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A Compliant Solution for the Euro. Your Business & the Euro. Presentation Format. The Euro EM4 EM4 Processes. The Euro. Requirements Time-scales. The Euro. What is it? A New Currency When will it exist? 1st January, 1999 Why? Major move towards a single market. Impact.

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slide1

A Compliant Solution for

the Euro

Your Business & the Euro

presentation format
Presentation Format
  • The Euro
  • EM4
  • EM4 Processes
the euro
The Euro
  • Requirements
  • Time-scales
the euro1
The Euro
  • What is it?
    • A New Currency
  • When will it exist?
    • 1st January, 1999
  • Why?
    • Major move towards a single market
impact
Impact
  • Monetary amounts to be paid or accounted for
  • Fixed Timetable
  • Defined Calculation Algorithms
the euro2
The Euro
  • Effective start of economic and monetary union.
    • Begins 1st January, 1999
    • Euro becomes a currency in its own right
    • NCU’s replaced by the Euro
    • Fixed Conversion Factors
  • Ref.. Articles 2 & 3 of Reg.. 109L(4)
the euro3
The Euro
  • After 31st Dec. 2001, amounts still expressed in NCU shall be deemed to be expressed in Euros converted at the official rates.
  • From 1st Jan. 2002, notes and coin will be introduced with all NCU currency being withdrawn by 1st July 2002(latest).
the euro4
The Euro
  • Why does the Euro require special handling?
  • What is different?
conversion factor
Conversion Factor:-
  • Shall be adopted as one euro expressed in the terms of a NCU.
  • Shall be adopted with 6 significant digits.
  • Shall not be rounded or truncated
conversion factor1
Conversion Factor:-
  • Shall be used for conversions either way between the euro and the NCU
  • Inverse rates derived from the conversion rates shall not be used
ncu ncu
NCU -> NCU
  • Triangulation
    • First convert to euro
    • Euro amount may be rounded to not less than 3 decimals
    • Then convert to target NCU
slide12

Triangulation

Euro

Multiply

Divide

Guilder

French Franc

ncu out currency
NCU -> Out Currency
  • First NCU to Euro using Conversion Factor
  • Then Euro to Out Currency using Exchange Rate (GCC)
slide14

Partial Triangulation

Euro

Multiply

Divide

French Franc

Sterling

out currency ncu
Out Currency -> NCU
  • Out Currency to Euro using Exchange Rate (GCC)
  • Then NCU to Euro using Conversion Factor
slide16

Partial Triangulation

Euro

Multiply

Multiply

Sterling

Irish Pound

other solutions
Other Solutions ?
  • Only if they achieve the same result
guiding principle
Guiding Principle
  • No Compulsion
  • No Prohibition
legally
Legally
  • Contracts which specify the use of a currency should be completed in that currency
  • I.e. Order in FRF, Invoice in FRF, expect payment in FRF
commercially
Commercially
  • Customer owes 50,000 DEM, previously invoiced in DEM.
  • Offers to pay in Euros
  • Do you say ‘No Thanks, I invoiced you in DEM’
    • or
  • Take the money and lodge it.
nice to have
Nice to Have!
  • Dual Currency Invoices
    • Not Mandatory
    • Dual Pricing mainly aimed at Consumers
  • Dual Currency Screen Display
    • Not Mandatory
    • Most Screens do not have room
nice to have1
Nice to Have!
  • Dual Currency Reports
    • Not Mandatory
    • Lack of Print Positions
    • If system reports already cater for multiple currencies, EM4 will apply.
the euro business impact
The Euro - Business Impact
  • Dual Currency Scenario
    • Unusual Event
    • Little Experience
  • Specific Conversion Rules
    • Being Close Will Not Do
euro company switchover
Euro - Company Switchover
  • Base Currency Conversion
    • Open / Closed Items
    • Sub-ledgers
    • Business History
the transition period impact
The Transition Period Impact
  • Side by Side Currencies
  • Application Software
    • Fine in 2002(After Conversion)
  • Transition Solution
slide29

Who Are We ?Founded: June 1996 Manus Bray and Bill Chisholm20+ years of AS/400 ConsultancyExtensive Experience of SystemsImplementation and Development

Company Mission :

To Become a Market Leader in the Development of First Class End-User Products to Support Existing and Future AS/400 Environments

millennium solutions reference sites
Millennium Solutions Reference Sites
  • Waterford Crystal Ltd Ireland
  • Ciba Speciality Chemicals Worldwide
  • ITT USA
  • Leo Laboratories Europe
  • Sara Lee / Douwe Egberts Worldwide
  • CIC Video Europe
  • Unichem PLC UK
  • Johnson & Johnson Worldwide
  • Rhone Poulenc Rorer Worldwide
  • BioMérieux Japan
history of em4
History Of EM4
  • Ciba Specialty Chemicals & Millennium relationship out of MS4
    • Multiple Installations
  • Ciba was looking for a solution
    • Generic BPCS Solution
  • Millennium & Ciba agreed an approach.
impact on finance dept
Impact on Finance Dept.

Between 1st January 1999 - 31st December 2001, businesses with multiple companies within EU member states will need to change their base and/or global currency to the Euro.

Existing transactions will differ from one company to another as they are relative to the time at which the transactions were processed.

impact on finance cont
Impact on Finance cont.

All in-line data will be converted to the equivalent Euro amount

=> historical data such as Sales History and Order History will remain relative

=> their graphical representations will remain constant.

This ensures that investors and shareholders do not notice a rise/fall in share value or company performance over that period of time.

impact on finance
Impact on Finance

The Finance department must be able to ensure that the company\'s turnover is not affected, although the annual turnover and profit is now illustrated in Euros.

impact on it
Impact on IT

It is ultimately the IT department\'s responsibility to ensure that

  • the project runs smoothly,
  • meets the deadlines assigned and
  • remains within budget.
impact on it cont
Impact on IT cont.

The application structure will determine the level of IT involvement required.

For complex applications where calculated values and field relationships need to be defined, there will be a requirement for more IT involvement than in an application where all financial fields are independent.

impact on it cont1
Impact on IT cont.

After the conversion has completed, the maintenance of the application

is retained by the IT department.

em4 what is it
EM4 - What is it?
  • Software Application
  • Similar Approach to MS4
  • Joining of Business & Software Skills
  • Partner Committed to Beta Testing & Implementation
em4 the solution
EM4 - The Solution
  • Search Engine
      • Fields
      • Code
  • Encapsulated Code
  • Calculation Routine
  • Produces Compliant Application
em4 the solution1
EM4 - The Solution
  • Calculator for Exceptions
    • Exceptions will Exist
    • Rules Must Be Used
    • Uses Same Calculation Routine
em4 the solution2
EM4 - The Solution
  • Automated Conversion Tool
    • You Need to Apply the Rules
    • Planning & Testing Needed
    • Uses Same Calculation Routine
em4 future proof
EM4 - Future Proof
  • Additional Currencies
  • Different Transition Periods
  • Changes during Transition
em4 technical information
EM4 Technical Information

For technical information regarding EM4, please download our technical presentation from the website www.ms400.com

or contact us by

phone: +353 1 403 5400

email: [email protected]

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