Inflation Index (SAP Library - FI Accounts Receivable and Accounts Payable)

Inflation Index

Definition

Use

The inflation indexes are a key part of the inflation calculation function. They are used in Customizing, posting, and closing procedures.

Customizing

You maintain inflation indexes in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings → Inflation Accounting → Maintain Inflation Indexes.

As the inflation figures (known in the system as inflation index values) are published, you enter this data in the inflation index. In most countries, inflation indexes are published on a monthly basis, but there are exceptions.

The system allows for:

Inflation indexes in three different formats

The use of composite indexes and provisional indexes

General and specific indexes

Once you have maintained your indexes, you enter the general index in the inflation method. If a G/L account is to be adjusted using a specific index, you enter it in the account's inflation key.

Posting

You can assign an inflation index to individual line items as you post them, if you have customized the SAP System accordingly (see Assigning Specific Inflation Indexes to Line Items).

Closing

When you come to run the programs in the Inflation Accounting solution for Financial Accounting (FI), they revaluate each G/L account, line item, and open item using the inflation index assigned to it.

Structure

The inflation index consists of header data and values. In addition, you can define multiple versions of each index, although you normally need only define one.

Inflation Index in Materials Management (MM)