In many contracts, amounts paid are indexed by CPI, or some sub-variant of it. I was recently speaking with my colleague, Tim Devine, about a way to make it easier to calculate indexing over time in order to ensure that invoicing amounts are correct. Some companies have people who do this full-time, but all you really need is Excel.
Tim is the most Excel-capable lawyer I have ever met, so it makes sense to implement this solution in Excel. He will be right at home.
So, if you’re looking to find out what you should be charging, or being charged, after 1 or more periods of inflation indexing, you can now do so with this Excel sheet:
If you have any suggestions for changes, let me know!
Thanks again to Tim for this one.