Are you ready for the euro?
The euro? Isn’t it almost ten years ago since the euro was introduced in the member states of the European Union (EU)?
Yes, that’s true, but the EU is still growing, and further member states will switch to the euro within the next few years.
The European Union is an economic and political union of 27 member states, located primarily in Europe. The EU expanded during the last few years and will expand further with the accession of new member states. The euro (€) is the official currency of 16 of the 27 member states of the European Union. With all but two of the remaining EU members obliged to join, together with future members of the EU, the enlargement of the eurozone is set to continue further. Outside the EU, the euro is also the sole currency of two former Yugoslavian states (Montenegro and Kosovo) and several European micro-states (Andorra, Monaco, San Marino and Vatican).
Countries that will switch to the euro within the next few years are, for example:*
Estonia: 2011 http://null/imgres?imgurl=http://cyberethiopia.com/home/images/Articleimages/european_union.jpg&imgrefurl=http://daymix.com/European-Union/&h=567&w=880&sz=213&tbnid=uSdaHl7VniwiwM:&tbnh=94&tbnw=146&prev=/images%3Fq%3DEuropean%2Bunion&hl=en&usg=__RiFWby2FSJSoPP9_8fgE7uEsnoE=&ei=PSeNS5WJLpKImgPw8e2-BA&sa=X&oi=image_result&resnum=8&ct=image&ved=0CCQQ9QEwBw
Czech Republic: 2012 or 2013
*These are planned dates based on findings in February 2010 and therefore subject to change.
Companies doing business in or with those countries will have to carry out a currency conversion in their current systems.
This will have the following impacts:
A company will have to change the local currency of the company code of the country that is switching to the euro. The conversion of the local currency is done centrally in SAP ERP, normally during the dual currency phase. The SAP CRM system does not require a local currency conversion.
The document currency can be converted or switched during or at the end of the dual currency phase, if needed. At the beginning of the dual currency phase, the euro is a new foreign currency. After the local currency is shifted, the old national currency becomes the foreign currency.
In CRM, it is already possible to change the currency of documents, sales organizations (=reference currency), conditions and business partners.
In many cases, it is not recommended to change the currency of long-term documents, such as contracts or orders (for example, if they are partially billed). However, the invoice must use the new currency.
With SAP enhancement package 1 for SAP CRM 7.0, it is now possible to carry out currency conversion during billing. This means you are able to create the invoice in a different currency than the original sales or service document.
How does currency conversion work?
Currency conversion in SAP CRM billing takes place if a sales or service transaction was created in a transaction currency that has expired (is no longer a legal means of exchange) on the billing document creation date. The expired currency is automatically converted to the replacement currency.
Conversion during billing takes place as follows:
- After the expiry date, relevant billing documents are automatically created in the replacement currency.
- Accounting documents are created in the replacement currency.
- The original sales or service transaction remains in the old currency. The billed value is displayed in the replacement currency.
What do you have to do to make it work?
To use the new functionality, you have to make the following Customizing settings:
- Activate the billing feature Conversion of Expired Currency under Customer Relationship Management -> Billing -> Configure Application.
- Define an expiry date, reason, and replacement currency under SAP NetWeaver -> General Settings -> Currencies -> Expiring Currencies.
How does it look like?
Watch a short video with a system demonstration.