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Merge field labels remain on the document for unpopulated fields

Knowledge Article Number 000206472
Description Steps to reproduce:
  1. Create a Mail Merge Document for any standard object - Example - Accounts
  2. Ensure you have a Test field in the account object with no value populated
  3. Go to Accounts Tab and click on “Mass Mail Merge” under Tools section.
  4. Select any 5 records from a list and click next
  5. Select the document type as Label and click next
  6. Select the Mail Merge document that was uploaded in Step 1 and click Finish
You will observe that the generated document would show labels with updated information from the Org. But the unpopulated fields are visible in the Merge Format within the file. In the above example the document will retain the value as << Test_Field >>, meaning the field called as "Test_field" is not populated
Resolution There is no way to hide fields that are not populated via mail merge. The fields will show and just have a blank value. This functionality is working as designed.

However for Extended Mail Merge the field shows underscore for unpopulated value (__). There is an idea posted for the same and also a workaround for Extended Mail merge field with blank value showing up in mail merge

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