<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000089" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Smoothing factor</Title>
		<Keyword><Level1>Smoothing factor</Level1>
		</Keyword>
		<Keyword><Level1>Smoothing method</Level1>
		</Keyword>
		<Keyword><Level1>Vendor rating</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>One of the two methods to calculate the overall vendor ratings is <GUIRef href="/baanerp/td/domains/pur.smth.8#factor" role="enum">Smoothing Factor</GUIRef>.</Paragraph>
		<Paragraph>If the method is <GUIRef href="/baanerp/td/domains/pur.smth.8#factor" role="enum">Smoothing Factor</GUIRef>, you must define the factor in the <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.sfac.8" role="formfield">Smoothing Factor</GUIRef> field of the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session.</Paragraph>
		<Paragraph>SSA ERP calculates the overall vendor rating per business partner as follows:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">New overall vendor rating = 

(old rating * old value * (1 - factor)) + (period rating * new value * factor) / 
(old value * (1 - factor)) + (new value * factor)
</Paragraph>
			<FigLegend><LegendEntry><Symbol>Old rating</Symbol>
					<Desc>The existing overall vendor rating of the business partner.</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>Old value</Symbol>
					<Desc>The value on which the old rating was based.</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>New value</Symbol>
					<Desc>The total value of the period. <TextRef role="label" href="/kd/dtd/baan">baan</TextRef> retrieves the value type
from the <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.wmth.8" role="formfield" version="default" Update="Yes">Weighting Method</GUIRef> field of the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session" version="default" Update="Yes">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session. </Desc>
				</LegendEntry>
				<LegendEntry><Symbol>Factor</Symbol>
					<Desc>Smoothing factor that is defined in the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session" version="default" Update="Yes">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session.</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>Period rating</Symbol>
					<Desc>The vendor rating for the newest business partner/period combination.</Desc>
				</LegendEntry>
			</FigLegend>
		</Formula>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<List><ListItem>The period rating calculated for the newest period is 85%.</ListItem>
				<ListItem>The new value for the new period is 1000 pieces.</ListItem>
				<ListItem>The existing overall vendor rating is 70%.</ListItem>
				<ListItem>The old value on which the existing rating is based is 8000 pieces.</ListItem>
				<ListItem>The smoothing factor is set to 0.8.</ListItem>
			</List>
		</ExampleSection>
		<Paragraph>New overall vendor rating:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">(70 * 8000 * (1 - 0.8)) + (85 * 1000 * 0.8) / (8000 * (1 - 0.8)) + (1000 * 0.8) = 75% </Paragraph>
		</Formula>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000088" role="manual">Moving average</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000087" role="manual">To update overall vendor rating</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000090" role="manual">To update vendor rating process</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000081" role="manual">To calculate actual weightings</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000082" role="manual">To calculate ratings for objective criteria</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000083" role="manual">To calculate ratings for objective criteria (step 1)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000084" role="manual">To calculate ratings for objective criteria (step 2)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000085" role="manual">To calculate ratings for objective criteria (step 3)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/td/onlinemanual/000086" role="manual">To calculate ratings for subjective criteria</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
