Open Forum

In the case of a mid-month acquisition, should we create two separate accounting periods for the pre-acquisition month and post-acquisition month? And how about a new fiscal year that starts in the middle of the month?  The company is an LLC (flow-through for tax purposes).  The current ownership will have tax liability for the first 4 1/2 months of activity, so there will be a close for that activity with a K-1 provided to current owners.  The new ownership will be taking over mid-month, so I assume their fiscal year will be something like 4/15 through 12/31.  Has anyone done something similar in NAV?  Will it break everything if we create two accounting periods for the same month and two fiscal years in the same year?  Thanks for your help!






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Angela Dunnahoe
Marucci Sports
Baton Rouge LA
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Hi Angela,
You can create a new period with the Start Date of 04/15. Mark the period that starts 04/15 as 'New Fiscal Year'.  That will allow you to close the period that starts 04/01 mid month.  Should not be an issue as many people have had this requirement in the past.

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Crystal Tollison
Consultant
ArcherPoint Inc.
Lawrenceville GA
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Original Message:
Sent: Mar 25, 2020 10:42 AM
From: Angela Dunnahoe
Subject: Acquisition Accounting Periods - mid-month close?

In the case of a mid-month acquisition, should we create two separate accounting periods for the pre-acquisition month and post-acquisition month? And how about a new fiscal year that starts in the middle of the month?  The company is an LLC (flow-through for tax purposes).  The current ownership will have tax liability for the first 4 1/2 months of activity, so there will be a close for that activity with a K-1 provided to current owners.  The new ownership will be taking over mid-month, so I assume their fiscal year will be something like 4/15 through 12/31.  Has anyone done something similar in NAV?  Will it break everything if we create two accounting periods for the same month and two fiscal years in the same year?  Thanks for your help!






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Angela Dunnahoe
Marucci Sports
Baton Rouge LA
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Thank you, Crystal!  That's what I was hoping to hear.  Glad we're not going to break anything.

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Angela Dunnahoe
Marucci Sports
Baton Rouge LA
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Original Message:
Sent: Mar 26, 2020 02:08 PM
From: Crystal Tollison
Subject: Acquisition Accounting Periods - mid-month close?

Hi Angela,
You can create a new period with the Start Date of 04/15. Mark the period that starts 04/15 as 'New Fiscal Year'.  That will allow you to close the period that starts 04/01 mid month.  Should not be an issue as many people have had this requirement in the past.

------------------------------
Crystal Tollison
Consultant
ArcherPoint Inc.
Lawrenceville GA

Original Message:
Sent: Mar 25, 2020 10:42 AM
From: Angela Dunnahoe
Subject: Acquisition Accounting Periods - mid-month close?

In the case of a mid-month acquisition, should we create two separate accounting periods for the pre-acquisition month and post-acquisition month? And how about a new fiscal year that starts in the middle of the month?  The company is an LLC (flow-through for tax purposes).  The current ownership will have tax liability for the first 4 1/2 months of activity, so there will be a close for that activity with a K-1 provided to current owners.  The new ownership will be taking over mid-month, so I assume their fiscal year will be something like 4/15 through 12/31.  Has anyone done something similar in NAV?  Will it break everything if we create two accounting periods for the same month and two fiscal years in the same year?  Thanks for your help!






​​

------------------------------
Angela Dunnahoe
Marucci Sports
Baton Rouge LA
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