Starting new year for new company

[ginaburg]

We are selling our company as of April 12th. We will be doing the accounting work for the new company starting April 13th. They need all of our history for billing purposes. Does anyone have suggestions on how to we can handle this in the system.
If we do a year end close as of April 12th for our company records, we cannot start another 2005 year in the system for the new company. If we create 13 months and split April, we won't have good financials with beginning balances.

Any suggesitons?

Thanks
Gina

 

[klewis10367]

Do you have a company segment in your account structure? You could use the segment to identify the different companies. Use a different vendor,employee,sales class for this new company.

 

[barbola]

When is year-end? We have had this happen several times with splitting and amalgamating companies. We can't create different GL segments due to tax purposes.

Since the company is changing ownership, you can do a year-end close as of the fiscal year ending even if you are only in period 10 for example. However your transactions will end as of April 12 as long as they are entered that way.

The new company should begin April 13, and they can decide what they want to be their fiscal year-end. If it is the same, then set it up that way however the first periods will be zero and no transactions should be dated before April 13.

I am not an accountant, so I don't know if this would work for you. For ease of reporting on financials and consolidating companies with different fiscal years this is how I would recommend the changeover.


Thanks!
Barb E.

 

[ginaburg]

The problem is that there 2005 year will be from April 13 through the end of the year and since you cannot have two years as 2005 in GP we can't do a year end close. We would have to set their new year (april thru dec) up as 2006 but then what do they do when 2006 comes?

I think we are just going to setup 13 months and split April. We will have to control it by financial statements.

 

[barbola]

If it's a separate company database, you can do a separate year-end.

Thanks!
Barb E.