Indexation
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      Implementing Minimum and Maximum Indexation Rates

      Setting minimum and maximum indexation rates is essential when indexing customer contracts based on a variable index (CPI) rate. These rules are often specified in the contract to ensure accuracy and consistency.

      For instance, if you have negotiated an indexation rate that can be adjusted except when the CPI exceeds 2 times the default index rate, you now have the option to establish a minimum and/or maximum indexation rate for better control.

      By setting a minimum indexation rate, you can ensure that the contract's indexation rate will not fall below a certain predetermined value, providing a level of protection against significant decreases in the variable index rate. On the other hand, establishing a maximum indexation rate allows you to cap the maximum amount by which the contract can be adjusted based on the variable index, preventing excessive increases that may not align with your business objectives. This flexibility in setting both minimum and maximum indexation rates gives you better control and predictability in managing your customer contracts indexed on a variable index like CPI.

      Enabling minimum and maximum indexation rates

      To set up minimum and maximum indexation rates for subscriptions, first enable the necessary permission for your role in the subscriptions section. Once enabled, refresh the page. You can then access the indexation details of a subscription to customize the minimum and/or maximum indexation rate. It is important to note that the variable CPI rate will be configured monthly for each subscription in your center.

      Examples of Scenarios

      1 CPI higher as the maximum configured index rate:

      1. CPI: 11%

      2. Max index: 8%

      3. Min index: 3%

      4. Result => subscription will be indexed at 8%

      2 CPI without maximum configured index rate:

      1. CPI: 11%

      2. Max index: / (not defined)

      3. Min index: 3%

      4. Result => subscription will be indexed at 11%

      3 CPI between minimum and maximum configured index rate:

      1. CPI: 4%

      2. Max index: 8%

      3. Min index: 3%

      4. Result => subscription will be indexed at 4%

      4 CPI not defined but subscription has a max and min configured:

      1. CPI: / (not defined)

      2. Max index: 8%

      3. Min index: 3%

      4. Result => subscription will be indexed at 8%

      5 CPI higher as the maximum configured index rate:

      1. CPI: 11%
      2. Max index: 8%
      3. Min index: 3%
      4. Result => subscription will be indexed at 8%

      6 CPI without maximum configured index rate:

      1. CPI: 11%
      2. Max index: / (not defined)
      3. Min index: 3%
      4. Result => subscription will be indexed at 11%

      7 CPI between minimum and maximum configured index rate:

      1. CPI: 4%
      2. Max index: 8%
      3. Min index: 3%
      4. Result => subscription will be indexed at 4%

      8 CPI not defined but subscription has a max and min configured:

      1. CPI: / (not defined)
      2. Max index: 8%
      3. Min index: 3%
      4. Result => subscription will be indexed at 8%

      If there is no indexation rate defined in my center for the month of indexation, the system will default to the highest configured rate specified in the contract (as shown in scenario 4).