Example: Index Computations

Suppose that you want to calculate the following year's budget based on the current year's balance, with a 10 percent increase. You must identify the appropriate accounts and ledger, and identify the factor by which the system calculates the resulting budget. Then you must identify the ledger where you place the results.

The system takes the end-of-year balances in the AA (actual amounts) ledger in accounts 6110 through 6320 and multiplies each by 1.1 (a 10 percent increase). You can specify that the results are placed in the same account numbers in the BA (budget amounts) ledger for the following year.

The following diagram illustrates how you can use indexed allocations to calculate the budget using the Cost Analyzer Balances table: