What is the difference between picklist and lookup? and when to use them?
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A picklist allows you to create a list of options for the user to select from. Generally, the user is restricted to the values in the list but there is an option to allow the user to enter their own values. A lookup 'points' to another record. Think of records you have viewed with fields that appear as a link to another record. These are usually Look-up or Master-Detail fields. You can find information on all the fields at https://help.salesforce.com/articleView?id=custom_field_types.htm&type=5