Vendor evaluation price

[Former Member]

Hi,

I am doing vendor evaluation.I am maintaining the price of a material in condition record. In a span of 3 months I am changing the price 3 times. I have maintained the market price of material also. When i run vendor evaluation, how the vendors effective price is calculated. Whether effective price will be the average of 3 prices I have maintained or the last price updated in condition record?

regards

N Banu

[former_member581212]

hi,

How system determines effective rates of a particular vendor for any material.

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.

It can be seen in ME1P

Regards

Priyanka.P

AWARD IF HELPFULL