What is 'indexation amount' in SAP PY-UA - Ukraine?

indexation amount - Overview

• Component: PY-UA

• Component Name: Ukraine

• Description: The payment that you make to employees to ensure that an employee’s purchasing power remains the same following inflation. You calculate the indexation amount by multiplying an employee’s actual earnings by the indexation percentage that you derive from the consumer price index CPI.

indexation amount - Details

• 
  Key Concepts: 
  Indexation amount is a feature of the PY-UA Ukraine component of SAP software. It is used to adjust the amount of a salary or wage payment to account for inflation. This adjustment is based on the official indexation rate set by the Ukrainian government. 
  
  How to use it: 
  In order to use the indexation amount feature, you must first enter the official indexation rate into the system. This rate can be found on the official website of the Ukrainian government. Once this rate has been entered, you can then enter the salary or wage payment amount and the system will automatically adjust it according to the indexation rate. 
  
  Tips & Tricks: 
  It is important to ensure that you are entering the correct indexation rate into the system, as this will affect how much of an adjustment is made to the salary or wage payment. Additionally, it is important to keep track of any changes in the indexation rate, as this may require you to update your system accordingly. 
  
  Related Information: 
  For more information about indexation amount and other features of PY-UA Ukraine, please refer to SAP’s official documentation. Additionally, you can contact your local SAP representative for further assistance.