<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000085" xml:lang="en">
   <Header>
      <Title>To calculate ratings for objective criteria (step 3)</Title>
      <Keyword type="header" order="d1e1335080">
         <Level1>Vendor rating</Level1>
         <Level2>calculating ratings for objective criteria (step 3)</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1335085">
         <Level1>Rating for objective criteria</Level1>
         <Level2>calculating</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1335090">
         <Level1>Ojective criteria</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>The third step that LN carries out in the
		calculate objective criteria ratings process, is the creation of rating records
		for each purchase order line in the <GUIRef href="/baanerp/td/pur/tdpur8106m000" role="session">Objective Ratings (tdpur8106m000)</GUIRef> session.</Paragraph>
      <Paragraph>In the <GUIRef href="/baanerp/td/pur/tdpur8106m000" role="session">Objective Ratings (tdpur8106m000)</GUIRef> session, the ratings for all objective criteria are
		displayed. Also, the overall rating for the concerned purchase order line is
		displayed.</Paragraph>
      <GeneralSection>
         <SectionTitle>Calculation of overall rating purchase order
		  line</SectionTitle>
         <Paragraph>The overall rating for
		  the purchase order line is calculated as follows:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>
Overall rating purchase order line = sum (objective rating * weighting) </Paragraph>
         </Formula>
         <Paragraph>LN retrieves the weightings of the objective
		  criteria from the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session. The weightings are recalculated to true
		  percentages, which are taken into account.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Calculation of new objective criterion
		  rating</SectionTitle>
         <List>
            <ListIntro>Every time you add a new line, LN automatically updates
			 the objective criteria ratings per business partner/criterion combination in
			 the following sessions:</ListIntro>
            <ListItem> 
               <GUIRef href="/baanerp/td/pur/tdpur8102m000" role="session">Vendor Ratings by Period (tdpur8102m000)</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/td/pur/tdpur8102m100" role="session">Vendor Ratings by Criterion (tdpur8102m100)</GUIRef>
            </ListItem>
         </List>
         <Paragraph>The new rating is the running average, which is calculated as
		  follows:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>NR = ((ER * EV) + (R * V)) / (EV + V)
</Paragraph>
            <FigLegend>
               <LegendEntry>
                  <Symbol>NR</Symbol>
                  <Desc>Newly calculated objective criterion rating</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>ER</Symbol>
                  <Desc>Rating for all existing purchase order lines of the purchase order, 
excluding the newly added line</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>EV</Symbol>
                  <Desc>Total value of all existing purchase order lines of the purchase order, 
excluding the newly added line</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>R</Symbol>
                  <Desc>Rating for the newly added purchase order line</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>V</Symbol>
                  <Desc>Value of the newly added purchase order line</Desc>
               </LegendEntry>
            </FigLegend>
         </Formula>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListIntro>The value can be of the following types, according to the
				setting of the <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.wmth.8" role="manual">Weighting Method</GUIRef> field in the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session:</ListIntro>
               <ListItem> 
                  <GUIRef href="/baanerp/td/domains/pur.wmth.8#turnover" role="option">Turnover</GUIRef>
               </ListItem>
               <ListItem> 
                  <GUIRef href="/baanerp/td/domains/pur.wmth.8#pieces" role="option">Piece Count</GUIRef>
               </ListItem>
               <ListItem> 
                  <GUIRef href="/baanerp/td/domains/pur.wmth.8#poc" role="option">Order Lines</GUIRef>
               </ListItem>
            </List>
         </Note>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Update of total values</SectionTitle>
         <List>
            <ListIntro>The total values (also called: running totals) of the three
			 above mentioned value types, are also automatically updated when you add an
			 order line. The total values are updated by business partner in the following
			 sessions:</ListIntro>
            <ListItem> 
               <GUIRef href="/baanerp/td/pur/tdpur8102m000" role="session">Vendor Ratings by Period (tdpur8102m000)</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/td/pur/tdpur8102m100" role="session">Vendor Ratings by Criterion (tdpur8102m100)</GUIRef>
            </ListItem>
         </List>
         <Paragraph>The total values of
		  all three value types are always updated, regardless of the used weighting
		  methods. So, if you have a hundred business partners in a specific period,
		  three hundred running totals must be updated.</Paragraph>
      </GeneralSection>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>Subjective criteria
		  are not taken into account in the calculation of the objective criteria ratings
		  and the overall rating per purchase order line. So, the overall vendor rating
		  for each business partner per period can only be calculated after the
		  subjective criteria ratings are also calculated.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000090" role="manual">To calculate vendor ratings</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">Calculating ratings for objective criteria (step 2)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000079" role="manual">Overview of vendor rating</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>