Have you ever experienced the dreaded “Circular reference warning” popping up when you opened an Excel file or entered a formula?
Excel detects a circular reference when a chain of calculations visits the same cell more than once. Many users get (very) confused by this message and have no idea what it is about. I’ll tried to demystify that message in a new article:
The article contains these chapters:
Simplistically speaking there are only a few types of circular references to discern:
Deliberate circular references
Accidental circular references
If you want to work with circular references, the calculation settings of Excel are very important. This page gives you some pointers!
Whereas I am no fan of using circular references, they can be beneficial to your model and really solve the problem you are trying to solve. So here is some advice on how to properly work with them.
This page shows a couple of reasons why circles are not detected.
Jan Karel Pieterse