Converting legacy SAP ECC user licences to S/4HANA is a critical step in any migration plan. CIOs and CTOs must reclassify existing ECC user licences (Professional, Limited, Employee, etc.) into the new S/4HANA roles to optimise costs and ensure compliance.
SAP S/4HANA simplifies ECC's sprawling user licence types into four streamlined tiers: Professional, Functional, Productivity, and Developer. Mapping existing ECC users to the right S/4HANA role — based on actual usage, not legacy classification — typically saves enterprises 10–30% on licence costs. This guide covers the full mapping methodology, conversion programs, pricing, and compliance strategies. Read S/4HANA Migration Licensing Guide for CIOs and CTOs.
SAP's legacy ECC system offered a sprawling list of named user types (Professional User, Limited Professional, Employee Self-Service, Warehouse User, Developer, etc.) that often caused confusion and inflexibility. SAP S/4HANA simplifies user licensing into a few broad categories covering the "digital core" ERP usage:
| S/4HANA Licence Type | Description | ECC Equivalent | Relative Cost |
|---|---|---|---|
| Professional Use | Full unrestricted access across all modules and processes. For power users performing complex, cross-functional tasks (finance managers, supply chain planners). | Professional User | Highest |
| Functional Use | Access to a defined set of functional areas related to a user's job role, but not enterprise-wide. For procurement officers, sales reps, domain-specific roles. | Limited Professional | Medium |
| Productivity Use | Lighter user with self-service or limited tasks — timesheets, expense reports, payslips. Covers most lightweight scenarios in a single licence type. | Employee / ESS | Lowest |
| Developer Use | Technical user licence for developers and system administrators. Allows deep technical access (coding, configuration) but not business transactions. | Developer User | Premium |
S/4HANA's user categories are hierarchical — a Professional user can do everything Functional and Productivity users can. This means you should always assign the minimum licence type required for each person's role to control costs. Unlike ECC, where dozens of niche user types existed, S/4HANA's streamlined model forces organisations to rethink user classification.
The consolidation from dozens of ECC user types into four S/4HANA tiers creates a major opportunity. Many users who were forced into expensive Professional licences in ECC may qualify for the lower-cost Functional tier in S/4HANA. Read Contractual Differences Between RISE with SAP and BYOL Models.
Mapping legacy SAP licence types to S/4HANA roles is not a one-to-one conversion. You can't simply swap an "ECC Limited Professional" for an identical S/4 licence because the categories have changed. The key is to map based on each user's functional role and actual system usage:
In ECC, many users were forced into the high-cost Professional tier because their work touched multiple areas. In S/4HANA, some can be downgraded. Example: a sales manager with a Professional licence who only handles sales and CRM processes could move to a Functional Use licence at lower cost. Only truly cross-functional power users and administrators remain Professional.
ECC's "Limited Professional" and operational roles (Warehouse, Shop Floor) generally map to Functional Use in S/4HANA. A warehouse supervisor performing goods movements and inventory checks qualifies as Functional. If a legacy role is extremely limited (a production worker only recording machine time), they may even qualify as Productivity.
Basic self-service users (entering time, viewing HR info) become Productivity Users. S/4HANA Productivity is inexpensive and covers a broad range of simple tasks across HR, basic procurement, and other areas. One Productivity licence type replaces multiple legacy lightweight categories.
ECC developers still need Developer Use licences in S/4HANA (one per named developer). These are often high-cost. Ensure you also review how background users, batch jobs, and integration accounts are handled under S/4 contracts — they may not require named user licences if covered by engine metrics.
Converting licences is an opportunity to streamline operations and save money. Before signing any S/4HANA contract, take these steps:
Analyse who is using the SAP system and how. You may discover 10–20% of named users haven't logged in for months. Inactive or dormant users should be removed or excluded from future licence counts. There's no point paying maintenance on licences not in use.
Identify users over-provisioned in ECC. A user with a Professional licence who now only performs basic data entry could be assigned Functional or Productivity in S/4. By right-sizing roles now, companies often save 10–30% on S/4HANA licence costs versus a one-to-one carryover.
Ensure each user's licence aligns with their current job responsibilities (not just their title). This may mean downgrading some and upgrading others who were under-licensed. Whatever licence mix you contract for S/4HANA will lock in your costs and compliance obligations going forward.
Remove users who no longer need access. Check for generic accounts masquerading as individuals (not allowed under named-user licensing). SAP auditors scrutinise user lists closely — an enabled account with no activity can still be considered a licensable user if not handled properly.
S/4HANA's core includes some functionality previously separate in ECC, which may allow you to drop certain engine licences. If you plan to add new modules (analytics, SCM add-ons), factor these in. The goal is entering S/4HANA with a lean, accurate licence footprint.
By optimising upfront, one company reduced total named users by 15% (eliminating contractors and former employees) and shifted nearly half the remaining users from Professional to Functional. This translated to millions in savings over the S/4HANA contract life and positioned the company well for future compliance. See our SAP Licence Optimisation Services.
Moving to S/4HANA isn't just a technical upgrade — it's effectively signing a new contract. SAP does not automatically "carry over" your old ECC licences. The main options:
The primary route. You retire your ECC contract and negotiate a new S/4HANA licence contract. SAP typically offers credit for the investment value of existing licences, offsetting the S/4 cost. The credit is negotiable — unused shelfware carries little to no credit. Clean out unused licences beforehand to maximise value. This is a one-shot, all-or-nothing deal committing you to the new model.
SAP's cloud subscription offering for S/4HANA. Your ECC licences become obsolete, converting into a subscription based on Full User Equivalents (FUE). SAP bundles infrastructure, support, and transformation services. They may offer incentives (reduced fees, cloud credits) — but still negotiate recognition of past investments. See our RISE Advisory Services.
| S/4HANA Licence Type | Approximate List Price (Perpetual) | Annual Maintenance (~20%) | Subscription Equivalent |
|---|---|---|---|
| Professional Use | ~$3,000–$4,000 | ~$600–$800/yr | ~$150–$200/user/mo |
| Functional Use | ~$1,500–$2,000 | ~$300–$400/yr | ~$75–$120/user/mo |
| Productivity Use | ~$200–$500 | ~$40–$100/yr | ~$15–$40/user/mo |
| Developer Use | Premium (varies) | ~20% of licence | Included in RISE pool |
Note: These are approximate list prices. Most enterprise deals are heavily discounted. Always obtain a detailed breakdown from SAP and use existing spend as leverage.
Time your conversion negotiations with SAP's quarter or year-end for maximum leverage. Get quotes for both on-premise licence and RISE routes — even if you prefer one, comparing both creates bargaining power. SAP's eagerness to move customers before the 2027 ECC support deadline means they're willing to offer incentives. See our SAP Contract Negotiation Service.
One of the worst outcomes of a licence migration is ending up out of compliance. To avoid audit risk, focus on aligning licences to actual usage from day one:
If a user is assigned a Functional Use licence, ensure their SAP roles and authorisations restrict them to activities allowed for that licence. A Functional User shouldn't execute transactions reserved for Professional users. Collaborate with your security team to align system roles with licence types.
Classifying a power user as Functional when they perform broader tasks will get flagged in an audit. The cost of true-up and back maintenance fees could far outweigh savings. Err on the side of caution for borderline cases — but avoid blanket over-licensing too.
Post-migration, review user activity periodically using S/4HANA's usage reports and the Licence Administration Workbench. Monitor if any Functional users start using transactions beyond their scope. Catch misclassifications early before an official audit.
S/4HANA introduced the Digital Access model to licence indirect use through documents (sales orders, invoices). Ensure you understand how external systems interacting with S/4HANA are licensed. See our S/4HANA Digital Access Considerations guide and Digital Access Advisory Service.
Maintain documentation of your licence mapping decisions and assumptions. In an audit, having a clear rationale ("User X is Functional because they perform only sales module tasks") demonstrates good-faith compliance. This also educates managers internally on why certain people have (or don't have) certain access.
SAP audits aren't going away with S/4HANA — if anything, SAP has become more vigilant. However, if you've matched licences to functional roles and kept the house clean, an audit should be uneventful. Many CIOs engage a third-party licensing advisor to perform a mock audit after migration. See our SAP Licence Audit Defence Service.
Need a pre-migration licence compliance assessment?
SAP Licence Optimisation →Before purchasing S/4HANA licences, map every user's functional role to the appropriate licence type using actual usage data. Ensure heavy users get Professional and lighter users are downgraded to Functional or Productivity.
Clean up inactive users and terminate unused licences before negotiating your S/4 deal. This maximises credit for what you truly need and cuts maintenance waste. See our SAP Termination & Downsize Rights Guide.
Don't accept SAP's first offer. Push for credits recognising your ECC investment. Leverage upcoming SAP deadlines (quarter-end, 2027 support cutoff) for better terms. See the SAP Contract Negotiation Playbook.
Resist copying old licence counts to S/4HANA. If 200 users were Limited Professionals in ECC, perhaps only 100 need to be Professional in S/4, with the rest as Functional. This can slash costs dramatically.
Collaborate with security and BASIS teams to ensure user permissions in S/4HANA don't exceed the capabilities allowed by their licence. This prevents compliance issues and audit findings.
Treat licence management as ongoing. Regularly review user activity, adjust assignments if roles change, and spot misclassifications before SAP's auditors do.
When planning S/4 licences, account for future projects and user growth. It's often more cost-effective to negotiate extra licences upfront than later — but avoid over-buying far beyond needs.
Even if you prefer on-premises, understanding the subscription model helps in negotiations. Getting quotes for both routes creates leverage. See RISE vs BYOL Contractual Differences.
Ensure IT and procurement understand S/4HANA licensing nuances. Internal stakeholders should know what a "Functional User" can do, to avoid requests for unnecessary Professional licences due to misunderstandings.
For large, complex SAP footprints, engage a third-party advisor to identify hidden risks and opportunities (indirect usage, contract loopholes) that might be missed internally. Learn about our SAP Advisory Services →
Our independent SAP licensing experts help enterprises right-size user licences, negotiate optimal conversion terms, and ensure compliance — typically saving millions during the migration process.