How to Prepare for an SAP License Audit

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How to Prepare for an SAP License Audit

If your company is scheduled for an SAP license audit, you’ve probably been asking yourself, “What is an SAP license audit?” And “What should I do to prepare for one?” Before we answer these questions, we’ll outline what an SAP license is, how it’s conducted, and the common risks that accompany an audit. Then, we’ll look at some ways to avoid these risks and prepare for an SAP license audit. Read on to find out more!

What is a SAP license audit?

SAP license audits are conducted based on a number of parameters. Typically, license audits are scheduled two years after a company signs an SAP contract. However, the contract may specify a later date for audits. The number of audits per year depends on the resources available for the vendor, and the number of basic audits performed annually varies. In the past, license audits were largely manual, but the technology behind them has changed. SAP license audits now allocate licenses based on usage, and the optimal license will be allocated. In addition, SAP license deficits can be identified proactively, so that they can be addressed on a schedule. An effective license position is available monthly, and alerts can be set up for any significant deviations.

The scope of the Basic Audit varies from Enhanced audits. Basic audits are typically non-invasive and involves self-declarations by companies using SAP’s tools. During the Enhanced audit, SAP may review additional data sources and verify licenses. Basic audits are often the first step, and the Enhanced audit follows shortly after. It is important to understand the limitations of each type of audit and the potential implications before undergoing an audit.

In addition, a proper SAP license audit will identify which users are using which products. Whether administrators are using SAP products without a license or not, it’s important to know who has access to the system. A license audit will help determine which users are using the right features and if any are using the wrong license types. During an audit, it’s important to know how many users you have in each role, and what roles they perform.

What triggers an SAP license audit

If you’re unsure if you’re compliant with SAP’s licensing requirements, you can begin by performing a Basic SAP License Audit. This audit will assess the validity of self-declarations and LAW reports submitted by your business. Then, your company will need to run USMM scripts and combine this data with your self-declaration data. After this basic audit, your company will be invoiced for any overage or shortfall in licensing. If SAP has a suspicion that you may be violating SAP’s licensing guidelines, a more extensive audit may be required.

If you have been compliant for nearly a year, you can expect the audit to go well. However, if it turns out that you’ve exceeded your licensing threshold, SAP will investigate and try to find a commercial resolution. For example, if you’ve been using Extended Warehouse Management, you may be using far more licenses than you actually need. Depending on the region, Extended Warehouse Management licensing can run to six figures. As a result, it’s important that you regularly review the use of SAP Extended Warehouse Management.

Before you can implement this strategy, you must first understand how your users are classified by license type. SAP offers three primary ways to classify user accounts. You can assign different types of licenses to different levels of users, such as professional users and basic users. This will help you match employees’ activities to the proper license type. There are also various methods for assigning licenses, such as role inheritance. If you’re unsure about which license types to assign to which users, you should consult your SAP implementation consultant.

When you’re unsure of your usage levels, the best defense is to collect reports and compare them to the conclusions of SAP. If you’re not satisfied with your licensing results, SAP may probe. But if you’re making an effort to upgrade your licenses or upgrade to S/4HANA, they may overlook your past missteps and accept you as a customer. In this way, you can avoid the audit altogether.

How to prepare for an SAP license audit

To successfully complete your SAP license audit on time and within budget, you should follow the 80/20 rule. This rule will help you decide which applications to inspect, based on their use. For instance, you should not audit systems used by developers, as they are already scanned within an active development environment. Furthermore, you should select the most appropriate number of systems to be inspected, to minimize the pressure. This method of preparation is a valuable tool to protect your organization against audits.

To prepare for an SAP license audit, you must first ensure that your SAP system contains the correct number of users. Make sure that you check the quantity and type of user licenses you have. SAP will automatically convert empty values into Professional types if the user doesn’t have a license. You can also manually categorize user accounts by deleting those you no longer use or reclassify users with the appropriate license type. However, be sure to follow SAP contract classification methods.

To prepare for an SAP license audit, you should review your current and previous purchases. Review the volume metrics and spend history. Some companies only use one application. Also, note down the engines you no longer use. In addition, focus on development systems. Once you understand your spending, you can decide whether or not you need a different license. But don’t get carried away – you don’t want to waste time and money during an SAP license audit. It’s worth the effort to ensure that your SAP license audit is conducted accurately.

The first step in preparing for an SAP license audit is to know what it entails.

Common SAP license risks

There are a number of common SAP license risks that customers must consider. In order to mitigate these risks, customers must improve their license and user administration processes. Additionally, they must follow measurement guidelines and respond promptly to SAP questions if they are suspicious of improper license use. The following are some examples of common license risks. The first one is an SAP license risk. For this type of license risk, the customer may end up with duplicate licenses.

SAP licensing metrics constantly change, and this could cause an unexpected overcharge. For example, 100’s of customers may have purchased the same product on different metrics, but the LAW will use the most current metric. Unless the user is careful to read the licensing document, a customer could “inadvertently” over-charge by not realizing that a certain product measure does not correlate with the SAP license. As such, SAP may not be aware of the metric that corresponds with the product and could “overcharge” customers.

Another common SAP license risk is Indirect Access. While SAP’s terms for indirect access vary, some contracts allow non-named users to access an SAP system without a license. Furthermore, some contracts do not clearly state that non-named users may access the SAP system without a license. The language of each contract has an impact on Indirect Access, with most cases stemming from unclear definitions of Use and Named User.

Another SAP license risk is the misuse of an employee. An employee with one transaction code may be assigned a role that includes dozens of other user accesses. This will result in unnecessary risks for the company. In addition, a user with one transaction code may inherit wider access than necessary due to a technical error. To avoid such problems, companies should perform regular SAP access-risk assessments to ensure that their users are appropriately protected. These assessments will help reduce the total number of access risks.

How to manage an SAP license audit

How to manage an SAP license audit? Performing an SAP license audit is important for the proper allocation of SAP licenses. This is an ongoing process that involves reviewing users, test it, and license types. Companies should plan yearly reaffirmations to ensure that only the right users are assigned licenses. It’s also important to analyze the cost and functionality of SAP licenses. If you’re looking for ways to reduce license costs, the following tips may be helpful.

Identify the software and SAP engines in use. The licenses for these engines should be based on current usage. It is also important to consider whether additional licenses are required in the future. SAP-license management software automatically allocates the appropriate license based on usage. You can set thresholds and optimize license allocations to avoid unnecessary spending. This way, you can make informed decisions about the future needs of your business. In addition, this audit can be a useful service for the licensee and publisher.

How to manage an SAP license audit depends on the scope of the audit. The basic audit typically covers the basics of license use. Named users are people who need licenses. Packages are a type of software component that can be licensed. Additional products are not covered by a basic audit. However, SAP can escalate a self-declaration to an Enhanced Audit, which typically includes additional scrutiny. While it may be tempting to ignore SAP license audit requirements, it’s important to understand what they require.

When planning your SAP implementation, keep in mind the following scenarios. First, determine whether you have the correct SAP license type. It can save you a significant amount of money. A lot of organizations allocate license types that are too expensive. Analyzing usage data will reveal whether you can use a less expensive license type. By analyzing the usage data, you’ll know what SAP users really need. Once you have this information, it will be much easier to select the most appropriate SAP licensing option.