Subsidiary company, differentiate the client or company code?

Hi All,
I have a question. I am new to SAP and I want to implement SAP HR in subsidiary company. I will use the same server which has been use by parent company. The business process will be different between the two company and also the data will be separate completely.
Do I need to differentiate the client? or better just differentiate the company code?
What are the advantages and disadvantages between the two options?
Thank you for your answer. It will be very helpful for me.
Best Regards,
Mart.

Hi Mart,
Because there usually is more than one way to do something in SAP, I will take the opposite view.  You should have only 1 production client, but separate the subsidiary by Company Code.  Thus, you will only have to do configuration once, rather than separate configuration in each client.  Also, master data is client specific, so you could not report on subsidiary employees if logged into the parent company client.  Employees could not be transferred between clients so you would have to terminate the employee in one client and hire them into the other.  Could easily do a transfer without having to recreate all master data by only a change in company code.  I know they promise there will be no transfers, but I guarantee after go-live, there will be many.  You did not mention Payroll or Benefits, but if either is managed by the Parent Company, then you would want all set-up and record generation done in one client, again arguing for all the master data to be available in that client.  You are also doubling the work for your Basis team by having to apply all updates, Support Packs, etc. in both clients.
You may get arguments either way, it is up to you and the company which would be the better approach.
Paul

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