<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ts/onlinemanual/000314" xml:lang="en">
   <Header>
      <Title>Indexation</Title>
      <Keyword type="header" order="d1e2418351">
         <Level1>indexation</Level1>
         <Level2>service-contract price</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2418356">
         <Level1>indexation</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>To accommodate
		fluctuations in the economy, and for the benefit of the service organization,
		you can revalue a service contract. Due to inflation, the costs of material,
		labor, tools, travel, and so on, can vary and as a result you must change the
		current agreements made in service contracts accordingly. You can use <Link href="/baanerp/ts/glossary/glossary#000377" role="glossary">indexation</Link> in the <GUIRef href="/baanerp/ts/ctm" role="module">Contract Management</GUIRef> module to implement these changes automatically, if specified in the service
		contact.</Paragraph>
      <List>
         <ListIntro>Based upon the indexation, the current contract costs and
		  prices must be recalculated. Indexation cannot lead to a new service-contract.
		  You must determine the following dependencies :</ListIntro>
         <ListItem>Contract installments
		  are regenerated based on a changed contract amount, which influences <GUIRef href="/baanerp/ci/sli" role="module">Sales Invoicing</GUIRef>.</ListItem>
         <ListItem>Changes affect accounts
		  receivable, such as additional invoices and credit notes, which influences the <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef> ledger.</ListItem>
         <ListItem>Changes affect
		  forecasted revenues and costs, which influences the General Ledger accounts.</ListItem>
      </List>
      <List>
         <ListIntro>If you use indexation, the cost prices and sales prices can
		  be updated by a percentage:</ListIntro>
         <ListItem>Service activities under
		  contract (defined in the <GUIRef href="/baanerp/ts/spc" role="module">Service Planning &amp; Concepts</GUIRef> module).</ListItem>
         <ListItem> 
            <Link href="/baanerp/ts/glossary/glossary#000070" role="glossary">Term type</Link>.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <List>
            <ListItem>To use indexation in a service contract, before you activate
			 a contract, you must select the <Link href="/baanerp/ts/ctm/tsctm3100m000#tsctm300.indx" role="formfield">Price Indexation</Link> check box for the specific contract on
			 the Contract Changes tab in the <GUIRef href="/baanerp/ts/ctm/tsctm3100m000" role="session">Service Contracts (tsctm3100m000)</GUIRef> session.</ListItem>
            <ListItem>To apply indexation and renew a service contract
			 simultaneously, set the <GUIRef href="/baanerp/ts/ctm/tsctm3120m000#tsctm320.actn" role="manual">Type</GUIRef> field in the <GUIRef href="/baanerp/ts/ctm/tsctm3120m000" role="session">Contract Changes (tsctm3120m000)</GUIRef> session to <GUIRef href="/baanerp/ts/domains/ctm.chng#renew.with.indx" role="option">Renewal with Indexation</GUIRef>.</ListItem>
            <ListItem>To apply indexation to a single contract, use the <GUIRef href="/baanerp/ts/ctm/tsctm3120m000" role="session">Contract Changes (tsctm3120m000)</GUIRef> session.</ListItem>
            <ListItem>To apply indexation to multiple contracts, use the <GUIRef href="/baanerp/ts/ctm/tsctm3202m000" role="session">Generate Contract Changes (tsctm3202m000)</GUIRef> session. For more information, refer to <Link href="/baanerp/ts/onlinemanual/000362" role="manual">To apply indexation to multiple contracts</Link>.</ListItem>
         </List>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ts/onlinemanual/000363" role="manual">To make changes to a single contract</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ts/onlinemanual/000362" role="manual">To apply indexation to multiple contracts</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>