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How to Set Minimum and Maximum Indexation Rates for CPI-Based Contracts

When indexing customer contracts based on a variable CPI rate, you can set minimum and maximum indexation rates to ensure that contract-specific limits are respected.

When a customer contract is indexed based on a variable index such as CPI, you can set a minimum and/or maximum indexation rate. This allows you to respect the limits agreed in the contract and gives you more control over how subscription prices are adjusted.

For example, if your contract states that the indexation can vary but cannot exceed 8%, you can set 8% as the maximum indexation rate. If the CPI rate is higher than 8%, the subscription will still only be indexed by 8%.

You can also set a minimum rate to make sure the indexation never falls below a specific percentage.

Enable minimum and maximum indexation rates

Before you can configure these rates, the required Subscriptions permission must be enabled for your role.

Once the permission is enabled:

  1. Refresh the page.
  2. Open the subscription you want to configure.
  3. Go to the Indexation details.
  4. Enter a Minimum indexation rate, Maximum indexation rate, or both.

The CPI rate is configured monthly for each subscription in your center.

How the rates are applied

The system uses the configured minimum and maximum rates to determine the indexation applied to the subscription:

CPI rate Minimum Maximum Result
11% 3% 8% 8%
11% 3% Not defined 11%
4% 3% 8% 4%
Not defined 3% 8% 8%

In summary:

  • If the CPI is higher than the maximum, the maximum rate is used.
  • If the CPI is lower than the minimum, the minimum rate is used.
  • If the CPI is between the minimum and maximum, the CPI rate is used.
  • If no CPI rate is defined for the month of indexation, the system uses the highest configured rate from the subscription.

This ensures that the indexation applied to your subscriptions stays within the limits agreed in the customer contract.