13.2 Update index or rate for several contracts simultaneously (Mass update)

We recommend for companies that need to regulate many contracts at the same time each year to use this function. This function is also recommended for companies that regulates several contracts, based on a rate, such as, discount rate (Financial leases). To have this functionality, the function needs to be set under Settings: Property and support.

We recommend that the index adjustment is properly registered under Subsequent measurement of lease liability, so that the correct information appears in the registration pictures below:

You can adjust the index or rate for several contracts simultaneously (mass update) by clicking the Adj. Index or Rate button.

The first registration picture appears as follows:

Start by selecting the libraries that you would like to update. Select other parameters (Companies, departments, etc.) from the list to sort the contracts you want to update at the same time.

If you’ve registered the index adjustment date for all contracts, it’ll be easier to sort contracts to be adjusted based on the same index.

Select Adjustment period that needs to cover the period where you want to include the CPI or discount rate adjustment.

Then click

The relevant contracts, based on the criteria set above, will appear:

Set the date the CPI or discount rate adjustments will take effect. In this example, the date is set to January 1st 2021.

The leases that can be adjusted on this date will appear as a choice with an empty box behind each lease:

Choose the contracts you want to regulate by clicking the box behind the contracts, or chose all by clicking the box behind Library:

Click Next page.

Enter the adjustment to the CPI in percentage and click Apply.

Answer OK to the warning.

The suggested adjustment will appear as follows:

You can now overwrite and adjust the future lease payment for each individual contract by changing the suggested amount. Please note that in contracts with multiple payment periods or options, all the periods will appear.

You can exclude contracts by clicking X under the Exclude column.

If the suggested next adjustment date is not correct,

this can be adjusted either here

or by clicking and then clicking to select the adjustment date for each contract.

When you’re finished, click Next page and then click Save. After you have answered OK to the warning, the CPI will be adjusted.

To review the result, open the calculation model and click Update leases in the menu page.

We recommend opening the change tab and choose Index or rate adjustment as a filter to review the relevant changes. Remember that it’s important to set the correct date filter (Lookup periods).

You can click on each individual contract to review the change.

You can update the discount rate for several chosen contracts simultaneously by clicking Additional mass adjustments.

Then answer Yes to the question, “Are you adjusting the rate of financial leases?”, enter the updated discount rate in percentage and click Apply.

Answer OK to the warning.

The updated discounted rate will appear as follows:

You can override and change the discount rate for each individual contract by entering the rate under the New cell.

When you’re finished, click Next page and then click Save. After you’ve answered OK to the warning, the discount rate for all the selected contracts will be updated.

Open the calculation model and click Update leases in the menu page. In the change tab, choose Index or rate adjustment as a filter to review the relevant changes to the discount rate.

You can click on each individual contract to review the change to the discount rate.

If the change in the payment cash flow or discount rate is after the date that the net present value effect of the change is recorded. The date you chose in Set the date, is the date that the following changes will take effect on the selected leases,

you can click Additional mass adjustments and then answer Yes to the question “Are you registering an index adjustment at an earlier date than the effect takes place?”. You can then set the cash flow change date to the date when the change in the cash flow happens. For example, if you set this date to April 2021, the net present value effect of change is recorded on January 2021, while the change to the fixed payment cash flow happens in April 2021.

Click Apply and answer *OK’ to the warning.

You will get information as follows:

You can override and change the date for each individual contract by choosing the date under the New cell.

When you are finished, click Next page and then click Save. After you have answered OK to the warning, the date of the cash flow will be changed.

Open the calculation model and click Update leases in the menu page. Click on each individual contract to review the change. You’ll see the change of cash flow happening in April 2021 and the date the net present value effect of the change is in January 2021.