Issues with combining companies - any experts willing to help?


E

Erich Knobil

We anticipate a major activity of combining 3 Peachtree companies. If any
of you are willing, I would appreciate any advice or experience you have, in
order to help us avoid shooting ourselves in the foot. (I would like to
avoid being featured in a "what not to do" section of Diane's next book!)

The 3 Peachtree companies were set up years ago, covering 3 major parts of
one legal entity. Why change? There are many vendors in common, a number
of inventory items in common, frequent transfers of expenses and credits
between the companies (which must be entered in all three companies), and
the checks for all three companies are printed by the same person. We are
looking to save the effort (and opportunities for errors) that is inherent
in all this.

Based on reading about the new feature to combine companies in the PPA 2004
manual, and in the software help, it doesn't appear that Peachtreee
completely combines the companies, but produces a consolidated company for
reporting purposes. We are looking for the companies to be combined
*operationally* (one vendor list, one checkbook, etc.).

To add to the fun, the biggest of the three companies is on a different
fiscal year than the other two, yet we wish to make it the same as the other
two. Is there any way to "run a short fiscal year" and then start the next
fiscal year on the month that matches the other companies?

As you can see, we will have a grand old time with this, but I trust that
the short-term headaches will save lots of time and gnashing of teeth in the
long run.

TIA for whatever you can contribute!

-- Erich
[PPA 2004, Win98SE, Win2K Server]
 
Ad

Advertisements

H

HSalim

The simplest way to do this, I feel, is to create a new company, import
customers, vendors and open balances.
Yes, you lose a bit of history - but you can always open the old companies
if you need to look something up.

The short accounting period and consolidation of companies can have tax
ramifications so talk to your accountant.
If you have inventory in multiple locations, you must carefully consider if
it may not be better to upgrade to a
more robust package at this time. That has been my single greatest beef
with Peachtree, but hey - it is a small business package.

HS
 
E

Erich Knobil

Thanks! Makes sense. I was hoping for an easier way (but we all know how
that can go).

Might it make sense to keep one of the companies, and import the data from
the other two, or does that create problems?

No problem with inventory. I forgot to mention that all three companies are
in the same building complex.

I appreciate your quick response!

-- Erich

HSalim said:
The simplest way to do this, I feel, is to create a new company, import
customers, vendors and open balances.
Yes, you lose a bit of history - but you can always open the old companies
if you need to look something up.

The short accounting period and consolidation of companies can have tax
ramifications so talk to your accountant.
If you have inventory in multiple locations, you must carefully consider if
it may not be better to upgrade to a
more robust package at this time. That has been my single greatest beef
with Peachtree, but hey - it is a small business package.

HS




Erich Knobil said:
We anticipate a major activity of combining 3 Peachtree companies. If any
of you are willing, I would appreciate any advice or experience you
have,
in
order to help us avoid shooting ourselves in the foot. (I would like to
avoid being featured in a "what not to do" section of Diane's next book!)

The 3 Peachtree companies were set up years ago, covering 3 major parts of
one legal entity. Why change? There are many vendors in common, a number
of inventory items in common, frequent transfers of expenses and credits
between the companies (which must be entered in all three companies), and
the checks for all three companies are printed by the same person. We are
looking to save the effort (and opportunities for errors) that is inherent
in all this.

Based on reading about the new feature to combine companies in the PPA 2004
manual, and in the software help, it doesn't appear that Peachtreee
completely combines the companies, but produces a consolidated company for
reporting purposes. We are looking for the companies to be combined
*operationally* (one vendor list, one checkbook, etc.).

To add to the fun, the biggest of the three companies is on a different
fiscal year than the other two, yet we wish to make it the same as the other
two. Is there any way to "run a short fiscal year" and then start the next
fiscal year on the month that matches the other companies?

As you can see, we will have a grand old time with this, but I trust that
the short-term headaches will save lots of time and gnashing of teeth in the
long run.

TIA for whatever you can contribute!

-- Erich
[PPA 2004, Win98SE, Win2K Server]
 
H

HSalim

I am integration specialist for Great Plains, and have been involved in many
situations that involve trying to import historical data.
From personal experience with numerous clients, I feel that there are only
a few, very very few situations where it has been worth the effort.
(I am all for importing ongoing transactions - such as integrationg order
data captured in other systems)

Further, importing data into one company is a bad idea.
1. It alters the historical picture of the data - the parent company did not
in fact merge with the other two till a certain date
2. You cannot import data into closed periods anyway, so at best you can
import less than 2 years of data
3. Peachtree does not have a way to identify and differentiate companies
once the data is integrated -
You could modify the chart of accounts and incorporate account masking,
but it is complicated and far from fool proof.

Think of it this way - say you had an IRS audit.
The auditor will see that your trial balance/P&L/BS is way different from
the picture presented when the three companies were operating independently,
ans you will be hard pressed to prove otherwise.

You should consider buying PAWCom from multiware - www.multiwareinc.com
(I have used the product in the past - and have known the developer - Robert
Walraven since the early days of the product
when it was PAWet)
I do not own the current version but I believe it will produce combined
reports for you, which is why you are considering importing data into one
company.


HS
 
E

Erich Knobil

Excellent comments! I really appreciate your spending time to help me avoid
big mistakes like that.

Just FYI, the reason for combining is not reporting. I think the new PPA
"combine companies" feature would do that. Our desire is to eliminate
transfers between companies, dealing with the same vendors and customers in
all three companies, multiple payrolls, benefits, shared employees, etc.

Thanks again for your help!

-- Erich
 
H

HSalim

You are welcome. It wasn't too much effort :)
What is the nature of your business? and where are you located?

HS
 
Ad

Advertisements

E

Erich Knobil

Milwaukee, WI, USA, and you?

HSalim said:
You are welcome. It wasn't too much effort :)
What is the nature of your business? and where are you located?

HS
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top