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Colin ThompsonColin Thompson 

how to create a picklist

Aiden MartinAiden Martin
Setup...App Setup...Customize...Object (ex Account, Contact, Opportunity)..Fields
Click "New" button on the custom field list.
Select "Picklist" as the datatype
Name field and enter the values you want for your picklist.
Decide who can see it and on which page it will be if you have multiple page layouts.
Edit your page layouts to position the field.

hth.

Aiden