Archibus uses a workflow rule to perform lease indexing calculations. By default, this workflow rule runs daily at midnight, checking for leases for which you have enabled indexing, and that should be indexed that day. This parameter is configurable, so your site might run the rule on a different schedule.
Archibus indexes a lease from the Date Indexing Start until either the lease or the indexing expires whichever comes first. The application uses the following dates:
When a lease's indexing date equals the current date, the indexing workflow rule proceeds to calculate the new rent based on the percentage change in the price index from one period to the another. The details for this process are described in the following section.
Before Archibus runs the indexing calculation for a lease, it does the following:
Index Percentage Change = (Index Value New / index Value Initial -1) x 100.
Where the Index Value Initial is the index value used for the previous indexing, and Index Value New is the most recent index value entered for the index.
Rent Percentage Change - Calc (%) (cost_index_trans.rent_pct_change_calc) =Index Percentage Change / 100 X Percentage Change Adjustment / 100
The Percentage Change Adjustment is the percentage of the index percentage change that should be applied to the lease. You enter the Percentage Change Adjustment in the Lease Indexing Profile.
Rent Indexed = Rent Initial X (100 + Rent Percentage Change - Calc) / 100
If Rent Indexed is greater than or equal to the Maximum New Rent, then:
New Rent = Maximum New Rent (rounded)
Or, If Rent Indexed is less than or equal to the Minimum New Rent, then Rent New = Minimum New Rent (rounded)
If neither of these apply, then Rent New = Rent Indexed (rounded)
The Rent New amount is rounded to the settings in the Lease Indexing Profile.
See Also
How the Cash Flow Reports Use Lease Indexing Values (Cost Administration)
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