At the moment, Croatia still uses the currency Kuna. However, as of the 1st of January 2023, the Council of the European Union approved a currency changeover of the Euro in Croatia. This will make Croatia the 20th member that uses the Euro.
Timeline of the currency changeover
The government of Croatia have decided to do the currency changeover in three phases.
Phase 1 was on the 10th of July 2022 when the EU Commission decided to include Croatia in the Euro area. ERMII is the Exchange Rate Mechanism which is the criteria to ensure Croatia is ready to introduce the Euro and stabilize the exchange rates.
These are the four economic convergence criteria:
- Price stability
- Sounds and sustainable public finances
- Exchange-rate stability
- Long-term interest rates
Phase 2 will be the dual pricing and changeover preparation. Meaning that between the 5th of September 2022 and the 31st of December 2023, both prices need to be shown.
Prices need to be converted into a fixed rate of 7.53450 Kuna equals 1 Euro. When the Euro gets calculated, the third decimal should be rounded higher or lower. If the third decimal is lower than five, it stays the same. If it is higher than five, the second decimal is raised by 1 cent.
Phase 3 is the Euro cash cleaning phase where Euro is used in domestic banks and cash transactions. There is a dual currency circulation for two weeks, which ends on the 14th of January 2023. After this period, only Euro will be used in Croatia.
The company requirements for the currency changeover
All companies located in Croatia and companies that do business in Croatia need to get ready for this currency changeover:
A few important changes in the SAP system:
- Submitting annual legal financial reports need to be done in Euro as of 2023
- Changing accounting documents
- Adjust dual pricing procedure and rounding rules
Depending on your SAP system, the implementation is different. Each business has a different kind of approach in the SAP system. Be aware that this should be prepared in advance.
If you want more information, contact us, and we will be happy to look together with you for the currency changeover SAP solution for Croatia.
How PIKON can help you
With more than 25 years of experience, PIKON can help you to adapt your system landscape and maintain your migration. With proper training and support, we’ll not only put you on track but also help you to stay on the right path.