Using minimum and maximum indexation values
If you are using a base amount indexation method or an indexation based on index groups, you can also specify a minimum and maximum indexation value in the appropriate fields at the Contract details > Contract lines step.
If the calculated indexation percentage is greater than the percentage you specified in the Maximum indexation value field, amounts are indexed based on the percentage entered in the Maximum indexation value field. If the calculated indexation percentage is less than the percentage you specified in the Minimum indexation value field, amounts are indexed based on the percentage entered in the Minimum indexation value field. If the calculated indexation percentage is between the minimum and maximum indexation percentage, amounts are indexed based on the calculated percentage.
 | For decreasing indexed amounts, you can specify negative indexation percentages in these fields. |
Example
Maximum indexation value = 6%
Minimum indexation value = 3%
Consider the following scenarios:
Scenario 1: The calculated indexation percentage (6.3%) is greater than the maximum indexation value specified in the contract line. The amount in the contract line will be indexed by 6%.
Scenario 2: The calculated indexation percentage (2.8%) is below the minimum indexation value specified in the contract line. The amount in the contract line will be indexed by 3%.
Scenario 3: The calculated indexation percentage (4.2%) is between the minimum value and the maximum value specified in the contract line. The amount in the contract line will be indexed by 4.2%.