According to the official Microsoft SC-300: Microsoft Identity and Access Administrator St udy Guide and Exam Ref SC-300 textbook, when configuring Entitlement Management in Azure AD Identity Governance
, connected organizations are used to define which external directories or domains are allowed to request access to specific access packages. A c onnected organization represents a single external organization whose users can be invited as guests (B2B collaboration users) or allowed to request access packages.
Each connected organization is identified by its verified domain names. For example, if yo u have two separate companies, Fabrikam, Inc. and Litware, Inc. , and they each have distinct verified domains - fabrikam.com, adatum.com (for Fabrikam), and litwareinc.com, contoso.com (for Litware) - they must each be configured as separate connected orga nizations because connected organizations are defined at the organization level, not per domain.
Even though each organization may have multiple verified domains, the configuration treats all of an organization's verified domains as part of the same connec ted organization. Therefore, to allow users from both Fabrikam and Litware to request access to Package1 , you must create two connected organizations - one for Fabrikam and one for Litware.
This behavior is confirmed in Microsoft documentation and training modules under "Manage connected organizations" in Azure AD Entitlement Management, which states that "each external organization that requires access must have its own connected organization entry, regardless of how many domains it owns."