Example: Indexed Allocations

In this example, the system takes the end-of-year balances in the AA ledger in accounts 6110–6320 and multiplies each by 1.1 (a 10 percent increase over the current year's balance). The results are placed in the same account numbers in the BA ledger for the next year:

Description

Values

Year-to-date account balance

50,000

Index or rate

1.1

Budget to be distributed for next year

55,000