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.
39 Responses to “11 very useful excel keyboard shortcuts you may not know”
You asked about a favorite keyboard shortcut: I often right click the navigation arrows at the bottom of an Excel workbook to get a list of the worksheets. I can click the one I want without having to scroll left or right.
I regularly use the networkdays(x,y,z) function to show the number of working days between two given dates. To exclude public holidays I reference a list of dates ("z" in the above reference) which I periodically update to reflect upcoming non-working days. To keep the sheet looking tidy for other users, I like to hide this column when I'm done, and then unhide it when I update the sheet.
With 40 separate workbooks to edit, these shortcuts make it a breeze...
? Hide selected column: CTRL+0 [zero]
? Unhide hidden column(s) within selection: CTRL+SHIFT+) [closed parenthesis]
If an "Autofit Selection" keyboard shortcut (not just a key sequence) existed, I'd be as happy as a clam!
you can use Alt+o+c+a to autofit selection
Is there a way to auto arrange the column width as you enter the data. Without a macro
You may use alternative key of hide the selected cell by ---print + H key
Unhide---prnt+U keys
You may use alternative key of hide the selected cell by ---print + H key
Unhide---prnt+U keys
[...] 11 very useful excel keyboard shortcuts you may not know [...]
[...] 11 very useful excel keyboard shortcuts [...]
[...] an Excel Conditional Formatting Rock Star 11 very useful excel keyboard shortcuts 73 Free Designer Quality Excel Chart Templates Tracking mutual fund / Stock portfolios using Excel [...]
Hello Chandoo, thanks for sharing this information. With some of the shortcuts I seem to have difficulties as they do not seem to work on the German keyboard.
Can you maybe verify that those combos are only working with the keyboard setup you are using? What would be a good source to lookup combinations for other layouts?
Regards, 1xoid1
@1xoid1 ... Thanks for visiting PHD and taking timeout to ask your question. Unfortunately all my German can be summarized to one phrase: "guten tag".
I wont be able to help you, but I can request other readers to respond. So if you know German or use German keyboard and can answer 1xoid1's question, then you get a free donut.
Guten Tag 🙂
To Sam Krysiak.
Shortcut to Autofit Selection (assuming you mean autofit columns). If you right click toolbar, click customise. From Commands tab/Categories select Built-in Menus.
In Categories window scroll down and select Columns and drag drop it onto toolbar. Then click the new toolbar Columns button and drag drop Autofit button onto your toolbar (note Autofit for Columns will no longer appear in your menus, only on toolbar).
Remove Columns button from toolbar (if you want to keep clutter down) drag and drop it off of your toolbar.
Close Customise box.
Now to Autofit columns just press "Alt" then "A".
Comment 8 correction - 2nd paragraph should read
"In Commands window...
@1xoid1:
Read the following text as follows: The key ,[;] is the one right to the M on the German keyboard. Here are the differences you have to know when using a German keyboard:
2. Press strg .[:] for inserting the current date (and strg shift .[:] for inserting current time)
3. Press strg ,[;] to copy values from cell above
8. Press strg shift –[_] to apply an outline border
10. Press strg-shift S to activate the font drop down (Schriftgroesse)
11. Press strg-shift G to activate the font size (Groesse)
Number 10 and 11 do not work with Excel 2007 anymore, but strg-shift-P shows the font tab of the cell format dialogue in Excel 2007.
All other shortcuts should work on a German keyboard exactly as Chandoo described them.
More information needed? Download a complete list with all shortcuts for Microsoft Excel in German (for free):
http://www.freeware-download.com/downloaddetails/5655.html
@Chandoo: please do not send a donut, unless you are able to attach one to an email. Otherwise the donut might be able to walk by itself, when it arrives here in Germany...
I forgot to mention:
For all readers using an English keyboard: Chip Pearson offers a comprehensive list of Excel shortcuts on the English keyboard:
http://www.cpearson.com/excel/ShortCuts.aspx
[...] your own keyboard shortcuts in Excel 2007, knowing a few keyboard shortcuts in excel is a huge help. Lyte Byte describes a nifty way to create your own key board shortcuts in [...]
[...] Select a bunch of cells and click on the Sigma symbol on the standard tool bar. Alternatively you can use Alt+= keyboard shortcut. [...]
I do some data entries column A,column B ,Column C , A and B have 10 to 12 digit codes , C has the names ; Kindly suggest me a format or formula for excel to avoid duplication of entries in all the the three columns.
Regards,
Prashant
@Prashant... You can use conditional formatting to highlight duplicate entries in the three columns. That way whenever you type a dupe value in a cell the formatting would highlight the values so that you can avoid the error.
check this post for more on using this way to handling duplicates: http://chandoo.org/wp/2008/03/13/want-to-be-an-excel-conditional-formatting-rock-star-read-this/
If you are looking for a way to remove duplicates from an existing range, you can try one of the various techniques we have described here. Try these tips:
http://chandoo.org/wp/2008/11/06/unique-duplicate-missing-items-excel-help/
http://chandoo.org/wp/2008/08/01/15-fun-things-with-excel/
[...] good alternative (although manual) is to use keyboard shortcuts CTRL + ; or CTRL + : to insert current date and time in the active cell. Since this places the [...]
Your site doesn't correctly work in safari browser
Hi GesyimmeliA: Can you tell me which version of Safari on which OS has this problem. I use Macbook at home and loaded the site quite often in Safari and never seen any layout or content issues. Are you facing any script issues while posting comments or somethings like that ?
Hey Chandoo. Great site. Learning lots.
My favorite Excel shortcut has got to be Alt+Down when over an autofilter drop down. Learning that changed my life. That was one of the last things I needed to use a mouse for. Changed my life.
[...] are a big advocate of keyboard shortcuts. I think learning a handful of keyboard shortcuts can improve your productivity tremendously, [...]
My favourit keyboard shortcut is control and 1 (use the 1 above the letters on the keyboard, not the number pad) for format cells.
Favourite shortcut: alt + shift + right/left arrow for grouping/ungrouping!
[...] Select a bunch of cells and click on the Sigma symbol on the standard tool bar. Alternatively you can use Alt+= keyboard shortcut. [...]
[...] clicking on these: excel keyboard shortcuts, excel mouse tips & tricks, excel productivity tips part 1 & part [...]
Martin Williamson thanks for the autofit tip! You rock.
In order to generate charts/bar graph with a single key:
1. Select the data
2. Press F11
3. Magic.... 🙂
F3 = Paste a Name or the entire list of Names
Crtl + F3 = Name Manager
Crtl + : = Inserts current time.
F12 = Save As
Mistake!
Crtl + Shift + : = Inserts current time.
SIR U R THE BEST PERSON WHO SHARES A WONDERFULL AND IMPORTANT TIPS IN EXCEL. THANKS AND KEEP ROCKING.
How do i hide / unhide a work sheet using the keyboard.
Great!
Other useful excel shortcuts
http://webtutorialplus.blogspot.com/2012/01/excel-quick-tip-useful-encoding-hotkeys.html
input in one cell 1a23bc output in two cell one of 123 and other one is abc how to possible, please help me.
Hey cool shortcuts but excel have more shortcuts then you listet.
i find a big database of supportet shortcuts for Excel 2007 here
http://www.veodin.com/excel-2007-shortcuts/
[...] INTEREST Date with my sheet – 10 tips on using date / time in excel http://chandoo.org/wp/2008/07/29/excel-keyboard-shortcuts/ [...]
Great article with some very useful follow-up comments and tips.
One simple question … how do you vertically align the drop-down filter button in a cell with a larger than normal height?
It’s easy enough to do so with a cell’s contents but the drop-down filter button stubbornly remains at the bottom and I need it at the top!
I’ve looked everywhere and haven’t located an explanation to what I am sure is considered an Excel basic.
Cheers