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In Summer '16 Automatic Geocoding of data was released. Cool - but how do we use it, and why. 

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From the documentation. 

DISTANCE formulas are supported in:

  • Entry criteria for workflow rules and approval processes
  • Field update actions in workflow rules and approval processes
  • Custom validation rules
  • Lookup filters (in the Metadata API only)

So you can't use them in formulas. 

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Ooh this is an interesting one from the Developer docs

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You can only calculate if a location is further away or closer to another location - not if it's equal to that location - I guess that makes sense because what even does equality mean when they could be in opposite directions away. 

 

So here is a nice post from Gorav Seth on how he added fields onto the User record to set the User's location and then be able to report on Accounts closest to that user's location Geocode all the Records • Gorav Seth