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J_1A_INFLATION_INDEX - Maintain Inflation Indexes

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In this IMG activity, you maintain the inflation indexes that you use to adjust your accounts for inflation. You must define:

• One index to represent the general inflation index

• One index for each specific inflation index that you use

The system comes complete with sample inflation indexes for a number of local versions.

You can use these indexes themselves, in which case you must change the inflation index values (see below), 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, short text, 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 the 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 the general index to the inflation method and a specific index to each inflation key, if applicable.

To define a composite inflation index:

1. Define the indexes that it is composed of as described above.
2. Create a header for the composite inflation index.

As well as the usual header information, select Comp. ind. (Composite index).

1. Select the composite index header and double-click Composite indexes.
2. Specify which indexes the composite index is composed of and, in the Factor field, how each of these component indexes is weighted.

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