Euro Currency Configuration

This documentation is designed as a definitive guide to setting up the Currency Exchange Rate table and associated settings to ensure that conversion to, from and via the Euro operate in a Legally and Fiscally compliant manner.

Separate documentation is available covering the technical aspects of applying Euro functionality.

When setting up currencies and associated exchange rate information two primary relationships need to be established, that between the Euro and transacted / reported currencies and that between Base currency and transacted / reported currencies.

In addition, if using multiple currency payment functionality provided by Euro Phase 2 the relationship between supplier / customer currency and payment / receipt bank account currency also needs to be established.

Included within this document are tables that detail exactly how, both the Euro relationship should be defined and a selection of tables from which the appropriate one should be selected dependent on the currencies position to the Euro.

It is important to remember that this configuration is only appropriate from January 1st 1999 and relates to all currencies fixed as of this date. If and when other European currencies enter European Monetary Union and fix their exchange rates to the Euro this document will be out of date.

Any multiple currency functions that are being operated in relation to transactions preceding January 1st 1999 will need to be set up in a different manner.

  1. Euro Currency Set Up
    Set up of currency relationships to the Euro, whether the related currency is an IN currency e.g. French Francs, an OUT currency e.g. British Sterling or an unrelated currency e.g. US Dollars
  2. Base Currency Set Up (when Base Currency is not EURO)
    • IN Currency – for Example French Francs
    • OUT Currency – for example GBP – British Pound Sterling
    • OTHER Currency – for example USD – US Dollars
  3. Payment Currency to Bank Currency (Euro – Phase 2 specific)
    Euro Phase 2 functionality, DA0813 and DA0814 enables payment of one currency from a bank account of another currency.
    For example Base Currency may be French Francs but payment is made to a German Mark supplier from a US Dollar bank account.
    In this scenario no exchange rate relationship will exist between German Marks and US Dollars, therefore this and any other exchange rates appropriate to the same scenario must be established.

Euro Version Numbers

Before setting up DA0659 Euro – Phase 1 and running the conversions associated with this project, it is essential that the following binary versions be in place as a minimum requirement.

CE: 32.88 PL: 32.30 SL 32.69

Note: This information is correct as of December 31, 1999 and precedes the release of CS/3 rel. 3.1 that contains Euro – Phase 2 functionality.

Euro Notes:

  • One of the key things to understand is that when converting to or from any IN currency, it is strongly recommended that the conversion always triangulate via the Euro.

    The triangulation rule is not only applicable to the conversion between two IN currencies e.g. French Franc to German Mark, but between an IN currency and an OUT / OTHER currency e.g. British Pound Sterling or US Dollars.

    The IN currencies are no longer traded, and rates are no longer published between any of the IN currencies and any other world currency.

    Whilst it is not a Legal or Fiscal requirement to triangulate between an IN currency and an OUT / OTHER currency, it is strongly recommended that this approach is taken.

  • When setting up the currency tables it is essential that the following relationships exist:
    • Base to Base – with an Exchange Rate of 1.00
    • Euro to Euro – with an Exchange Rate of 1.00
    Both relationships are included within each of the tables attached.

    Some school’s of thought believe that these set ups are not necessary, however inclusion of both of these has proved to resolve Euro related issues and are therefore recommended.

  • A single currency relationship should not be set up in both permutations.

    For Example, if Base Currency is French Franc (FRF) then the relationship to EURO’s should be set up,

    i.e. Reference Currency: EUR   Currency Code: FRF

    However, the relationship between French Franc and Euro should not be created.

    i.e Reference Currency: FRF   Currency Code: EUR

  • The previous rule is particularly important when considering the relationship between the Base Currency and the Euro, especially when the base currency is an IN currency and will be replaced by the Euro as Base currency in time.

    In this scenario, only the following relationship should be created:

    Reference Currency: EUR   Currency Code: FRF

    This is applicable equally where the Base Currency is IN, OUT or OTHER.

  • Set Up of the Currency Exchange Rate table should take place after running the EMU Extension File population routines, but before running any of the actual data conversion routines. For more information please refer to the technical set up documentation.
  • Recommended Order of Set Up

    Experience has proved that when setting up the currency table, currency relationships should be set up in the following order.

    1. Base to Base
    2. Euro to Euro
    3. Euro to All Transacted / Reported Currencies
    4. Base to All Transacted / Reported Currencies
  • Those currency relationships that triangulate via the Euro e.g. FRF – DEM, should not require an exchange rate to be completed as it will never be referred to.

    However problems have been resolved by populating these fields with a value. The value of “1” was selected in order to highlight it’s use if set up is incorrect.

  • Accounts Payable and Receivable, Exchange Gains and Loss Realisation

    These routines are only appropriate if the Base Currency is an IN currency, and should only be run to realise exchange gains and losses against other IN currencies.

    In theory, these routines are only appropriate if there are open items which pre date January 1st 1999 on Customer or Supplier accounts operated with an IN currency e.g. French Franc. Any transactions after January 1st 1999 should have had the correct exchange rate applied and therefore not generate any unrealised exchange gains or losses.

    As at least a year has now past since the majority of European currencies fixed their exchange rates with the Euro, the Realise Exchange Difference options should not report any unrealised exchange gains or losses. However, when implementing DA0659 Euro functionality it is advisable to run the Realise Exchange Gains and Losses options in order to ensure that Debtors and Creditors balances for accounts operated against an IN currency are reflected accurately as a base currency value in the General Ledger.

    It is recommended that before running these options, the currency table be set up as per the recommendations contained within this document.

  • Configuration of DA0331 – Separate Exchange Gains and Losses

    This project was originally introduced in CS/3 release 1.5 in order to address a Legal and Fiscal compliance issue in Spain. The functionality provided extends the existing analysis of realised exchange gains and losses by providing separate General Ledger accounts for realised gains and realised losses for each currency.

    The Realise Exchange Differences options provided separately for Accounts Payable and Receivable form part of DA0659 Euro Phase 1 functionality.

    DA0331 is required, as accounting separately for realised exchange gains and exchange losses is now a legal and fiscal requirement when fixing a currency to the Euro.

General Currency Notes

  • Currency Exchange Rate Types

    It is essential when setting up the Currency table to ensure that entries exist for each currency relationship and for every intended Currency Exchange Rate Type.

    The following lists which functions operate within a multiple currency environment and require definition of a Currency Exchange Rate type.

    • General Ledger
      • Revaluation
      • Budget Control
      Both of these area’s of functionality require the Exchange Rate Type to be determined at run time.
    • Accounts Receivable / Sales Order Processing

      When converting any transaction originating within these modules, to base and reporting currency the Exchange Rate type selected is defined by the System Key SLCURRTYPE.

    • Accounts Payable / Purchase Order Processing

      When converting any transaction originating within these modules, to base and reporting currency the Exchange Rate type selected is defined by the System Key PLCURRTYPE.

    • Cash Management

      When converting any transaction originating within this module, to base and reporting currency the Exchange Rate type selected is defined by the System Key CBCURRTYPE.

  • Rounding Tolerances

    When converting Transaction Currency to Base Currency CS/3 will identify any rounding differences and make a separate and appropriate posting to the General Ledger to ensure the integrity of the General Ledger in the Base Currency.

    This posting is made to the GL Posting Code identified by the System Key NLROUNDACC, not to the account identified within the currency table.

    If a separate Reporting Currency is applied to the General Ledger, the option is provided to ensure that the General Ledgers integrity is maintained in the reporting currency by setting the System Key NLREPTBAL to YES.

    If this option is applied, the rounding tolerance and rounding account fields on the Currency Tables must be completed where they relate to the Reporting Currencies. It is a pre requisite that the rounding account used for Reporting Currencies must be different to that used for the Base Currency.

    It is absolutely essential when setting the Rounding Tolerance for either the Base Currency (NLROUNDTOL) or Reporting Currency’s (Currency Table) that the tolerance is set relative to the number of decimal places that the Currency is managed in.

    For Example, if the Base Currency is Italian Lira (ITL) and the System Key LOCALDEC is set to 0 then the rounding tolerance should not be set to 0.01 or 0.1, but 1 as a minimum. This applies equally to the Rounding Tolerances defined within the Currency Table.

    Poor configuration in this respect has proved to cause additional problems when project DA0659 Euro is switched on and triangulation is applied.

    Configuration
    Projects

    In order to invoke the Euro Exchange Rate functionality DA0659 must be licensed and included each company’s secure system details. 

    DA0659	Euro – Phase I
DA0331	Separate Exchange Gains and Losses

    System Keys

    There are no System Keys that directly effect the conversion of currency values through the new rules applied by DA0659 Euro – Phase 1 functionality.

    Identified below is a list of all System Keys that relate to Currency Management within CS/3. 

    BASECURR	System Base Currency
LOCALDEC	System Base Currency – Default number of Decimal Places
CEMINUNIT	Smallest Currency Unit in use

NLBASECURR	General Ledger – Base Currency

NLROUNDTOL	Base Currency – Rounding Tolerance
NLROUNDACC	Base Currency – Account for Rounding Differences

NLFORCURR	Default Reporting Currency
NLMULTFOR	Allow Multiple GL Reporting Currencies
NLREPTBAL	Ensure GL Reporting Currency Balances

NLEXCHMETH	Exchange Difference Summary Method
NLREVALUE	Include P&L Accounts in GL Revaluation
NLEXCHACC	Exchange Difference Account
NLERRACC	Exchange Error Account

NLCURRTYPE	Currency Exchange Rate Type – GL Journals
PRCURRTYPE	Currency Exchange Rate Type – Project Posting to GL [BASE and NLBASE different]
SLCURRTYPE	Currency Exchange Rate Type – AR / OP Transactions
PLCURRTYPE	Currency Exchange Rate Type – AP / PO Transactions
CBCURRTYPE	Currency Exchange Rate Type – Cash Management Transactions

SLALTCURR	Default Alternate Currency – Accounts Receivable Transactions
PLALTCURR	Default Alternate Currency – Accounts Payable Transactions
    Euro Currency Set Up
    Reference Currency = EUR

    Note: Remember to set up these for each Currency Type you intend to use.

    Currency Code Dec. Places Operator Sig.Digits Fixed Rate Date Effective Obsolete Currency Sub Denomination Cross Currency Date Effective Rate
    IN CURRENCIES
    ATS Austrian Schilling 2 / 6 Y 01/01/99 N Y - - 13.7603
    BEF Belgium Franc 2 / 6 Y 01/01/99 N Y - - 40.3399
    BEF Belgium Franc 2 / 6 Y 01/01/99 N Y - - 40.3399
    DEM German Marks 2 / 6 Y 01/01/99 N Y - - 1.95583
    ESP Spanish Peseta 2 / 6 Y 01/01/99 N Y - - 166.386
    FRF French Franc 2 / 6 Y 01/01/99 N Y - - 6.55957
    FIM Finnish Markka 2 / 6 Y 01/01/99 N Y - - 5.94573
    IEP Irish Punts 2 / 6 Y 01/01/99 N Y - - 0.787564
    ITL Italian Lira 0 / 6 Y 01/01/99 N Y - - 1936.27
    NLG Dutch Guilders 2 / 6 Y 01/01/99 N Y - - 2.20371
    PTE Portugese Escudos 2 / 6 Y 01/01/99 N Y - - 200.482
    OUT CURRENCIES
    DKK Danish Krone 2 / 6 N - N N - - Prevailing Rate
    GBP British Pounds 2 / 6 N - N N - - Prevailing Rate
    GRD Greek Drachma 2 / 6 N - N N - - Prevailing Rate
    SEK Swedish Krone 2 / 6 N - N N - - Prevailing Rate
    EURO
    EUR Euro 2 / 6 Y 01/01/99 N Y - - 1.00000
    OTHER CURRENCIES
    USD US Dollars 2 As Req’d As Req’d N 01/01/99 N Y - - Prevailing Rate

  • BASE CURRENCY
    1: IN CURRENCY

    System Key: BASECURR = FRF

    Reference Currency = FRF – French Francs

    Note: Remember to set up these for each Currency Type you intend to use.

    Currency Code Dec. Places Operator Sig.Digits Fixed Rate Date Effective Obsolete Currency Sub Denomination Cross Currency Date Effective Rate
    IN CURRENCIES
    ATS Austrian Schilling 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    DEM German Marks 2 / 0 N - N N EUR 01/01/99 1
    ESP Spanish Peseta 2 / 0 N - N N EUR 01/01/99 1
    FRF French Franc 2 / 0 N - N N EUR 01/01/99 1
    FIM Finnish Markka 2 / 0 N - N N EUR 01/01/99 1
    IEP Irish Punts 2 / 0 N - N N EUR 01/01/99 1
    ITL Italian Lira 0 / 0 N - N N EUR 01/01/99 1
    NLG Dutch Guilders 2 / 0 N - N N EUR 01/01/99 1
    PTE Portugese Escudos 2 / 0 N - N N EUR 01/01/99 1
    OUT CURRENCIES
    DKK Danish Krone 2 / 0 N - N N EUR 01/01/99 1
    GBP British Pounds 2 / 0 N - N N EUR 01/01/99 1
    GRD Greek Drachma 2 / 0 N - N N EUR 01/01/99 1
    SEK Swedish Krone 2 / 0 N - N N EUR 01/01/99 1
    EURO
    EUR Euro N/A N/A N/A N/A N/A N/A N/A N/A N/A9 N/A
    OTHER CURRENCIES
    USD US Dollars 2 / 0 N - N N EUR 01/01/99 1

    BASE CURRENCY
    2: OUT CURRENCY

    System Key: BASECURR = GBP

    Reference Currency = GBP

    Remember to set up each of these for each Currency Type you intend to use.

    Currency Code Dec. Places Operator Sig.Digits Fixed Rate Date Effective Obsolete Currency Sub Denomination Cross Currency Date Effective Rate
    IN CURRENCIES
    ATS Austrian Schilling 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    DEM German Marks 2 / 0 N - N N EUR 01/01/99 1
    ESP Spanish Peseta 2 / 0 N - N N EUR 01/01/99 1
    FRF French Franc 2 / 0 N - N N EUR 01/01/99 1
    FIM Finnish Markka 2 / 0 N - N N EUR 01/01/99 1
    IEP Irish Punts 2 / 0 N - N N EUR 01/01/99 1
    ITL Italian Lira 0 / 0 N - N N EUR 01/01/99 1
    NLG Dutch Guilders 2 / 0 N - N N EUR 01/01/99 1
    PTE Portugese Escudos 2 / 0 N - N N EUR 01/01/99 1
    OUT CURRENCIES
    DKK Danish Krone 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    GBP British Pounds 2 / 0 N - N N EUR 01/01/99 1
    GRD Greek Drachma 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    SEK Swedish Krone 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    EURO
    EUR Euro N/A N/A N/A N/A N/A N/A N/A N/A N/A9 N/A
    OTHER CURRENCIES
    USD US Dollars 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate

    3: OTHER CURRENCY
    System Key: BASECURR = USD

    Reference Currency = USD

    Note: Remember to set up these for each Currency Type you intend to use.

    Currency Code Dec. Places Operator Sig.Digits Fixed Rate Date Effective Obsolete Currency Sub Denomination Cross Currency Date Effective Rate
    IN CURRENCIES
    ATS Austrian Schilling 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    BEF Belgium Franc 2 / 0 N - N N EUR 01/01/99 1
    DEM German Marks 2 / 0 N - N N EUR 01/01/99 1
    ESP Spanish Peseta 2 / 0 N - N N EUR 01/01/99 1
    FRF French Franc 2 / 0 N - N N EUR 01/01/99 1
    FIM Finnish Markka 2 / 0 N - N N EUR 01/01/99 1
    IEP Irish Punts 2 / 0 N - N N EUR 01/01/99 1
    ITL Italian Lira 0 / 0 N - N N EUR 01/01/99 1
    NLG Dutch Guilders 2 / 0 N - N N EUR 01/01/99 1
    PTE Portugese Escudos 2 / 0 N - N N EUR 01/01/99 1
    OUT CURRENCIES
    DKK Danish Krone 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    GBP British Pounds 2 / 0 N - N N EUR 01/01/99 1
    GRD Greek Drachma 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    SEK Swedish Krone 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate
    EURO
    EUR Euro N/A N/A N/A N/A N/A N/A N/A N/A N/A9 N/A
    OTHER CURRENCIES
    USD US Dollars 2 As Req’d As Req’d N - N N EUR 01/01/99 Prevailing Rate