This function is used by all of the programs in the Inflation Accounting solution for Financial Accounting (FI). You use these programs to adjust G/L accounts, payables, and receivables to account for the inflation rate as published in inflation indexes.
When you come to run the programs in the Inflation Accounting solution for FI, the system adjusts each G/L account as follows:
If any of the line items on the account have inflation indexes, the system adjusts them with these. For the others, it uses the index that you have assigned to the inflation key. If you have not entered an inflation index in the inflation key, the system uses the one that you have entered in the inflation method.
To do so, it takes the inflation index value as per the
If the system looks for an inflation index value for a particular date, but you have not maintained a value for that date, the system will determine the value on that date automatically. To do so, it assumes that inflation progresses at a constant rate between any two inflation values. So, for example, if you enter an inflation index value for 31 January (1,500) and one for 28 February (1,510), but want to calculate inflation as at 14 February, it will assume that the inflation index on that date is 1,505.