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Payroll Organizational Changes Made Easy with Recodification Rules Tool by SAP Globalization Services

Every successful business requires legal work behind it to ensure its compliance. SAP Globalization Services safeguards that companies are in adherence with local and global legal regulations. So, every time governments deliver a legal change, there we are, working closely with SAP’s customers to help them on their journey to adhere to legal mandates and to provide them peace of mind.

Recently, Mexican companies were challenged by a major legal change with an Outsourcing Reform. Within three months, companies had to adapt their processes for working with third parties. In practice, these adjustments consist of reviewing all payroll calculation rules and schemas used in an organization. Can you imagine how many lines of revised code this could mean for large enterprises running thousands of employee payrolls? Now, can you imagine the fine that companies, that did not take action about this legal change, would be liable to receive?

To help SAP’s customers to successfully address this legal change, SAP Globalization Services delivered a Recodification Rules Tool, which simplifies and accelerates organizational code changes in payroll calculation rules and schemas. Tests with pilot customers demonstrated that the tool could reduce code reviews that would take days or weeks to just a few minutes. In a specific test case where 52.000 lines of code required revision, 3.000 lines were identified by the tool as subject to change to comply with the new regulation. The whole process of revision, identification, and adjustment of the code was completed in less than a minute by the Recodification Rules Tool.

The creation of the tool was triggered by the use case of the Mexican Outsourcing Reform, yet the tool can be used worldwide for any other business demand that requires changes in the concept of payroll rules and schemas. This means that any customer in any country can benefit from this solution. Helping SAP’s customers remain compliant by building things that matter is a top priority at SAP Globalization Services.

Special kudos to Hugo Rodriguez, Local Product Manager for HCM Payroll Mexico, who drives this project and was nominated to the Services Heroes Awards for his amazing initiative that will deliver outstanding business value to SAP’s customers.

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