Base amount indexation
When you index prices according to an indexation method based on a base amount, the new price is calculated as follows:
You can specify base amount indexation methods in Supporting data > Indexation methods.
For more information on defining Base amount indexation method, see the Supporting data documentation.The following example illustrates the working of base amount indexation.
Example
• Specified an index group and index number(s) (in this case a year index number) in Supporting data > Index groups.
• Specified a base amount indexation method in Supporting data > Indexation methods.
In this example the year index number is used as denominator and the index number of the relative year (the year of the index group –1) as numerator. The index number for 2007 is 105 and the index number for 2008 is 110.
Enter base amount indexation method and a base amount in Contracts > Contract details > Contract lines.
The base amount specified in the contract line is 200. The chosen year for indexation is 2008. The base amount is used to calculate the indexed price. After you have indexed the contract, for example for a period of one year, the new price will be:
The base amount specified in the contract line is 200. The chosen year for indexation is 2008. The base amount is used to calculate the indexed price. After you have indexed the contract, for example for a period of one year, the new price will be:
105/110 * 200 = 190.91
A new contract line and life cycle is subsequently added. The new price is specified in the contract line.
The fields Index base amount, Index base amount month and Index base amount year are only available if you selected a base amount indexation method in the Indexation method field. If you selected another indexation method, these fields will be read-only. If the index numbers are changed, re-indexation is initiated and all the associated contract lines are recalculated.