Indexation based on a percentage
The following examples show how percentage-based indexation is applied.
Example 1: Different indexation methods per contract line
Contract X has:
• Contract start date: January 1, 2020
• Two contract lines, both starting on January 1, 2020
Indexation methods
◦ Method 1: 10% every year
◦ Method 2: 5% every 6 months
Application
◦ Contract line 1 uses Method 1, starting on January 1, 2021
◦ Contract line 2 uses Method 2, starting on July 1, 2021
Indexation is executed up to and including January 1, 2021. The resulting indexed amounts are shown in the figure below.
Example 2: Changing indexation methods and manual price changes
Contract Y has:
• Contract start date: January 1, 2020
• Two contract lines, both starting on January 1, 2020
Indexation methods
◦ Method 1: 10% every year
◦ Method 2: 5% every 6 months
Application
◦ Contract line 1 starts with Method 1 on January 1, 2021.
On March 1, 2021, the indexation method is changed to Method 2.
◦ Contract line 2 starts with Method 2 on March 1, 2020.
On August 1, 2020, the price is manually changed to 650.
On March 1, 2021, the indexation method is changed to Method 1.
Indexation is executed up to and including January 1, 2022. The figure below illustrates the resulting situation.
 | When a lease accounting contract line with predefined percentage-based indexation is activated, indexation is applied immediately for the entire contract line. At activation, Planon generates the initial set of accounting commitments using the indexed amounts. For details on working with lease accounting, see Lease accounting. |