Indexation based on index groups
When you index prices according to an indexation method based on index groups, the new price is calculated as follows:
In Supporting data , you can specify the required index numbers and indicate which index numbers should be used as numerator/denominator. For more information, see Index group method fields in the Supporting data documentation.
For details on index groups, see the Supporting data documentation.The following example illustrates how price indexation based on index groups works.
Example
• The price specified in the contract line is 200. This price must be indexed.
• In Supporting data , the following index numbers are specified for index group x:
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2006 | 105 | 107 | |||||||||||
2005 | 104 | 105 |
• In Supporting data > Indexation Methods > Add index group method, the user has defined a numerator and a denominator.
• The indexation date is set to 1/1/2007.
The index number of January 2006 is used as the numerator (105). The index number of February 2005 is used as the denominator (104).
The index number of January 2006 is used as the numerator (105). The index number of February 2005 is used as the denominator (104).
• The new price is calculated as follows:
105/ 104 * 200 = 201.92
105/ 104 * 200 = 201.92
If no index numbers are defined, the indexation process is stopped and the price is not indexed.