diff --git a/CHANGELOG.md b/CHANGELOG.md
index 529e62f4..ebab5bc5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,7 @@
 * Update css for fix problem visibility Circulation rules. Refs UICIRC-1311.
 * *BREAKING* Migration from mod-config and mod-settings to mod-circulation. Refs UICIRC-1247.
 * Update permissions after migration to mod-circulation. Refs UICIRC-1324.
+* Fixed an issue where the value containing the previously selected option was not reset. Refs UICIRC-1317.
 
 ## [11.0.4](https://github.com/folio-org/ui-circulation/tree/v11.0.4) (2024-12-10)
 [Full Changelog](https://github.com/folio-org/ui-circulation/compare/v11.0.3...v11.0.4)
diff --git a/src/settings/CheckoutSettings/CheckoutSettings.js b/src/settings/CheckoutSettings/CheckoutSettings.js
index 2aac4b34..e8875139 100644
--- a/src/settings/CheckoutSettings/CheckoutSettings.js
+++ b/src/settings/CheckoutSettings/CheckoutSettings.js
@@ -75,7 +75,9 @@ export const normalize = ({
     .filter(([_key, value]) => value === true)
     .map(([key]) => key);
 
-  const selectedCustomFieldPatronIdentifiers = customFieldIdentifiers.map(i => i.value);
+  const selectedCustomFieldPatronIdentifiers = useCustomFieldsAsIdentifiers
+    ? customFieldIdentifiers.map(i => i.value)
+    : [];
 
   const prefPatronIdentifier = [
     ...selectedDefaultPatronIdentifiers,
diff --git a/src/settings/CheckoutSettings/CheckoutSettings.test.js b/src/settings/CheckoutSettings/CheckoutSettings.test.js
index ea20bcb0..2514ca48 100644
--- a/src/settings/CheckoutSettings/CheckoutSettings.test.js
+++ b/src/settings/CheckoutSettings/CheckoutSettings.test.js
@@ -166,4 +166,54 @@ describe('normalize', () => {
       wildcardLookupEnabled: false,
     });
   });
+
+  it('should not include custom field identifiers when useCustomFieldsAsIdentifiers is false', () => {
+    const input = {
+      audioAlertsEnabled: true,
+      audioTheme: 'modern',
+      checkoutTimeout: false,
+      checkoutTimeoutDuration: '5',
+      identifiers: {
+        barcode: true,
+        custom: [{ value: 'customFields.cf1' }, { value: 'customFields.cf2' }],
+      },
+      useCustomFieldsAsIdentifiers: false,
+      wildcardLookupEnabled: true,
+    };
+
+    expect(normalize(input)).toEqual({
+      audioAlertsEnabled: true,
+      audioTheme: 'modern',
+      checkoutTimeout: false,
+      checkoutTimeoutDuration: 5,
+      prefPatronIdentifier: 'barcode',
+      useCustomFieldsAsIdentifiers: false,
+      wildcardLookupEnabled: true,
+    });
+  });
+
+  it('should include custom field identifiers when useCustomFieldsAsIdentifiers is true', () => {
+    const input = {
+      audioAlertsEnabled: true,
+      audioTheme: 'modern',
+      checkoutTimeout: false,
+      checkoutTimeoutDuration: '5',
+      identifiers: {
+        barcode: true,
+        custom: [{ value: 'customFields.cf1' }, { value: 'customFields.cf2' }],
+      },
+      useCustomFieldsAsIdentifiers: true,
+      wildcardLookupEnabled: true,
+    };
+
+    expect(normalize(input)).toEqual({
+      audioAlertsEnabled: true,
+      audioTheme: 'modern',
+      checkoutTimeout: false,
+      checkoutTimeoutDuration: 5,
+      prefPatronIdentifier: 'barcode,customFields.cf1,customFields.cf2',
+      useCustomFieldsAsIdentifiers: true,
+      wildcardLookupEnabled: true,
+    });
+  });
 });