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

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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
Thanks.

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
Freelance Logistics SAP Consultant

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.

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.
Regards,
Chintan Joshi

Merging two company codes at sales organization levels

Hello Guru's,
I am working on a complex project, the client wants to merge two company codes at sales organization level. Will anyone guide me the procedure to do it.
Regards,
PV

One Sales Organization can be assigned to only One Company Code.
One Company Code can have several Sales Organization assigned to it.
Hence, it is not possible to merge two Company Code to one Sales Organization.
Regards,
Rajesh Banak

One Legal entity two company code - pros & cons

Hi SAP GURUS,
We are having one legal entity with multiple products. I want each plant to be a profit center. But i am loosing plant wise profitability when we are transferring the same product from different plants, in a common depot. This is because we are not having batch & hence profitabilty for plant is lost when it is sent to depot for sale.
In this case I am thinking to go for two company code. One manufacturing & Other selling. What will be the pros & cons in this case.
Thanks
CHEERS

Yes ! kishore You are obsolutly correct !
Hi Nitin,
As per my understanding your issue seems profit cannot be determined while sending goods sending plant to another palnt. For that SAP suggested to use Transfer pricing in Prrofit centre accouting & your valuation must be profit centre valuation not company code to get internal reports.
Rgds
ManiSuma

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

Operating concern for two company code with different currency

Hi,
We are merging two company code into one SAP server.
We decide to use on chart of account, and to use one operating concern.
For company code A: the currency is CNY, for company code B: the currency is TWD. The operating concern currency is:CNY.
So i need to in KEA0(maintain operating concern) active company code currency, right?
So every posting in company code B will be posted in TWD and CNY to COPA same item, right?
In KE30 report, where to add characters: Currency type that i can show company code B report in TWD?
Thanks.

Dear David,
Yes. If you have different compancy codes within one controlling area, you have to maintain currency type with 10-Company code currecny and while maintaining the operating concern also you have to choose the company code currency only. Then only you will get the reports with respect of your company code currecny level. This will be basing on your company code-sales organisation, plants and other charcters assignment basis in your configuration.
All the best,
Dharma Rao. Yekula.

Subcontracting b/n two company codes

Hi friends
i have caome across the subcontracting scenario which takes place between two company code with their respective plants, Please Provide best way to map the scenario
Thanks
Regards
Deepak.Goura
SAP-Consultant

Sub Contracting Cycle
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
(5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
Vijay
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to becreated for the material(2) calling for material(1)
4. Inforecord and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
B.N.Rao
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
SAP MM Tips by : Sundaramoorthi
Email : [email protected]
Editor Note:
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N

Is two company codes required?

Hi Experts,
Business process is, our company is going to construct a project in US. Onece the project is completed, all the operations may close in US. Company base location is India.
for the above scenario, We need to create two company codes?, if not, how to handle legal reporting at US?
Please think of it in this way and give your valuable suggetions.

hi ganesh,
not required to maintain two different companies. under one company create two different plants each with its own currency.
sree

Planning In two Plant (Two company Code)

HI..
SCENARIO
I have two company code, each having separete plant .
Comapany Code A , Plant A
Company Code B, Plant B.
Now Plant A supplies raw material to Plant B, which after doing processing will give back to plant A.
this Senifinish material after processing at plant A gives finish assembly.
Can i plan these two plant in One Planning stage . (MRP at Plant A).
If not what can i do to transfer the requirenement to PLant B, after MRP run at Plant A.
Note: Its different company code.Spl pro Key 40,70,80 not work.
please suggest
Thnks in advance

Hi!,
Please go through the following link
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/2b90dc43ad11d189410000e829fbbd/frameset.htm
and check for Stock Transport Order with Delivery and Billing Document/Invoice (Cross-Company-Code). I think you might have missed some setting otherwise it must work. I have already used this fuctionality.
Regards,

One vendor for two company codes

Hi Frds,
I have two company codes and i create a vendor which is applicable to both the company code.Is it required for me to create separate Payable reconciliation GL account for each company codes or creation of one common recco account is enuf.
Please elaborate on this as am new to this..
Thanks,
Rashmi Ravi

Dear all,
SAP allows You to create a customer / vendor master data that contains information that is valid for all the Company code --> into General data.
Then there is a part, Company Code data, where You can define specific details for each Company Code.
The transaction is the same FD01 or FK01.
I hope this helps You.
Mauri

Different Bank charges GL account for two company codes with same COA

Hi,
While configuring OBXK ( Automatic GL account for bank charges) , I see there is provision to enter only one GL account per chart of accounts.
We have two company codes using same chart of accounts but different bank charges GL account. Please tell me how to configure this.
Thanks,
suresh

Hi,
Thanks Krishnan and Chandra.
I agree with you it could be the same GL account for bank charges, but the business requirement is such that in one of the two company codes, bank charges are required to be tracked separately to be subsequently transferred to the other company code. This means two separate GL accounts are required for two company codes which needs to be configured in OBXK.
Hope this clarifies my query further.
thanks,
suresh

Can I create a single PO for two company codes

Hi
Can I create a single PO for two company codes. Though I know that Company code is assigned at header level but still I know there is a setting in controlling which when activated two company codes under same controlling area can procure the goods under the same PO.But i forget from where to activate that message or control in config.
Thanks

Hi Lekhram,
I'm just beginner so maybe I got the wrong end of the stick.
If you order something that something must belong to a definite company > plant. How could possess two company the same thing at the same time (totally)?
(companies are at the same organisational level - none of them is subject to the other).
Maybe I'm mistaken.
So I <b>guess</b> you can use only one company code for one PO.
Controlling area & company code
http://help.sap.com/saphelp_46c/helpdata/en/e5/077a704acd11d182b90000e829fbfe/frameset.htm
http://help.sap.com/saphelp_46c/helpdata/en/08/513f4b43b511d182b30000e829fbfe/frameset.htm
Purchasing & organisation
http://help.sap.com/saphelp_46c/helpdata/en/75/ee0a9555c811d189900000e8322d00/frameset.htm
All the best
Csaba

Testing strategy after legal merge of two company codes

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