Using a threshold value
When you use a base amount indexation method or an indexation based on index groups, you can define a threshold value in the Indexation threshold % field at Contracts > Contract details > Contract lines.
During indexation, Planon compares the calculated indexation percentage with the specified threshold value. If the calculated percentage is less than the threshold value, no indexation takes place. If no indexation takes place, Planon registers the indexation attempt, including the date and time. The denominator of this failed indexation is carried over to be used as the denominator in the next indexation attempt. In the calculation of the next indexation, the denominator of the previous indexation attempt and the numerator of the current indexation are used.
 | You can also enter a negative value in the Indexation threshold % field. |
Example
The example below illustrates the effect of using an indexation threshold.
Scenario 1: The calculated indexation percentage is 3.4%, which is higher than the threshold value specified in the contract line. The amount in the contract line is indexed by 3.4%.
Scenario 2: The calculated indexation percentage is 2.4%, which is below the threshold value specified in the contract line. The amount in the contract line is not indexed. Planon registers this as an indexation attempt (=indexation moment 2).
Scenario 3: The calculated indexation percentage is 3.6%, which is higher than the threshold value specified in the contract line. The amount in the contract line will be indexed for indexation moment 3. Note that the denominator used is not the denominator of indexation moment 3 but the denominator of indexation moment 2!