How to combine companies with different ERPs

Your question raises a few questions and some interesting answers.

Since, based on your question, one would assume a major part of each company’s temporary accounts (income and expenses) would be quite different - being they are in completely different sectors/industries - my questions would follow:

• Are you going to use a single company for both businesses?


• If so, are you combining accounting departments?
  
  
  
  • If so, which are you keeping and that may give you the answer to which accounting system to keep.
  
  
  
  


• As for the post M&A activity part of your question, I would create for most entries a single starting entry, obvious exceptions are cash, ar, ap, assets, etc.


• Are you going to keep the businesses separate?
  
  
  
  • If so, are you combining accounting departments?
    
    
    
    • If so, which are you keeping and that may give you the answer to which accounting system to keep.
    
    
    
    
  
  
  • Post M&A any adjusting entries would be made in both sets of books, and both businesses would run as normal.
  
  
  
  


• How detailed a P/L consolidation are you providing?
  
  
  
  • The more detailed, the more complex and muddled looking your P/L.  The less detail, the more you’ll have to map company A to company B.
  
  
  
  

As for the concept of a consolidation software, the question still revolves around detail and the work it entails to get an accurate presentation. Lastly, when all else fails, there is Excel.  Not as ideal as a Consolidation software, but nevertheless can solve the issue until the dust settles on the best methodology to run the new entity.