We know that the gravitational potential energy of a system consisting of at least two bodies is given by $U=-\frac{Gm_1m_2}{r}$ where masses $m_1$ and $m_1$ are at a distance $r$ from each other. My question is since this energy is defined for a system, what will be the individual potential energies of them?
For example, take the example of potential energy of an object $m$ at a height $h$(which is pretty small compared to the radius of the earth)from the ground. Here we say that the potential energy of the object is $mgh$ which is derived from $\frac{mgh}{1+\frac{h}{R}}$ considering that fact that $\frac{h}{R}=0$. But this energy is actually the energy of the configuration which consists of earth and the object. Then why do we say that the potential energy of the object is $mgh$? Does that mean the potential energy of the earth is also $mgh$?