Price Index Share Percentage on Leasing Line
When you connect a leasing charge to a leasing line, a price index ID can be set in 'Rental Agreement. Connect Additional Charge' (STS103). This can be set manually or as default from the agreement order type.
In addition to this, you can set a value in the field 'Index share - %' in 'Rental Line. Convert to Leasing' (STS106) to control how periods are calculated in 'Rental Charge Curve. Open' (STS111) for a leasing charge connected in (STS103).
Calculation of curve when 'Index share - %' is set
If 'Index share - %' contains a value, the curve is calculated based on this percentage of the total leasing price. The total price in this case means amortization, interest, and additional charges with record type L. The index adjustment is added proportionately to all leasing charges connected to the leasing line with the same price index ID.
- Find the factor to be used to calculate the new price:
Divide 'Current index value' with 'Original index value'.
Subtract the result with 1 and multiply that result with the value from 'Index share'.
Divide the resulting value with 100.
Add 1 to that result.
Example:
Current index value=250
Original index value=170
Index share = 25 %
250 / 170 - 1 x 25 / 100 + 1 = 1.117647
- Calculate total original price:
Sum up rental charges (RPRECH) from the first period in 'Leasing Curve. Open' (STS108) (STCURV) plus the value of rent amount (RPRENT) from the first period in (STS108) (STCURV).
- Calculate the total current price:
Multiply the factor found in step 1 with the price found in step 2.
- Index price:
Take current price found in step 3 minus total original price found in step 2.
- Distribute the index price:
The index price should be distributed over the additional charges having the same price index ID per leasing line.
Divide the charge amount for each charge with the total charge amount for all charges having the same price index ID. Multiply the result with the index price found in step 4.
Add the result to the existing charge for each period in (STS111). This is the new charge amount.
Set 'Index share - %' on (STS106/E)
If you set this value before creating a leasing charge, the 'Index share - %' is reflected in the curve created in (STS111) for this charge.
If you set this value after creating a leasing charge, the 'Index share - %' is not reflected in the curve created in (STS111) for this charge. If 'Index share - %' should be reflected in (STS111), press F14='Calculate' on (STS103/E) to update the curve based on the 'Index share - %' field.
If leasing charge is set up to be created automatically for the leasing line, this charge is not affected by any value in 'Index share - %' during leasing line creation. This charge must also be recalculated using F14 on (STS103/E) to update the curve based on the 'Index share - %'.
Note: If several leasing charges with the same price index ID is connected to a leasing line with 'index share - %' set, F14 must be used on (STS103/E) for each of them when they have all been created. You must also do this when 'index share - %' is set before leasing charges are created since each of the charges affect each other.
How curve is affected by updates on (STS103/E) when 'Index share - %' contains a value
If you edit 'Price index' ID, 'Original index value', or 'Charge' on (STS103/E) and 'Index share - %' contains a value, the curve is recalculated based on the calculation method for 'Index share - %' and the setup in (LTS401).
If you edit 'Current index value' on (STS103/E) and 'Index share - %' contains a value, an index update is done for selected periods and the curve is recalculated based on the calculation method for 'Index share - %'.
Note: If you have several leasing charges with the same price index ID connected to a leasing line and updates are done on (STS103/E), this only affects the selected leasing charge. Therefore, we recommend that you do these updates with caution and to review all leasing charges with the same price index ID, because the calculation method is designed to include all those charges.
For example, if you have a leasing line with two leasing charges that have the same price index ID, only the selected one is updated with a new curve if you do the index update from (STS103/E). The updated price is according to the share between the two leasing charges. To get the total index share update, you must perform the same index update on (STS103/E) for the other leasing charge.
If you perform the price index updates from 'Leasing Price Index. Enter Value' (LTS401), this problem is avoided.