| # The conversion rules Conversion is performed in different ways, depending on the currency system to which you convert, and the type of the data. A number of standard conversion functions is available to convert the different types of data. Depending on the currency system to which you convert, the conversion rules process the data in different ways. Internal initialization conversion rules For internal currency initialization, these standard conversion rules apply: Currency amount (amount in a specified currency) Currency amounts can be stored in up to three home currencies. The amount is converted into each of the new home currencies. Conversion takes place for each new home currency. The currency rates are taken from the CI Rates (tccri7100m000) session. Single or dependent multicurrency system: The transaction amount is converted to the reference currency. In a dependent currency system, the amount in the reference currency is then converted into the other home currencies. Independent multicurrency system: The amount in the transaction currency is converted directly into each of the home currencies. Standard multicurrency system: The amount in the transaction currency is converted directly into the local home currency. Depending on the translation method for each individual reporting home currency, either the amount in local home currency is converted into the amount in the particular home currency, or the home amount is calculated directly from the transaction amount. Rate/Rate factor Depending on the currency system after conversion, the rates are taken from the CI Rates (tccri7100m000) session or the rates are calculated based on the converted amounts. The corresponding rate factors are changed as required. Default currency The default home currency for registering currency data is replaced with the new home currency. Sole home currency amount Use this rule in an independent currency system if the amount is not available in the transaction currency. The amount in the local home currency is converted into amounts in the new home currencies. Sole amount The currency of the amount in home currency is not available. To convert the amount, you must indicate whether the amount is in the reference currency or in the local home currency of the financial company. Rate determiners Some rate determiners cannot be used in specific currency systems. If the currency system changes and the rate determiner cannot be used in the new currency system, the rate determiner is changed to the most similar rate determiner that can be used in the new currency system. If the rate determiner can be used in the new currency system, the rate determiner is not changed. External initialization conversion rules For external currency initialization, these standard conversion rules apply: Transaction-currency amount During external conversion, amounts in transaction currencies are converted to amounts in the new transaction currency, which is euro. The currency rates are taken from the CI Rates (tccri7100m000) session. Transaction currency During external conversion, the transaction currencies are changed to the new transaction currency, which is euro. Rate and rate factors (external) The currency rate between the transaction amount in the new transaction currency (euro) and the company’s home currency or currencies is calculated. Amount conversion rule Amounts can be registered in up to three home currencies. Conversion takes place for each new home currency and the resulting amounts are registered in the home currency amount positions in the database. ERP Enterprise uses the currency rates defined in the CI Rates (tccri7100m000) session to calculate the new home currency amounts. Amount conversion A different calculation method is used, dependent on the (new) currency system you define in the CI cluster. If the currency of the new amount in home currency is already present in the previous home-currency array, the new home amount is always copied from the particular previous home amount. In all other cases, amounts in the home currency are recalculated, even if the transaction currency matches the home currency, or the transaction amount equals zero. The latter, for example, applies to currency and rounding differences. Otherwise, merely copying the transaction amount to the new home amount, could result in the document's transactions being out of balance after a CRI conversion. Euro initialization If the conversion basis is an EMU-marked currency (in the Currencies (tcmcs0102m000) session), and the new currency is euro (defined as "Transition Currency" ( Infor ERP LN 6.1 FP5) or "Euro Currency" (in previous versions) in the Companies (tcemm1170m000) session, the amount in euros is always recalculated using the fixed CRI conversion rate. In the latter case, amount differences may occur between euro amounts in transaction currency and in home currency. This occurs if the euro was used as a transaction currency in the past, against a rate different from the CI conversion rate. The mechanism of using the direct rate in the euro initialization case will minimize the risk that the historic business results are different after euro initialization. Single currency system In a single currency system, the local home currency and the reference currency are the same. The new local home (or reference) currency amount is calculated from the previous local home currency amount by using the exchange rate of the previous local home currency to the new reference currency. Dependent multicurrency system First the new reference-currency amount is calculated from the previous local home currency amount by using the exchange rate of the previous local home currency to the new reference currency. Next, the calculated reference-currency amount is converted to the amounts in the other home currencies using the exchange rates between the reference currency and the other home currencies. Independent multicurrency system The home-currency amounts are registered without being related to another home currency. Currency rates are available between each home currency and the transaction currency. The new local home-currency amount is calculated from the previous local home currency. The new reporting home-currency amounts are calculated directly from the transaction-currency amount using the exchange rate of the transaction currency to the new home currency. Standard multicurrency system The new local home currency amount is calculated from the previous local home currency amount by using the exchange rate of the previous local home currency to the new local home currency. Depending on the individual reporting home currency’s translation method defined in the CI cluster, amounts in reporting home currency are calculated either from the new local home currency or the transaction currency, using the particular CI conversion rates. Rate/Rate factor conversion rule The currency exchange rates are usually stored in the database with the amount, as well as the rate effective date. If the currency and the amount change, the correct new rate, rate factor, and effective date must also be stored. The setting of the Express in Base Currency check box which is either selected or cleared, must be copied. The currency-rate registration for single and dependent currency systems differs from independent currency systems. Therefore, the rate/rate-factor conversion is also different. See "Currency-rate registration" under "Currency Systems and Company Structures." During external conversion, the home currencies do not change and a simpler method can be used to convert the currency rates and rate factors. Therefore, two rate/rate-factor rules exist: Rate/rate factor, used during internal conversion Rate/rate factor (external), used during external conversion Rate factors and rate effective-date conversion In all cases, these changes are made during the conversion: The rate factors of the converted amounts are set to the appropriate rate factors defined for the home currencies in the CI Rates (tccri7100m000) session. The new currency rate’s effective date stored with the converted amount is set to the date when the currency initialization was carried out. Internal rate/rate-factor conversion Important! Home-currency amounts must be converted before the rate/rate-factor conversion-rule is used. To avoid revaluation of the home-currency amounts, the rates stored with the converted amounts in the new home currencies are calculated from the new home-currency amounts and the corresponding amounts in the reference currency or the transaction currency. Note If the rate cannot be calculated because the amount is not available in the home currency but only in the transaction currency, the rate entered in the CI Rates (tccri7100m000) session is stored for the amount. For example, the amounts of invoices that are not yet composed are not available in the home currency. One amount is divided by the other depending on the setting of the Express in Base Currency check box in the CI Rates (tccri7100m000) session. Depending on the currency system after the currency initialization, different calculations are carried out. Conversion to single or dependent multicurrency system If the reference currency changes, all rates are calculated. First, the rate between the transaction amount and the new reference currency is calculated. Next, for a dependent multicurrency system the rates between the amount in the reference currency and the other (new) home currencies are calculated, with the exception of rates between an EMU currency and the euro: in that case, the fixed CI conversion rates are stored. If the reference currency does not change for a dependent multicurrency system, the rates between the amount in the reference currency and the other new home currencies are calculated. Conversion to independent multicurrency system The rates between the transaction currency and the new home currencies defined in the CI Rates (tccri7100m000) session are taken. Conversion to standard multicurrency system First, the rate between the transaction amount and the new local home amount is calculated. Next, depending on the individual translation method settings defined in the CI cluster, either the rates between the transaction currency and the new reporting home currency, or the rate between the new local home currency and the new reporting currency defined in the CI Rates (tccri7100m000) session, are taken. External rate/rate-factor conversion Important! Before the rate/rate factor (external) conversion rule is used, transaction-currency amounts must first be converted to euro. The currency rates between EMU currencies and the euro must be based on the euro. It is not permitted to use inverted rates. Therefore, the new calculated currency rates are based on the transaction currency instead of the home currency. Conversion to single or dependent multicurrency system The currency rate between the transaction amount in the new transaction currency (euro) and the reference currency is calculated. Conversion to independent multicurrency system The currency rate between the transaction amount in the new transaction currency (euro) and each of the home currencies is calculated. Conversion to standard multicurrency system The currency rate between the transaction amount in the new transaction currency (euro) and each of both the local, and those reporting home currencies with the "From Transaction Currency" translation method, is calculated. Default currency conversion rule In some parts of ERP Enterprise, such as the Financial Budgeting System, data is registered in a default currency, which must be one of the home currencies. If the default currency is no longer one of the home currencies after the conversion, it must be replaced with another home currency during the currency initialization process. Default currency conversion During conversion, the current default currency is replaced with the new default currency and the amounts are converted to the new default currency. Sole home-currency amount conversion rule Sometimes the transaction-currency amount is not available for the calculation of the new home-currency amount. In such cases, the calculation of new home-currency amounts is based on the local home-currency amount. Sole home-currency amount conversion The new home-currency amount is calculated from the previous local home-currency amount. Sole amount conversion-rule A sole amount is an amount that is registered in one currency and to which no currency field is linked. Such amounts are usually in either the reference currency or the local home currency. For example, an item’s Inventory Carrying Cost (whwmd400.scst) is a sole amount in the reference currency. The sole amount rule converts the amount into the new local home currency or to the new reference currency. To use this rule, you must specify whether the field is in the reference currency or in the local home currency, by selecting or clearing the Use Reference Currency check box in the CI Fields (tccri7521m000) session. Sole amount conversion Depending on the selection of the Use Reference Currency check box in the CI Fields (tccri7521m000) session, the amount is converted: From the previous reference currency into the new reference currency From the previous local home currency into the new local home currency Rate determiner conversion-rule A rate determiner defines the currency differences that will be written off as a result of currency rate fluctuation between the invoice date and the payment date. Rate determiners vary per currency system. ERP Enterprise supports three types of handling currency differences: These rate determiners exclude the home currencies from currency-difference calculations: Fixed Local Fixed Hard Fixed Local and Hard These rate determiners use a specific exchange rate date for currency-difference calculations: Delivery Date Receipt Date Document Date Expected Cash Date The Manually Entered rate determiner uses manually entered rates for currency-difference calculations Some rate determiners cannot be used in specific currency systems. If the currency system changes and the rate determiner cannot be used in the new currency system, the rate determiner is changed to the most similar rate determiner that can be used in the new currency system. If the rate determiner can be used in the new currency system, it is not changed. This table shows the rate determiners that can be used for each currency system.
Rate determiner | Currency system |
| Standard | Single | Dependent | Independent
Fixed Local | - | - | ‑ | Y
Fixed Hard | - | ‑ | - | Y
Fixed Local and Hard | - | ‑ | ‑ | Y
Delivery Date | - | Y | Y | Y
Receipt Date | - | Y | Y | Y
Document Date | Y | Y | Y | Y
Expected Cash Date | - | Y | Y | Y
Manually Entered | Y | Y | Y | Y
Fixed |  | Y | Y |
Where: Y = the determiner is valid for the currency system ‑ = the determiner is not not valid for the currency system Rate-determiner conversion If the previous rate determiner cannot be used in the new currency system, the rate determiner is converted. Rate determiners that can be used by the currency system before and after the currency initialization are not changed. This table shows the rate determiners that are replaced during each currency initialization scenario.
Rate-determiner conversion
Scenario | Rate determiner before conversion | Rate determiner after conversion
--- | --- | ---
Any to Standard | Fixed, Fixed Local, Fixed Local and Hard, Manually Entered | Manually Entered
| Delivery Date, Expected Cash Date, Receipt Date, Fixed Hard, Document Date | Document Date
Single to Dependent and Dependent to Single | Fixed Local and Hard, Fixed Local, Fixed Hard | Fixed
Single to Independent | Fixed | Fixed Local and Hard
Independent to Single | Fixed Hard, Fixed Local and Hard | Fixed
| Fixed Local | Document Date
Transaction-currency amount conversion rule Important! Transaction amounts are always converted to euros. The conversion of transaction amounts to other currencies than the euro is not supported. This figure shows the amount calculation scheme for amount conversion during external euro initialization. Transaction amount conversion The euro amount is calculated from the transaction-currency amount by using the exchange rate of the transaction currency to the euro, defined in the CI Rates (tccri7100m000) session and according to the selection of the Express in Base Currency check box. Transaction-currency conversion rule The EMU transaction currency is replaced with the euro. Important! Transaction currency fields must be converted after using the rate/rate factor (external) conversion rule. |