Adjustment schedule
Path in CC5: Contracts - Edit - Create payment schedule - Create adjustment schedule
You can enter payment adjustments for payments registered on a contract's payment schedule. Open the contract in view mode and click Edit next to the payment schedule containing the payment you want to adjust.
Note that the period amount is affected by the adjustment. This is never a one-time change for one single payment.
Tip!
Read more about how to add adjustments and especially index adjustments here.
Fields
Adjustment type: Select the adjustment:
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Replace amount: Replaces the current period amount with the new amount.
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Add amount: Adds a certain amount on top of the current period amount.
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Subtract amount: Subtracts a certain amount from the current period amount.
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Multiply amount: Multiplies the current period amount with a specific factor (2% increase = 1,02).
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Index adjustment: Allows to enter adjustments linked to e.g. the consumer price index.
Start date: The first time the index adjustment should adjust the payment; often stated in the contract.
Interval: The interval that determines the date the payment is adjusted after the start date. The default is “Yearly”. This means that the adjustment is done each year. If you add a fixed amount (10 EUR) and select a yearly interval, each due date will be adjusted with 10 EUR this year- and further 10 EUR next year and so forth. So, a monthly due payment of 240 EUR will increase to 250 EUR/month this year and to 260 EUR/month next year.
Until: If the index adjustment ceases, the end date can be entered here.
Description: You can enter an explanation of the adjustment. This text will be displayed as an information tool tip in the Detailed calculations on the payment schedule (tab Cashflow).
Additional fields when selecting Index adjustment as adjustment type
Index: Select the correct index. The index is adjusted under System settings for price indexes.
Index base period: The applicable index for the first payment. Often stated in the contract.
Use index from: The default is "2 months before", which is often October or November if the contract is to be indexed as of 1 January. Index start amount shows the index value and the applicable month used for the first adjustment.
Allow downward adjustment: Select if you also want to adjust the amount shall be adjusted in case the index drops.
Adjustment factor: The factor that shall be used for the index adjustment. "1" means 100%, "0,8" means 80%, mm.
Maximum adjustment: Maximum adjustment in percent. If prices shall increase with max 5%, write "5" into this field.
Minimum adjustment: You can also add a minimum adjustment in percent. If prices shall increase with at least 1% per year (or more if the CPI allows), write "1" into this field.
Minimum term amount: Here you can enter a minimum amount for periodic payments.
Additional fields when selecting Interest table as adjustment type
This selection is available if manual interest tables have been activated for your database.
Interest table: Select the correct interest table (e.g. LIBOR)
Base period: Select the base period as stated in the contract.
Margin: If the contract states an additional rent, enter it here (e.g. 3% on LIBOR)
Initial rate: The initial rate is calculated based on Margin and Base rate.
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