Hi Melissa,
Could you please check whether this personnel area has been assigned to the Company code to which the employee is being transferred?
Because there is anode ' Assign Personnel Area to Company code' in which you can assign the personnel area to company code. So, when the transfer takes place, the payroll area have to default based on the personnel area / company code based on the set up in ABKRS.
Please provide screenshots of your config which will become easy to analyse.
There is another possibility that your company code has been assigned to same payroll area which can be defined in IT1008 (Accounts assignment) from OM end.
Your scenario is about legal entity transfer. When employee transfers from one company code to another, his position, existing benefits, work rule, payments, benefits changes.
However, in your scenario, it has to change the payroll area. So, you should start looking from the config of your personnel action ( legal entity transfer) and see that your personnel area is assigned to the company code.
Thanks,
Madhav.