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

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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Company Code Merger

We are performing a company code merger at the end of this year. We currently use two operating company codes but we exist as a single legal entity. The smaller company code will be discontinued and all operations will be in the larger company code. There is no requirement to continue reporting the smaller company code as a separate division within the single company code.
This is obviously a lot of work. Does anyone have any SAP 'standard practice' documentation on the best approach for this?

We did a company code merge a 3 years back. We found no standard guideline.
In addition to Murali's comments, you must have concern for the production (discrete/repetitve/process) orders. We are discrete manufacture. ALL order were DLV or TECO (big processes) and settlement run. WIP orders recreated (We completed as much as possible to minimize WIP); Sales order recreated in final company and new demands created for POs and Prod orders.
Inventory - Inventory account balances will have to be moved to final company code books. We combined the plants at the same time so all inventory moved from one plant to the final plant, with these steps:
1 - released new cost estimates, pointing the obsolete plant at the final so all inventory was the same.
2 - used the "initial inventory load" program, ran a 562 to remove all inventory
3 - then ran a 561 to load all inventory.
4 - Journal entries were written to clear the "initial inventory load accounts"
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SLO for company code merger

Hi, I understand that the SLO allows the ability for merging of multiple company codes, eg A1 and A2 become B1 (it also allows conversion from old to new values, eg C1 becomes D1...)
However, does it treat records intelligently, eg
A1 has $100 loans payable with A2
A2 has $100 loans receivable with A1
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After SLO, what do you get?
- nothing, or
- B1 has $100 loans payable with B1
B1 has $100 loans receivable with B1
Some discussion of SLO here, but not much detail:
Re: Merge 2 company codes
Any help, useful information or links much appreciated.

Hi,
I am part of the SLO Team.
Yes, SLO has many services in regards to Company code. We do Company code merge, CC deletion, CC Split, CC Rename etc.
As the business requirement is unique for each customer, we have lot of flexibility in deciding the outcome/result of the new company code.
From your above example, YOU can decide how you would like to maintain the new CC B1.
You could either close both loans prior merging or also cancel it out as both CC are merged.
Generally for any CC service we do a complete analysis of your system and decide how to merge the CC.
Check this link for further details.
https://websmp207.sap-ag.de/~sapidb/011000358700000419042009E
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Vishwa.
Senior consultant
SLO APJ.

Company code merge, take over salesorganization, purchase org and plant

Goodmorning,
We have to merge two company codes. The management would like to keep the same salesorganizations, purchase organizations and plant,
Does someone know if it is possible to link a plant, purchase organization and salesorganisation from one company code to anothher one. If so which problems can we expect?
Who has experience with this?
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Edited by: R. Horstman on Oct 19, 2010 11:13 AM

Hi
Little confused with the functional objective behind what you are trying to do.
From Finance prospect all that you should be concern about is that if there is any open PO for which the MIGO is done and MIRO is pending. And from SD side you need to see if there is any open SO for which the billing is pending.
Then you need to chalk out a plan to migrate those transactional data.
For all other FI related migration as long as you are maintaining the history of the Record at transactional level there should not be any probelm in the future.
For MM and SD related Migration please create Balance sheet GL account sepertely and track the upload(example Initial Upload 1 for MM and Initial Upload 2 for SD).
if you are having seperate GL account you will be flexible enough to back track the entry posted if there is any problem.
Regarding the MM and SD merger to the best of my knowledge there should not be any problem. But it is definately worth consulting this with SD and MM consultant once.
Let me know in case of clarification.
Regards
Paul

Merger of two company codes

Dear cons
we have two company codes A & B. we have already started transaction in both the company codes. we have master datas & transactional datas in both the company codes. now we want to use only one company code- A. How can we transfer all the data of company code B to company code A. Pl. advice step by step so that we can folloe your points. especially MM point of view.

Hi,
please refer the below links.
Merger of Two Company Code
Merger of two company codes and its impact on PP module
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Merging of plant into another company code

Dear,
We are planning to merge the plants of other company code into another.first company code will be blocked.can anyone tell me the steps to be taken into consideration from SD side .
regards
Chilukri

Hello,
Check the following link
www.service.sap.com/slo
Here you will find another link called "company code merge".There is a lot of information regarding other SLO services too.
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Sourabh
Reward points if helpful.

Two company's merging

hi,
i have a scenario where there are 2 different company's with different company codes merging.
like company A and Company B.
now company A wants to merge into company B, now how to move all the employees from company A to B.

Hi,
Merger has two scenarios. Before handling it, you need address the following:
1. Whether employees would be transferred to the new company or hired hired in the new company. Practically, they will be hired in the new company for the following reasons:
a. Comapny A will no longer exist.
b. Employee number generation will be new
c. If payroll is implemented, PF, Gratuity, ESI etc will be from the date of joining of the new company, but it will not take the date of joining of Comapny A, since the company A doesn't exist legally.Also, Company B has a different PF Code, anyways all the employees will be transferred to new PF code. ADP has to be informed of the changesfor their changes at their end. They need to change the comapny name, employee number and other related data on their payslips.
d. If time management is implemented, quotas will be accrued as per the new hire date.
In that case run a separation action in company A and hire the employees in company B. Store the original date of hire in Date Specifications Infotype 0041.
I a employee resigns, settlement will be done as per his original hire date.
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Merger of company codes

Dear Friends,
We are in the process of merging 2 company codes (say1000 & 1200) in one of our customers into a new company code 1800. I would invite valuable suggestion from my forum friends on the following
1. Is there anyway we can transfer the entire master data from the two existing company codes to the new company code. It is an intra SAP data transfer, so the implications would be different.
2.How do we treat the open sales & purchase orders, Open deliveries and open billing documents before we go live on 1st of April.
3. What all balances needs to be transferred from the existing company codes to the new company code.
4.After the cut over, do we need to delete the existing customers/Vendors in the earlier company codes.
As we are doing this process for the very first time, we would be requiring your valuable suggestion on the above processes.
Thanks & regards

Dear Friends,
We are in the process of merging 2 company codes (say1000 & 1200) in one of our customers into a new company code 1800. I would invite valuable suggestion from my forum friends on the following
1. Is there anyway we can transfer the entire master data from the two existing company codes to the new company code. It is an intra SAP data transfer, so the implications would be different. Means the customers/vendors need to be extended to the new company code & sales areas.
2.How do we treat the open sales & purchase orders, Open deliveries and open billing documents before we go live on 1st of April.
3. What all balances needs to be transferred from the existing company codes to the new company code.
4.After the cut over, do we need to delete the existing customers/Vendors in the earlier company codes.
As we are doing this process for the very first time, we would be requiring your valuable suggestion on the above processes.
Thanks & regards

Testing strategy after legal merge of two company codes

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

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

Merge two company codes

Hi All,
This is my first integration project. Please help me out with my query:
My company is going through a merger and we want to merge 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. Currently they feed account cumulative balances from company code 2 into company code 1. But they want to stop that and move out the current balances and bring open line item data.
I want to find out some kind of strategy on how to move the current balances and bring in the open line item AR/AP data from company code 2 into company code 1.
Please help me out with this.

hi,
Check the possibility of uploading the balances of the merging company code into the existiong company code. For this you may have to to some customization like asset transfer date & have to uplaod the master data.

Merge 2 company codes

We have 2 company codes, which we are now planning to merge into 1 company code. Does SAP have a solution to migrate all the open line items and trial balance instead of doing it manually

As suggested by paul, this is complex issue. It is always advisable to take expert advice from SAP.
You may please raise a call with SAP to know the pros and cons.
Regards,
Ravi

Impact of Merging multiple company codes into ONE

Hi,
We are currently doing a study for a client, they have the following scenario where the client has got multiple company codes in SAP (due to some tax benefits they had initially created the company codes) now the tax benefits cease to exist and they are planning to consolidate/merge all the company codes into one legal entity. In the existing landscape all the company codes are in the same client. They are proposing to merge all the company codes into an existing company code.
Trying to understand the impact of merging on SD and would appreciate your thiughts/insights into what could be the important critical impacts of merging and what are the factors to watch out for from an SD perspective. Client has VC and MTO scenarios.
Thanks in Advance.
M

Hi,
It all depends on your strategy. Will you be creating a new Sales organisations? or continue with the existing one? Also, please check with the client as to how the existing plants in the subsidery company be treated in the holding company.
You will have to check the master data, open items, Z programmes & most importantly CIN related settings.
Hope this is helpful, please let me know if you require further inputs.
Thanks.

Details on Data cutover activities during merger of 2 company codes

Hi all,
Basically we have 2 companies which will be merged to one. what would be
the data cutover activities (MM perspective) during merger?
May I know more details (particularly transaction details) on
Inventory upload,
physical inventories and value adjustments,
other open items/ balances in financial accounting,
Open PO and PR
Thanks in advance
Regards
JJ

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

Merging of two company codes.

Dear SAP consultants,
At present there are two company codes ( lets say 1000 and 2000 ) which have different plants assigned to them. Now company code 1000 is merging into company code 2000.
Please guide me what are the configurations to be done with respct to MM module.
Thanks & Regards.
Sandeep

Hi Sandeep,
If company code 1000 is merging into company code 2000, then you need to create new plants to represent the "old plants" in the new company. If you copy the old plants, that will also copy their customizing, so no special customizing should be needed, except for assignment to company code 2000 obviously.
I would not dare to change the plant -> company code assignation in a productive system.
To move all the stock from company 1000 to company 2000, the logical way is to sell all of it to company 2000, so you will have Sales Orders in company 1000 and Purchase Orders in company 2000.
The materials will needed to be extended to work in the new plants. If you do that by copying from the "old" plant, then you are guaranteed to have the same information at the master data level.
Hope it helps,
Best Regards,
Franck Lumpe
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Merging two company codes

Dear All,
We have two company codes with in the same company. In going forward we are going to discontinue one company code. Each company code is having 14 manufacturing plants. We want to merge these 14 plants to single company code.
Kindly suggest which are the possibilities are available and which one is better for FI and MM point of view.
Regards
Venkey

Dear,
Execution of this really a though provoking but to breif you the overview.....
FI Consideration.
You will have transfer entire trial balance to the other company code ensure the balance in company code is zero.
MM Consideration.
Only one company code can be assinged to one plant. One plant can not have more that one company code. You may have to create a dummy plant to transfer all the material and once material quantities in transferee plant is zero, you can deattach plant to the other company code and redo the activity.
For MM activities, please work with your MM counterpart and take his/her expert advise.
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Clarifications on company code merger

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