Circular reference

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Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 WHAT DO YOU MEAN BY CIRCULAR REFERENCE IN MS EXCEL AND HOW IT WILL WORKS

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2011 When a formula refers back to its own cell, either directly or indirectly, it creates a circular reference.

A circular reference can have a significant impact on performance because it can iterate indefinitely. Iteration is the repeated recalculation of a worksheet until a specific numeric condition is met.

By default, iterative calculations are turned off in Microsoft Office Excel.

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 If use this method is there any wrong calculation will give or how to avoid this in MS Excel

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2011 YOu can locate & remove a circular reference by adopting the following steps:

On the Formulas tab, in the Formula Auditing group, click the arrow on the Error Checking in-group button, point to Circular References, and then click the first cell listed in the submenu.

Review the formula in the cell. If you cannot determine whether the cell is the cause of the circular reference, click the next cell in the Circular References submenu.
Note The status bar displays the word "Circular References" followed by a reference to one of the cells contained in the circular reference.

Continue to review and correct the circular reference until the status bar no longer displays the word "Circular References

Make a circular reference work by changing the number of times that Excel iterates formulas
If you want to keep the circular reference, you can enable iterative calculations but you must determine how many times the formula should recalculate. When you turn on iterative calculations without changing the values for maximum iterations or maximum change, Office Excel stops calculating after 100 iterations or after all values in the circular reference change by less than 0.001 between iterations, whichever comes first. However, you can control the the maximum number of iterations and the amount of acceptable change.

Click the Microsoft Office Button , click Excel Options, and then click the Formulas category.
In the Calculation options section, select the Enable iterative calculation check box.
To set the maximum number of times that Office Excel will recalculate, type the number of iterations in the Maximum Iterations box. The higher the number of iterations, the more time that Excel needs to calculate a worksheet.
To set the maximum amount of change you will accept between calculation results, type the amount in the Maximum Change box. The smaller the number, the more accurate the result and the more time that Excel needs to calculate a worksheet.

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 Sir,
Thank U Very much I have cleared long outstanding doubt and in Excel Options Enable iterative calculation showing Maximum Iteration 100 and Maximum Change 0.001 is ok for general purpose whether I have to change the Options

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 December 2011 You are welcome.

No need to change the options.

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 THANK U & HAPPY NEW YEAR FOR 2012 WELL IN ADVANCE

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