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.
| 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%.