We have an office in UK who uses connects to our US office instance of Dynamics GP. Is it possible to run the UK Localization & the US Localization on the same instance depending on who logs in.
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Yes this is possible and many people do it. You just need to have two installs of GP one for US and the other for UK. Then you could rename the shortcut so users know which one to log into. Remember that when you apply a SP/hotfix or upgrade to a new version you need to upgrade modules for both installs.
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