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Permlink Replies: 4 - Pages: 1 - Last Post: Nov 7, 2009 6:23 AM Last Post By: Rakesh Mohan Ch...
parag m

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Merger of 6 sister companies under one flagship company after go live  
Posted: Oct 29, 2009 8:01 AM
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Dear Experts,
I need one help regarding Merger of sister companies of same group. currently we have 6 company codes under one client (group).Now our management want to merge all these companies under one flagship company to avoid hectic inter company transactions and tax calculation. Instead of 6 diff. companies we are thinking to create one flagship company and further create existing companies as Plants (Profit centers)under it.Previously we have implemented FI,CO,MM,PP,SD,PM,QM & PAYROLL Modules & we are suppose to go with the same in restructure also.
Now my problem are
1.What are the major benefits & drawbacks in terms of SAP functionality point of view?
2.what are the steps to complete this project along with precautions & constrains?
Please throw a light on this, will be a great help.
Thanks in Advance
Parag
Bill Wood

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Re: Merger of 6 sister companies under one flagship company after go live  
Posted: Oct 29, 2009 8:46 PM   in response to: parag m in response to: parag m
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????? Are you sure this is appropriate, legal, or proper? What was the reason for 6 CoCodes to begin with? Are all of the Companies in the same country / province / state? Why not use EC?

Bill Wood
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Edited by: Julius Bussche on Nov 1, 2009 1:10 PM
parag m

Posts: 58
Registered: 10/2/08
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Re: Merger of 6 sister companies under one flagship company after go live  
Posted: Oct 30, 2009 6:42 AM   in response to: parag m in response to: parag m
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Yes sir,
After taking care of all legal and company act policies , management has decided to go for it.
For some TAX exemption benefits 6 company codes has been created.
Fortunately all 6 company codes are belongs to only one country and fiscal year variant.
please let me know the solution.
Thanks
Syed Hussain

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Re: Merger of 6 sister companies under one flagship company after go live  
Posted: Oct 31, 2009 8:41 AM   in response to: parag m in response to: parag m
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Dear,

A difficult task considering data inconsistency and a highlevel ERP minds need to be get involved from all functional and technical areas to achieve... As the financial year end is nearer try to convince your team to management to get this to be implemented from start of new financial year keeping old tranactions intact without any changes.

Anyway managemnet decision will be the final if they are ready to bear !!!!!!!!!

http://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=58884811

Regards,

Syed Hussain.
Rakesh Mohan Ch...

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Re: Merger of 6 sister companies under one flagship company after go live  
Posted: Nov 7, 2009 6:23 AM   in response to: parag m in response to: parag m
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Parag,

SAP has a specialised program for such kind of operations. It is known as SLO: Company code merge. In this there ia a scenario which talks of company code mergers because of tax implications. See http://service.sap.com/slo

Hope it helps.

Thanks
Rakesh
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