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The necessity of configuring the HR module when creating a new company code

My Client has many company codes in a single client.

New company codes are created whenever there is a new statutory entity creation.

Usually we would have employees in say CoCo 1000 or 1100. In the event where the employee of CoCo 1000 works on a difference CoCo (say 2000 which does not have the HR module configured) we recharge via the intercompany transaction, and timesheet accordingly.

My Question is, if we were to create a new CoCo say 3000, what will be the benefits of configuring a new HR module against just recharging it to a CoCo that already has HR module. I need to understand the pros and cons in addition to understand the need of configuring the HR module against not doing so.

So if we take the above example of a new CoCo 3000, I need to understand where i can use the same example as above where I can use a CoCo that already has the HR module and cross charge, against if we decide to configure the HR module for 3000.

Please advise.

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1 Answer

  • May 04 at 04:34 PM

    If all employees are in Companies 1000 and 1100, how does your Client currently reports (to the Government and Third Parties) on those employees that in fact work for Companies 2000 and 3000 ?

    What about the Year-end Reporting requirements for your Country?

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    • Hi Remi

      We have intercompany transactions where an employee from one Company Code can timesheet to another, i.e. employee from CoCo 1000 can timesheet to CoCo 2000 using WBS codes.