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When the source display item is changed, the system looks for all the display items that are dependent on it (there may be more than one).
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If a blank display item is selected and the display item is required, then the dependent display items are also cleared.
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If the display item is not required, then the dependent display items are populated with the complete set of values. This is what happens on the initial load of the form.
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For each dependent display item (target) relationship from the source, the display item is expanded to get the entries needed to populate the control. If the target display item already has a value and it exists in the new set of entries, then it is selected; if it doesn't exist, then it is cleared.
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For Update dialog boxes where there is a related item, for example, the company and controlling recipient relationships have been created. The combo box on the Update dialog box will default to the related value.