Use

Index valuation is only available for index-linked bonds.

The procedure for index valuation is predefined in the system. You cannot define specific procedures in Customizing.

The system compares the book index value for the position with the market index value. It does this by multiplying the "clean" book value for the position in position currency with the market index. The "clean" position has been adjusted to remove the effects of index-linked price components. The difference between this value and the book value of the position in position currency is the write-up or write-down amount. This is then translated to the valuation currency using the book exchange rate. You cannot vary the procedure for this step by applying different rules.

Flows are generated for the write-up or write-down amounts. This valuation step can generate reset flows. Clearing flows, on the other, cannot be generated. The system assumes that there are no offsetting effects for an index.