Sage Line 100 Financials (Windows)

 euro Information


Sage Line 100 is a multi-currency application. In order that customers can comply with the EU legislation the following features have been included in the latest release of Line 100 Windows (v3), released in October 1998:
  • all currency exchange rates stored to six significant figures
  • currency conversion between the euro and EMU member states' currencies calculated using triangulation rules
  • exchange rate and rounding differences handled according to EU legislation
  • ability to produce financial statements in euro currency
  • ability to match payments in one currency against invoices in another currency
  • ability to convert existing individual customer and supplier accounts to euro-based accounts
  • automatically handle euro exchange gains and losses

During the transition period, and as the euro matures as a trading currency, we will offer additional euro functionality within this product, in line with customer needs.


Euro Scenarios for Sage Line 100

Remember - the euro issue is a commercial issue. Technological and accounting issues are secondary. There are strong commercial benefits to UK companies in being ready for the euro. You need to think through the costs and benefits carefully and make a start on your preparations. Use the following scenarios to help you work through the practical issues.

1. "I have just started to conduct business with a customer who wishes to pay and be invoiced in euro".

You first need to do the following:

  1. Add the euro to the list of currencies stored in the Ledger Manager currency table.
  2. Create a customer record stating the account currency is in euro.

Once euro is established as a currency and the new account is associated with it, you can do the following:

  • Express all invoices raised on the account in euro
  • Express all receipts in euro
  • Report account details in euro
  • Express statements and debt-chasing letters in euro

Note that currency conversions will follow triangulation rules whenever euro zone currencies are involved. This will apply when either one or both of the currencies involved are euro zone currencies. Exchange loss and gain will be posted to the Nominal Ledger. Rounding discrepancies will be accounted for separately from exchange loss or gain.


2. "I have just started to conduct business with a supplier who will invoice me and expect payment in euro".

You first need to do the following:

  1. Add the euro to the list of currencies stored in the Ledger Manager currency table.
  2. Create a supplier record stating the account currency is in euro.

Once euro is established as a currency and the new account is associated with it, you can do the following:

  • Express all invoices posted to the account in euro
  • Express all payments in euro
  • Report account details in euro
  • Express remittance advices in euro

Note that currency conversions will follow triangulation rules whenever euro zone currencies are involved. This will apply when either one or both of the currencies involved are euro zone currencies. Exchange loss and gain will be posted to the Nominal Ledger. Rounding discrepancies will be accounted for separately from exchange loss or gain.


3. " An existing customer informs me that they now intend to pay me in euro"

You can accept payments in euro and have them automatically converted to base currency only if your Line 100 installation includes the Cash Book module. Before accepting payment, you must first add the euro to the list of currencies stored in the Ledger Manager currency table.

If you do not have the Cash Book module, you will need to manually convert the euro value to the customer's previous currency before posting. Purchasing the Cash Book module ensures the most complete solution.


4. "An existing customer now demands that they are invoiced in euro when they were previously invoiced in French francs. They will also pay in euro"

Line 100 does not support mixing invoice currencies on a single customer account, so you need to create a new account for this customer to use the euro.

You need to:

  1. Add the euro to the list of currencies stored in the Ledger Manager currency table.
  2. Use the new Line 100 Create euro Account utility program to replicate an existing account, and create a new customer account with a default currency of euro.
  3. Use the new account to trade with your existing customer in euro.


5. "An existing supplier informs me that they intend to invoice me in euro when they previously invoiced in French francs. They will also expect payment in euro"

Line 100 does not support mixing currencies on a single supplier account, so you need to create a new account for this supplier to use the euro.

You need to:

  1. Add the euro to the list of currencies stored in the Ledger Manager currency table.
  2. Use the new Line 100 Create euro Account utility program to replicate an existing account, and create a new supplier account with a default currency of euro.
  3. Use the new account to trade with your existing supplier in euro.


6. "I have decided to open a euro bank account"

If you use the Cash Book module, you can create a new bank account in any currency held in the currency table. To create a euro bank account, ensure that you have first added the euro to the list of currencies stored in the Ledger Manager currency table.

Without the Cash Book module in your Line 100 system, your bank details can be held in base currency only. If you wish to maintain a euro bank account, you will have to post many manual adjustments. Purchasing the Cash Book module ensures the most complete solution.



© Copyright The Sage Group Plc. 1998