A merger is a strategic business combination in which two or more companies legally unite into a single entity. It's part of the consolidation lifecycle and requires specific attention to ensure consistent final data. Mergers can take a long time to complete, and users expect automation. Anaplan Financial Consolidation and Reporting now offers a dedicated feature to handle mergers.

Principles

The Merger calculation reverses all closing positions in the Acquired Entity's balance sheet against a dedicated Movement with Tag #Merger, while maintaining the Current Year Net Income and Income Statement for the period.

This means you load your local data with the usual process. The application handles the reversal of closing positions. It also reverse closing positions for manual journal entries initially booked in the Acquired Entity.

Note: You will still have to populate the Net assets obtained from the acquired entity in the acquiring entity local balance sheet.


The current feature doesn't automatically transfer the intercompany declarations with the acquired entity to the acquiring entity.

Application setup

To configure the Merger calculation, you need to:

  • Update the model: The new feature requires a new Dataview member named Merger with defined properties. You can access the DataView dimension under Metadata module > Dimensions > DataView.
  • Update the Merger form: Update the Merger form so the application applies the calculation to the dedicated entity. You can update the Merger form under Maintain module > Ownership > Merger.

    In the Merger form, fill in the fields. For example, Entity 220, the acquired entity, will be merged with Entity 120, the acquiring entity, as of 2024 P12.

Access the form

To access the form:

  1. Select the Maintain module.
  2. Select Merger from the Ownership card. 

Use the form

  1. Select the Create icon to add a Merger calculation. 
  2. Select the fields for the columns:
ColumnDescription
ModelSelect the consolidation model for the Merger calculation. 
ScenarioSelect the Scenario for the Merger calculation. 
DateSelect the date for the merger.
Acquiring EntitySelect the entity acquiring another entity.
Acquired EntitySelect the entity being acquired. 

Use the toolbar in the upper right to create, delete, refresh, or save Merger calculations. On a row, select the ellipsis icon to create, duplicate, or delete a row. 

  • Next fiscal period after merger: For acquired entities with a functional currency different from the consolidation currency, apply the same translation rates as in the merger period. The adjustment happens once and remains in effect indefinitely. The example shows the Override Rates applied to Entity 220, located in the Maintain module > Consolidation > Foreign Exchange Override Rates form.

Import and export Mergers in bulk

You can import multiple mergers into your Anaplan Financial Consolidation system:

  1. Select the Bulk Import icon in the upper right.
  2. Select Append to add to your mergers or Replace to remove all existing mergers and replace them with the items in the file. 
  3. Select Choose File and select the file for the import.
  4. From the Select Delimiter dropdown, choose the appropriate delimiter used in the file: Comma, semicolon, or pipe.
  5. Select OK. 

Note: The form validates the fields after the import. The form highlights in red any invalid fields.  

Select the Bulk Export icon in the upper right to export your mergers to a CSV file.