Configure Indexed Currencies

To set up an indexed currency (e.g., UF in Chile) for a company, you must configure the following tables:

1. Set up the company currency (e.g., CLP in Chile) in the Exchange Rate Type table.
2. Consumer Price Index Values can be maintained manually, or can be auto-populated from the Exchange Rate table. If you are maintaining the values manually, add the values for this category.
3. Create the Consumer Price Index Category for the indexed currency.
   • If you are maintaining the CPI values manually:
     • In the Relations section , attach the CPI values that you added for the indexed currency.
   • If you want the CPI values to be auto-populated from the Exchange Rate table and auto-attached to the Consumer Price Index Category table, set the following fields:
     • Indexed Currency must be set to "true".
     • From Currency (e.g., UF) and To Currency (e.g., CLP) must be configured.
     • Set the Exchange Rate Type to "M".
4. In the Relations section of the Company table, attach the following table entries that you just created:
   • Exchange Rate Type that defines the company currency.
   • Consumer Price Index Category for the indexed currency.
5. To populate the Consumer Price Index Value table based on exchange rates:
   • Manually add entries to the Exchange Rate table that match the Consumer Price Index Category configuration. Financial Organization Structure will automatically create CPI values and attach them to the category.
   • Sync the Exchange Rate table. In the Nakisa SAP Sync Bot, ensure that the Exchange Rate table is included in the Sync Profile that will be run regularly.

   Note: If the CPI value already exists in the table and a new value is synced and generated or manually updates, the new value is always the one that is stored. Note that if the CPI Category is in "Created" Status, then the related CPI Value is also added in "Created" Status.

6. To set default values for the Indexed Currency section of the contract Definition page, add the following default field value configuration entries in Nakisa Lease Accounting Suite:
   • To have the checkbox "Consider Currency as Indexed Currency" selected by default for contracts,create a default field value configuration entry on the Contract Indexed Currency field and set the value to "true".
   • To have the drop-down "Asset Value Currency Type" automatically set for contracts, create a default field value configuration entry on the Contract Asset Value Currency Type field and set the value to "Contract Currency" or "Company Currency".

   Note: For more information on default field value configuration, refer to the Nakisa Lease Accounting SuiteUser Guide.