Inflation Index

Definition

See inflation index.

You maintain inflation indexes in Customizing for Materials Management (MM), by choosing Valuation and Account Assignment ® Balance Sheet Valuation Procedures ® Configure Replacement Cost Procedure (Inflation) ® Maintain Inflation Indexes.

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

When you maintain the inflation index values, you enter them in the format that they are published in: The system allows for indexes published in three different formats.

In MM, the system allows for specific indexes. You assign indexes to materials through the material inflation class. Each material requires an inflation class and each inflation class requires an index.

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

Inflation Index in Financial Accounting (FI)

Inflation Index in Asset Accounting (FI-AA)