During either an acquisition or a merger one of the issues is the determination of the Fiscal Year and the consolidation of Financial Reporting. If one of the participants in the acquisition/merger has a stated Fiscal Year different than the one used moving forward, that organization must change their existing Fiscal Year to coincide with the one used by the new corporate structure.
For our working example, we have a corporation with several companies in the United States operating with a Fiscal Year of October 1st through September 30th. The acquiring Japanese firm had a Fiscal Year equal to the Calendar Year. The US firm was officially acquired and registered with the SEC as closing on January 12, 2015 and becoming a part of the Japanese firm as of January 13, 2015.
The following process we’re discussing was actually run in a partial manner to change the previous Period End Date for Period Three (December) to be January 12, 2015 instead of December 31, 2014 and Period Four (January) to be January 13, 2015 through January 31, 2015.
The second step in the process, after adjusting entries were posted and balances were approved by both corporations and the SEC, was taken to change the Fiscal Year officially to be January first through December 31st.
There are three main applications that are used to set up Intercompany Transactions in E1; R099102, R099103, and R099104. Our example has been set up in Release 9.0 with Tools Release 8.98. If you are using the Fixed Asset module, you might also use the Fixed Asset Repost, R12910. We’ll discuss when the Fixed Asset Repost will not work and what must be done instead later in this article.