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    Jason Schwartz
    New Ledger Creation Needed for Private Equity acquisition -...
    Topic posted July 18, 2019 by Jason SchwartzRed Ribbon: 250+ Points, tagged Assets, Compliance, Configuration, Financials, General Ledger, Setup / Administration, Subledger Accounting 
    70 Views, 3 Comments
    New Ledger Creation Needed for Private Equity acquisition - Best Practice?
    Are there Best Practices for new Ledger following acquisiton of our company?

    Our company, MyEyeDr, has been re-acquired by a new Private Equity (PE) firm - Goldman Sachs.  This finalization will occur in the upcoming month(s).  A similar acquisition occurred in Aug-15 by a current PE firm.

    In Aug-15, to distinguish between the 2 acquisitions, we simply used a then unused chart value segment to make the distinction.  This was our Future1 segment.  We still have an unused reporting segment available - Future2.

    We only use the GL, AP, Cash Management, and Fixed Asset modules.  We created a new FA book and reloaded that data back in Aug-15.

    However, we are wondering if the creation of a new Ledger - which may essentially be a "reimplementation" of modules - by closing them out and moving balances to a new Ledger is needed.

    Has anyone had a similar cquisition experience - and believed that the "Best Practice" is to create a new ledger and deal with "reimplementation" of a new Ledger?  Simpler is easy and less painful (and less costly).  We are trying to way the pros and the cons of re-implementing a new Ledger versus keeping our current ledger and adjusting by using a coding segment value.

    Thank you.

    Jason Schwartz




    • Praveen T

      Hi Jason,

      We need to consider and understnad the below points in detail to proceed furthur.

      1. Does the current application is running on E-business suite or cloud.
      2. Current chart of account structute ( GL segments)
      3. Does this acquistion requires compliance/ any reporting requirements of acquiring company is applicable.
      4. Does this acqusition results in reporting in a current other than current ledger currency?
      5. Does this result in chnage in the business/operating model or does this acqusition just requires reporting in acquiring PE's currency.






    • Sudhakara Rao Kovuru

      Hi Jason,

      Please find my comments below and let us know. 

      1) you can proceed to create new ledger for the acquisition company or else 

      2) Use existing ledger by using different balancing segment which will differentiate both companies.

      the best one is option 2 which will reduce time and cost.



    • Julien Dubouis

      Hi Jason, it's quite difficult to understand what would be the rationale for a new ledger.
      Have you considered creating a new secondary ledger (which could have a different CoA with different segments as long as you can map them out from the primary ledger CoA) ? You could re-take historical balances from the primary ledger using the scheduled process "Create New Reporting Currency or Secondary Ledger Accounting".