term amount adjustment what is
Meaning of inflation adjustment amount. What is it: adjust a G/L account balance or line item for.

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Definition inflation adjustment amount

INFLATION ADJUSTMENT AMOUNT title: inflation adjustment amount (FI) (SAP Library - Glossary)
INFLATION ADJUSTMENT AMOUNT category: Financial Accounting (FI)
INFLATION ADJUSTMENT AMOUNT explained:

A sum of money, in inflation accounting, that serves to adjust a G/L account balance or line item for inflation.

Example

Assume you have a G/L account with a balance of UNI 20,000, which you adjust for inflation. The inflation rate is 5%, which means a price increase of UNI 1,000, so that the adjusted balance is now worth UNI 20,000 + UNI 1,000 = UNI 21,000.

The inflation adjustment amount is UNI 1,000.

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