Application Support Note

ASN-2000-202

AXIS Diplomat & the Euro (€)

Last Reviewed: 05 November 2004

Products affected: AXIS Diplomat 2000 and 7.4 Accounts

Description:  Notes on impact of euro.

1. Introduction:

Until such time as the United Kingdom enters monetary union, the euro should be treated as simply another foreign currency; which is exactly what it is in relation to Sterling.

2. Details:

AXIS Diplomat foreign currency facilities will handle the euro quite happily. Most AXIS Diplomat customers dealing with the European Community will already have the required software. At least one sales and/or purchase ledger will need to be created to accommodate customers/suppliers trading using the euro. Existing ledgers in the appropriate European local currencies, e.g. Francs or Lira, may continue to operate, if required, until local currencies are officially withdrawn in 2002. In the meantime UK banks will continue to quote exchange rates between European local currencies and Sterling.

3. Action:

AXIS Diplomat users without the foreign currency facilities will need to purchase the AXIS Diplomat Foreign Currency module if they wish to process transactions within AXIS in euros.

 

Companies should continue to trade with their European customers and/or suppliers in the national currency of that customer or supplier until they are notified that the customer or supplier wishes to trade in euros. At this time a new account should be opened for the customer or supplier in the appropriate euro ledger. Ideally, at this time, the old national currency account should be cleared by a payment in the national currency. The 'old national currency' account may then be closed.

 

If payment is made in another currency (e.g. in euro) the UK bank will be able to convert the payment to the 'old national currency' which can then be posted to the 'old national currency' account in the usual way. Any small discrepancy can be written off with a journal to an exchange variance account.

 

Alternatively, pay the amount received into the euro bank account with the contra to a 'euro exchange variance suspense account'. Then clear the 'national currency' invoices by a journal, for the national currency total of the invoice(s), between the customer's 'old national currency' account and the 'euro exchange variance' account.

 

Eventually, in the new millenium, 'old national currencies' will disappear and the AXIS currency ledgers for those currencies will become redundant. In due course a new AXIS function to close and delete those redundant ledgers will be provided.

- End -

THE INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. SYSTEMS AXIS DISCLAIMS ALL WARRANTIES, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL SYSTEMS AXIS Ltd OR ITS SUPPLIERS BE LIABLE FOR ANY DAMAGES WHATSOEVER INCLUDING DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, LOSS OF BUSINESS PROFITS OR SPECIAL DAMAGES.

Published by Systems AXIS Ltd. AXIS, AXIS Envoy, AXIS Ambassador, AXIS Diplomat and the AXIS logo are trademarks of Systems AXIS Ltd.REAL/32 is a trademark of Intelligent Micro Software Ltd. All other product names are trademarks of their respective owners.

Revision History