Looking for some feedbacks and suggestions on this scenario: The company I joined few week ago just got sold, once the sale gets finalized we may have to close the book middle of the of the month (we are using regular monthly accounting periods) for under the current ownership and start the reporting from next day under new ownership. Wondering what implications we may face: • NS does allow to define period start and end date - so we can in theory close the period by changing it's start and end dates - question what are the implication? • What happens to FAM asset depreciation if period is closed mid-month, since all the assets have depreciation schedules defined? • Issues for currency revaluation, recurring JE (memorized), amortization, retained earning, trial balance etc for mid month period close. • Need to change the subsidiary structure for reporting. • Also may need to change the calendar year to fiscal year (suiteanswers 91505) - what issues can arise? • Can we enable Multiple Calendar feature to solve some of the problems? Really appreciate if guys have any insights or advice

I haven't had this exact scenario, but I've definitely had a number of times where we changed fiscal years (so not mid-month, but mostly similar concerns). You definitely can create whatever wonky custom periods you want if you define the dates yourself. The FAM stuff would probably depend on your depreciation method and how you calculate days, so if it's even by period, you might have some work to do there; that's definitely something to test in sandbox for sure. The biggest issue I've experienced when changing fiscal years is actually reporting, and actually not when the change is made, but ~1 year out, when everyone has completely forgotten that this change occurred and is trying to do YoY reporting and it's not working. And those that do remember want to see the YoY reporting all the different ways (i.e. the old FY way, the new FY way going backwards, and the old FY with the stub year). So I'd make a big show of doing CYA on how that's going to be impacted down the line. That's most of my lessons learned TBH, but happy to talk some more if it'd be useful.

Splitting the period should be ok. Depreciation schedules should technically reset to the net value at the time of sale since there is a change in control. That gets messy in FAM if you need to reset. I'd expect no impact on currency revaluation. Retained Earnings is reset to zero on a change of control. Make sure the historical exchange rates reflect the date of sale in the second stub period for that month. If you plan on reusing subsidiaries, there may be difficulty in presenting the legacy financials in the same way if the structure is materially different. So it is important to close the books and run all financial reports as of the sale date.

Thanks guys - you folks validated some of my findings. I have done quite a few company split and merger - https://netsuiteprofessionals.com/blog/question/resources-or-best-practices-for-merging-two-netsuite-instances/

Sandbox 100%

yup sandbox - as many times you need before your 200% sure

Tiny

My thoughts having recently done this: 1. FAM doesn't deal with this situation well or I wasn't patient enough to figure out how to deal with it. I ended up just letting it do its thing for a full month and then did a JE to fix. That said, our Fixed Assets was an inconsequential piece of our books. If that's not the case for you and someone might get upset that the depreciation on individual assets is "wrong" as of the close date, then you might have to play with it. 2. Yes multi-calendar is your friend. Set up an alternate calendar with the year and quarter ending on acquisition date. I'd keep the other calendar "normal" other than the period where you don't have a choice 3. There will be some general reporting issues you'll have to deal with ad hoc, just because NS obviously is not really set up to do this type of thing. And Jimbo is absolutely right, a year later is almost worse because you find out what you didn't account for. 🙂 4. Agree with others that most other things should be totally fine, though the restructure will make historical reporting more difficult 5. A curveball that bit us: make sure no scripting references the period names. That was some long-gone-from-my-company dev's solution to future-proof a script that would be expected to deal with uncreated periods that didn't yet have an internal ID to reference. Basically they set up the script to expect that all period names would be in the format of MMM YYYY, the NS default. Because people rarely change that, right? We did for our split month, creating two periods, one for the old company and one for the new company named MMM YYYY [old company] and MMM YYYY [new company]. Guessing there's a better way to deal with that, so you probably won't run into it, but that did stump us for a little bit.

Thanks bud