Multinational Swiss Company
100,000+ employees operating in 50+ countries. SAP supporting supply chain, finance, and human resources globally.
SAP Audit: CHF 25M Claim
SAP alleged significant non-compliance across indirect access, licensing misalignments, and unreported usage in acquired subsidiaries.
Independent Audit Defence
Redress reviewed SAP’s claims, challenged overestimations, corrected user counts, and led negotiations with SAP.
94% Reduction to CHF 1.5M
CHF 23.5M in exposure eliminated. Zero penalties. Forward-looking settlement with additional licensing value.
The Challenge
CHF 25 million SAP audit claim across 50+ countries
A leading multinational Swiss company with over 100,000 employees and operations in more than 50 countries faced an SAP compliance audit alleging significant non-compliance. The initial financial exposure was estimated at CHF 25 million. SAP’s audit report highlighted discrepancies across three critical areas. Given SAP’s central role in the company’s supply chain, finance, and human resources, the stakes were exceptionally high. For strategic context on how SAP audits work, see our SAP licence audit survival guide.
| SAP Audit Finding | SAP’s Claim | Risk Level |
|---|---|---|
| Indirect Access | Third-party systems across 50+ countries accessing SAP data without proper licensing | Critical |
| Licensing Misalignments | User licence types not matching actual usage: Professional assigned where Limited or Employee would suffice | High |
| Unreported Usage | SAP usage in recently acquired subsidiaries not captured in compliance reporting | High |
Indirect Access: Largest Component of CHF 25M Claim
SAP applied its broadest interpretation of indirect access across the company’s global operations. Third-party systems, IoT integrations, customer portals, and automated processes that touched SAP data were all counted as licensable indirect access vectors. With operations spanning 50+ countries, the sheer number of integration points created hundreds of potential access scenarios, most of which did not constitute licensable usage under proper contractual analysis.
Licensing Misalignments Amplified by Global Footprint
User licence types across the company’s global operations did not match actual usage patterns. Professional licences had been assigned to users whose activity warranted Limited or Employee types. With 100,000+ employees across 50+ countries, even small misalignment percentages translated into millions of francs in over-licensing or under-licensing claims. For more on SAP’s digital access licensing model, see our advisory service.
Unreported Usage from Acquired Subsidiaries
SAP identified usage across recently acquired subsidiaries that had not been captured in the parent company’s compliance reporting. This is a common audit vulnerability for companies active in M&A: newly acquired entities often have existing SAP entitlements that are not consolidated into the parent’s licence position, creating apparent gaps that SAP’s auditors flag as non-compliance.
Facing an SAP Audit?
SAP audit claims are negotiation starting positions, not final bills. Our team includes former SAP employees who built these audit programmes. We know where the claims are overstated and how to negotiate the best outcome. See our SAP audit defence service.
SAP Audit Defence Service →The Process
Four-phase audit defence from analysis to governance
Audit Review & Analysis
Reviewed SAP’s audit report comprehensively, identifying overestimations in user counts and indirect access claims that did not reflect actual system usage. Evaluated licence usage across all global operations, mapping actual usage against entitlements in every country to establish a precise compliance baseline. Reviewed historical contracts and agreements, uncovering favourable clauses and legacy entitlements that SAP had overlooked or misinterpreted.
Usage Validation & Optimisation
Validated indirect access scenarios, demonstrating that key integrations did not constitute licensable access under contractual terms. Identified underutilised licences and recommended reallocations across all regions. Discovered consolidation and process optimisation opportunities that reduced overall licence requirements. Documented subsidiary-level entitlements that directly offset SAP’s unreported usage claims. For detail on SAP’s compliance methodology, see our SAP licence audits and compliance guide.
Free SAP Licensing Assessment
Share your SAP contract details and audit notice. We will provide an independent assessment of your compliance position and defence strategy.
SAP Licence Management Services →Strategic Negotiations with SAP
Presented SAP with a comprehensive corrected compliance report demonstrating discrepancies across all 50+ country operations, resetting the negotiation baseline from CHF 25M. Provided technical documentation proving key third-party integrations did not constitute licensable indirect access. Highlighted the company’s long-standing SAP partnership and ongoing investment in SAP technologies, shifting SAP’s posture from adversarial to collaborative. Negotiated a significantly reduced settlement including additional licensing value and flexibility for future expansion. For our broader negotiation approach, see our SAP contract negotiation service.
Governance Implementation
Designed and implemented a comprehensive governance framework across all 50+ country operations. Automated real-time monitoring tools tracking SAP licence usage, user activity, and indirect access patterns across all subsidiaries. Training sessions for IT and procurement teams worldwide. Periodic internal audits across all regions to identify and remediate issues. M&A integration protocol for SAP licence compliance in newly acquired subsidiaries.
The Outcome
CHF 25M reduced to CHF 1.5M: a 94% reduction
| Metric | Before Redress | After Redress |
|---|---|---|
| SAP Audit Claim | CHF 25,000,000 | CHF 1,500,000 (94% reduction) |
| Savings Achieved | — | CHF 23,500,000 |
| Penalties / Retroactive Fees | At risk | CHF 0 |
| Settlement Composition | — | Forward-looking with additional licensing value |
| Licence Utilisation | Underutilised globally | Optimised across 50+ countries |
| Compliance Monitoring | No real-time visibility | Automated global monitoring |
| Governance Framework | No framework | Comprehensive with M&A protocol |
| SAP Relationship | Adversarial | Collaborative |
Before Redress
- CHF 25M SAP audit claim
- Indirect access claims across 50+ countries unchallenged
- User licence misalignments across global operations
- Unreported usage from acquired subsidiaries
- No real-time compliance monitoring
- Adversarial SAP relationship
After Redress
- CHF 1.5M settlement (94% reduction)
- Indirect access claims technically disproven
- Licences reallocated and optimised globally
- Subsidiary entitlements documented and consolidated
- Automated real-time monitoring across all operations
- Collaborative SAP relationship with M&A protocol
Redress Compliance’s expertise in SAP audit defence was transformative. Their strategic approach reduced our financial exposure and strengthened our internal processes. They were a trusted partner throughout this challenging experience.— Chief Information Officer, Multinational Swiss Company
Multinational companies operating in 50+ countries present the most complex and most profitable SAP audit targets. SAP’s audit methodology applies a standardised framework to sprawling complexity, which almost always produces inflated results. In this case, 94% of SAP’s CHF 25 million claim did not survive detailed technical and contractual scrutiny across the company’s global operations.— Fredrik Filipsson, Co-Founder, Redress Compliance
Key Takeaways
Lessons for ITAM and procurement professionals facing SAP audits
SAP audit claims are negotiation starting positions, not final bills.
SAP’s initial assessment of CHF 25 million was reduced by 94% through detailed technical analysis and evidence-based negotiation across 50+ country operations. Never accept SAP’s findings at face value. For the full methodology, see our SAP audit defence strategy guide.
Global complexity amplifies overstatement.
The more countries you operate in, the more SAP’s audit methodology overstates exposure. Each subsidiary, integration, and local SAP instance adds layers of complexity that SAP’s tools cannot accurately assess without detailed local analysis.
Indirect access is the number one area of audit overstatement for multinationals.
With dozens of countries and hundreds of third-party integrations, SAP applies the broadest possible interpretation. Challenging these claims with technical evidence showing actual data flows, country by country, is the most effective defence lever. For more on this topic, see our SAP audit defence FAQ.
Historical contracts contain hidden value.
Legacy entitlements, subsidiary-level agreements, grandfathered terms, and acquisition-related SAP contracts are frequently overlooked by SAP’s audit teams. A thorough global contract review can identify entitlements that directly offset audit claims.
M&A activity creates audit blind spots.
Newly acquired subsidiaries often have existing SAP entitlements not captured in compliance reporting. Implementing an M&A integration protocol for SAP licensing closes this gap before SAP exploits it.
Implement governance at global scale.
Real-time monitoring, internal audit schedules, and staff training must cover all operations. Centralised visibility into SAP usage across every subsidiary is the most effective long-term defence against future audit exposure.