Vendor Evaluation - Price history

Hi
In vendor evaluation the score for the subcriteria Price History is not getting calculated.
The scoring method that I have used is : Automatic Determ. from Purch. Statistics: Price Behavior
What can be the reason? How it is calculated?
Regards

to determine how a vendor's price for a material has changed over the last few years, the material's price history is compared with the market price history.
The system first checks whether the buyer has maintained the current market price and last year's market price for the material.
If not, the system uses the price for the material group to which the material belongs.
If this price is not maintained either, the system uses the effective prices from the previous year and the current year. Prices from standard purchase orders for materials and prices from subcontract orders are dealt with separately.
The system then calculates the percentage variance between the old and new market prices.
The vendor's effective price is re-calculated with this percentage variance. The result represents the effective price the vendor should be asking if his price had changed over time in the same way as the market price.
This calculated effective price is then compared with the actual effective price, and a percentage variance is determined.
The system then awards the vendor the score you have maintained in Customizing for this percentage variance.
The system repeats this process for all the materials you procure from the vendor. Each time you start an evaluation, the system calculates the average score for all the materials. The result is the vendor's score for the subcriterion "Price History".

Similar Messages

Vendor Evaluation - Price level and Price Behavior

Dear All,
In Vendor Evaluation - What's the Difference between Price level and Price Behavior.
On what basis these two will be calculated.
Thanks

Hi Siva,
[Vendor Evaluation|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price Level|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price History or Behaviour|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
Reward if helpful.
Thanks and Regards,
Naveen Dasari
Edited by: Naveen Dasari on May 16, 2008 1:10 PM

Vendor evaluation - Price level

Hi,
pls can anybody help me to explain procedure how system calculating the sub criteria PRICE LEVEL, PRICE HISTORY , ONTIME DELIVERY,QTY RELIABILITY (Under main criteria PRICE,DELIVERY) in vendor evaluation process.
Possible give sample calculation.
Aparji

Price Level
This subcriterion compares relationship of a vendor's price to the market price. If the vendor's price is lower than the market price, he/she receives a good score; if it is higher than the market price he/she is assigned a poor score.
On the basis of the subcriterion "Price Level" you can compare a vendor's price to the current market price at a certain point in time.
Price History
This subcriterion compares the development of the vendor's price with the market price.
On the basis of the subcriterion "Price History", you can determine whether the vendor's price has increased or decreased over a certain period in comparison with changes in the market price over the same period.
Goods Receipt
This subcriterion is used to evaluate the quality of the material that the vendor delivers. Quality inspection takes place at the time of goods receipt.
Quality Audit
This subcriterion is used to evaluate the quality assurance system used by a company in manufacturing products.
Complaints/Rejection Level
This subcriterion is used to evaluate whether the materials delivered by the vendor are regularly found to be faulty subsequent to incoming inspection (for example, on the shop-floor) leading to additional expense and loss of time (due to loss of production, reworking etc.).
The score (QM key quality figure) is calculated in QM Quality Management and the data passed on to MM Vendor Evaluation. This key quality figure is converted for use in the Vendor Evaluation scoring system.
On-Time Delivery Performance
This subcriterion is used to determine how precisely a vendor has adhered to the specified delivery dates.
Quantity Reliability
This subcriterion is used to determine whether a vendor has delivered the quantity specified in the purchase order.
"On-Time Delivery Performance" and "Quantity Reliability" always have to be seen in conjunction. You can specify for each material (in the material master record) or for all materials (in the system settings) the minimum quantity of the ordered materials that must be delivered in order for a goods receipt to be included in the evaluation. This enables you to avoid a situation in which a punctual goods receipt involving only a small quantity of ordered materials is included in the evaluation with a good score for "On-Time Delivery Performance". If this minimum quantity is not delivered, the vendor is not awarded a score. However, in this case the vendor

Vendor Evaluation Price Level For services

Hi expert, I've seen that the Main Criterion "Price" is just for materials, and I wanted to know whether there is a way of Calculating Scores for Automatic Subcriteria for services.
I also wanted to know if there is any other standar criterion for evaluating services.
Thanks !!

Hi,
Subcriteria can be defined by us as per our requirement but SAP has provided following 2 Subcriteria;
- Quality of service
- Service timeliness
For above 2 subcriteria, you can assign a scoring method as following;
C Determination from quality rating of service
D Determination from timeliness rating of service
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Criteria > Here maintain subcriteria for Service criteria and assign the scoring method
At the time of processing Service Entry Sheet, under "Vendor evaln" Tab, you will have option to enter scores for the following subcriteria
- Quality of service
- Service timeliness
Once you enter scores here, it will get calculated in ME61, if automatic evaluation is configured for above 2 subcriteras
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Purchasing Organization Data for Vendor Evaluation > Here for Service criteria and it's subcriteria do not activate manual maintenance indicator
And if you want to maintain values manually for Service criteria and subcriteria then activate the manual maintenance indicator in above config path and then maintain it during ME61 (Vendor Evaluation)

Automatic Sub-Criteria: PRICE HISTORY in Vendor Evaluation

Hello All,
Can anybody help me in understanding what actually the following mean in Automatic Vendor Evaluation!!
1) Effective Price
2) Calculated Effective Price
3) Actual Effective Price
4) Calculated Effective Price for a particular Vendor
I see all this in the following link
http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97cf8414511d188fc0000e8322f96/frameset.htm
Under "How the System computes Scores:"
Under "Calculating Scores for Automatic Subcriteria:Overview"
Under "Price History (Main Criterion "Price")"
Thanks

Hi ZEYNEP,
1) Effective price - End price after taking all conditions (for example, cash discounts, delivery costs etc.) into account.
2) Total Price - Price arrived at after taking all discounts and surcharges into account
3) Total value = total quantity x price
When a price changes, the value of the stock changes, since the value is calculated from the price:
4) Effective (actual) price: Net price minus cash discount and plus miscellaneous provisions and delivery costs as well as non-deductible input tax
In simple - Total Cost - Expenditure on material till Goods Receipt (Procurement) and Effective cost - including all expenses till delivery from factory or some times till reach the consumer (vary depend upon the nature of business).
Here is an example
Material Price is $ 1000/-
& Discount is 10% and tax is 10% and freight is $ 50/-,Fixed( it may also %)
So Here the Material Price is called Gross Price $ 1000/-
Gross Price ($ 1000/-)- Discount {$ 100/-(10% of $ 1000/-)}= Net Price $ 900/-
Here Net Price $ 900/-
Tax $ 90/- ($ 900/- +$ 90 = $ 990/- is called sub-total)
Freight $ 50/-
$ 1040/-
The Total Price ($ 1040/-) is called Effective Price.
Hope this is helpful. Reward if useful.
Thanks

Vendor Evaluation scores sub criteria price level and price history

Dear all,
I have configured vendor evaluation with subcriteria price history and price level as automatis.
For test, I created a vendor and a material. Assigned market price for year 2009 and 2010.
Also info record price maintained for the vendor material combination.
Vendor XYZ
Material ABC
For 2009 Market price 8 and effective price 8.5
For 2010 Maket price 8.2 Effective price 8.5
Variance calculated 8.43% and score is 15. This was calculated correctly.
Now I created another material and maintained master data for that mater
Vendor XYZ
Material DEF
For 2009 Market price 18 and effective price 20
For 2010 Maket price 20 Effective price 22
Variance calculated 1% for which the score is 50.
When I go for vendor evaluation through ME61 , system is not considering the average of 2 scores. But giving a score of 50. Score bands are as follows.
5     Price behavior     5.0     10
5     Price behavior     10.0     15
5     Price behavior     20.0     20
5     Price behavior     50.0     20
5     Price behavior     99.0     10
5     Price behavior     5.0-     50
5     Price behavior     10.0-     100
5     Price behavior     50.0-     20
5     Price behavior     99.0-     10
Pls help me resolve the issue
Regards.
Milind Dugade

Hi Siva,
[Vendor Evaluation|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price Level|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price History or Behaviour|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
Reward if helpful.
Thanks and Regards,
Naveen Dasari
Edited by: Naveen Dasari on May 16, 2008 1:10 PM

Vendor price history

Hi folks,
I am looking for a report that will provide Vendor price history for a material. Is there any standard SAP report or any table that gives this information?
Sincerely,
Sanjay

Hi,
Use transaction ME1P.
Regards,
Naveen

Price level in vendor evaluation

Hi,
I have created 1st PO with price 50 and checked the ME63, system showed score for price level as 40. Then I made another PO with price 55 and checked ME63, system displayed the same score 40,
While there is change in price of 10 %, so I was expecting score of 10 .
Can anyone explain about this.

Hi,
Following is the calculation procedure for
1) Price Level -
If you have maintained market price for the material, the system checks vendor's price level with the market price, otherwise it compares the vendor's price with average price of material by all vendors. Then the price variance is calculated in percentage. The score is awarded for this price variance as per settings in your system configuration. This process is repeated for all the materials supplied by the vendor. The overall score is the average of all these scores.
2) Price Behaviour -
System checks market price / average price of the material for last year as well as for current year. System calculates the percentage change for the market price. System repeats this procedure for price of material by vendor. Then system compares these two values & calculates percentage variance. The score is awarded for this variance as per system configuration. The overall score is the average of all these scores of the materials.
3)Online Delivry statistics -
System calculates the difference between scheduled delivery date in PO & actual delivery date & calculates the percentage variance. The score is awarded as per settings in system configuration. This process is repeated for each P.O. & overall score is average of all these values.
Hope the answer is helpfull. For more details, you can avail online help at site http//:help.sap.com on subject Vendor Evaluation.
Regards,
Prashant Kolhatkar

Market price in vendor evaluation..?

Hi Experts,
what is the meaning of market price in Vendor Evaluation...??
can u please explain me..
Thanks in Advance,
Anthyodaya.

you can enter it while maintaining conditions...
Choose Master data >> Conditions >>Prices >>Market price.
Enter the material for which you wish to maintain a market price.
Choose Program >> Execute.
If a price has already been maintained, it is displayed.
To enter a new price or change an existing one, position the cursor on the material and choose Condition >> Create or Change.
Enter the amount and specify a validity period (if applicable).
The remaining functions on this screen have no significance with regard to the market price.
Save your data.

Vendor Evaluation - Calculating Price Statistics

All,
In vendor evaluation, can someone please provide details of how standard report calculates the price statistics. I know the data it uses, so plesae don't copy and paste links to SAP documentation.
Someone please provide a working example so I can see the calculation process.
Thanks.

The effective price store in the info sturcture S013 and when you do the GR/IR that time if any diff will be recorded to the infostructure and based on that system will calulate the price level
price behaviour will be based on the market price if you have maintianed in the system.

Market price in vendor evalution.

Dear All,
Can you pls tell me how to maintain market price in system,is there any Tcode available in Sap.
System calculate market price by taking average of all vendor in vendor evaluation.
Can any body help me out I need to enter market price is equal to the lowest rate having among the vendor. And system will pick that price and will calculate the variance %=(effective price-market price)/market price * 100.
So for I determined the score of each vendor llike
0 %= 100
10%= 95
20%= 80
so on
99.9% =0
with Regards,

You are not going to maintain the market price in vendor evluation but you have to maintained in the tcode MEKH. before this you have to assign the market price to you rpurhcaisng organization
the std market price schema is already created by SAP so if you dont want to add anymore conditon than you can use the std one.
now you have to go in the config for MM-Purchasing-Condtion-define price dtermination process - define schema determination
here you have to assign the market pricing to your Purchasing org than you can maintain the price in MEKH
so once you do above than you can run vendor evaluatio and it will compare with market price.
this is all optional
it is only for comarison

Vendor Evaluation-market price

Hi Experts,
How to maintain market price in the system for vendor evaluation based on sub-criteria Price level??? What is the best and easiest practice. Please share your experience.
Your replies will be appriciated with points.
Regards,
santosh

Hello,
The market price is entered in the transaction MEKH.
About the Price level:
This score is computed with the information between inforecords and Market Price.
This compare is making for each material that a vendor has provided.
This information is not contained in table S013 and is only calculated during an evaluation and saved in the table ELBP.
Inforecords are per vendor X material tables EINA and EINE, field NETPR.
Market Prices are per Material X Material Group.
I hope this information help.
Best Regards,
Arminda Jack

Vendor Evaluation-Effective price

Hii everyone;
I got a question about vendor evaluation. How do we calculate effective price (automatic level) & which screen do we use in this process ?

HI
BY COMPARING QUOTATIONS FROM VENDORS WE CAN ABLE TO KNOW WHICH ONE IS EFFECTIVE PRICE
USING T CODE ME49
OK
KISHORE REDDY

Vendor Evaluation- Points for Automatic criteria

Dear Team,
Our requirement for ontime delivery criteria is - for delays up to 10 days from PO delivery date to GR date 100 points, 11- 15 days delay -98 points,16-30 delay -95,31-45 delay-93,46-60 delay -90 , >60 - 1 point. how to configure this points in SPRO -points for the auto matic criteria.
Also what is the logic taken for assigning point scores for standard purchase organisation available in SAP 0001(Einkaufsorg. 0001). IF WE ARE TAKING A COPY OF THIS AND TRYING TO EDIT, SOME VALUES ARE NOT GETTING DELETED & SOME VALUES NOT GETTING SAVED.
Thanks & Regards
Nireesh

Hi,
Vendor Evaluation (t-code ME61) has the following features:
Wighting Key: in Std. SAP two keys are given (with equal weighting & unequal weighting). Based on the criteria you have, you can either accept & follow one of these std. settings or create one for yourself in IMG.
Suppose you select equal weighting as the key to be followed: there are 4 criteria viz. Price, Quality, Delivery and Service.
Each of these criteria have sub-criteria for them. For Ex. Price has 3 sub-criteria: Price level, Price history and Price behaviour.
So, for each sub-criterion, you allocate different marks (based on your business). Again, for each sub-criterion, there is a scoring method in Std. SAP. You can't create any new scoring method of your own. You only have to follow one of the 16 scoring methods given.
Thus, the total score would come to 100 and you get vendor evaluation based on these criteria chosen.
In your case: you have descending marks (points) for delay in delivery. So, pl. make one according to those criteria & sub-criteria. Please go through the help.notes and also some links in SCN. Regards, KrishnaM

MM Vendor Evaluation

Dear friends !
I have a doubt about Vendor Evaluation criteria calculation.
For example , Price
Into Price(main criteria) we have Price Level and Price history.
SAP calculate scores to price using which tables ? this criteria is accumulated by month ? or by Purchase order ?
Does anyone could help to understand the places where SAP catch data to calculate vendor scores ?I really do not understood the help.sap.com regarding this subject.
Best regards,
Ale

Hi Alessandro Brazil
Vendor Evaluation for Purchasing
Define the weighting keys in SM30 - V_T147J.
Weighting keys 01 and 02 are defined in the standard system. You combine the following
weighting shares for the standard main criteria:
Main criterion     Key 01 Key 02
Price                   1      5
Quality                 1      5
Delivery                1      2
Gen. service/support    1      1
Ext. service provision 1      2
Define the criteria in SM30 - V_T147G - Double click on the line items
In this step, you define the criteria by which the system computes scores for vendors and
specify whether the scores for the subcriteria are computed manually, semi-automatically, or
automatically.
You can also store your own methods of computation for the scores for subcriteria in the
form of user exits. The enhancement MM06L001 is available for this purpose.
Define the scope of list in SM30 - V_T147M - Double click on the line items
Define Purchasing Organization data for vendor evaluations in transaction OMGL.
An example :-
How the system calculates the score for the automatic subcriteria
"On-Time Delivery Performance"?
The system uses the statistics-relevant delivery date in the purchase order
(Items -> Delivery Schedule) and the goods receipt date to calculate date variances.
You use the statistics-relevant delivery date, for example, if you know that the vendor
will not deliver the material as scheduled on September 15 but on September 30. Enter the
delivery date as September 30, but enter the statistics-relevant delivery date as
September 15.
In calculating the score for on-time delivery performance, the system will then not use
the actual delivery date, but the statistics-relevant delivery date. This has a negative
effect on the score for this goods receipt.
However, materials planning and control uses the realistic delivery date (September 30)
which the vendor will actually adhere to.
The system considers only goods receipts against purchase orders and scheduling agreements
into stores and the release of GR blocked stock into stores. In the standard system, these
are the movement types 101 and 105.
Minimum Delivery Percentage - OMGL in the On-time delivery section
If you do not want a vendor to receive a very good score if he delivered the goods on time,
but did not deliver the required quantity, you can maintain a minimum delivery percentage
in Customizing.
Assume you set the Min. del. perc. parameter to 60% and the vendor delivers the goods on
time, but only 55% of the ordered quantity. Although the goods receipt is punctual, it is
not included in the calculation of the vendors score for on-time delivery performance. So
that the non-scoring of the on-time delivery performance criterion in this case does not
bring an unfair advantage in comparison with a poor score, the vendor is awarded a low score
for quantity reliability. On-time delivery performance is thus always to be seen in
conjunction with quantity reliability.
Standardizing Delivery Date Variance - OMGL in the On-time delivery section
To rate delivery date variances in days, maintain the Std.del.time var. parameter.
If you assign a lower standard value, this means that relatively low date variances produce
high percentage variances. If you set a higher standard value, this results in a relatively
low percentage variance:
The Std.del.time var. parameter has the value 20. The goods receipt took place on Nov. 27;
the statistical delivery date was Nov. 15. There is thus a difference of 12 days.
The system calculates the percentage variance as follows:
12 / 20 x 100 = 60
If the Std.del.time var. parameter had the value 60, the variance would be 20%
(12 / 60 x 100 = 20).
If you do not maintain this parameter, the system calculates the delivery time variance via
the firm zone in the case of scheduling agreements, and via the order date and the
statistics-relevant delivery date in the case of purchase orders.
Thanks

Vendor Evaluation - Price history

Similar Messages

Maybe you are looking for