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From one company to two company code

Hi Gurus,

Our company has decided to separate its one org unit and make it a independent legal entity. so can u please tell wat all steps are to be considered.

I have suggested them following steps,

1 Separate Company code for new company

2 Separate Personnel areas and Personnel Subareas.

3 Moving different units of new company under old company to new company by changing the


4 Running separation actions for all employees who have to move to new company through lsmw

and then hiring them in new company with different personnel number.

Payroll is not implemented. My client doesnot use payroll module.

tell me whether m wrong or right

Thanks in Advance.

Please help.

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Aug 13, 2008 at 12:06 PM

    Hi Jayendra,

    From HR perspective you are very much correct. But please tell me, are you maintaining the the new Co. in same client or a different client?



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    • hi saumyajit,

      If we are creating new company code from 1 sst august as the company came in existence from 1 st august then we will have to rehire the employees with effect from 1 st august. Then wat abt their joining date? As we have to keep the continuity of the service for the employee. What abt the reports, such as employee completed more than 2 years of service in the organization...

  • Posted on Aug 14, 2008 at 11:23 AM

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