SAP License audits and how to review licensing

The Basics of an SAP License Audit

What is an SAP license audit? What triggers one? And how does one avoid common license compliance risks? We’ll also explain how to optimize license usage and what indirect usage means. This article covers the basics of a SAP license audit. Whether you’re running SAP in your business or not, this information is essential for preparing for your audit. Using this information will make your audit easier, and it will help you prepare for the unexpected.

What is an SAP license and how do you review licensing?

There are many ways to optimize your SAP licenses, including at the user level. Performing an SAP license audit can help you identify which types of licenses are being used most efficiently. For instance, it’s important to review your contract metrics and understand which licences are being used the most. If you’re assigning professional licenses to users who use the system exclusively, you’re not optimizing your license usage. This can save you a considerable amount of money.

When you conduct an SAP license audit, you’ll uncover inefficiencies and waste in the organization’s license management process. SAP will present you with penalty fees when you’re overusing a license. A license management tool will also capture user transaction history, support complex assignment rules, and provide simulation support. With this information, you’ll be able to maximize your SAP investment by understanding how many licenses are being used and whether there’s any spare capacity in the system.

An SAP license audit begins with determining where your company stands today. By compiling USMM and SLAW reports, you can determine the total licensing envelope. This data helps you forecast future consumption of user and engine licenses. You should also gather all the SAP license contracts. After determining the total licensing envelope, you’ll be able to identify package and engine licensing metrics for each application. The next step is identifying all of the SAP applications that you use.

SAP-license audits and how to audit SAP

What triggers a SAP license audit? Previously, the process was manual. Now, the software automatically allocates the right license based on the company’s actual usage. This way, the optimal license is always assigned. Furthermore, the system also helps identify and negotiate license deficits on a schedule. By providing an audited position every month, the software is able to identify any gaps in the license portfolio and make adjustments accordingly. The software can also trigger notifications when thresholds are reached, ensuring that all users are aware of their rights.

The next step is to evaluate whether your SAP license is required for indirect access. Some companies don’t even realize that they’re using indirect access, which SAP deems to be a violation. While implementing this solution can reduce your cost of accessing SAP software, it can also lead to a multi-million dollar lawsuit and a wasted license. So, it’s important to ensure your license allocation policy complies with the SAP rules and is in line with company policies.

While there are many reasons for an SAP license audit, the process is similar to that of software license audits in most cases. In SAP audits, the first step is to know where you stand today. A proper license assessment compares USMM and SLAW reports to the license agreements you have in place. It also forecasts consumption of engine and user licenses. It’s also important to gather all SAP licensing contracts.

Common compliance risks with SAP licenses

There are many technical reasons for non-compliance with SAP licenses. Often, however, the issues stem from the wrong attitude or assumptions. Below, we will discuss some of the common compliance risks related to SAP licenses. Whether or not you have a license issue is up to you, but there are some things you should do to protect yourself. You can avoid these problems by focusing on your business needs and not your licenses.

Indirect access to SAP is a common problem. If you allow multiple users to access information using a single employee login, you are violating the terms of a named SAP license. While this is not technically a violation of SAP’s terms of service, it could have read-only implications that would cause you to be fined if you are found in breach of the terms of the license. If you are unsure of what constitutes indirect access, consult a licensed specialist.

Double-licensing is another issue. Many companies license more than they need. In these cases, you may need to distribute the same license across multiple SAP systems. It’s also important to keep in mind that double-licensing can lead to double-licensed software. To avoid double-licensing, consider distributing the highest common SAP license to all users. Additionally, be aware that SAP license keys are often linked to authorizations.

Indirect usage SAP explained

Indirect usage is not something to be taken lightly during an SAP license audit. Although it might be less obvious to see, indirect access to documents is often unlawful under the Sherman Anti-Trust Act. While the FTC does little to enforce anti-trust laws in the US, citizens often have no idea why they should be concerned with the law. As a result, some companies have started to specialize in license audit management. Companies such as Atonement licensing are particularly adept at auditing SAP and Oracle software licenses.

Indirect access and usage is when a third-party application uses your data without your direct authorization. While it may not seem important at first glance, indirect access and usage can cause a significant financial impact if you do not have the right licenses for these applications. To protect yourself from unexpected SAP licensing fees, you should make sure that your software licenses are not being used for non-licensed purposes. Atonement has successfully defended many of its clients against unexpected indirect access licensing fees.

The definition of indirect usage in SAP license audits is not a simple task. To properly identify such usage, you should map your SAP interface environment. This can be done in T-Code SM59 by technical managers. You can also consult systems owners and integration experts to review incoming RFC connections. The complexity of indirect usage increases as more applications and servers are used. For example, the use of the SAP platform for data entry is common in business processes, while the use of data for billing purposes should be excluded.

SAP license audit process explained

An SAP license audit is a process that is initiated when users exceed the use restrictions assigned to their assigned license types. Typically, SAP users are classified by default, role inheritance, or manually. This process can help a company make informed decisions regarding licensing costs and prevent long-term risks. To avoid these audit findings, a company should understand its contractual user types and how to classify user accounts in SAP. If users exceed their assigned license types, an audit is required to determine the appropriate license types and quantity limits.

The Basic Audit is typically co-operative and involves self-declarations and reports using the SAP licensing tools. However, if the results are not satisfactory,  SAP may probe. Further, SAP will sometimes conduct a more thorough audit after receiving the results of the Basic Audit. In these cases, SAP may also conduct more frequent onsite visits to verify licensing information. In rare instances, the auditor will issue a warning notice. But, the best course of action for the customer is to follow up with the license audit to ensure compliance.

The indirect user license is one of the more complex aspects of SAP license management. There are few guidelines published by SAP on this topic. In many cases, customers are required to contact SAP to discuss their system environments and assess their indirect use exposure. If SAP detects indirect access, they will be obligated to send a bill. Indirect access can be difficult to detect using USMM or SAP LAW, but it can be detected through the SAP notes. Indirect access can lead to costly deals for customers and costly lawsuits. And the additional licenses may not provide much value.

How to negotiate a SAP license audit

While most companies try to avoid SAP audits, there are some ways to reduce costs and improve compliance. First, understand that SAP is based on a license-per-user (LPU) model, which is akin to payment-by-use. As a result, the best way to defend against an audit is to analyze your measurement results and compare them to what SAP has concluded. Once the audit is completed, SAP will likely accept a commitment to upgrade your licenses or adopt HANA or S/4HANA. They may overlook the misstep in licensing and accept continued revenue and investment in the future.

The process of performing an SAP license audit can vary depending on the vendor. Some vendors require meetings with customers, while others may request a self-declaration of unmeasurable products. While each vendor has different guidelines, ensuring you understand your rights is the key to a successful audit. Regardless of the audit process, it is essential to prepare before the audit, as this will help you negotiate more effectively with your supplier.

The process of an SAP license audit can be daunting. It can take several weeks to measure the use of software and to determine how much you’re paying. This process requires the company to dedicate resources to measure usage levels and the cost of new licenses. But the benefits can outweigh the costs. The process can be simplified if you know how to negotiate the SAP license audit. Once you’ve done that, you’ll be in a position to negotiate a new agreement.

Why you should get help in a SAP license audit

One of the first steps in a SAP license audit is to understand where your organisation is now. By comparing current SAP license agreements to USMM and SLAW reports, you can determine whether you have any indirect usage and accurately forecast the consumption of engine and user licenses. You can also collect and review all your existing SAP license agreements and identify your total licensing envelope. Identifying key metrics is essential to help you understand your license usage and future planning.

One of the main challenges in SAP licensing is managing the thousands of users that use the system. They transact in many ways, including changing jobs and environments. They may even leave the organization altogether. If you don’t manage your SAP licenses properly, you will be paying over-the-top and may face a SAP audit. You may even end up paying a large fee at the end of a system measurement.

To optimize your SAP licensing, it is essential to know how many users are using which products. In many cases, the wrong license allocation can cost you six to nine figures. This is why pre-audit analysis is crucial. Proper pre-audit analysis will enable accurate decisions, which will result in maximum savings. To ensure that the audit is a success, you must invest sufficient time and resources.