Intercompany Transfer - Hire Date

[VicenteAznar]

Good morning Experts,

I was reading the SAP best practices for transfers and I would like to know which process is the best for this case:

Employee to Company A to Company B in the same country. The hire date must be updated with the transfer date.

• As Best Practices says, just perform a company and position job info change and that's all. However, in the situation that the Hire date must be updated with the transfer date, I don't know if forcing that date change with a Business Rule can lead to future configuration errors, like time Off or others. Furthermore, if you want to pay out the remaining days of the time account types it has to be manual.
  
  
• Terminate the employee and rehire him with Rehire employee. Common practice in Spain, which performs automatically the payout remaining days and updates the Hire date. This requires an extra Payroll configuration and I'm not sure if can lead to future problems.
  
  
• Terminate the employee and rehire him with Rehire with new employment. This situation is the correct way for international transfers and it's recommended even with local transfers, but can be confusing for the customer if the employee has many local transfers (multiple employments).

Thank you in advance

[nlgro023 · Accepted solution]

A very important question before any best practice is, what does your payroll accept / what do integrations accept?
There are a lot of integrations that absolutely don't allow someone to change companies (legal entities - even in the same country), which can then dictate how you must arrange the process in SF (which is often terminate and rehire - potentially on a new employment).

Often therefore the third option is unfortunately favoured over the 2nd one (which from an SF perspective is better). It all depends on what your receiving systems can handle (or how integrations can cope with it).

[VicenteAznar · Accepted solution]

Thank you so much for your answer.

My customer is using S4HC with payroll integration, so probably the third option is the most accurate option, even if the user ID is changed every time and multiple profiles are created. Or even maybe the first one, in the case that they don't need to update the hire date, just perform a company change in the same country, right?

[nlgro023 · Accepted solution]

Unless a BAPI is written to facilitate the management of the implications of the company change (I've had 1 customer do that), option one is most definitely not an option as S4 and R3 don't exactly like those kind of changes normally, hence is why I see 3 often (not so much due to SuccessFactors, but due to receiving systems).

[VicenteAznar · Accepted solution]

Thank you so much.

One last question, if one day the employee wants to come back to the previous company, I assume that I can reuse the old employment ID (terminated) and perform a rehire (without new employment) because the company would be the same than he had at the begining, am I right?

Company A-> Company B: Use Rehire with new employment

Company B -> A : check for the terminated A company profile and perform a Rehire

Thank you so much again

[nlgro023 · Accepted solution]

If you use the rehire transaction you might have a shot at it, because the regular match feature may not directly show clearly which one you'd rehire the employee on.
I doubt many receiving systems will however like it if you rehire on the old id to be honest.