| To calculate vendor ratings |  |
| The calculation of vendor ratings takes place after purchase orders are created and processed. You can use objective and/or subjective criteria in the calculation. Objective information comes from processed orders and subjective criteria information is entered. Before you start the calculation procedure, use the following sessions to enter subjective criteria information: Vendor Rating Questionnaires (tdpur8454m000) To assign subjective values to subjective criterions, you need your employees who work with your business partners to give feedback on how they rate them. You can print vendor rating questionnaires to give to employees to fill out. This information can be compiled and entered into ERP LN and used in the vendor rating calculation. The employees of your company can also enter the information directly in the Questionnaire Results (tdpur8193m000) session. Questionnaire Results (tdpur8193m000) Use this session to enter the vendor rating questionnaire results. Note You can use the Business Partners without Questionnaire (tdpur8452m000) session to print the business partners who do not have vendor rating questionnaire results for the defined year or the period combination. To update vendor ratings To calculate the vendor ratings after orders are processed and questionnaires are compiled, you must run the Update Vendor Rating (tdpur8850m000) session. You can update the vendor ratings in the following ways: Net update. Full update. Because the fully update process takes a lot of time, you are advised to only do a full update of the vendor rating if: You changed the parameters in the Vendor Rating Parameters (tdpur0100m800) session. You no longer want to take into account the manual changes, which you can make in the following sessions: Vendor Ratings by Period (tdpur8102m000) Vendor Ratings by Criterion (tdpur8102m100) Objective Ratings (tdpur8106m000) Note If you did not change parameters and also did not change the vendor ratings manually, the calculation of the vendor rating has the same result for a full update and a net update. Net update of vendor ratings To do a net update of the vendor ratings, clear the Full Update check box in the Update Vendor Rating (tdpur8850m000) session. As a result, only the purchase order lines that are newly processed in the Process Delivered Purchase Orders (tdpur4223m000) session and fall within the defined period, are taken into account. The calculation is as follows:

     NR = ((OR * V) + (nRL * nVL)) / (V + nVL)
    NRnew ratingORold ratingnRLrating of new purchase order line(s)Vvalue on which the old rating was basednVLvalue of new purchase order line(s)
Full update of vendor ratings To do a full update of the vendor ratings, select the Full Update check box in the Update Vendor Rating (tdpur8850m000) session. As a result, all purchase order lines that are processed in the Process Delivered Purchase Orders (tdpur4223m000) session and fall within the defined period, are taken into account in the calculation of vendor rating. So, ERP LN calculates totally new ratings that are fully based on the data in purchase order lines history. If you do a full update of the vendor ratings, ERP LN completes the following calculation stages: Step 1. To calculate actual weightings For more information, refer to To calculate actual weightings. Step 2. To calculate ratings for objective criteria For more information, refer to To calculate ratings for objective criteria. Step 3. To calculate ratings for subjective criteria For more information, refer to To calculate ratings for subjective criteria. Step 4. To update overall vendor rating For more information, refer to To update overall vendor rating. Note You can use the following sessions to view the calculated vendor ratings and/or or manually modify the calculated vendor ratings: Vendor Ratings by Period (tdpur8102m000) Vendor Ratings by Criterion (tdpur8102m100) Graph Vendor Ratings (tdpur8701m000) Related topics Overview of vendor rating To set up vendor ratings To calculate actual weightings To calculate ratings for objective criteria To calculate ratings for subjective criteria To update overall vendor rating |