Core TSIs : Contracts : Working with Contracts : Price indexation : Indexation based on index groups
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 Defining index groups and index numbers.
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For more information on defining indexation methods, see Adding an indexation method.
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
Sept
Oct
Nov
Dec
2021
105
107
2020
104
105
In Supporting data > Indexation Methods > Add index group method, you have defined a numerator and denominator.
The indexation date is set to 01/01/2022.
The index number of January 2021 is used as the numerator (105). The index number of February 2020 is used as the denominator (104).
The new price is calculated as follows:
105/ 104 * 200 = 201.92
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If no index numbers are defined, the indexation process is stopped and the price is not indexed.