| inflation adjustment split (FI) |
An inflation adjustment in which the SAP System splits the amount between two separate accounts, one that represents the general inflation rate, and one that represents the price level change for that G/L account.
A company adjusts the balance of a G/L account for platinum, UNI 2000000, using a specific index, with a net change in the inflation rate of 20%, which works out at UNI 400,000. The general inflation rate, however, is running at 15% (UNI 300,000).
This means that of the UNI 400,000 increase in the value of the company's stocks, UNI 300,000 of this can be accounted for by the general increase in prices. It therefore posts UNI 300,000 to the G/L account for inflation and UNI 100,000 to the G/L account for unrealized gains (losses) on precious metals.