| To calculate ratings for objective criteria (step 2) |  |
| The second step that ERP LN carries out in the calculate objective criteria ratings process, is the conversion of the objective values to ratings. ERP LN rates the objective values according to the settings of the following check boxes in the Vendor Rating Parameters (tdpur0100m800) session: Delivery Time Delivery Quantity Delivery Quality Order Confirmation Cost Performance If these check boxes are selected, ERP LN rates the concerning objective values based on an objective scoring scheme, as defined in the Vendor Rating Objective Scoring Scheme (tdpur8195m000) session. If these check boxes are cleared, ERP LN rates the concerning objective values on a linear basis. Objective scoring scheme You can assign scoring values to an objective criterion in the Vendor Rating Objective Scoring Scheme (tdpur8195m000) session. You can link rating percentages to the scoring values. ERP LN searches for an objective scoring scheme, which is used for the conversion of scoring values to rating percentages, in the following sequence: ERP LN searches for an objective scoring scheme for the business partner/item combination. If no scheme is present for the business partner/item combination, ERP LN searches for an objective scoring scheme for the business partner. If no scheme is present for the business partner, ERP LN searches for an objective scheme for the item. If no scheme is present for the item, ERP LN gets the default objective scoring scheme of the objective criterion. Example 1
Criterion Type | Delivery
--- | ---
Unit | Days
Value | Percentage | Values for which the percentage applies
-5 | 10% | <= -5
-1 | 50% | -4 to -1
0 | 100% | 0
5 | 40% | 1 to 5
100 | 30% | 6 to 100
If the order is 6 days late, the business partner receives a rating of 30% for the purchase order line. Example 2
Criterion Type | Quality
--- | ---
Value | Percentage | Values for which the percentage applies
20% | 0% | 0% - 20%
80% | 50% | 21% - 80%
90% | 75% | 81% - 90%
100% | 100% | 91% - 100%
If 25% of the delivered items are rejected and 75% is approved, the business partner receives a rating of 50% for the purchase order line. After this conversion, ERP LN carries out the third step in the calculate-objective-criteria-ratings procedure: the creation of a rating record per purchase order line in the Objective Ratings (tdpur8106m000) session. Linear basis If the objective-scoring schemes are not used to convert objective values to rating percentages, a linear relationship exists between value and rating. As a result, ERP LN calculates the rating for each objective criteria as stated below. Delivery Time ((Receipt date - current planned delivery date) / item lead time) * 100 Delivery Quantity (Approved quantity / ordered quantity) * 100 Delivery Quality (Approved quantity / (approved quantity + rejected quantity)) * 100 Order Confirmation ((Order confirmation date - order date) / (planned delivery date - order date)) * 100 Cost Performance (Purchase price / average purchase price) * 100 Note If the average purchase price is 0, the cost performance rating will be 0. If any of the ratings above is greater than 100, then rating = 200 - rating. If any of the ratings above is smaller than 0, then rating = 0. Related topics To calculate vendor ratings To calculate ratings for objective criteria To calculate ratings for objective criteria (step 1) To calculate ratings for objective criteria (step 3) Overview of vendor rating |