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Registration IDs

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Hello all,
 
- Can someone explain the purpose od Registration IDs (on Vendor and Customers master data)?
- And why this has to be maintained on each legal entity for same unique Vendor/Customer (uniqe name, address, VAT number)?
- What wod be the best way to update Registration ID across the legal entities and to skip potential data conflict across legal entities?
 
Thank you for your help, 
Tamara 

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