Set Up the Index

Set up the Index. Before entering rates, create the index: search for Index, click New, and fill in Code, Description and Affects.

• Payment – the index changes the lease payment (e.g. CPI). Use it with Variable Lease = Initial Payment x Index.
• Discount Rate – the index is a reference rate that changes the lease’s Discount Rate (e.g. EURIBOR). Use it with Variable Lease = Reference Rate % + Fixed Interest %.

The lease only lets you pick an index of the matching type.

Set Up Index Rates

To enter index rates into the system, head to the Role Center and click on the Index Rate button located in the top section.

For Payment indexes you can fill in any one of three fields, and the others are calculated:

• Rate – the index value itself.
• Increase from Previous (%) – the change from the previous entry, by date. 5 means +5%.
• Year-over-Year (%) – the change from the entry exactly one year earlier. This works only if a rate exists on the same date one year before.

Enter the Date first. The percentage columns are hidden for Discount Rate indexes.

Reference rates (Discount Rate indexes) are entered as a percentage, e.g. 3.25 for 3.25%. The value is added to the lease’s Fixed Interest Component %.

After upgrading: existing rate lines don’t have the new percentages yet. Open Index Rate for the index and run the Refresh action to fill them in.