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INFL_INDEX_MM - Maintain Inflation Indexes

INFL_INDEX_MM - Maintain Inflation Indexes

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In this IMG activity, you maintain the inflation indexes that you use to adjust your materials with the Inflation Index Adjustment report. You must define one index for each specific inflation index that you use.

If you want to calculate the general effect of inflation for your materials at the G/L account level, you must run the Inflation Adjustment of G/L Accounts report in Financial Accounting (FI), and make the appropriate FI Customizing settings.

The system comes complete with sample inflation indexes for a number of local versions. You can use these indexes themselves or you can use them as the basis for creating new inflation indexes.

For each inflation index:

  1. Enter the header information, including the index ID, description, and format.
  2. Create an index version to go with the index and enter the version number in the header data.
  3. Whenever the authorities publish the latest inflation index figures, enter them in the values table, specifying the date and index value.
Note that when you first create an index, enter an index value from the first date that you want to adjust your accounts for and the value before that. The system needs this information in order to be able to calculate the net inflation rate.
For example, if you create a new monthly index at the beginning of 20X2, enter the values for 31 January 20X2 and for 31 December 20X1.

Once you have defined the indexes, assign them to material master records through the material inflation class. You can also assign the inflation index directly to a material master record, in which case it overrides the value in the material's inflation class when you run the Inflation Index Adjustment report.






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