This option will calculate a rating for each supplier over a given period based on the number of NCR's against orders.  See Quality Rating setup for the defined levels. Once the supplier has been rated at the lowest entry, normally there is a hold applied to creating any more new orders.  A supplier rating can never go up only down. It will be down to user discretion whether to increase a suppliers rating by manually editing their record.

 

Under the Reports menu there is a detail and summary Quality Rating report which can be sent to a supplier informing them of your current rating and how this was calculated