Migration of an SAP S/4HANA System to a New Currency for a Southern European IT Provider
The customer is a leading IT solutions provider in Southern Europe with more than 25 years of market experience. The company employs over 500 professionals and specializes in the development and deployment of IT systems and business applications, as well as consulting, IT infrastructure, and cybersecurity. Its diverse client base spans multiple industries, such as transport, energy, telecommunications, finance, and security.
Software & IT
Southern Europe, Croatia
Challenge
The customer faced the challenge of transitioning from the local currency (Croatian kuna) to the euro in its SAP S/4HANA system. The timeline was tight. Because of Croatia’s integration into the European Union, the switch had to be completed by January 1, 2023. IBA Group’s team needed to deliver the project within this short timeframe. The aim was to preserve full functionality, maintain system performance, and comply with all legal requirements.
Solution
The project required alignment of all business processes, data, financial operations, and company reporting with the Economic and Monetary Union (EMU) criteria. It also had to meet the deadlines outlined in the National Plan under Croatia’s Euro Adoption Law.
IBA Group completed the following tasks:
- Provided mandatory dual-currency reporting from September 5, 2022, to December 31, 2023
- Set up the productive SAP system for the dual circulation period from January 1 to January 14, 2023.
Furthermore, IBA Group specialists implemented changes across all the affected SAP modules and integration interfaces with third-party software to support the new currency. Their work included transferring master data and open documents to a new SAP client using a fixed exchange rate. This process involved the following key system modules:
- Finance (FI)
- Controlling (CO)
- Logistics (MM/SD)
- Project System (PS)
- Organizational Management (HR-OM)
Results
As a result, the customer received a stable and fully functioning SAP S/4HANA system that operates with the euro currency. The system retained all data, report forms, and additional customizations without affecting the performance. Financial operations, business processes, and company reporting now fully comply with the euro currency regulations.
In addition, during the dual currency phase (HRK/EUR), the system maintained operations in both currencies. This approach followed legal requirements and supported a smooth transition to the euro.
Projects that involve a currency switch within an ERP system demand utmost attention because the financial business component relies entirely on correct execution. As our team has experience working with Croatian companies, we understand the local legal requirements and are able to support the client in maintaining business continuity.
A long-term partner of SAP SE, IBA Group has been utilizing SAP products in custom projects since 1996. The company’s team includes more than 300 certified SAP professionals who have extensive experience of working with clients from over 50 countries.