Postings to an account are always only in the currency in which it is managed. This means that before changeover, postings to the account are in the participating currency. After the changeover, postings to the account are in Euro. This applies independently of the posting date and value date. To ensure smooth-running payment transactions during the dual currency phase, the amounts of the individual payment items exist both in an account currency and also in a reporting account currency.

It generally applies that a payment order must always be specified in the account currency (a currency participating in Euro changeover and Euro) of the ordering party.

The following currency fields are provided for payment items:

• Account currency
• Transaction currency
• Reporting account currency

Before the dual currency phase, the transaction currency corresponded to the account currency. During the dual currency phase, the transaction currency can correspond to the account currency or the reporting account currency.

In the case of externally initiated payment transactions, the system assumes either the transaction currency or the reporting transaction currency.

Direct debit orders can be entered both in account currency and also in reporting account currency. If there is a direct debit order in reporting account currency, the conversion from account currency to reporting account currency is done in the system.

Direct debit orders can be changed over independently of the account changeover.

Standing orders can be entered both in account currency and also in reporting account currency. If there is a standing order in reporting account currency, the conversion from account currency to reporting account currency is done in the system.

You can change over the standing orders independently of the account changeover.

After the changeover of the account, all items from balancing are posted in Euro - including those for periods ending before the changeover key date (value dates in the past).

For postings to prior periods containing payment items with a posting date before the changeover, Euro applies as account currency.

It is assumed that a payment item with transaction currency Italian Lire (ITL) and account currency German Marks (DM) is posted to and account in DM. Then the account is changed over to the Euro currency (EUR). Following this, the payment item is to be returned.

Since the account currency after changeover is EUR, interest and charges for the return can only be calculated in EUR. Returns are always made in the original currency. Since in this case, the original transaction currency was ITL, the interest and charges are also converted to Lire. For this reason, the system creates and executes a return order with the original transaction currency ITL and the account currency EUR.