Microsoft Dynamics NAV (Archived)

Split business units into companies

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Posted on by Christos Christou

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Hi all,

I have a requirement from a customer to split the business units into two different companies.

The current setup is like this:

One company > 2 business units

That company owns two hotels. I guess they want to sell one.

What is the best way of doing this?

1. Create new company and transfer across: setups, standing data and transactional data

2. Copy the company and then eliminate what is not needed from both companies

Let me know your thoughts.

Thanks

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Christos Christou 511 on at

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RE: Split business units into companies

Thanks Raokman
Christos Christou 511 on at

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RE: Split business units into companies

Thanks Alexander
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RE: Split business units into companies

Thanks Vishal
Christos Christou 511 on at

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RE: Split business units into companies

Thanks Amit
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RE: Split business units into companies

Thanks Jonathan
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RE: Split business units into companies

not that I know anything about selling and buying companies, but if a new owner takes over a going-concern, it often happens that the new owner assumes the open AP/AR/3rd-party debt obligations of the company. So it is often necessary to have access to the transactions that make up the balances, not just the balances, in order to deal with vendors and customers going forward as though the operation was never sold.

and again, don't know much, but for comparison purposes, it might be nice to see the underlying detail in expense GL accounts (and revenue accounts), to be able to assess current performance, under new ownership, against historical performance...what's better, what were the problems, are they being addressed...

but, yes, it is far easier for your 'partner' to just load opening balances.
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Alexander Ermakov 28,094 on at

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RE: Split business units into companies

If you really need to keep the historical transactional data, than option 2 is less time-consuming. If you need to have only master data, setups and opening balances, option 1 looks better to me.

But, as I understand, if they want to sell one business unit, this would be a new legal entity and therefore there would be no historical data for this new legal entity. Thus, you start from scratch and option 1 is certainly preferable.
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Community Member on at

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RE: Split business units into companies

Do you really want to keep historical transactional data (Like ledger entries, SO, PO) as well in both the entities?

What is the size of the database?

Migration of relevant (filtered) transactional data (like ILE, VLE, G/L etc.) to new company or deleting the irrelevant data from the new company would be big challenge.

I would suggest you to create new company > transfer across setups & master data > Upload opening balances (and/or open documents) and start performing the transactions data in new company.

You can always refer old database for the reporting purpose.

Hope this helps.
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Community Member on at

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RE: Split business units into companies

Go for option 2
keoma 32,727 on at

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RE: Split business units into companies

i suggest: create new company, copy setups, master data of the company, transactional data filtered by business unit.