Euro compliance implementations
The type of changes that you need to make depend on the currency system used before and after the internal euro initialization.
To comply with the fixed-rate rule (a fixed rate exists between the EMU currency and the euro), the new currency system must be one of these:
- Single currency or dependent multicurrency, in which the reference currency must be euro.
- Standard multicurrency, in which the local home currency must be euro, and no restrictions exist for the reference currency.
Internal euro initialization involves changing:
- The reference currency from an EMU currency to euro (single currency or dependent multicurrency system)
- The local home currency from an EMU currency to euro (standard multicurrency system).
If you already use the maximum of three home currencies, you can replace one of your home currencies with the euro.
This table shows examples of typical euro compliance implementations. The System and currencies after conversion column contains the specific data defined for the conversion cluster and the conversion-cluster companies.
Examples of euro compliance implementations | |
---|---|
System and currencies before conversion | System and currencies after conversion |
Single currency Reference currency = EMU Local home currency = EMU |
Standard multicurrency Reference currency = GBP Local home currency = EUR Reporting currency 1 = GBP |
Single currency Reference currency = EMU Local home currency = EMU | Single currency Reference currency = EUR Local home currency = EUR |
Single currency Reference currency= EMU Local home currency = EMU | Dependent multicurrency Reference currency = EUR Local home currency = GBP Reporting currency 1 = EUR |
Single currency Reference currency= EMU Local home currency = EMU | Dependent multicurrency Reference currency = EUR Local home currency = EUR Reporting currency 1 = GBP |
Dependent multicurrency Reference currency = EMU Local home currency = EMU Reporting currency 1 = USD | Dependent multicurrency Reference currency = EUR Local home currency = GBP Reporting currency 1 = USD Reporting currency 2 = EUR |
Dependent multicurrency Reference currency = EMU Local home currency = EMU Reporting currency 1 = USD | Standard multicurrency Reference currency = USD Local home currency = EUR Reporting currency 1 = USD Reporting currency 2 = EUR |
Standard multicurrency Reference currency = USD Local home currency = EMU Reporting currency 1 = USD |
Standard multicurrency Reference currency = USD Local home currency = EUR Reporting currency 1 = USD |
Enterprises outside the European Union
Enterprises outside the European Union with business partners that use EMU currencies can optionally perform external conversion to change the EMU currencies to euros.
If you still use EMU currencies, you will need to optionally perform external conversion to avoid the use of currencies that no longer exist.