Linking employees to multiple legal entities and it’s implications

Dear Friends,

Hope you are doing great!! I’m back to present something interesting in HR module.

It’s quite usual that the employees will work in more than one legal entity on the need basis, it happens especially in group companies where the part of employee’s work is in the parent organization and the other part is in one of the other companies in the group.

Suppose when an employee is hired to look after the legal issues or to provide the finance related consulting, then the employee’s services can be utilized by multiple companies and thus the employee record should be linked with more than one legal entity.

As we have Employee master as a shared table across the legal entities, there is an easy way of configuring an employee record to be available for more than one legal entity. On the other side of it, we should also think of the implications which may be practically useful in the other areas of the application.
Let us see how an employee can be linked and managed in multiple legal entities.
To create a new employee, Go to Human Resources>Common>Employees and click “Hire new worker”

“Legal entity” field in the above form shows the default legal entity. When the “Hire new worker” is clicked system considers that the employee is linked with the specific legal entity which is selected in the “legal entity” field.
To link the employee to other legal entity, click on “Employment history” button in the “versions” button group.
Image: employment history.

Click on “New” button and assign the other legal entity for the employee and click ok as shown below.
Image3:

In this demo, the employee is linked with the legal entities “Contoso Entertainment systems Europe” and Contoso Entertain systems (West) i.e., “CEE” and “CEU” and now the employee is considered in both the legal entities.
Employee can have the entire related information specific to the company. For an instance, the employee can be linked with different financial dimensions in both the companies i.e., “Cost center1” in one company and “Cost center2” in the other company.
In “Employment tab”, you can see a drop down listing all the companies that the employee is linked with. Select the legal entity and define the information.
Image: Linking financial dimensions to employee

Also, in the similary way, we can specify the payroll information, Leave data and all the necessary information for the employee for the selected legal entity in the drop down.
When a “user id” is linked with this employee record, he will have the provision to raise the purchase requisition for both the legal entities which can be seen as below.
To link the user id to employee: http://daxing2012.files.wordpress.com/2012/10/users.jpg

With reference to the Procurement, when the user opens the purchase requisitions form, he can select the legal entity in the “purchase requisition line” which enables him/her to request the items for different legal entities that he is linked with.
Go to Procurement and sourcing> Common>Purchase requisitions>All purchase requisitions >Create new requisition.

Image: Purchase requisition

With reference to the project accounting, once if the employee is linked with multiple legal entities, he can be specified as the “Project manager” for the projects in all the legal entities which he is related to.
Image: PA

Important notes:
• Unfortunately there is no option to filter the employees list based on the legal entity. Suppose, incase if for some reason I wanted to pull the total employees list the company “CEE”, I didn’t find any such option available. (Please let me know if anyone managed to find it out, I’m pleasure to update it)
• Unable to link the employee to multiple dispatch teams. Regarding the service management, if the employee is a service profession and looks after the service operations in multiple legal entities, there must be a provision to link the employee to dispatch teams of specific legal entities.
Employees master> Setup button group> “Dispatch team”

Let me know for any questions related to this topic. Your suggestions and corrections are most welcome.
Catch you soon……