Vendor Evaluation - Periods of time considered

[Former Member]

Hi dear all!

I have a question regarding how SAP calculates some subcriteria in Vendor Evaluation.

1- Price Level: How many periods are taken into account? When running vendor evaluation, for this subcriteria, some purchasing orders that are two or three years old have been considered. Is this correct? Is it because we are running vendor evaluation for the very first time?

2- Price History: current year and previous year are referred to fiscal years?

3 - Complaints/ Rejection Level: How many periods (months) are taken into account? If a vendor has two  Q2 type QN last month but none this month, they are summarized or not? For annual business volume fiscal year is considered or last twelve months?

4 - Is there any difference between running vendor evaluation for first time in the system and the subsequent times?

Thank you very much for your time and your answers!

Best regards,

Eliana

[Former Member · Accepted solution]

Hi Eliana,

While doing the configuration for Vendor Evaluation in the given path IMG-MM-Purchasing-Vendor Evaluation-Define Vendor Evaluation Setting for Purchasing Org,,,,,,,,there you will one field name APPLICABILITY PERIOD which is maintained in numbers in days. Whatever value you maintain in this field upto that many  calender days data/transactions in past will be considered for vendor evaluation.

You are running vendor evaluation first time or even you run everyday the system will pick up the scores from LIS table SO13 which get updating automatically at the time of PO/GR/IR.

Hope it will clear your doubts.

Regards,

Anoop Singh

[Former Member · Accepted solution]

Hi Anoop,

Thank you very much for your answer. You are right, but please help me with this because the applicability period is NOT taken in account for price level and price history, I have set 180 days and PO from past three years are taken into account for price level subcriteria.

Still I need to know if "previous year" in price history subcriteria is referred to "last fiscal year" or "last twelve months".

For complaints level, ít´s clear for your answer which QN are considered, but could you tell me if when SAP calculates "annual business volume" considered only what is invoiced in this current fiscal year or in the last twelve months?

Thanks in advance!

Regards,

Eliana

[Former Member · Accepted solution]

Hi Eliana,

Please read the below SAP OSS Notes to understand how system calculate the scores for Price level history and  price behaviour

SAP Note: 806836 & 806838

Hope that will clear your doubts.

Regards,
Anoop Singh

[Former Member · Accepted solution]

Anoop, thanks for this notes, these are very helpful.

Still... there are some differences between what the note and the IMG say regarding the applicability period:

• According to the note, price level is time dependent (in other words, only effective prices inside applicability period are considered)
• According to IMG, for price level subcriteria applicability is not considered.

Also, in the notes says that effective price is taken from info records. My client does not maintain this info record data, so the effective price is taken from POs.  Actually,  "last PO price" is taken into account as "effective price". And PO posted 3 years ago are considered, in cases where vendor has not recent activity.

Please, I need help with this!

Thanks!

Eliana

[Former Member · Accepted solution]

Hi Eliana,

sorry for late reply, was busy with lot of work. Please check the below link for details on how system calculates scores for price level and price history:

http://wiki.sdn.sap.com/wiki/display/ERPSCM/Vendor+Evaluation+in+MM-PUR

Please let me know if after going thru the document you have any doubts..

Regards
Anoop Singh

[Former Member · Accepted solution]

Hi Anoop, thanks for your time and your interest.

I checked this documentation and other documentation too, but what I´m seeing in the system is diferent from what SAP documentation says.

So, this is the reason why I´m asking here.

What I have in the system is that  last PO price is being taken as "effective pice" regardless the PO date go outside of the applicability period. This is real, and I can´t find in any SAP documentation an explanation to this.

In case of  price history, I have not found neither if last year refers to last fiscal year.

Regards,

Eliana

[Former Member · Accepted solution]

Hi Eliana,

Did you hear back from any expert on this? I have got more or less similar situation.In sandbox, I have maintained two info records with 2 different vendors for the same item. My criteria is just the price. As per info record effective prices are 12 USD and 8 USD and there is no market price maintained. As i read the documentation, system should calculate the market price as the average of all effective prices which works out to be 10USD and again as per SAP help, price level variance should be calculated as:

(effective price - market price)     x 100

          market price

and then whatever the variance% may be, it should calculate score based on the entries maintained in the table T147K. Unfortunately, this is not happening.

Any idea where I am going wrong here

Thanks,

Syd

[mathewgeorge · Accepted solution]

Hi Syed,

Then how is it being calculated in your case.

Matthew

[Former Member · Accepted solution]

Hy Syed,

Please, could you give more details regarding numbers?

May be you can include an excel worksheet, can´t you?

Regards,

Eliana

[Former Member · Accepted solution]

Hi Eliana and Mathew,

As I tried to explain, I have done required configuration in sandbox and only criterion is price. The vendor I am trying to evaluate has got just one info record with effective price 12 USD.The same item is procured from another vendor and as per info record the effective price is 8 USD. There is no market price maintained for this item. System has evaluated percentage as -99.99 and corresponding score against -99.99 in T147K is 93 so my vendor got the score 93. I am confused how did system computes percentage as -99.99