Decommissioning Companies

Freezing the company code in the application suspends day to day operations under the company. Once the company is frozen, you may also need to decommission said company, and therefore clear all liability and asset open balances. This requires some additional steps outside of the Freeze Company module.

After freezing the company there are several options to clear the open balances for the company code:

  1. Manually clear balances directly in your ERP. Note that because these balances are not also cleared in the application, financial reports generated with these decommissioned company codes will be impacted and display open balances.
  2. Clear the open balances directly in the application by closing all contracts under the company code. Note that this is recommended over option 2.
    1. For contracts that do not have Lease End enabled, the following options are available:
      • If the terms of the lease have ended and there are open transactions, unfreeze the company and post all transactions before freezing the company again.
      • Perform a Mass Lease Modification to add and exercise a Termination Option. All adjustment documents from the event are automatically posted. The term should not contain a lease or non-lease amount because postings are blocked for frozen companies. Note that all payment, accrual, and asset depreciation postings up to the effective date must already be posted.

        Note: For contracts with payments in arrears, there may be pending payment, accrual, or depreciation postings after the term is exercised. In this case, unfreeze the company to post all pending transactions before freezing the company again.

    2. Transition the contracts to Lease End status by running a Lease End action batch.
    3. Close the contracts by running a Close action batch.

See also:  

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