For some reason Microsoft deprecated the functionality to synchronize Excel 2007 with SharePoint lists. Various posts have been written about this and Microsoft even published an Add-In to restore some of this functionality (however, it doesn’t provide the full sync features as in Excel 2003). The solution that works best is a third party IE ActiveX control that intercepts the “Export to Spreadsheet” and returns the full sync functionality back to Excel 2007: http://www.softfluent.com/wsslists.htm
Here are some of the related posts:
http://www.shahine.com/omar/Excel2007CannotTwoWaySyncToSharepoint.aspx
http://support.microsoft.com/kb/930006 (provides VBA code to mimic the functionality)
Microsoft Add-In
http://blogs.msdn.com/sharepoint/archive/2007/06/21/excel-2007-add-in-for-synchronizing-tables-with-sharepoint-lists-now-available.aspx
http://msdn.microsoft.com/en-us/library/bb462636(office.11).aspx
http://www.microsoft.com/downloads/details.aspx?familyid=25836e52-1892-4e17-ac08-5df13cfc5295&displaylang=en (Add-In download)
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