Help me about Indexes and Exchange rate

[Former Member]

I see in SAP B1 have form Exchange rates and Indexes. I don't know mean of Index. What does it use for? And Exchange rates relate to Indexes. I can't understand. Can you help me.

[former_member186095 · Accepted solution]

Hello,

here is the answer :

indexes is to be used for revaluation of financial reports. Each index defined in this window appears as a column in the Exchange Rates and Indexes window, on the Indexes tab. You should enter the values of the indexes here. Indexes defined by the user can be removed, however indexes provided by default by SAP Business One, cannot be removed.

To open this window, choose Administration --> Setup --> Financials --> Indexes.

Let me know if you need more detail

Rgds,

[Former Member · Accepted solution]

I also know this explain from help. But I can't understand. Can you for me an example about this. i need detail explainations.

Thank you

[former_member186095 · Accepted solution]

Hello Tien,

You are clever. There are also some member forums could not know how benefit the helpfiles for them and a certain member in this forum is called forum point seeker, take this as an opportunity.

Indexes in SAP B1 are used to define consumer price index (CPI). h

ere is the definition :

The Consumer Price Index (CPI) measures inflation as experienced by consumers in their day-to-day living expenses. (It is sometimes referred to as the retail price index.) There are separate indexes for two groups or populations of consumers:

• The CPI for All Urban Consumers (CPI-U) is the index most often reported by the national media.

• The CPI for Urban Wage Earners and Clerical Workers (CPI-W) is the index most often used for wage escalation agreements.

The CPI inflation calculator allows customers to calculate the value of current dollars in an earlier period, or to calculate the current value of dollar amounts from years ago.

Consumer price indexes often are used to escalate or adjust payments for rents, wages, alimony, child support and other obligations that may be affected by changes in the cost of living. There is a fact sheet explaining how to use the CPI for escalating contracts.

A new price index called the Chained Consumer Price Index (C-CPI-U) is now available. This new measure is designed to be a closer approximation to a "cost-of-living" index than the CPI-U or CPI-W.

Based on that definition, we could obtain it as data when determining exchange rate in daily business or price of the inventory items

Rgds,

JM

[Former Member · Accepted solution]

Thank you Jimmy Michael, i understood your explain about CPI but when we apply to SAP B1. How do we use. Can you for me an example in B1 about it or one specific situation. I wish i can handle it.

[former_member186095 · Accepted solution]

I have looked at SDK help file and I didn't see if it can be used anywhere in other table. I suggest you to read training material file. For me, it is only informational purpose before decide to determine exchange rate for today.

Rgds,

[Former Member · Accepted solution]

Thank you! i also think as you.

[Former Member · Accepted solution]

Thank you! i also think as you.