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Merge of an Existing Company

Andie
Active Participant
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Hi Experts,

I have a situation where 1 of my cusotmer, that runs ByD, will be merged with 2 other companies to become 1 company on Nov 1st 2016.

We have the current company in ByD with its organizationnal struture, its projects, its MD, etc. On Nov 1st this company will be dissolved and 1 new merged company will be created (3 cies are merging, 1 in ByD and 2 other are not in ByD).


I would like to have some advices to know what we be the best way to process this merge in ByD as the new company will be fully integrated in ByD.

The ideal situation we will be that I will not have to recreate and remigrate the structure and the master data of the existing company but to extend this structure accordingly to the new structure . My first idea was to extend and migrate the new balances dated on Nov. 1st and close the existing one on Oct. 31st.

Do you think it is doable ?

The other way I thought will be to recreate a completly new structure, new company and redo the full migration including, projects, open items, etc.

Does anyone have already faced this situation ?

Thank you in advance,

Andréanee

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Answers (2)

Answers (2)

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Hi Andreanne

you mention: "We have the current company in ByD with its organizationnal struture, its projects, its MD, etc. On Nov 1st this company will be dissolved and 1 new merged company will be created (3 cies are merging, 1 in ByD and 2 other are not in ByD)."

  • you have the option to delimit the existing company and add a new company. For this option you have 2 variants with pros and cons as usual
    • option 1a:
      create a new company in the existing system. You can delimit the existing company. Certain master data can be re-used (e.g. suppliers, customers, materials, services, etc.)
      Employees can be transferred ("fire and rehire" to the new company)
      Fixed assets and balances etc. have to be migrated with adjusted data.
      In addition the the biggest issue I see: you really have to ensure, that nobody is working on old data for the old company code. We have possibilities in User and Access Management to disable write access to for certain companies, but you have to ensure this for all users.
    • Option 1b Create a new company in a new tenant and delimit the old company in the old tenant.
      You will have more data for migration, but the risk of posting to the wrong company is removed.
  • from what I read I could think of enhancing the existing company with the new data from the 2 non ByDesign companies. I am not sure, how you can achieve the closer (ending balance for the old company as per Oct 31st, when the year ends by December 31st) but if this can somehow be achieved, you can "add" the new companies to the existing company. The organizational data are time depending, so name or ID changes should be feasible.

All suggested scenarios are already done by partners around the globe. They all had limitations (I just named a few), but you also need to check with the customer what is the target organizational structure and are there certain scenarios e.g. Closing balance as per 31st of October) which are an absolute must.  Based on this take your decision.

Feel free to add more questions, I try to answer them with advises as good as I can. But be aware this is a special scenario requiring special treatment.

Best regards

Marlene

Andie
Active Participant
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Hi Marlene,

Thank you very much for answer ! I forgot to mention that the year-end of the company is on October 31st .

We would really prefer enhancing the existing structure as we think it would be faster and cheaper, but of course we won't suggest a solution that won't be feasable  and will not benefit the cutomer !

Here are the major points I have gathered :

- All migration will be dated of November 1st 2016

- Org Structure will be modified dated of Nov. 1st

- Tax Authorities : 2 solutions:

     - Keep the exiting one and change the taxes numbers of the new company

     - Terminate the existing one on Oct 31st and create new one Nov. 1st

- Perform some consolidation entries to eliminate the possible IC transactions

- Migration of Balance Sheet : Exclude data ofthe company that already exists in BYD. Just  migrate data that will add up to the existing BS

If ever you think about anything else please let me know. I'm still testing few things and putting a plan together.

Regards,

Andréanne

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Hi Andréanne

for me it looks good.

Regarding the tax authority - here I would stay with the same tax authority and delimit the tax arrangement (this is the company part) by End of October and enter a new entry starting from November 1st, if you get a new tax number.

Best regards

Marlene

Former Member
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Dear Andréanee,

Maybe this should serve as starter

The ideal situation we will be that I will not have to recreate and remigrate the structure and the master data of the existing company but to extend this structure accordingly to the new structure . My first idea was to extend and migrate the new balances dated on Nov. 1st and close the existing one on Oct. 31st.

=====> Is you new company having a same company ID & name as already present in the system. Will you be able to map all your entire new setting into this existing company. What about past data with old company as reference, what about new data with new company as reference, legal aspect etc.

The best way is to take all the necessary factors into consideration before proceeding as this is gonna be huge change.

Do you think it is doable ?

The other way I thought will be to recreate a completely new structure, new company and redo the full migration including, projects, open items, etc.

========> This should be possible as this is a standard process

Maybe someone who faced similar issue should give your better prespective.

Regards

Leo

Andie
Active Participant
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Hi Leo,

Thank you very much for answer.

I wish I could have an asnwer from somebody who has already went through a similiar project.

I will start the testing of few ideas I have in mind.

Thanks again for your comments

Regards,

Andréanne