This becomes a reference for all the flows generated.

Choose Back office ® Corporate Action and create an issue currency conversion.

1. Key date of the changeover
2. ID number of the security you want to convert
3. Old issue currency
4. New issue currency
5. Set the Convert conditions? indicator if you want to convert all the conditions in the old issue currency to the new issue currency.
6. Rate type for translating the currency amounts

1. You must meet the following requirements:
1. You have to perform a period-end closing for all the positions of the security you want to change over on the key date of the changeover.
2. There must be no actual closed records with a position date later than the key date.
3. If a fixed rate has been defined between the old issue currency and the local currency at the changeover rate (this is always the case when you change over to the euro), you must perform foreign currency valuation at the changeover rate before you post the issue currency changeover. You do this by choosing Back Office ® EMU Additional Functions ® Execute Forex Valuation.
2. If you have fulfilled all the requirements, choose Securities ® Accounting ® Corporate Action ® Post.

Enter the following data:

1. Value date of the flows generated
2. Posting date of the FI documents
3. Document date of the FI documents
4. Assignment text of the FI documents

The system first determines the positions for all the relevant company codes/securities accounts on the key date of the changeover. It then takes the book value in the old issue currency off the books and posts it again in the new issue currency. It does this for each securities account (for 6b positions and valuation category 10 per position item). The example below demonstrates which flows are generated for each securities account position.

The issue currency (ICURR) of a security changes over to the EURO on 1/1/2000 from FRF. The local currency (LCURR) of the company code is already EURO. The fixed exchange rate for the relevant rate type is 1 EURO = 6 FRF. In one securities account there are 1000 units with the following:

The book value is calculated as follows:

The system generates the following flows for a currency swap:

The securities management module draws a formal distinction between the issue currency and the position currency of a security. Since you always manage your positions in the issue currency, you have to change over the position currency together with the issue currency.

You usually enter condition items in a separate currency, in other words, the condition currency. If you set the Convert conditions? indicator when you defined the issue currency changeover, all the conditions in the old issue currency are converted to the new issue currency.

In principle, ALL the records in the system will be converted, regardless of the issue currency changeover key date.

‘New’ local currency securities are reconciled.

If a foreign currency security becomes a local currency security when the position currency is changed over to the local currency, the following have to be checked for consistency:

1. The acquisition value must be the same in both the issue currency and the local currency.
2. The write-ups/write-downs in the security must be identical in the issue currency and the local currency.
3. The book value must be the same in the issue currency and the local currency.
4. There must be no write-ups/write-downs in the foreign currency.