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The short answer is yes, you can use a concatenated field in a value list. However, such a field must be indexable. So if you're using an unstored calculation (for example), then the value list won't work.
A concatenated field can be used.
But the question of whether the concatenation needs to be indexable depend on the type of value list.
Basically, for a value list based on related records, the "display value" does NOT have to be indexable.
This has always been the case, since the intro of value lists based on relationships.
See attached example, which illustrates several variations on this.
ValueListExample.zip 9.2 K
Thanks for the clarification, Bruce.
Thanks, Bruce. This was an extremely helpful answer and sample file. I FINALLY, after a long, long time of trying to figure out this very problem and reading post after post, this finally connected the dots for me. Thank you!