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I'm trying to set up list where a user creates an item and when someone else updates it, the creator of the item is sent an email alert. I thought is was just the "Advanced Settings" in the List Settings, then in the "E-Mail Notification" area, select "Yes". And as the description states, "Send e-mail when ownership is assigned or when an item has been changed."

Is this the correct OOB way of doing it?

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What version of SharePoint are you using / Can you provide screen shots? I think that you are enabling alerts on the list, if so then the end user that needs to receive the alert will need to setup an alert on the list. Otherwise you need to setup a workflow to email a user or group when an item is changed in the list.

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As per my understanding you want a email alert on list item modification. There is two options.

  1. Using OOTB you can send only for specific users mails for notification but not possible.
  2. If in cash under your list entering the data for different different users then you can not achieve it using OOTB,I'll Suggest you then go with custom workflow.

or if you want simple a alert only for some specific users/group/admin only so you are going right way, plz go head with OOTB. for more information I'll send you a link below.

go through the below link for understanding full details regarding the alert. ping me if need more.

https://sharepointmaven.com/how-to-create-sharepoint-alerts/

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