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Definition

See inflation key.

Use

The inflation key instructs all the programs in the Inflation Accounting solution for Financial Accounting (FI) how to adjust for inflation a given G/L account.

Customizing

You maintain inflation keys in Customizing for FI, by choosing   Financial Accounting Global Settings   Inflation Accounting   Inflation Keys.  

Once you have maintained the keys, you assign one at company code level to every G/L account that is to be adjusted.

In order to adjust accounts receivable and accounts payable, you assign an inflation key to the appropriate reconciliation account.

Closing

When you come to run the various inflation adjustment programs, they only adjust G/L accounts that you have assigned a key to. The key instructs the programs:

  • Whether the account is a monetary account

  • Which adjustment methodto apply to the account

  • Whether the account is to be adjusted using a specific inflation indexor a particular time base and exposure to inflation variant

  • Whether to actually post inflation adjustments calculated on this account

  • Whether to post the adjustments to an account for specific inflation adjustments