Skip to Content

How to close Mexican company code into another Mexican company code

Feb 21 at 02:23 PM


avatar image

A subsidiary changed ownership. It used to be owned by company code 9000 and now is owned by company code 0100.We need to close all balance sheet accounts on company code M500 and add the M500 ending balances to company code M200 (including proper document currency and translation currency (MXN and USD). We would like to keep any intercompany transactions between M200 and M500 due to Mexican GAAP. We have tried several different ways of doing this, each with their own issues. How can we cleanly transfer the balances?

Note - Revenue and expenses would not be transferred due to the different ownership structures and different RR/Corp government reporting requirements.


-Establish Intercompany balances on M200 and M500 by CR M500 suspense and DR M200 suspense (in respective currencies). Clear through normal year end processes using proper ownership structure. It just shifted the problem, since it would now show an intercompany balance between 9800/M500 (owner of old) and M200/0600 (owner of new)

-Establish an intercompany balance using only one clearing company (0100). Although this would also shift the problem to different intercompany accounts, it also caused a closing issue due to valuation only occurring on MX companies

-We tried establishing an intercompany balance between M500 and M200. Ultimately, we thought the payable/receivable between both companies need to equal to net to zero (example provided below), so we attempted researching how we could create the "other side." Nothing ended up clearing these.

10 |10000 characters needed characters left characters exceeded
* Please Login or Register to Answer, Follow or Comment.

0 Answers