During the dual currency phase, companies can choose when to change from the national currency to the euro. They can continue to operate in either the euro or national currency according to the "No compulsion, No prohibition" principle.

This IDES scenario focuses on a German company called IDES AG. At the beginning of the dual currency phase, IDES AG has not yet converted to the Euro, that is, the company’s local currency is still the national currency (DEM). IDES AG has some important business partners in Germany and many of the other European states participating in EMU. As of 01/01/1999, some of these business partners have already converted to the euro or are about to, and want to encourage their business partners to start dealing with them in euros.

All accounting and reporting systems are based on local/national currency DEM. However, IDES AG wants its employees to prepare for the upcoming currency changeover. The R/3 system’s multi-currency capabilities are ideally suited to the changeover to euros. Reports can be run in multiple currencies across all application areas, both in the local/national currency DEM, as well as in euros.

This IDES scenario describes:

• An analysis within the Sales Information System (SIS) where the currency is switched from the company’s local currency DEM to EUR.
• A balance sheet/P&L where the IDES local currency DEM is compared with the EUR.
• A profitability report where the company’s local currency DEM is compared to EUR.
• A cost center analysis (plan/actual) where the company’s local currency DEM is compared to EUR.

For information about the settings in the currency table, see SAP Note 91481.

This scenario is based on the reporting data of fiscal year 1999 and the EUR exchange rates are already effective for 1999.