Though it is usually preferable to avoid circular references, they will appear occasionally when building complex calculations. One common example is in tax accrual calculations, where federal income tax is deductible on state tax returns. Here, since federal tax is deductible on the state return, and state tax is deductible on the federal return, a circular reference exists by the very nature of the calculation. By default, Excel treats such calculations as errors. In this tip, you will learn how to enable circular, or iterative, calculations. …...more
...more
Show less