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The requirement is to get prior value of lookup field (that is parent record) and fetch its field. Is it possible via formula field?

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According to the documentation, you cannot get the previous value in a formula field, as it is not available there.

This function is available only in:

  • Assignment rules
  • Validation rules
  • Field updates
  • Workflow rules if the evaluation criteria is set to Evaluate the rule when a record is: created, and every time it’s edited .
  • Formula criteria for executing actions in Process Builder.
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