Price Indexes

A price index is a normalized average (typically a weighted average) of prices for a given class of goods or services in a given region, during a given interval of time.

Price indexes help to compare how these prices, taken as a whole, differ between time periods or geographical locations.

Oracle Assets uses the changes in price index values to revalue:

• The asset cost

• The net book value

A price index is associated to an asset through its asset category. By default, Assets uses the price index assigned to the asset's category to calculate revaluation amounts, but you can override the default price index and recalculate the revaluation amounts for an asset. Assets assigned to categories without a default price index should be excluded from revaluation.