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Could changing the field label (not the API name) in anyway impact reporting in any way? I'd think that all reports would all be backed by the API names, but I wanted to make sure.

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Yes and no. No, it will not break the reports in Salesforce. Yes, it may break integrations. It may also confuse your users, if they are not expecting it.

Scenario:

User exports a report for a mail merge. Changing the column names breaks pre-configured merge fields.

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