Change of fiscal year date pattern in acquisition context

dhsieh

Active Member
Our company got bought by company Z. We used to be on a non-calendar fiscal year date pattern and need to switch to a calendar year pattern to be in line with the company Z. On Oct 20th, the transfer of our company to the new owner will be effective. Therefore, we need to close the year on Oct 20th 2004 (roll balance sheet balances, clear PL and roll to Retained Earnings). Right now we are using date pattern A and we are in fiscal year 04 since the end of our first period is 7/3/4. If we do a cutoff on Oct 20th, we will start a new year for the new owners on 10/21/04 and end on 12/31/04. This new year will also be 04 in JDE and we can't have two 04 fiscal year in JDE.

Is there anyone who ran into that situation before where they had to switch from non-calendar to calendar year in an acquisition context or not? How did you modify JDE to make this whole thing work (close on Oct 20th in our case and close again on 12/31/04 with only +/- 2 months in the P/L)? JDE is saying that we should create new companies to have a clean cutoff in JDE but we don't want to take that route because we are running out of time and we have 7 companies on JDE. They are also saying that we could use a short year pattern using date pattern B but in this case the system gets confuse because of the two FY04 and pulls inaccurate data for FY04. Please help!

Thanks
 
Hi 'Dhsieh'

About a month ago a similar question was asked. Please have a look there for some comments I made at the time? One of the 'tricks' recommended by PSFT was to lengthen the 03 fiscal year. In your case the 03 year started in June 03 and finished in June 04. The new lengthened 03 fiscal year still starts June 03, but can now run to Oct 04. As there are only 12 periods(or 14 if you use the adjustments periods as well as we did) you will need to consolidate periods. Eg PN1 = Jun 03 to Nov 03, PN 2 = Dec 03 etc.)

Another important comment is you do not have to do al this prior to October. Everthing can be done retrospectively.

Rgds,
 
Hi,

I just did the same thing like yours.
Contact me if you have time ([email protected])

Lina


dhsieh <[email protected]> wrote:
Our company got bought by company Z. We used to be on a non-calendar fiscal year date pattern and need to switch to a calendar year pattern to be in line with the company Z. On Oct 20th, the transfer of our company to the new owner will be effective. Therefore, we need to close the year on Oct 20th 2004 (roll balance sheet balances, clear PL and roll to Retained Earnings). Right now we are using date pattern A and we are in fiscal year 04 since the end of our first period is 7/3/4. If we do a cutoff on Oct 20th, we will start a new year for the new owners on 10/21/04 and end on 12/31/04. This new year will also be 04 in JDE and we can't have two 04 fiscal year in JDE.

Is there anyone who ran into that situation before where they had to switch from non-calendar to calendar year in an acquisition context or not? How did you modify JDE to make this whole thing work (close on Oct 20th in our case and close again on 12/31/04 with only +/- 2 months in the! P/L)? JDE is saying that we should create new companies to have a clean cutoff in JDE but we don't want to take that route because we are running out of time and we have 7 companies on JDE. They are also saying that we could use a short year pattern using date pattern B but in this case the system gets confuse because of the two FY04 and pulls inaccurate data for FY04. Please help!

Thanks
XE,SP20, AS400 V5R2, Citrix XP, JAS
 
Hello dhsieh,
I just want to know what do you mean by "We used to be on a non-calendar fiscal year date pattern "? Do you mean using 52 periods accounting?
Thanks,
Ramzi Hashweh
 
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