Other Cleanup Activities (SAP Library - European Monetary Union: Euro (CA-EUR))

Other Cleanup Activities

Edit reference interest rates manually.

The following are not converted automatically:

Collateral
Objects
Encumbrances
Collateral value calculations
Credit standing calculations

Check the selection criteria for files:

If selection criteria that relate to amounts and/or currencies have been entered for a rollover or in activity management, you must check these criteria after the contract currency changeover and make any necessary adjustments.

Examples for rollover:

Selection criterion before the changeover:

Contract currency and local currency = DEM
All loans where the remaining capital amount >50,000 DEM are in file 1.

Selection criterion after the changeover:

Contract currency = EUR
Actual situation: All loans where the remaining capital amount > 50,000 (DEM) are in file 1.
Desired situation: All loans where the remaining capital amount > 25,000 (EUR) are in file 1.

Foreign currency loans:

In the case of foreign currency loans, changes in exchange rates result in exchange rate gains or losses. In the case of euro loans, the exchange rates are fixed. Despite the fixed rate, rate gains and losses can arise from rounding differences.
Examples of rate gains or losses from rounding differences (LC = local currency):

– LC DEM, new loan is made in EUR

– LC DEM, existing loan in DEM converted to EUR

– LC EUR, existing loan in "old" local currency DEM

The system uses the existing algorithm with fixed rates to display gains and losses resulting from rounding differences in the cash flow.

Prerequisites:

If, as a result of the contract currency changeover, you have foreign currency loans for the first time, you must make the following Customizing settings:

Define flow types for rate gains and losses
Assign the flow types to flow categories: Flow category XF - recalculate the capital amounts during the contract currency changeover
Set up account determination
If you already have foreign currency loans, you can use the existing Customizing settings for foreign currency loans.
If no foreign currency loans have been granted so far, some loans may be treated as foreign currency loans in relation to the euro:

When the local currency is changed over to the euro, loans that were originally local currency loans become foreign currency loans.
When the contract currency is changed over to the euro, loans that were originally local currency loans become foreign currency loans.
If new loans are granted in euros before the local currency changeover, these are treated as foreign currency loans (until the local currency changeover).

In all of these cases, you must define flow types for rate gains and losses, assign them to the above flow category and make the settings for account determination.

Updating fields for capital amounts:

Use

The capital amounts stored in the file are not updated after conversion and are still displayed in the original currency. For performance reasons, the values are not updated in euros automatically.

Procedure

To update the capital amounts, choose Portfolio ® Rollover ® File Processing ® Update File.

The system displays the capital amounts in euros on the Details about Loan screen (Goto ® Details).

Choose Rollover ® File ® Edit and enter the values for the file in the initial screen.
In the Edit File: File Overview screen, select a loan from the Register overview.
Choose Goto ® Details. The detail screen with the capital amounts appears.

In the overview, the system displays the capital amounts in local currency. Since the local currency amounts are calculated by translating the foreign currency amounts, there may be rounding differences. However, these rounding differences are not relevant, since the fields are only descriptive.