Vendor Evaluation - Rejection Level - Annual Business Volume

[Former Member]

Hi dear all!

I have a question regarding how SAP calculates the annual business volume and the doubt is regarding which period of time is being considered.

I know that SAP takes into account the invoiced ammount, but  from when to when?  "Annual" means "invoiced in the last twelve months" or "invoiced in last fiscal year" or "invoiced  in current fiscal year"?

Thank you very much for your time and your answers!

Best regards,

Eliana

[Former Member · Accepted solution]

Hi,

When you go for Vendor Evaluation settings then you need to put the applicability periods, now whenever you run the Vendor Evaluation Transaction then system will take the total invoices as Organization turn over which is lies in the define period.

Eg if your applicability period is 90 Days then during evaluation system will take total turn over = 90 days Invoices value.

Regards

S.Gaur

[Former Member]

Thanks Sujit  and Shailendra,

You both were right.

My confusion was because when you go to SAP Library for ERP 6.0, in the explanation on how SAP calculates Complaints/Rejection Level, says the following:

If the costs that your company incurs as a result of the faulty materials
are lower than the defined proportion of business volume, the system calculates
a score between 1 and 99 points.

To do this, the system multiplies your annual business volume with the vendor
($1,000,000) by the parameter Business volume share (0.1).

The number of accumulated quality notifications (10 in all) multiplied by the
cost of each notification ($ 500) is subtracted from this.

The result is divided by the annual business volume multiplied by the
proportion of business volume.

The result of this is a factor which, multiplied by a hundred, gives a
percentage.

Here is the link I consulted for this:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/8d/b985b0414511d188fc0000e8322f96/frameset.htm

Thank you very much for this,

Eliana

[Former Member]

turnover period is  depends upon value of field "Applicability Period" in customization.

[Former Member]

Sujit, thanks for your answer, but I do not understand what you say.

I understand that "annual business volume" refers to a "year" and for this reason is "annual". In applicability period you can put 180 days or 30 days... what you want.

How then is it posibble that the period considered is this one instead of a year? Is there any calculation that I´m misssing? 

Thanks in advance!

Eliana

[Former Member]

chek the formula carefully ,its  "T =  Vendor turnover for the selected period " ,which means Applicable period.

Try to test the same in testing servor for couple of vendors for better understanding.