General Ledger Transfer After Currency Changeover 

Purpose

During transfer to the general ledger, the items updated on the current account system accounts are transferred to the corresponding general ledger accounts.

Until the currency changeover, the current accounts are managed in the account currency DEM and the documents are posted on the general ledger in the document currency DEM. As a result of the currency changeover, the account currency is changed to euro. The changeover can take place daily, on any date. This changeover is taken into consideration during the transfer to the general ledger, meaning that the accounts that have already been changed over to euro are transferred to the general ledger with the document currency euro. Since general ledger transfer takes place daily after completion of all tasks, the changes to the accounts changed over during the day are carried forward to the general ledger. The receivables and payables of the account are taken off the books in the original account currency and put on the books on the relevant G/L account in euro. This is done automatically.

The possibility to transfer accounts that were already changed over to euro to the general ledger with the document currency euro means that:

·         Payables and receivables of the changed over accounts are no longer shown in the account currency before the changeover, but in euro.

·         The necessary transfer postings on the general ledger take place as part of general ledger transfer.

Process flow

1.       Changeover of the current accounts to euro

2.       Execution of the daily balancing tasks

3.       General ledger transfer with automatic transfer postings on the general ledger

Possible currencies in the current account system and on the general ledger

The account currency in the current account system determines the document currency on the FI general ledger. It is irrelevant if euro, a participating currency or some other currency is involved. The example below involves an account currency of French francs. This account currency is adopted as document currency. This means that when the account currency changes to euro, the document currency on the general ledger also changes. However, the local currency does not change. The local currency is independent of the euro changeover for accounts and bank areas. This only changes after the changeover of the company code to euro.

What always applies is that current accounts managed in euro are transferred to the general ledger with the document currency euro.

The document currency change becomes apparent during the next general ledger transfer.

Posting logic on the general ledger

The following example serves to clarify the postings on the FI general ledger after currency changeover in the current account system:

The private account in the example is first still managed in DEM and receives a credit amounting to 1,000 DEM. Then the account is changed over to EUR.

The credit is posted to the clearing account private customers (130.100) as payable (1). As part of balance sheet preparation, this credit is taken off the books of the clearing account private customers and put on the books to the account payables, private customers (160.100) as payable.

Following this, the account is changed over and during the first general ledger transfer after the changeover the DEM balance is taken off the books by means of a special currency changeover account (198.010). The amount (3) is offset on the account clearing, payment transactions (198.000). The amount in DEM is then taken off the books of account 130.100 clearing, private customers. The offsetting posting (4) is to the account take currency changeover off books, (198.010).

Then the EUR amount offsets the DEM amount (5) on the clearing account, payment transactions. This is done by means of the account put currency changeover on books, (198.020). It is identified as an amount put on the books. From this account, the EUR amount is put on the books to the clearing account private customers (6).

In the next step the amount is transferred from the clearing account private customers to the account payables, private customers (160.100). For this, the amount of 1,000 DEM is taken off the books of the payables account (4) and the payable of 1,000 DEM (2) is updated on the clearing account private customers. The clearing account private customers is now balanced/cleared.

The amounts for balance sheet preparation are also taken off the books in DEM (7) and put back on the books in EUR (8). The taking off the books takes place on account payables, private customers (160.100) to the clearing account.

From the clearing account private customers the EUR amount is posted to the payables account, private customers (8)

By appropriate Customizing it is also possible to manage the accounts managed separately in the example for the taking off or putting on the books of the currency changeover (198.010/198.020) as one account.

The offsetting account for currency changeover does not have to be the same as the payment transaction clearing account. For a clearer overview, you can also set up a separate account for this purpose.

You can define different accounts for different currencies in Customizing. It is possible, for example, to set up separate clearing accounts, payable accounts and receivable accounts for EUR and DEM. This division was not made in the above example.