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Former Member

Clarifications on company code merger

Dear SAP Experts

We need to merge two company codes i.e XXXX & YYYY into one new entity(Thailand). Legally both entities will be closed by 31st Mar 2011 and merged into newly registered entity on 1st April 2011 (FY V3 - April to March). Their existing VAT Registration is also canceled and taking new VAT Registration number for the new entity which will be active from 1st April 2011.

The new entity will be using the same name and company code i.e. XXXX (say XXX Company Ltd) iin SAP and company code YYYY closing balances and open items will be Merged into XXXX on 1st April 2011.

My requirements are:

1. Can we use the same Production Client post merger as the company code is same (XXXX) before merger and post merger? Is there any legal/statutory obligations with respective to SAP?

2. How to handle open items & intercompany transactions of company code YYYY?

Client using ECC 5.0 version and New GL is active.

Both the company codes are using same Operating Concern, Controlling Area, Chart of Accounts, Chart of Depreciation, Currency & Country.

Addl Info :

Valuation area at Plant Level

Cost of Sales Accounting is active

Only One ledger is in operation i.e. OL - Leading ledger

No Non Leading Ledgers are active

Material ledger is not in use

The volume of transactions are very less for the company code i.e YYYY hence they are not interested to proceed to create new company code and transfer the balances of both company codes in to new entity and they are interested to transfer the open items/balances to company code XXXX on 1st April 2011.

We referred previous posts and didn't get the required answers and posted with our requirements with all the details to avoid miscommunication. Even we referred SAP SLO service and kept it is an final step.

Thanks & Regards

Veerraju

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  • author's profile photo Former Member
    Former Member
    Posted on Oct 01, 2010 at 01:57 AM

    Hi Veerraju,

    My suggestions to your requirements:

    1. Can we use the same Production Client post merger as the company code is same (XXXX) before merger and post merger? Is there any legal/statutory obligations with respective to SAP?

    => You have to create new company code XXXX after post merger and you can update new VAT and other statutory obligations in the new company code

    2. How to handle open items & intercompany transactions of company code YYYY?

    => Make a final data of all the Master datas, remove duplicate Master data e.g. same customer / vendors. Discuss with each Business Owner and finalize the open item after doing year end closing and posting necessary adjustments and intercompany transaction posting.

    Hope this help you for your smooth merger.

    Regards,

    Santosh

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