2809138 - Unable to run Payroll for Employee Linked to Payroll Group of Localized Country and Business Residence in Non- or Pre-Localized Country

You try to setup payroll and compensation functionalities in SAP Business ByDesign. You re-hire employees from a non-localized/pre-localized country to a localized country.

Employees are associated to a payroll group of a localized country. Employees are linked to a business residence in a non-localized or pre-localized country.

Currency is set to currency of a non- or pre-localised country.

But you are unable to run the payroll for them.

SAP Business ByDesign

A combination of a business residence in a non-localized country and payroll in a localized country is not possible. The reason why it is not possible is that the org structure of the company needs to be consistent and that the setup of the org structure will impact the way legal reporting is done.

The org structure represents the company and defines the structure of the company. It consists of org units that represents the departments or divisions of a company. The org structure is a hierarchy of companies, business residences, costs centers and reporting line units:

Company:

The company, including the country of registration, represents the legal employer of each employee and is mandatory for the work agreement. It enables the system to determine a company for each employee and is used to check whether the hire country is the same as the country of registration of the company. If the hire country is different than the country of registration of the company, then you will not be able to run the payroll.

Business Residence:

A business residence is required for personnel administration. A business residence needs to have the address of the localized country in order to run a payroll for the localized country. If the address of the business residence is different to the address of the localized country, then you will not be able to run the payroll.

Cost Centers:

Cost centers are required in the org structure. Employees can only be assigned to org units that are cost centers or lie below cost centers.

Reporting Line Units:

Reporting line units are required for personnel administration. Employees need to be assigned to at least one org unit. Employees can only be assigned to org units that are or are below reporting line units. If you assign an employee to an org unit and to a reporting line, then it determines the company to which the employee is assigned. It must be the same country of registration of the company.

There are two possibilities how you can setup payroll and compensation functionalities for non- or pre-localized countries:

• You might consider storing the compensation data outside SAP Business ByDesign (see guide below).
• You can contact any SAP implementation partner and ask for an add-on solution for leave management, compensation and payroll for the SAP Business ByDesign system.

A guide about organizational management can be found here

A guide about storing compensation data outside SAP Business ByDesign can be found here

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