806838 – Calculation of score for Price Behavior

Symptom

Wrong score calculated for Sub-criteria: Price Behavior.

Other Terms

EFFPR, EFFPM, T147K, EINE, market price, effective price, ME61, S013, Vendor Evaluation, ELBK, ELBP, MEKH, EVAL_PRICEHISTORY_CRITERIA, ME_GET_PRICE_FOR_SUPPLIER.

Reason and Prerequisites

Misunderstanding of score calculation.

Solution

When calculating a vendor’s score for Price Behavior,  the system calculates a percentage variance between the previous year and the current year’s market price.When no market price has been maintained, the system checks all materials for that vendor, and all info records for each material.

The current and previous year’s effective price and market price of all info records for the vendor, are used to calculate a score for sub-criteria price behavior.

First the information from the current year is retrieved, to be used in a comparison with the previous year’s effective and market price. The process for calculating the current year’s pricing information is described in note 806836 Calculation of score for Price Level.

Next the pricing information from the previous year is retrieved. All info records for the vendor are retrieved from tables EINA and EINE. An effective price EFFPR is calculated for each info record for the previous year.  Price determination is run for each with a pricing date of the last day of the previous year. If no condition record is found, the system checks the order price history(table EIPA) to find a document with a document date between the first and last day of the previous year.

Next the system searches for a market price for each info record.  If no market price has been maintained, all info records of each material for the vendor being evaluated will be used to calculate a market price. Pricing will be run for each, and an effective price will be determined for the pricing date of the last day of the previous year. If no condition record found, the order price history is used to find a document in the info record with a document date between the first and last day of the previous year. Then a formula is used to calculate a market price EFFPM for each info record of the vendor being evaluated.

The following formula is used to find Market Price for each info record of the vendor being evaluated:

Market price =
(cumulated effpr for all info records of the same material / total number of info records for the same material number) *(price unit on purch org level / price unit for that record)

This results in an Effective Price (EFFPR) and a Market Price (EFFPM) for each info record of the vendor being evaluated.

The current effective price and current market price together with the previous year’s effective price and market price, for each info record of the vendor being evaluated are used to determine a price comparison. A score is calculated for each info record of the vendor. After the scores are determined for each info record, an average is calculated in order to determine the vendor’s score for the sub-criteria price behavior(price history).

The following formula is used to caclulate a comparison price for each info record using the current and last year’s effective and market prices:

market change determined from market price =
           ( current market price –  last year’s market price ) * 100
                            / last year’s market price

The next two formulas are used to calculate a comparison price

comparison price =  last year’s effective price +
                ( last year’s effective price * market change ) / 100.

%  = ( current effective price – comparison price )
              * 100 * 10 / comparison price

Then the system checks customizing in table T147K to assign a score for the percentage. Each info record is assigned a score for price behavior. The total of all scores is divided by the number of info records for the vendor to calculate an overall score for the vendor in sub-criteria price behavior.

Software Components
Software Component From To And Subsequent
SAP_APPL 40B 40B
SAP_APPL 45B 45B
SAP_APPL 46B 46B
SAP_APPL 46C 46C
SAP_APPL 470 470
SAP_APPL 500 500
SAP_APPL 600 600
SAP_APPL 602 602
SAP_APPL 603 603
SAP_APPL 604 604
SAP_APPL 605 605
References
This document is referenced by