FAQs about EM4

If you have a specific question which is not covered below, please feel free to ask us directly. We will reply without delay.

Question – Will the implementation of EM4 have a big impact on my users?

Answer – No. The process is designed to have little impact on users. The underlying transactions involving currency calculations are modified to make them compliant with the rules of the Euro.

Question – Is EM4 a work-around solution or is it fully compliant with the Euro rules?

Answer – EM4 is fully compliant with the rules of the Euro. Conversion factors with 6 significant digits are used, they are not rounded or truncated and the interim Euro value is rounded to less than 3 decimal places (9 decimal places are used for maximum accuracy).

Question – What happens if another currency joins?

Answer – The only requirement is that you add the currency to the EM4 Euro currencies table with the appropriate transition dates.

Question – What if the transition period of a joining currency is different from the transition starting on 1/1/99?

Answer – The transition period is associated with the currency using a transition start date and a transitional end date. This gives flexibility in dealing with other currencies joining using different transition periods.

Question – Will my transactions be changed in the database conversion?

Answer – No, the original currency of a transaction will not be altered. The conversion focuses on the values in the base currency of the company. This preserves the integrity of any historical data.

Question – When do I need to convert my accounts to Euro?

Answer – This must be done on or before the end of the transition period which will expire on 31/12/2001.

Question – What values in my database do I need to convert to Euros?

Answer – Some small companies may choose to close one financial year in their domestic currency and open the next financial year in the Euro. This may cause some issues with open items because it will have the effect of having values in the database in one currency up to a specific date and in the Euro after that date. This will significantly impair financial comparisons and business statistics making it difficult to plan and monitor levels of activity within the business.

Question – When is the best time for my company to convert to the Euro?

Answer – It is important that you do not leave it until the last minute or you may find that resources are unavailable or that you leave insufficient time for testing and reconciliation. Most companies will convert at period-end in order to get a good financial reconciliation. The time required for processing the live conversion is likely to point to a weekend to allow the process to be run and reconciled. If your application is multi-currency and your fiscal and reporting authorities are ready to accept reporting in Euro then it is wise to start planning as early as possible to make sure all factors are properly considered and that the proper resources and tools are in place.

Detailed reconciliations need to be undertaken both in test and at live running. The end of the transition period may appear to be a long way off but count back the number of period ends that are suitable for you to do a conversion and the choice may not appear to be that wide.

Question – Will the EM4 tool work for non-multi-currency environments?

Answer – Yes, it will, but you need to consider the timing carefully. When more than half of your transactions are in Euro then you should move - it will probably save you work effort.

Question – How should I prepare for database conversion?

Answer – Ideally, you should review the amount of data that you store. If you have a program for archiving data, you should review this as you really only want to convert the data that you need. This will speed up the process.

In respect of your financials, it is important to make sure that you are operating from a balanced position - this makes the process of reconciliation a lot easier.

Question – How can I find out more about EM4?

Answer – No. The process is designed to have little impact on users. The underlying calculations involving currency calculations are modified to make the calculations compliant with the rules of the Euro.

Question – Will the implementation of EM4 have a big impact on my users?

Answer – Contact EM4 sales by phone at +353 1 403 5400 or by email sales@ms400.com. We will work with you directly or we can refer you to one of our certified implementation partners.

© 1998-2000 Millennium Solutions 400 Ltd.