Referencing two cells for logical_test

I have a fairly simple function that I'm having trouble with.
At the moment my function looks like this:

=IF(D12="Y","A",IF(D12="N","C","B"))

It only works if I use D12 as the logic test. But I need to reference 2 cells (both D12 and E12).
I've tried:

=IF(D12:E12="Y","A",IF(D12:E12="N","C","B"))

But I keep getting #VALUE errors.

I'm at a loss as how to do this. I've searched everywhere but found nothing, unless I should be using an AND function...

Thanks in advance!

Hi Nitros,
Welcome to the forum.
Try...

=IF(and(D12="Y",E12="Y"),"A",IF(and(D12="N",E12="Y"),"C","B"))

If you are satisfied with the solution(s) provided, please mark your thread as Solved.

How to mark a thread Solved
Go to the first post
Click edit
Click Go Advanced
Just below the word Title you will see a dropdown with the word No prefix.
Change to Solved
Click Save