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A "circular reference" is created when you refer to the same cell either directly or indirectly
Here is a simple method to solve the circular referencing problem
Suppose a company XYZ gives commission to its Manager on the Profit after tax after charging the commission
Here is the data used
Manager’s Commission is 5% of the PAT of XYZ Company. But to calculate PAT, calculating Manager’s Commission is required. This will cause “circular referencing” error
"Excel will show a “circular referencing” error. To solve it Go to the File> then to options Tab
Options Tab go to Formulas and Check the “Enable Iterative Calculation.” After checking the box, click on OK
Once you click on OK the problem of “circular referencing” will be solved
Contributor:Ankit Agarwal.
Freelancer at Upwork, Ex Junior Associate at Leveraged Growth. I work on MS Excel MS Word Projects to fulfill client's requirements. I have a keen interest in Automation, Visualization, Analysis of different data and continuously trying to learn and improve on it. Also, I'm pursuing CFA and have a bachelor's degree in Accounts and Finance.
