What is change in legal person in SAP PY - Payroll?

SAP Term: change in legal person

• Component: PY

• Component Name: Payroll

• Description: The term 'legal person' is applied to persons or institutions that are given legal identity in law. In the SAP system, a unique legal person is assigned to each personnel subarea V_001P_G. In the Organizational Assignment infotype 0001 employees are assigned to a legal person. If there is a change in an employee's legal person, this does not require a WPBP split, but means that two payroll results are created. Consequently, special treatment of the payroll result is required in some cases, for example, in the processing of averages or in loans.

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• Key Concepts: 
  Change in legal person is a feature in SAP Payroll (PY) that allows an employer to change the legal entity associated with an employee’s payroll record. This is useful when an employee moves from one legal entity to another, such as when a company is acquired or merged. 
  
  How to use it: 
  To use the change in legal person feature, the user must first create a new payroll area for the new legal entity. Then, the user must enter the employee’s new payroll data into the new payroll area. Finally, the user must transfer the employee’s existing payroll data from the old payroll area to the new one. 
  
  Tips & Tricks: 
  When transferring an employee’s payroll data from one legal entity to another, it is important to ensure that all relevant information is transferred correctly. This includes salary information, deductions, and any other relevant data. 
  
  Related Information: 
  For more information on change in legal person in SAP Payroll (PY), please refer to SAP Help documentation or contact your local SAP support team.