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<ManualTopic ID="/baanerp/tf/onlinemanual/cri000750" xml:lang="en">
   <Header>
      <Title>External euro translation in Financials</Title>
      <Keyword type="header" order="d1e2134830">
         <Level1>External euro translation</Level1>
         <Level2>Financials</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2134836">
         <Level1>Financials</Level1>
         <Level2>external euro translation</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Legal rules and accounting principles usually do not permit that
		you change the invoice currency or the amount of registered purchase and sales
		invoices. Therefore, ERP Enterprise does not change the transaction amounts of open invoices
		in the <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef> database
		during external euro initialization.</Paragraph>
      <Paragraph>If the invoice currency is an EMU currency, this creates a
		problem because the EMU currencies actually ceased to exist after the
		transition. As a result, you cannot generate payment advices, interest
		invoices, cash forecasts, and so on, in the invoice currency.</Paragraph>
      <Paragraph>External euro translation translates open invoice amounts in EMU
		currencies to euros before you generate payments, interest invoices, and cash
		forecast, and before you display or print the amounts. External euro
		translation does not change the original amounts and currencies that are stored
		in the database; these remain in EMU currencies.</Paragraph>
      <Paragraph>Enterprises outside the European Union with business partners
		that use EMU currencies must also use external euro translation to handle open
		invoice amounts in EMU currencies, after the transition.</Paragraph>
      <Paragraph>External euro translation supports all types of multicurrency
		systems, including the new standard currency system, and can be used in
		euro-compliant and non-euro-compliant companies.</Paragraph>
      <GeneralSection>
         <SectionTitle>The external euro translation functions</SectionTitle>
         <List>
            <ListIntro>External euro translation can be used for these transaction
			 amounts:</ListIntro>
            <ListItem>Open items in <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef>
            </ListItem>
            <ListItem>Open items in <GUIRef href="/baanerp/tf/acp" role="module">Accounts Payable</GUIRef>
            </ListItem>
            <ListItem>Anticipated payments and receipts in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>
            </ListItem>
         </List>
         <Note>
            <SectionTitle> Note</SectionTitle>
            <Paragraph>Standing orders are payments to which no invoices are
			 linked. You can modify standing orders and create standing orders with the euro
			 currency when needed. Therefore, external euro translation does not apply to
			 standing order amounts.</Paragraph>
         </Note>
         <Paragraph>For the standard currency system, external euro translation in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef> is not yet
		  supported.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Prerequisites</SectionTitle>
         <List>
            <ListIntro>ERP Enterprise can perform external euro translation of open invoice
			 amounts if these conditions are met:</ListIntro>
            <ListItem>The "EMU Currency" check box is selected for the transaction
			 currency (the invoice currency) in the Currencies (tcmcs0102m000) session.</ListItem>
            <ListItem>The euro is defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0102m000" role="session">Currencies (tcmcs0102m000)</GUIRef> session.</ListItem>
            <ListItem>The euro currency is defined as "Transition Currency"
			 ( Infor ERP LN 6.1 FP5) or "Euro Currency" (in previous versions) defined in the <GUIRef href="/baanerp/tc/emm/tcemm1170m000" role="session">Companies (tcemm1170m000)</GUIRef> session.</ListItem>
            <ListItem>The currency rates between the euro currency and the
			 company’s home currencies are defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0108m000" role="session">Currency Rates (tcmcs0108m000)</GUIRef> session.</ListItem>
            <ListItem>The rate determiner that applies to the invoice amount is not
			 of a <GUIRef href="" role="manual">Fixed</GUIRef> type.</ListItem>
         </List>
         <Paragraph>If the rate determiner that applies to the invoice amount is
		  of a <GUIRef href="" role="manual">Fixed</GUIRef> type, the invoice amounts are not translated
		  because the fixed rate can differ from the rates derived from the fixed rates
		  between the EMU currency and the euro.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Amount registration and rate registration in the
		  database</SectionTitle>
         <List>
            <ListIntro>Regarding the external translation process, bear the
			 following in mind:</ListIntro>
            <ListItemHead>Amount registration in ERP Enterprise</ListItemHead>
            <ListItem> 
               <List>
                  <ListIntro>Transaction amounts are calculated and stored in the
				  database:</ListIntro>
                  <ListItem>In the transaction currency</ListItem>
                  <ListItem>In each of the home currencies (note that in the standard
				  currency system, amounts in the reporting home currencies are only stored
				  within the general ledger and the subledgers)</ListItem>
               </List>
            </ListItem>
            <ListItem>The currency rate and the rate factor used to convert the
			 transaction amount to the home-currency amount, as well as and the rate’s
			 effective date are usually stored with the amount, in the same table.</ListItem>
            <ListItemHead>Currency rate/rate-factor registration in ERP Enterprise</ListItemHead>
            <ListItem>Depending on the currency system, the currency rates and the
			 corresponding rate factors listed below are defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0108m000" role="session">Currency Rates (tcmcs0108m000)</GUIRef> session. <List>
                  <ListIntro>Currency rates between currencies that are not home
				  currencies are not available:</ListIntro>
                  <ListItemHead>
                     <GUIRef href="" role="manual">Standard multicurrency system</GUIRef>
                  </ListItemHead>
                  <ListItem>The currency rates between the transaction currencies
				  and each of the home currencies, including the reference currency, as well as
				  the currency rates between the local home currencies and the reporting home
				  currencies.</ListItem>
                  <ListItemHead>
                     <GUIRef href="" role="manual">Single currency system</GUIRef>
                  </ListItemHead>
                  <ListItem>The currency rates between the transaction currencies
				  and the reference currency.</ListItem>
                  <ListItemHead>
                     <GUIRef href="" role="manual">Dependent multicurrency system</GUIRef>
                  </ListItemHead>
                  <ListItem>The currency rates between the transaction currencies
				  and the reference currency. The currency rates between the reference currency
				  and the other home currencies.</ListItem>
                  <ListItemHead>
                     <GUIRef href="" role="manual">Independent multicurrency system</GUIRef>
                  </ListItemHead>
                  <ListItem>The currency rates between the transaction currencies
				  and each of the home currencies, including the reference currency.</ListItem>
               </List>
            </ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>External euro-translation input</SectionTitle>
         <List>
            <ListIntro>To translate transaction amounts in EMU currencies into
			 euros, external euro translation uses this input data:</ListIntro>
            <ListItem>EMU transaction currency</ListItem>
            <ListItem>Transaction amount expressed in the reference
			 currency</ListItem>
            <ListItem>Rate date</ListItem>
            <ListItem>Rate determiner</ListItem>
            <ListItem>Exchange-rate type</ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Translation process</SectionTitle>
         <List>
            <ListIntro>During the external translation process, ERP Enterprise performs
			 these actions:</ListIntro>
            <ListItemHead>Currency translation</ListItemHead>
            <ListItem>In the appropriate session or document, replacing the EMU
			 currency code and description with the euro code and description.</ListItem>
            <ListItemHead>Amount translation</ListItemHead>
            <ListItem>Recalculating the invoice amount in euros. The calculation
			 method depends on the company’s currency system. See "Amount
			 translation."</ListItem>
            <ListItemHead>Rate and rate factor determination</ListItemHead>
            <ListItem>Determination of the currency rate and the rate factor used
			 to convert the new invoice amount, in euros, to the home currencies. How the
			 rate and the rate factor are determined depends on the company’s currency
			 system.</ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Amount translation</SectionTitle>
         <Note>
            <SectionTitle> Note</SectionTitle>
            <Paragraph>External euro translation does not change the original data
			 of the open invoices stored in the database.</Paragraph>
         </Note>
         <List>
            <ListIntro>The amounts are translated as follows:</ListIntro>
            <ListItemHead>Euro-compliant single currency and dependent
			 multicurrency systems</ListItemHead>
            <ListItem>The reference currency is the euro. The translated amount is
			 the transaction amount in the reference currency.</ListItem>
            <ListItemHead>One of the home currencies is the euro</ListItemHead>
            <ListItem>The translated amount is the transaction amount in the home
			 currency that is the euro.</ListItem>
            <ListItemHead>Non-euro-compliant systems</ListItemHead>
            <ListItem>The currency rate between the EMU currency and the euro is
			 not available because the euro is not one of the home currencies. <List>
                  <ListIntro>The invoice amount in the reference currency is
				  translated to euro, for these reasons:</ListIntro>
                  <ListItem>For single currency and dependent multicurrency systems,
				  the reference currency <Emphasis>must</Emphasis> be used.</ListItem>
                  <ListItem>In independent multicurrency systems, the reference
				  currency is probably the most stable currency.</ListItem>
               </List>
            </ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Rate/Rate factor determination</SectionTitle>
         <Paragraph>After translating the invoice amount to euro, the rates and
		  rate factors between the euro and the home currencies are determined.</Paragraph>
         <Paragraph>If the reference currency is not euro, after translating the
		  amount, ERP Enterprise calculates the rate between the transaction amount in euros and the transaction
		  amount in the reference currency instead of taking the rate from the Currency
		  Rates (tcmcs008) table. This is done to avoid revaluation of the transaction
		  amount.</Paragraph>
         <Paragraph>Depending on the selection of the <GUIRef href="" role="manual">Express in Base Currency</GUIRef> check box for the euro currency in the <GUIRef href="/baanerp/tc/mcs/tcmcs0102m000" role="session">Currencies (tcmcs0102m000)</GUIRef> session, ERP Enterprise divides the amount in the euro by the
		  amount in reference currency or the other way around.</Paragraph>
         <List>
            <ListIntro>The rate and rate factor are determined as
			 follows:</ListIntro>
            <ListItem> 
               <List>
                  <ListIntro>Single or dependent multicurrency system</ListIntro>
                  <ListItem>
                     <Paragraph>The reference currency is the euro</Paragraph>
                     <Paragraph>ERP Enterprise sets the currency rate to 1.0 and the rate factor to 1.
					 The rates between the reference currency and the other home currencies are not
					 affected.</Paragraph>
                  </ListItem>
                  <ListItem>
                     <Paragraph>The reference currency is not euro</Paragraph>
                     <Paragraph>The rate between the euro and the reference currency
					 is calculated.</Paragraph>
                  </ListItem>
               </List>
            </ListItem>
            <ListItem> 
               <List>
                  <ListIntro>Independent multicurrency system</ListIntro>
                  <ListItem>
                     <Paragraph>One of the home currencies is the euro</Paragraph>
                     <Paragraph> ERP Enterprise sets the currency rate to 1.0 and the rate factor to 1.
					 The rates between the euro and the other home currencies are taken from the
					 Currency Rates (tcmcs008) table.</Paragraph>
                  </ListItem>
                  <ListItem>
                     <Paragraph>None of the home currencies is the euro</Paragraph>
                     <Paragraph>The rate between the euro and the reference currency
					 is calculated. The rates between the euro and the other home currencies are
					 taken from the Currency Rates (tcmcs008) table.</Paragraph>
                  </ListItem>
               </List>
            </ListItem>
         </List>
      </GeneralSection>
   </GeneralSection>
</ManualTopic>