Payroll for acquisition scenario

[Former Member]

Hi gurus,

What is the best strategy and process for running payroll for a recently acquired company? For example, Company A is taken over by Company B. Payroll is to be run for B. What all processes are involved here?

Thanks,

D_F

[Former Member · Accepted solution]

Hi.. This is a strategic decision that the leaders of the organization need to take. you can put forth the following options.

1. Do they want to change the business rules of the entity acquired to fit in with the existing business process. If yes, create them as another entity (company code) and configure the same business rules. This is ofcourse after you do the Blue print, preliminary discussions, etc.

2. If the business rules , processes are completely different, conduct a blue print workshop and treat it as a new implementation.

For both the cases, Go- live decision needs to be taken after analysis of various factors that impact the day to day activities and statuatory obligations

[Former Member · Accepted solution]

Thanks Judith.

[Former Member]

We just can't decide it on the forum.

As Kapil said it entirely depends on the strategies and agreements between the both the companies and

employee union of that company

While acquisition they will come to an agreement salaried will pay like this.

If their strategy is pay salaries as it was, you can just run the payroll

Otherwise you must need to do configuration as per the latest requirement and do the process

Warm Regards

[Former Member]

Hi,

Thanks Kapil and Surisetti. However, one thing still remains. What about the data transfer strategy and which will be the best to implement. Thanks again.

D_F

[Former Member]

Hi,

You have to see wether other company is a different company code or within the same company..

Now what is the process of the current company . the new company code employees can be paid via the same allowance grouping and wage types and amounts can vary as per requirement.

This will reduce the configuration and will we done in a very good time frame.

Regards,

Kapil