Transferring of employee from One Company Code to Another company code

[Former Member]

Hi Friends,

There is already configured SAP HR solution for say 1000 Company code, Now I am implementing for another company code 2000, Client has requirement to transfer employees from 1000 ( company code ) to 2000 ( company code ).

Country is UAE (Gratuity / Pension legal calculation)

According to me as company code is an legal entity, We need to resign the emplyee in one company code and hire him in another company code. What you say? OR any best SAP Preactice ?

Thanks

Jay

[Former Member]

Hi, All!

We had the same situation. In June we had to transfer employees from one company code to another (newly created), but that were two different legal entities. So according to legislation we did End of Employment action in one company code, and hired people to new company code. As master data stays the same, system allowed to link old personnel number with newly generated.

I would suggest that it would be better not to transfer them also from the legal point of view.

[Former Member]

Hello Jay,

You need to have different PAs for different company codes and assign those PAs to the respective company codes (check IMG: Enterprise Structure -> Assignment -> Human Resources Management -> Assignment of Personnel Area to Company Code).

Now you need to run action (transfer or org reassignment) wherein you will change the existing PA (belonging to one company code) to another PA (belonging to different company code). This way the employee master in IT 0001 will show different company code from the date of such action

Goto PA40, choose Transfer actionChange Info group

0001 COP

0006 COP

0009 COP

0007 INSS

0008 COP

0014 COP

0015 COP

0588 COP

OR

Perform the action Organizational reassignment in PA40 for that employee and change the personnel area. by changing the personnel area the company code will cahnge automatically

regards,

[Former Member]

Dear All, Thanks for your valuable suggestions - According to you guys changing personal area will achive the result But when it comes to legal reporting - Here in UAE we have gratuity calculation for Expats and Pensions for Locals - And those Provisions may affect , What you say?

Thanks

Jay

[raghu_c]

Yes statutory details need to be populated.

Raghu

[Former Member]

Firstly u have to create a new personnel areas and assign company code to the new ones and then try transfer action.

Don't directly change new company code to the old personnel areas

Best Regards,

[raghu_c]

As Skinidar pointed out termination would not be a solution, however Transfer from one company code to another can be easily achieved. As far as the statutory requirements are concerned,you may have to write reports to achieve the final results.

Lets wait for more expert advice

Raghu

[sikindar_a]

Jaydev

Its means apart from termination, all other activities related to other actioins will be done in another company code right, If yes , i feel it is not good practice

Since there will be difficulty in manageing the employees master data and processed data in Payroll