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Custom Object: Create New Cross-Reference Record & Default Values List Field

Hi,

We're using v6.8 P5 and have a leveled app (3 levels).  From level 2, we want to create a level 3 record and a default a values list field.  For some reason, two records are being created instead of one record.  Any suggestions would be greatly appreciated.  

The code is attached.

 

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