Managing SAP Package and Engine Licences: Metrics and Cost Optimisation

You need to increase your SAP Payroll engine licence to cover the additional 1,000 employees before processing them in SAP. Contact SAP, explain the acquisition, and negotiate pricing for the increment. SAP may offer pro-rated pricing for the remainder of the year. If the acquisition closes mid-term, negotiate that extra employees are included free for a few months and added formally at renewal. Never process new employees without updating the licence.

SAP provides specific measurement tools or programs. For documents, SAP's Digital Access Evaluation Tool scans your system for document counts in relevant categories (sales orders, invoices). For revenue, SAP may use specific billing tables in a given period. Some metrics are captured in LAW, others require manual steps or specialised ABAP reports. Always verify the measurement period — some are based on peak concurrent values, others on annual totals.

You can't "sell back" perpetual licences. However, you can choose not to pay maintenance on excess licences, effectively shelving them. For example, licensed for 10 engines but only using 5 — keep 5 on active maintenance and lapse the other 5. You still own them (for the software version when maintenance ended), but you save ongoing support fees. At your next negotiation, see if SAP will allow an official reduction, especially if you're buying something else simultaneously.

In the traditional on-premises model, engine licences are perpetual purchases with optional annual maintenance fees. You pay upfront for the right to process a defined volume. In cloud or newer consumption models (like BTP), engines are effectively subscriptions — you subscribe to capacity per year. Many SAP engines now have cloud equivalents where you pay by annual usage. Always clarify which model you're getting, as SAP's push to cloud means some offerings may only be available as subscriptions.

SAP HANA runtime licences are a common expensive one — often priced as a percentage of your total SAP application value. If you expand application licences, HANA costs increase correspondingly. SAP Treasury, SAP IS-Oil, and industry-specific engines can be very pricey per unit. SAP BusinessObjects BI engines tied to core counts are costly as you upgrade hardware. Any engine tied to technical resources (cores, GB of memory) can escalate significantly with infrastructure upgrades.

SAP auditors request that you run measurement programs. Many engines are measured via LAW tool output. For specialised engines, auditors send specific scripts or have you execute transactions to capture current usage. They compare numbers to your entitlements — any overuse is flagged as a compliance gap. They then propose purchasing the shortfall plus potentially back-maintenance for the period of overuse. It's far better to catch overages yourself and buy proactively than to resolve them under audit pressure.

Drop maintenance at the next renewal to stop paying support fees. You keep the licence (in case you reactivate the module on an older version), but it becomes shelfware. As part of a broader deal, SAP might agree to cancel the licence in exchange for a commitment to new purchases elsewhere. Document that you're no longer using the module so that if audited, you can demonstrate zero usage. Remove user access and, if possible, technically uninstall the module.

Engine licences are typically enterprise-wide if the systems fall under the same corporate licence agreement. You don't assign them to a specific server — if you have an engine for 1,000 orders across two SAP systems, the total across both shouldn't exceed 1,000. You have flexibility to use it where needed internally. If you retire one system, the licence doesn't vanish — it can be used on another. Just track aggregate usage across all systems.

SAP's own measurement tools include USMM, LAW, and the Digital Access Evaluation Tool. Third-party SAM tools like Snow Optimizer for SAP can monitor certain package measurements. SAP Solution Manager can be configured for some licence analytics. However, engine metrics are so varied that not all can be automatically tracked. Sometimes custom scripts or periodic manual checks are needed. Establish a catalogue of how to measure each metric and schedule regular reviews.

Clear it up immediately with SAP, in writing. Email your SAP contract representative asking for clarification — you want a written response you can keep. Getting answers proactively helps avoid contentions later. After an audit starts, SAP may stick to strict definitions. You can sometimes negotiate amendments if definitions seem unfair. Also refer to SAP's Software Use Rights document (the version applicable when you signed). Independent licensing experts can help interpret complex definitions.