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

Hi All,

We have an issue with acquisition. Out client is recently acquired by some other company and from August 16th 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 1st to 15th existing company values and Aug 16th to 31st 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 1st to 15th values related to existing company and 16th to 30th 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

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jul 13, 2016 at 08:59 PM

    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.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 14, 2016 at 10:47 AM

    This message was moderated.

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