Check your software thoroughly

International businesses need to check applications that have been developed in-house, spreadsheets and macros running financial...

International businesses need to check applications that have been developed in-house, spreadsheets and macros running financial systems to make sure they can handle the new currency, analysts have warned.

Although software developers have been anticipating the arrival of the euro for at least two years and all major European software packages and many US ones have been modified, Helena Schwenk, business intelligence analyst at research firm Ovum, said some business applications may still need work.
"It is a question of how much processing has been built into business modelling. With ERP systems, it may just be a case of ensuring the correct conversion rate is set, but companies need to sort through the logic used for building cubes in online analytical processing software," she said.
The timing of the currency change may also mean financial systems need adjusting. James Richardson, global market intelligence manager at financial analysis software specialist Hyperion, said the crucial area to watch is the changeover period.
"If firms rely on general ledger and other financial systems, they could be facing a year zero problem. The change means that differences become less obvious when comparing the business going forward under the euro and the historical financial situation under former currencies," he said.
Systems will have to be continually scrutinised for the next few years to ensure that like is being compared with like. Failure to do so may be shown up by preposterous results but some errors may be subtle and dangerous.

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