Why do functions not work with referred cells

I have an ongoing issue with functions not working in a statement when it is required they use a value from a cell whose value references another cell.
It makes no difference if the reference in text or numeric.
When apply a manually entered version of the cell's contents the formulae work fine but that defeats the exercise of a dynamic solution and is not always possible or desirable
I have attached an example which although simple occurs in more complex statements
Any advice
Referred-values.xlsx
DAVID131Asked:
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Rgonzo1971Commented:
Hi,
ยจ
pls try (in B2)

=DATE(YEAR(TODAY()),MONTH(TODAY()),1)


Regards
0
DAVID131Author Commented:
Good Afternoon
Your solution works, however I would like to understand why it works because as I indicated in the original request this is not confined to this particular example -It is important that I do understand why this is happening
David
0
Rgonzo1971Commented:
You compared today which was Nov-2-2014 with Nov-1-2014
0

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