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One of the great features of the output tool is the option to take the file or table name (or part of it) from a field. It allows you to append a suffix, prepend a prefix, change the entire file name, or the entire file path. It also gives you the option whether to keep the field on output.
One instance where this is especially helpful is if you have a process that runs regularly but you don't want to overwrite the output file every time. You can use the datetimetoday() function (date time functions) to find today's date and then use that to update the filename.
For excel files, things work a little differently because of the filename format as filename.xslx|||SheetName.
The option Change File/Table Name will update the sheet name, not the file name.
In order to update the filename, you have to select the option Change Entire File Path. Upstream, you will have to create a field that contains the entire file path. Here is an example of a full file path that uses today's date as the filename: