How to Handle Month and Year End Activities in case of Acquisitions

[Former Member]

Hi All,

We have an issue with acquisition. Out client is recently acquired by some other company and from August 16^th 2016 onwards its officially part of the new company. Still SAP system remains same and only ownership changes.

Now, we need to get clarification on below points.

1. From August 16, 2016 all the transactions should be related to the new company.
2. As the acquisition happens in the middle of the month, how to deal with the Aug month end closing to differentiate existing and new company values. (i.e. From Aug 1^st to 15^th existing company values and Aug 16^th to 31^st new company related transactions)
3. How to deal with Asset accounting (Depreciation and any other asset values)
4. Any impact on year end closing? Because, in August month 1^st to 15^th values related to existing company and 16^th to 30^th values are related to new company code. Due to this, when we run the P&L, if we give the period range from Aug to Dec 2016, it will give incorrect data for the new company. How to handle this?

Your inputs are highly appreciated.

Regards

Srinivas Salpala

[Former Member]

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[Former Member]

Hi, Srinivas.

1. I think this depends on the dep. key but you could use AS91 with takeover values.

2. you have to simulate it with your depreciation key. you can check the period control method in AFAMA, or depreciation start date.

3. if those G/L accounts are setup already, you don't need to worry about it. if not, there are lots of things to tell you.

4. you can simulate and see the amounts with test run (in AFAB) or individual asset value (AW01N) before the closing.

I hope this will help you.

[Former Member]

Hi Srini,

For the month of August, just run the depreciation on 16th August only, but it will post the depreciation for entire month, So now by using the transaction code ABZU - Write-Up, you can write up the 15 days depreciation manually on 16th August, so that your P&L will update with accurate values for the month of August for old company code, Now the acquisition post on 01.09.2016, so that the postings and reporting will be smooth for new company code, I am assuming that you are not changing the company code for new company code.

I think it will works for you, by executing ABZU just it will credit the Depreciation and Debit the Accumulated depreciation, so that your reporting will be file.

Coming to process orders, execute the month end activities on 16th August and close all the orders, if you have any open quantities for the orders, create a new orders in the new company code, I hope it will help you; you need to work with PP collectively.

If you are doing all the adjustments for same company code, I didn’t see any impact in the yearend, but tell the client that B/S you will get till August 16th for old company code and later for new company code. But after year end you don’t have clear visibility on retained earnings account balance and inform the same to your client.

Regards,

Ravi

[Former Member]

Hi Ravi and Lee

Thanks for your prompt response. In my case, old and new companies are only virtually changed in ownership and not in SAP system.

So, to get the correct P&L and B/S for both the company codes, date range is the base. I mean to say, if I want to check the P&L for old company, I should give a date range as 01.01.2016 to 07.15.2016. Also, for the new company, I will give 07.16.2016 to 12.31.2016 to get the correct P&L.

How to differentiate the dates in the mid of the month? Usually, in SAP most of the reports of period based.

Also, how to handle vendor and customer open invoices?

BR, Srinivas Salpala

[Former Member]

Hi Srini,

In the report S_ALR_87012284 - Financial Statement, you dont have such provision date wise to draw the B/S, else you can develop a Z report based on your FSV to meet this requirement.

Coming to P&L, I am hoping that, you have the report painter reports with posting date wise, you can check in your system.

Regards,

Ravi

[Former Member]

Ravi,

Thanks for your inputs.

Let me check and update on this.

BR, Srinivas Salpala

[Former Member]

Hi,

Can we adjust the values with a manual entry to differentiate the values between two dates like 1st to 10th and 11th to 30th?

If yes, how can we handle this? Do we need to create a cost center to post the values between 11th and 30th?

BR, Srinivas Salpala