Update of Cash Flow Component Using Index Update

When the IRR leasing method is used (Leasing method set to 1-'IRR' on the agreement order type), cash flow components connected to leasing lines are automatically updated through an index update in 'Leasing Price Index. Open' (LTS400).

To perform an index update using (LTS400), the cash flow components must have the price index ID specified on 'Cash Flow Price List. Open' (STS137/E) and be connected to a leasing agreement for the date set in 'Leasing Price Index. Enter Value' (LTS401). The cash flow components curves are also automatically recalculated.

The price index ID is set in 'Quotation. Add Miscellaneous Costs' (QUS118) with a default value from the rental agreement order type in 'Rental Agreement Order Type. Open' (STS020). The price index ID in (QUS118) is defaulted to 'Quotation. Open Miscellaneous Costs' (QUS108), 'Cash Flow Component. Open' (STS136), and 'Cash Flow Curve. Open' (STS138), but you can manage it manually.

Before you start

Price index ID must exist in (LTS400) and be connected to the cash flow component in (QUS108) to trigger an update of the cash flow component in EQM.

Price index ID must exist in (LTS400) and be connected to the cash flow component in (STS136) to trigger an update of the cash flow component in Rental.

Follow these steps

  1. Open (LTS400).

    Select the price index ID and use related option 11='Crt/chg value' to open (LTS401).

    If a price index ID requires creation, use option 1='Create' in (LTS400) before you open (LTS401).

  2. Set the date from when the index update should take place and use option 1='Create' to create a record in (LTS401).
  3. Set a new percentage value to be valid from the set date and confirm.

    For example, if the index update should be +10% of the current price, set the value to '110' in (LTS401). If the price index should be -5% of the current price, set the value to '95' in (LTS401).

    When confirming, a check and update is triggered for all leasing charges meeting the criteria.

    Only periods in (STS138) with a start date equal or later than the 'Valid from' date set in (LTS401) are affected.

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