How do you calculate the lease payment with “delayed” CPI?


We received the requirement to calculate the lease payment based on a complex formula. Can you advise which should be out-of-the-box and which should be customized?

2016 Q1:

  • January = Base rate*Square + VAT
  • February = January(before tax)*CPI(February) + VAT
  • March = February(before tax)*CPI(March) + VAT

2016 Q2:

  • April = May = June = New Base rate*Square + VAT

2016 Q3:

  • July = February(before tax)*CPI(December 2015)*CPI(January 2016)*CPI(February)*CPI(March)*…*CPI(May) + VAT
    • Literally, the July base rate equals the indexed February rate. But for indexing, we have to use a “delayed” CPI or the CPI from two months ago. For example, for the CPI in July, use the CPI in May.
  • August = July(before tax)*CPI(August) + VAT
  • September = August(before tax)*CPI(September) + VAT
  • OR if the calculated payment is less than 20% from reported sales, use 20% of reported sales for this month, where this rule is applicable during the whole period.

[Admin: For convenience, here are the meanings of the acronyms: Consumer Price Index (CPI), Value Added Tax (VAT).]

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