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Prasad TangilaPrasad Tangila 

How the formula field is executing

Example: there is record with field called : recStatus__c which us formula field where recStatus__c is active when date created is less than 30 or inactive.
so I have created records then the recStatus__c='active' for 30 days and it will become 'inactive' after 30 days. how this will takes place. Am not updating the records.
Mahesh DMahesh D
Hi Prasad,

They calculate in real time.  Everytime you view the record or run a report, the formula is in real time.

The only time there is potential delay is when the formula is using a roll-up summary. That would be identified by the hourglass icon next to the roll-up summary.

A formula is similar to an equation that is executed at run time. Depending on the context of the formula, it can make use of various data and operations to perform the calculation. A useful way to think about formulas is that they are similar to formulas on a spreadsheet. These formulas can make use of data and operations to calculate a new value of some type.

Formulas are widely used in the Force.com platform and should be considered first before jumping into Apex Code. The same formula syntax can be used to create default values, data validation rules, custom field formulas, conditional logic on Visualforce pages, and rules for determining when certain actions should occur, such as workflow actions.

for more details :- http://wiki.developerforce.com/page/An_Introduction_to_Formulas

Also look into the useful links below:

https://success.salesforce.com/answers?id=90630000000h38eAAA

https://help.salesforce.com/apex/HTViewHelpDoc?id=workflow_field_update_considerations.htm&language=en

https://developer.salesforce.com/page/An_Introduction_to_Formulas

https://help.salesforce.com/apex/HTViewHelpDoc?id=customize_functions.htm

Please do let me know if it helps you.

Regards,
Mahesh