Time Base and Exposure to Inflation Variant 

Definition

See time base and exposure to inflation variant (TBE variant).

Use

Customizing

When you first install the SAP System, you have to define TBE variants you need, in Customizing for Materials Management (MM), by choosing Valuation and Account Assignment ® Balance Sheet Valuation Procedures ® Configure Replacement Cost Procedure ® Global Inflation Settings ® Maintain Time Base and Exposure to Inflation Variants.

In MM, you have to assign each material its own material inflation class with its own TBE variant.

Closing

When you run the Inflation Index Adjustment report, the system adjusts each material using the TBE variant that you have entered in that material's inflation class, unless you have specified a different one in the material master.

The Inflation Index Adjustment report uses the TBE variant differently, depending on the currency specified for your materials.

In many cases, inflation is calculated at the end of each month using the inflation index published for the last day of the month. That means, for example, that you adjust your materials for inflation on 31 January using the inflation index for January, on 28 February using the index for February, and so on.

However, there are exceptions. For example, in Chile, some materials are adjusted every half year using the inflation index from the penultimate month in that period. Assuming that the fiscal year runs concurrently to the calendar year, the materials would be adjusted on 30 June, using the index published for 31 May, and again on 31 December, using the index from 30 November.

For more information, see Replacement Cost Calculation via Inflation Index.