options, caps/floors:

Premiums

Swaps:

Nominal amounts

Interest and other flows are not transferred. To post any pre-posted interest flows to a euro account, you need to delete such flows before the changeover.

Function description

During the transaction currency changeover, the system converts all the relevant flows (including historic flows which have already been posted) into euros, if the currency is defined as a participating currency for European Monetary Union. The data from the original transaction is saved in inactive status under a new transaction number in a special number range. The converted transaction keeps the original number. The system generates a reciprocal reference category (category EUR) for both transactions.

The system also resets the confirmation status of the active transaction activity and reads the new standing instructions for payment details for the new flows.

The system updates Cash Management if the activities are relevant for planning.

Procedure

1. To convert the transaction currency, start report program RFTBEUR00.

2. Enter the following data in the selection screen:

a) The key date for changeover

b) The number range for storing the old transactions

3. If you do not want the system to generate transfer flows and valuation flows, set the Do not generate postings indicator. In this case, you do not need to enter the transfer flow types or the flow types for valuation.

If, by mistake, you set the Do not generate postings indicator for a transaction for which transfer flows should actually be generated, and run the conversion in this mode, you will need to generate the transfer flows manually. For details of the relevant posting system, refer to Conversion of the Transaction Currency (TR-TM-MM/FX/DE/CM

4. Otherwise, you must enter the above flow types in the program selection screen. For more information, see Transaction Currency Changeover: Preparations.

5. You can also run the conversion for individual transactions, certain partners or according to other criteria.

6. Choose Execute.

You cannot carry out a simulation run for the transaction currency changeover.

The following sections describe the changeover activities for the money market, foreign exchange and derivatives areas.