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What is the function of FormulaR1C1?

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I have been looking at FormulaR1C1 as a function, how does this exactly work? I understand what has been said all over the internet which is stands as Row 1 Column 1, but how do people actually make it work? What is the end result of using FormulaR1C1?

Also can it be changed to start at a specific point in a sheet, or it always going to be R1C1? So could it be FormulaR2C3?


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