Local Currency Changeover 

Use

The changeover to the euro affects almost all areas of a company.

One of the key areas affected by the changeover activities is financial accounting, where all the accounts and payment transactions need to be adapted, as well as the reporting framework. The high level of integration between Treasury and Financial Accounting means that Treasury is equally affected by the changeover.

The local currency changeover is described in detail in the central euro documentation.

The documentation covers:

In the central euro documentation, refer to the Treasury sections for the local currency changeover and the activities for other applications, in particular FI ( preparation, central changeover, cleanup).

Process Flow

 

Features

· You convert the national currency to the new local currency euro centrally using special conversion programs. Treasury is included in the central changeover.

· With this function you can change over the complete dataset on a certain key date after you have closed and fully documented the fiscal year.

 

Where there is a legal obligation to preserve documents, these documents need to be printed out.

· The system converts all the local currency amounts in the database, including:

· - Amount fields in local currency

- Fixed amounts in Customizing tables

- Currency keys relating to the local currency

- Exchange rates relating to the local currency

· The conversion programs take any rounding differences resulting from conversion into account.

· After conversion, you cannot make any more postings in the previous fiscal year:

- The accounting periods in FI are irreversibly closed

- The historical data is also converted into euros

· After conversion, the system displays your accounts as if they had always been managed in euros.

· T here is no reset function for the local currency changeover. We therefore recommend that you make a data backup before you run the conversion. For more information, see the local currency changeover section of the central euro documentation.

Activities

 For more information, see User-Specific Developments in the central euro documentation.

 You should not carry out the local currency changeover if the data in your system is inconsistent. Such differences might otherwise be interpreted as gains and losses resulting from the changeover to the euro and adjusted and disclosed accordingly.