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Set up index rates

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If lease payments depend on an index, the index rate types can be added and maintained in the system. To revalue the lease payments from the Index rate type page, the index rate revaluation process uses the most recent index rate from the date of revaluation.

To add index rate types and index rates, follow these steps.

  1. Go to Asset leasing > Setup > Index rate type.
  2. Select New.
  3. In the appropriate fields, enter the rate type and the name of the index rate.
  4. To add a new index rate value, select the index rate type, and then select Add.
  5. Select the effective start date of the rate, and select the rate value.

You must select either Index rate value difference or Index rate value as the index rate method.

  • Select the Index rate value difference method to calculate a new lease payment, based on the difference between the index rate on the start date and the most recent index rate. The index rate is defined in the Index rate (%) field.
  • Select the Index rate value method to calculate the lease payment by using the percentage that is specified in the Index rate (%) field.