What is rating procedure in SAP FS-BP - Business Partner?

SAP Term: rating procedure

• Component: FS-BP

• Component Name: Business Partner

• Description: An internal or external procedure that is used to assess business partners in terms of their payment behavior, credit standing, and other criteria, for various business processes. The result of the business partner assessment is a rating that is valid for a fixed time period. &EXAMPLE& You want to check the credit standing of your business partner "Construction Ltd". To do this, you establish a rating for the business partner using the "Moodys" rating procedure.

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• Key Concepts: 
  Rating procedure is a feature of the FS-BP Business Partner component in SAP. It allows users to assign ratings to business partners based on their performance. Ratings are used to evaluate the performance of business partners and can be used to determine which partners should be given preferential treatment. 
  
  How to use it: 
  To use the rating procedure, users must first create a rating profile. This profile will define the criteria that will be used to assign ratings to business partners. Once the profile is created, users can assign ratings to business partners based on their performance. Ratings can be assigned manually or automatically using predefined rules. 
  
  Tips & Tricks: 
  When creating a rating profile, it is important to consider the criteria that will be used to assign ratings. This will ensure that ratings are assigned accurately and fairly. Additionally, it is important to review ratings regularly and adjust them as needed. 
  
  Related Information: 
  For more information about rating procedures in SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips for using rating procedures in SAP.