Populate a Dropdown list from the database

It will be done by simple steps,

Step 1: What you need to do is to create a custom util function and then tell your vardefs for that field to call the custom util function.

Path: custom/Extension/application/Ext/Utils/<any_name>.php add below your code as per requirement. For example,

function getAccounts(){
    static $accounts = null;
    if(!$accounts){
        global $db;
        $query = "SELECT id, name FROM accounts";
        $result = $db->query($query, false);

        $accounts = array();
        $accounts[''] = '';

        while (($row = $db->fetchByAssoc($result)) != null) {
            $accounts[$row['id']] = $row['name'];
        }
    }
    return $accounts;
}

Step 2: To extend vardefs we need to create a file. custom/Extension/modules/<desired_module>/Ext/Vardefs/<anyname>.php

<?php
$dictionary["<MODULE_OBJECT_NAME>"]["fields"]["<FIELD_NAME>"][function"]='getAccounts';

Step 3: Now go to Admin > Repair > Quick Repair and Rebuild.

Note :

Here, <desired_module> means the module name you see in the URL, for example, Contacts, Leads, etc.
Here, <anyname> means the any file name for example, custom_fields, search_fields, etc.
Here, <MODULE_OBJECT_NAME> means module object for example Account,Contact, etc.

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Thank you.