System Parameters

The system parameters will control the working of the database conversion software. They will include:

• Company numbers
• The base currencies for each company
• The client's global currency (if applicable)
• Field names and field descriptions to search for

File Analysis

Using Search Sets, which can be defined by the user, the files are analysed for Exchange Rate fields and fields containing Base and/or Global values.

File Field Associations

After the search engine has analysed the database and selected all fields that match the Search Sets criteria, a code is assigned to each file field to indicate the type of the field.

The codes are categorised as follows:

• Base - value in one of the defined Company Currencies
• Global - value in the Global Currency (some applications use a Global currency)
• Transaction - the original transaction value

Calculation Definition

The definition process is used to identify the field relationship across multiple files in different libraries or within the same library. The relationship between detail and header values is defined here where the header value could be the sum of/product of a number of other values (detail values).

Conversion Programs

Programs are automatically generated for each file that has values or exchange rates that need to be converted. A Run Script controls the sequence of the execution of the programs. This is required to ensure that files containing detail values are converted before the file containing the associated header value. Due to the nature and size of the conversion process, the programs are written to run at their optimum, and we ensure that each file is only read one, again reducing conversion time.

Audit Trail

The process of converting the base/global currency requires a detailed audit trail to monitor and control all changes to data and to facilitate a detailed accounting reconciliation of the changeover. The reconciliation process will also involve the use and comparison of standard reports to establish the full integrity of the conversion of the database (e.g., P&L, balance sheet, debtor's reports, etc.).

Variances

The conversion of the detailed data in the database using calculation algorithms over different field sizes will result in variances. The conversion approach should seek to minimise those variances and identify and report on those variances that do occur. Individual variances from the variation file will be highlighted where the value is not equal to zero. The variances allowed may be adjusted by the user to suit the company profile. Individual files may be assigned codes indicating the section of the application that they are related to (e.g. I-Invoice Files, A-Accounts Files, P-Purchasing Files, etc.) making the variance identification much easier.

Test Conversion

In order to successfully test the database conversion an appropriate test environment must be provided with data that mirrors or is a recent copy of the production environment. The entire conversion process is executed giving a mirror of the live database except with Euro values instead of the original currency values. This process will also be used to establish exactly how long the live conversion will take.

Objectives

The Database Conversion Process will aim to achieve the following:

• Transaction values and the transaction currency code will remain unchanged.
• The transaction currency rate will be divided by the Euro conversion factor for the base currency of the company to calculate and store a new notional exchange rate. The transaction amount will be multiplied by the new exchange rate to calculate a new base amount in Euros. Variances will be generated and written to file for reconciliation.
• Header data will be recalculated from detail data.

The user may define the currency or currencies that are to be converted to Euros by indicating the Company Code that is to be converted. It is possible to convert multiple Company codes simultaneously and the Global Currency may also be converted.

Before the conversion process can be executed over the live database, a sign-off is required from an authorised user. This prevents the live database from being converted prior to testing. The sign-off is a physical AS/400 user profile setting a flag within EM4 to allow the process to continue. Any changes made after sign-off will invalidate the sign-off.

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