Supporting data : Supporting Data : Indexation methods : Adding an indexation method
Adding an indexation method
Prerequisites
To add indexation methods based on index groups, you must first define the required index group(s) and the corresponding index numbers in Index groups launch item. For more information, refer to Defining index groups and index numbers.
Procedure
1. Go to Supporting data > Indexation methods.
2. From the action menu, select one of the following options:
Add percentage method - to add an indexation method based on a percentage.
Add index group method - to add an indexation method based on an index group.
Add base amount indexation - to add an indexation method based on an index group and a base amount.
3. Complete the fields in the data section.
For a description of these fields, see the following tables:
Percentage method fields
Field
Description
Percentage
Use this field to specify the percentage of the indexation method.
Period
Use this field to specify how often you wish to index, for example yearly or quarterly.
Index group method fields
Field
Description
Index group
Use this field to specify the index group the index method belongs to. You can select the relevant index group from a pick list. This pick list contains the index groups defined in Supporting data > Index groups.
Period
Use this field to specify how often you wish to index, for example yearly or quarterly.
Fixed month for numerator/denominator
When you index contract prices according to an indexation method based on index groups, the new price will be calculated as follows:
If you want to use the index number of a fixed month as a numerator/denominator, you can use the Fixed month for numerator/denominator fields to specify a fixed month. The index number of this month will then be used as numerator/denominator.
Relative month for numerator/denominator
Use this field if you want to use the index number of a relative month as a numerator/denominator. The relative month number indicates the number of months that has to be added to the actual month in the indexation process. You can also use this field in combination with the Relative year for numerator/denominator field.
Example: if the indexation date is 1/1/2007 and the value specified in this field is 1, the index number of February will be used as numerator/denominator.
* 
If you omit to complete this field, the month of the indexation date will be used as numerator/denominator.
Relative year for numerator/denominator
Use this field if you want to use the index number of a relative year as a numerator/denominator. The relative year number indicates the number of years that has to be added to the actual year in the indexation process. You can also use this field in combination with the Relative month for numerator/denominator field.
Example:
Indexation date is 1/1/2007 of a yearly indexation.
Relative month used for this index: 4 months in the past. Value in this field for the numerator: -4. The index number of September 2006 will be used.
Value for the denominator: -16 (or relative year -1 + relative month -4). The index number of September 2005 will be used.
Is based on year index
Use this field to specify whether you want to use the year index number as a numerator/denominator.
Base amount indexation fields
Field
Description
Index group
Use this field to specify the index group the index method belongs to. You can select the relevant index group from a pick list. This pick list contains the index groups defined in Supporting data > Index groups.
Period
Use this field to specify how often you wish to index, for example yearly or quarterly.
Is based on year index
Use this field to specify whether you want to use the year index number as a numerator.
Relative year for numerator
Use this field if you want to use the index number of a relative year as a numerator. The relative year number indicates the number of years that has to be subtracted from the actual year in the indexation process.
Example: if the indexation date is 1/1/2007 and the value specified in this field is -2, the index number of January 2005 will be used as numerator.
Relative month for numerator
Use this field if you want to use the index number of a relative month as a numerator. The relative month number indicates the number of months that has to be subtracted from the actual month in the indexation process.
Fixed month for numerator
When you index contract prices according to an indexation method based on both an index group and a base amount, the new price will be calculated as follows:
If you want to use the index number of a fixed month as a numerator, you can use the Fixed month for numerator field to specify a fixed month. The index number of this month will then be used as numerator.
4. Click Save.