Here is a tricky problem often faced by accountants and finance professionals: Let’s say you have 5 customers. Each of them need to pay you some money. Instead of paying the total amount in one go, they paid you in 30 small transactions. The total amount of these transactions matches how much they need to pay you. But you don’t know which customer paid which amounts. How would you reconcile the books?
If you match the transactions manually, it can take an eternity – after all there are more than 931 zillion combinations (5^30).
This is where solver can be handy. Solver can find optimal solution for problems like this before you finish your first cup of coffee.
Reconcile debits & credits using solver model – Tutorial
Step 1. Set up your solver model
In a blank sheet, list credits along a column and debits on the top in few columns, as shown below:
In the blank grid, Solver will fill 0 or 1 indicating whether credit in that row is matched with debit in that column or not.
This area is (C6:G35 in my workbook) is known as variable cell range in Solver model.
There are 2 rules to be followed when matching debits to credits:
- A credit can be matched with only one debit – ie sum of any row in C6:G35 range can be 1, at most.
- Total reconciled amount should be less than or equal to total credits – ie sum of any column in C6:G35 should be less than values in C5:G5 (debits).
To facilitate these rules, also known as constraints in solver parlance, let’s use column H & row 36.
- Write =SUM(C6:G6) in H6 and fill down the formula.
- Write =SUMPRODUCT($B$6:$B$35,C$6:C$35) in C36 and drag sideways to fill the formula in rest of the columns.
Our solver model should look like this:
Step 2: Set up optimization cell
To do its work, solver needs an optimization cell. Our goal is to maximize the amount of reconciled amount. So, in a blank cell write =SUM(C6:G36). This will be our optimization cell.
Step 3: Launch solver
Select the optimization cell (in my workbook, this is J6) and go to Data > Solver. (If you do not have solver, enable it using these instructions.)
Set up solver model as:
- Objective is to to maximize J6.
- Variable cells are C6:G35
- Constraints
- C6:G35 should be binary (o or 1)
- C36:G36 should be <= C5:G5
- H6:H35 should be <= 1
- Solver method is Simplex LP (our problem is linear)
When you are ready, Click Solve. Solver should take few minutes to find the solution.
Step 4: Examine the result
Once solver finds an answer, it will show Solver Results dialog. Click ok (you may also look at the sensitivity report). This loads the solver solution in to variable cell range.
Analyze the numbers and enjoy.
What if Solver solution is not optimum?
Occasionally, Solver fails to find optimum solution for linear problems with integer constraints. In such cases, try again by adjusting constraints & precision.
Download example workbook
Please click here to download the example workbook. Play with the solver model to learn more.
Other ways to reconcile data
If you deal with reconciliation problems, check out below examples to learn more:
- Match transactions using formulas
- Matching transactions using VBA macros
- Compare 2 lists using Excel conditional formatting
- Introduction to VLOOKUP formula – the easiest way to reconcile data
- Use SUMPRODUCT to consolidate revenues
How do you reconcile data?
Solver is a powerful way to reconcile data. It does take some time to set up the model and configure solver, but once your model is ready, Solver does all the heavy lifting.
What about you? What methods do you use to reconcile data? Please share your thoughts and tips in the comment section.
40 Responses to “Lost Excel Functions”
Of all the functions, I think the BAHTTEXT function is the biggest "Why is this here???"
It's use would be limited to a very, very small demographic. A better function would have been a generic translate function where you pick the language (even if it was only the top 5 or something...)
Lost by whose definition? Some people use these functions(me). There are alot of words in English dictionary that aren't used.
This is a great post, especially because I love Lost. Thanks!
See the following blog post on Excel Semi-Pro which identifies the flaws with the DATEDIF function.
http://excelsemipro.com/2011/01/how-many-years-months-and-days-has-it-been/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ExcelSemi-pro+%28Excel+Semi-Pro%29
Nice Post Hui. It is amazing what is in the program that you have never heard of. I typed in =d and looked at the functions. "Delta" popped out although it is documented, why would you ever use it vs. just comparing with an equal sign (=1=1).
I use Datedif at times. What will be nice is if alternatives to these "Lost" functions can also be posted with examples. That'll be a good reading and also deter users from using functions "soon to be made obsolete"
I don't think the intersect AND logic is very well documented:
=B1:B3 A2:C2 One intersection
=SUM(D9:F9 E8:F10) Two intersections
=SUM(D9:F9 E8:E10 F8:F10) No intersection --> #NULL! Not seen very often
There might be a OR logic lurking as well
//Ola
Interesting post! 😉
I found out that only "evaluate" isn't available in my excel 2007.
Great post, thanks Hui! 🙂
@Fred
Evaluate is a Excel 4 Macro Function and not a spreadsheet function
It can only be used in Named Ranges and VBA, not as a spreadsheet function.
@OlaSa
I forgot all about the 2 Operators you mention.
Daniel at Excel Hero has done a story about them at: http://www.excelhero.com/blog/2010/06/which-function-to-use---part-1.html
@Steve T
Yes, Delta and Gestep are odd functions and easily replaced with alternative logic.
These 2 functions may have uses in handling ranges and not just single cells.
I read somewhere not too long ago (at Daily Dose, possible) that BAHTTEXT is "rumoured" to be a self-interested joke by the MS Excel programmers: although this function would be at least equally useful for other currencies, they did the baht first because they're extremely partial to Thai takeaways and wanted to speed up the turnaround time
...and why isn't there a reverse ROMAN?
there is, just replace Roman with Arabic
=ROMAN(2023) is MMXXIII
=ARABIC("mmxxiii") is 2023
Hi Hui,
I think you have mis-defined the Result range name because you have made the name relative. The proper formula should have been
=EVALUATE($A$1).
NB: I use the technique in this post: http://www.jkp-ads.com/articles/chartanequation00.asp
Found this posting with some User Defined Functions and VBA for reversing Roman Numerals:
http://www.excelbanter.com/showthread.php?t=141566
Hi Hui - Thanks for the post - a little off the excel topic, but wondering what does "you"ll be the full bottle" mean? Have never heard this expression before. 🙂
@Tra
“you'll be the full bottle” is Aussie slang for "You'll know all about it"
@Jan Karel Pieterse
Thanx for the input
.
=Evaluate(A1) is ok as long as A1 is the active cell
It can create problems if it isn't.
.
Ideally it should be entered as =EVALUATE(SheetName!$A$1)
I have updated the post accordingly
Further info on DELTA:
Have 1 cell formatted to number (a1), and the other formatted to text (a2).
Type the number 1 into both cells
The formula:
=A1=A2
returns FALSE (number does not equal text)
formula:
=DELTA(A1,A2)
returns 1 (the equivalent of true). I see limited places where this would be useful, but wanted to point out that they do function differently.
In Excel2010
I just tried Delta with
2 2 =Delta(A2, B2) =1
'2 '2 =Delta(A3, B3) =1
'2 2 =Delta(A4, B4) =1
C C =Delta(A5, B5) =#Value!
Lines 3 & 4 should also give errors but don't ?
The formatting of the cells shouldn't affect the results as that is just for display
Great post.
Interesting that the roman function returns a #value! if you go any higher than 3999
@Chandoo Not trying to be a shameless self promoter (I just want to spread the Excel awesomeness) but I've found an obscure way to create a mouse-over effect in Excel using the Hyperlink() formula and some VBA. I've used this technique in some of my dashboards at work, and as an example of how it's useful, you could use it in the Grammy Bump chart to simply let users rollover a year instead of clicking on it. I talk about it in the latest post of my rarely updated blog which is linked on my name in this post. Or, here's the long and short of it:
.
=HYPERLINK(MyFunction(), "Mouseover me!")
.
Then in some module:
Public Function MyFunction()
Msgbox "hi!"
End Function
.
To test: place your mouse over the underlined portion of the cell. To make the entire-cell a mouse over target (not just the underlined portion), word wrap it. Also, if you want the function to change parts of your spreadsheet, you'll need to wrap the Hyperlink formula in an IFERROR (you'll see what I mean when you try it). Or you can read about it by clicking on my name, either way, make sure to have fun!
@Hui
Seems like DELTA has the advantage in being able to recognize "text as numbers". And yes, thanks for clarifying my statement about formatting. I should have been clearer in the fact that I just wanted to compare a text string with a number...in which case, maybe I should have just written:
=DELTA(1,"1") 'Results in 1
@Jordan... wow, that is a beautiful trick. I have not yet tested it, but seems like it has lots of potential. Let me play with the idea and may be write a follow-up article on this.
Btw, you are welcome to share information and links. That is the whole point of commenting. 🙂
Alright, i am no engineer, but a simple formula can also do what Delta does without having a whole function for it. That is like creating a function called Add (Syntax =Add(a1,a2) that results in the addition of A1+A2
This will do what delta does on numbers and textNumbers and its not rocket science or structural engineering 🙂 🙂
=VALUE(A1)=VALUE(A2) will also yield true/false
And if you need the result as a number =(VALUE(A3)=VALUE(A4))*1
@SteveT
You know, they invented this function you described in Excel. It is called SUM, not ADD 🙂
There are also functions PRODUCT, SUMPRODUCT and others. All of them simple definied, and it doesn't mean they aren't to be in Excel.
Of the under-used functions, I think Evaluate is probably the most useful.
The short UDF presented here:
http://newtonexcelbach.wordpress.com/2008/04/22/evaluate-function/
allows Excel to evaluate functions entered as text, without the need to create named ranges.
An application using this function can be downloaded here:
http://newtonexcelbach.wordpress.com/2008/03/25/section-properties-of-defined-shapes-spreadsheet/
thanks for this. I hope to use "convert" more frequently henceforth
@ruvelk and @Chandoo
I checked out the link you provided (ruvelk) and the explanation given of the intervals 'MD' 'YM' AND 'YD' provided above (Chandoo) and the information is not quite correct.
'MD' returns the number of days since the last completed month.
'YM' returns the number of months since the last completed year.
'YD' returns the number of days since the last completed year.
As far as I can see there is no flaw in the function just perhaps a misunderstanding of what is does.
eg
using the 'MD' interval
02/28/2010 to 01/11/2011
Last completed month = 12/28/2010
Number of days between 12/28/2010 and 01/11/2011 = 14
Using 03/01/2010 to 01/11/2011
Last completed month = 01/01/2011
Number of days between 01/01/2011 and 01/11/2011 = 10
Cheers
Andrew
@Andrew
I think we are talking about the same thing in different ways.
From the post:
"md" Days Excluding Years And Months Complete calendar days between the dates as if they were of the same month and same year.
so using your dates
28/2/10 to 11/1/11 will count 29, 30 and 31 as if they are in January and then the first 11 days in January = 14 days.
That is, it is counting the dates as if they are both in January, same year, and so there is 14 days between them.
Hi,
Can any one tell how to enter data into range of cells through a single cell without the help of VBA.
Regards
Chandra
@ Chandra
Can you be more specific?
@Chandra
If you type this into A1:
={1,2,3;4,5,6;7,8,9}
then select A1:C3 and use Control+Shift+Enter
You will get a 3x3 array in A1:C3
The formula in each cell in that range will be:
{={1,2,3;4,5,6;7,8,9}}
Commas separate columns. Semicolons separate rows,
This is of limited use since the cells in this array cannot be individually edited.
There is at least 1 Excel 4 macro that provides functionality that cannot (AFAIK) be replicated in later versions of Excel. GET.CHART.ITEM is used to get the exact coordinates of chart elements, including the coordinates of individual points in a line graph (or edge and corner cordinates of bars, or columns for those types of graphs). For example:
sngXPos = ExecuteExcel4Macro("get.chart.item(1,1, ""S2P" & lX & """)")
returns the X position of each point in series 2 of a line graph as you iterate from 1 To ActiveChart.SeriesCollection(2).Points.Count
Documentation file for Excel4 macros available at:
http://support.microsoft.com/kb/128185
Excel 2010 has incorporated most (but not all?) of this functionality as described here:
http://blogs.office.com/b/microsoft-excel/archive/2010/02/16/migrating-excel-4-macros-to-vba.aspx
Unfortunately, I don’t see Evaluate working in Excel 2010.
I have Microsoft Office Professional Plus 2010.
When I try it myself, or download the example file, I have #NAME?
result in the cell containing “=Result” formula.
The Evaluate function does work in Excel 2010 and 2013.
It is called from a VBA function, so maybe the problem is that macros are not enabled.
[…] To know how many months are left between TODAY() and date in A1, use = DATEDIF(TODAY(), A1, “m”). Related: How to use DATEDIF function. […]
[…] To know how many months are left between TODAY() and date in A1, use = DATEDIF(TODAY(), A1, “m”). Related: How to use DATEDIF function. […]
I once ran across an undocumented version of GETPIVOTDATA. The syntax was something like "GETPIVOTDATA($A$3, ...", where $A$# would reference the pivot table then you could concatenate text fields to select the specific data you were after. I found this useful as I could use an IF("condition", "place field text", ""). This way if the "condition" was met it would field data requested otherwise nothing was included. This worked well if nested condition were not available. Hope this is clear. I can't find the alternate syntax for GETPIVOTDATA anywhere. Does someone have it?
@Marty
Yes, GetPivotData is a usefull function but I believe it has been documented since 2007
https://support.office.com/en-us/article/GETPIVOTDATA-function-8c083b99-a922-4ca0-af5e-3af55960761f