Computation with Price Escalation

Jsdeloria21
Jsdeloria21
in Modeling

Hi Guys,

 

I would like to ask something regarding a formula I have been working on. See the table below.

 

Jsdeloria21_0-1586618737917.png

Price Escalation formula = Input

Avg Selling Price = The Jan 13 value is constant referenced to 2.3 which is in another module. While the succeeding months starting Feb 13 to Mar 14 the formula is Avg Selling Price*(1+Price Escalation).

 

I tried the formula IF Price Escalation = 0 then Avg selling Price else Average Selling Price*Price Escalation.

I also tried IF Previous(Avg Selling Price)=0 then Avg Selling Price else Avg Selling Price*Price Escalation.

 

I still do not have the right calculation on my Line Item. Need a little input on this.

 

Appreciate it.

 

Regards,

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Best Answer

  • Akhtar.shahbaz
    Akhtar.shahbaz
    Answer ✓

    Hi @Jsdeloria21 

     

    I am sure not about logic what you have explained. From the screenshot it looks like the formula is not correct for Avg selling price as well.

    If i am assuming constant value to be 2.3 for Jan 13 and price escalation is 1% in Jun, how the average price will be 2.4 as per the formula you have provided.

    1% of 2.3 =0.023 and in total it will be 2.323

     

    Anyway i have tried to replicate :

    Screenshot_249.png

     

    Screenshot_250.png

     

     

    Please provide more details on the formula then I can help you more on this.

     

    Thanks

    Akhtar

     

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