The y and n you see on those pages answer 2 different questions.
1. Is this COR allowed to call that COR?
The COR you're viewing (say, COR 2) may or may not be allowed to call phones, or use trunk groups, or other system objects that have the COR listed in the with the y or n.
Creating limitations like this would allow you to (for example) prevent a phone from placing calls across Long Distance trunks, but allowing it to use local trunks. The more CORs you allow this one to have access to, the more permissions it has.
2. Can this COR service observe that COR?
The COR you are viewing may or may not be able to service observe calls that are happening on system objects (stations, VDNs, etc) based on the permissions of that page. This allows you to create stations that are specifically permitted to service observe agents and VDNs in your call center, but not permitted to service observe the calls placed by the manager of HR.
For the most part, admins will create COR groups that are sequentially numbered, and have permissions that get more broad as the numbers increase. (More calling permissions for example.)
If you make use of Service Observe as a feature (because you have a call center) you will typically have a corresponding set of CORs that are devoted to agents and the call center managers who work with those agents. They will service observe permissions, in addition to calling permissions.
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