The IFS function is a convenient way to check for multiple conditions and return corresponding values in Excel. Here's how to use it:

Syntax:

```excel
=IFS(logical_test1, value_if_true1, logical_test2, value_if_true2, ...)
```

Breakdown:

* `logical_test1`: This is the first condition you want to check. It can be any formula or expression that evaluates to TRUE or FALSE.
* `value_if_true1`: This is the value that will be returned if `logical_test1` is TRUE.
* `logical_test2`: This is the second condition to be checked, and so on. You can add as many pairs of conditions and values as needed.

How it Works:

Excel evaluates the conditions one by one. If the first `logical_test` is TRUE, the corresponding `value_if_true` is returned, and the function stops evaluating further conditions. If the first test is FALSE, Excel moves on to the second pair of `logical_test` and `value_if_true`, and so on.

Example:

Imagine you have a sales data table with a column for sales amount and another for commission rate based on sales ranges. You can use the IFS function to automatically calculate the commission earned based on these ranges:

```excel
=IFS(A2>10000, A2*0.1, // Commission of 10% if sales exceed $10,000
A2>5000, A2*0.075, // Commission of 7.5% for sales between $5,000 and $10,000
A2>0, A2*0.05, // Commission of 5% for any positive sales amount
TRUE, 0) // Return 0 for non-positive sales values
```

In this example:

* Cell A2 contains the sales amount.
* The IFS function checks the conditions sequentially.
* If the sales amount is greater than 10000, it returns 10% commission (A2*0.1).
* If not, it checks if the sales amount is greater than 5000, and so on.
* Finally, if none of the conditions are met (sales is zero or negative), it returns 0.

Benefits:

* The IFS function is easier to read and understand compared to nested IF statements, especially for complex logic with multiple conditions.
* It avoids the potential errors that can arise with deeply nested IF statements.

Note: The IFS function is available in Excel 2016 and later versions, or with an Office 365 subscription. For earlier versions, you can use nested IF statements to achieve similar results.