Update of Leasing Charge using Index Update in (LTS401)

When the standard leasing method is used ('Leasing method' set to 0-'Standard' or 2-'Standard, prev period' on the agreement order type), leasing charges connected to leasing lines are automatically updated through an index update in 'Leasing Price Index. Open' (LTS400). When an index update is performed using (LTS400), all leasing charges with this price index ID connected and valid periods for the date set in 'Leasing Price Index. Enter Value' (LTS401) are updated, and the curves are recalculated.

The price index ID is set with a default value from the rental order type in 'Rental Agreement. Connect Additional Charge' (STS103) and is manually changed on (STS103/E).

All leasing charges with the updated price index ID connected and valid periods for the date set in (LTS401) are updated, and the curves are recalculated in 'Rental Charge Curve. Open' (STS111).

The setting of 'Index share - %' in 'Rental Line. Convert to Leasing' (STS106) affects how the curves in (STS111) are calculated:

  • If 'Index share - %' is blank, the curve is calculated using the charge price stored on (STS103/E), divided by the original index value stored on (STS103/E), multiplied by the index value set for the period in (LTS401).
  • If 'Index share - %' contains a value, the curve calculation is based on this percentage of the total leasing price. The index adjustment is added proportionately to all leasing charges connected to the leasing line with the same price index ID.

Before you start

Price index ID must exist in (LTS400) and be connected to the leasing charges in (STS103) to trigger an update of the leasing charge.

Follow these steps

  1. Open (LTS400).

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

    If a new price index ID is to be created, use option 1='Create' in (LTS400) before you open (LTS401).

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

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

    Only periods in (STS111) with a start date equal or later than the 'Valid from' date set in (LTS401) are affected.

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