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Why are there column label variances with Custom Report Types?

Knowledge Article Number 000233137
Description When working with custom report types you may find that fields added to the report using via lookups may not display with the same label as defined on the custom report type.

This has an immediate impact when attempting to add a cross block grouping.
Resolution Standard Report Types will always display the label as defined on the field itself.

When a Custom Report Type is used fields included via a lookup or master detail relationship will also be appended with the Object Name.

For Example: 
On Standard Reports the label for the Account field will be displayed as Billing Country.
On Custom Report Type based off of the Contact and the field pulled via the Master Detail relationship with Account, the label would be displayed as Account: Billing Country

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