Circular reference in a financial model
Posted: Mon Nov 18, 2019 2:39 pm
Hello, I need some help with a circular reference in TM1 (knowing it is not allowed). Attached is a simplified model where a circular reference exists in excel:
interest expense (to simply it I only calculate on short term debt) = STD * interest rate; interest is part of net income that goes into retained earnings on balance sheet
Short term debt - this is basically a plug, short term debt is not allowed to go negative (once it becomes negative cash will increase)
the issue here is that I need to circular reference STD in order to calculate interest expense. In the Tm1 model, this is done through rules (not TI), I can't make it to work (basically crushed the server because of the circular reference), can someone please help me with this?
thanks so much!
interest expense (to simply it I only calculate on short term debt) = STD * interest rate; interest is part of net income that goes into retained earnings on balance sheet
Short term debt - this is basically a plug, short term debt is not allowed to go negative (once it becomes negative cash will increase)
the issue here is that I need to circular reference STD in order to calculate interest expense. In the Tm1 model, this is done through rules (not TI), I can't make it to work (basically crushed the server because of the circular reference), can someone please help me with this?
thanks so much!