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There is field : "Company Identifier "on Company object. Which having lookup relation with Item Object.

Now i am creating formula field on Item object with the below condition

If Company identifier is equal to "SMI" then on the formula field it should update "SMC" However, Company identifier is a Text field(External ID).

I created a formula using if condition but its showing me an error:

Error: Field SMI does not exist. Check spelling. I am wondering if we can use CASE function ?

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    What is the actual text of your formula field? What are the API names of the fields you are working with, and is the lookup field located on Company or on Item Object? – David Reed Jan 31 at 13:30
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You will have to use quotes while making comparison in the formula. You must have used SMI directly without quotes which is why it is giving you that error.

Your formula should be like this

IF(Company__r.Company_Identifier__c='SMI', 'SMC','Other Value')

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