Core TSIs : Contracts : Working with Contracts : Price indexation : Using minimum and maximum indexation values
Using minimum and maximum indexation values
When you use a base amount indexation method or an indexation based on index groups, you can define a minimum and maximum indexation percentage at Contracts > Contract details > Contract lines.
During indexation, Planon compares the calculated indexation percentage with the defined minimum and maximum values:
If the calculated percentage exceeds the maximum, the Maximum indexation value is used to index amounts.
If the calculated percentage is below the minimum, the Minimum indexation value is used to index amounts.
If the calculated percentage falls between the minimum and maximum values, the calculated percentage is used to index amounts.
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For decreasing indexed amounts, you can enter negative indexation percentages in the minimum and maximum indexation value fields.
Example
Settings:
Maximum indexation value: 6%
Minimum indexation value: 3%
Scenarios:
Scenario 1: The calculated indexation percentage is 6.3%, which is higher than the maximum indexation value. The amount is indexed by 6%.
Scenario 2: The calculated indexation percentage is 2.8%, which is lower than the minimum indexation value. The amount is indexed by 3%.
Scenario 3: The calculated indexation percentage is 4.2%, which falls between the minimum and maximum values. The amount is indexed by 4.2%.