Testing strategy after legal merge of two company codes

[Former Member]

Hi All,

This is my first integration project. Please help me out with my query:

My company is going through a merger and we have merged two company codes.

for e.g. company code 1 is in ABC company and company code 2 is in XYZ company. ABC is buying XYZ company. This means that company code 1 will remain and company code 2 will merge into company code 1. They are going to bring in the open line item AR/AP data from company code 2 into company code 1.

Any of you guys who have worked on an integration project before please guide me to some documents online or state some kind of testing strategy to adopt to test after the legal merge has taken place. I am mostly looking for a strategy to test intercompany process.

Thanks,

MS

[sanilbhandari]

Hi

There are lot of issues that you need to take care of:

1. is there any relation bwteeen the two company codes before merger. have they done any transactions between them? If yes, what wewould be the accounting treatment for the same. Would it be transferred at cost or Cost+Price (Transfer Price)

2. If you are in India, there would be effects of taxation like excise and vat calculations

3. One of the most important issue, is that of the new fiscal year. What strategy would you follow for the merged entity? In Sap, changing a fiscal year is a critical issue. Request you to refer SAP Help for the same. There are notes available for the same

4. What would be the strategy for Asset valuations? Are there different asset valuation procedures followed in the two company codes?

Thanks & regards

Sanil K Bhandari