CFM - Changeover to the Euro
The documentation for the changeover to the euro covers the following components:
Component |
Application abbreviation |
Money Market |
MM |
Foreign Exchange |
FX |
Derivatives |
DE |
Securities |
SE |
Loans |
LO |
Cash Management |
CM |
Multicurrency Capability in SAP CFM
In the SAP CFM component, the different amounts relating to a financial transaction are managed in parallel. These amounts serve different purposes and can be in different currencies. The following basic currency categories exist:
Currency of a company code (domestic currency) in which local books are kept.
Currency in which a transaction is processed and posted.
The currency in which a security is issued and in which security positions are managed.
The currency in which the price of a security is quoted at a certain exchange.
Currency in which loan positions are managed and loan transactions are processed.
All these currency categories are affected by the changeover to the euro. However, different circumstances apply in each case, and they need to be treated differently for conversion.
It is up to the company to decide when to change over the local currency, since this is the company’s own accounting currency. When a company changes the local currency over to euro, all the local currency amounts in the system must be converted into euros as at a certain key date, and the related currency keys and exchange rates need to be adjusted.
The changeover date for the issue currency is determined solely by the issuer. Once this date has been announced, the changeover needs to be carried out accordingly. This means that the issue currency changeover is selective and only applies to the security issue in question (in other words, for the corresponding security ID number).
In the participating countries, it is assumed that from the beginning of the dual currency phase, all securities will only be listed in euros - regardless of the issue currency. To reflect this situation, a report program is available which allows you to convert the security prices to the new quotation currency (report program RFVWNWUM). No special preparation activities or Customizing settings are necessary.
You can only change over the transaction currency and the contract currency after agreeing upon a changeover date with the business partners involved on a contract by contract basis.
The transaction currency changeover does not affect the securities area. In the case of balance sheet transfers, the transaction currency is only a descriptive field. For bank postings, the system transfers the transaction currency to Financial Accounting. The transaction currency is not converted in Financial Accounting.
Changeover activities for the Cash Management and Market Risk Management components
Cash Management
When you carry out the local currency changeover, the system converts the amounts in Cash Management automatically.
Market Risk Management
In the Market Risk Management component, the local currency amounts are converted automatically, as for Cash Management. No additional technical adjustments are necessary.
The treatment of reporting and payment transactions applies for all currency categories:
Reporting
No parallel currency display is planned for the reporting functions. All the evaluations in SAP drilldown reporting allow you to select the display currency. By running two separate evaluations you can see the both the original currency amounts and the amounts in euros.
Payment Transactions
Payment transactions are handled in the same way as in FI. For more information on payment transactions between euro companies and non-euro companies (for example, companies still working with DEM), see
European Monetary Union: Euro (CA-EUR) under Business and Technical Functions.
Customizing (general)
All the Customizing settings required for the changeover to the euro in the CFM components are covered by this online documentation.