<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000089" xml:lang="en">
   <Header>
      <Title>Smoothing factor</Title>
      <Keyword type="header" order="d1e1653601">
         <Level1>Smoothing factor</Level1>
      </Keyword>
      <Keyword type="header" order="d1e1653604">
         <Level1>Overall vendor rating</Level1>
      </Keyword>
      <Keyword type="header" order="d1e1653607">
         <Level1>Vendor rating</Level1>
         <Level2>calculating overall vendor rating</Level2>
      </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="option">Smoothing Factor</GUIRef>.</Paragraph>
      <Paragraph>If the method is <GUIRef href="/baanerp/td/domains/pur.smth.8#factor" role="option">Smoothing Factor</GUIRef>, you must define the factor in the <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.sfac.8" role="manual">Smoothing Factor</GUIRef> field of the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session.</Paragraph>
      <Paragraph>ERP Enterprise calculates the overall vendor rating per business partner as follows:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>New overall vendor rating = 

(OR * OV * (1 - F)) + (PR * NV * F) / 
(OV * (1 - F)) + (NV * F)
</Paragraph>
         <FigLegend>
            <LegendEntry>
               <Symbol>OR</Symbol>
               <Desc>The existing overall vendor rating of the business partner.</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>OV</Symbol>
               <Desc>The value on which the old rating was based.</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>NV</Symbol>
               <Desc>The total value of the period. The value type is retrieved 
from the <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.wmth.8" role="manual">Weighting Method</GUIRef> field of the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session.</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>F</Symbol>
               <Desc>Smoothing factor that is defined in the <GUIRef href="/baanerp/td/pur/tdpur0100m800" role="session">Vendor Rating Parameters (tdpur0100m800)</GUIRef> session.</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>PR</Symbol>
               <Desc>The vendor rating for the newest business partner/period combination.</Desc>
            </LegendEntry>
         </FigLegend>
      </Formula>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <List>
            <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 <GUIRef href="/baanerp/td/pur/tdpur0100m800#tdpur000.sfac.8" role="manual">Smoothing Factor</GUIRef> is set to 0.8.</ListItem>
            <ListItem>The new value for the
			 new period is 1000 pieces.</ListItem>
            <ListItem>The period rating
			 calculated for the newest period is 85%.</ListItem>
         </List>
         <Paragraph>New overall vendor rating:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>(70 * 8000 * (1 - 0.8)) + (85 * 1000 * 0.8) / (8000 * (1 - 0.8)) + (1000 * 0.8) = 75% </Paragraph>
         </Formula>
      </ExampleSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000087" role="manual">To update overall vendor rating</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000088" role="manual">Moving average</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000090" role="manual">Calculating vendor ratings</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000079" role="manual">Overview of vendor rating</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>