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.
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
| If no index numbers are defined, the indexation process is stopped and the price is not indexed. |