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I recently installed the Account Engagement (formerly Pardot) app in production and refreshed the sandbox from production. While I can see the option to create business unit in production, it’s not visible in the sandbox. Could someone guide me on what I might be missing

Sandbox Behaviour

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You only get Sandboxes with Advanced & Premium editions of Account Engagement. You can pay extra for it in Plus I think, talk to your AE.

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