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Can you please help me writing correct formula that "highlight a cell in Sheet2 when the same value already available in the Sheet1(of another workbook) cell with a "DONE" value in adjacent column"

I have tried and come up with the following formula to put in Conditional Formatting custom formula box. =COUNTIFS(IMPORTRANGE("1dZmyi6HqjAQ4ddfaGS4afdYCCYsYXVu8Fa8JZoEbYYvWRnRrvw","⚗️ ALL PROJECTS!A3:R")D:D,D4,R:R,"DONE")

Unfortunately, its not working.

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AFAIK this can't be done in a single conditional formatting. You'd be better of importing the data in a separate tab and then using the traditional conditional formatting to achieve your goal.

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