Editorial photograph of an SAP license audit defense workshop with USMM output and LAW aggregation worksheets laid out on the boardroom table
Article · SAP · License Compliance

SAP engine and package compliance. Read the measurement.

SAP engine licenses and package licenses each carry a distinct measurement rule. The audit pulls the count from the system measurement program. The buyer side that does not rehearse the measurement carries an inflated bill at every renewal cycle.

Read the Article SAP Hub
USMMIs the audit tool
LAWAggregates the count
Industry Recognized
500+ Enterprise Clients
$2B+ Under Advisory
11 Vendor Practices
100% Buyer Side Independent
Key Takeaways

What this article delivers

  • Engines price on usage units. Documents, line items, orders, contracts, or transactions per period.
  • Packages price on user count. Professional, Limited Professional, Employee, Developer, and self service.
  • USMM runs the measurement. System Measurement transaction reads the engine and user counts.
  • LAW aggregates across systems. License Administration Workbench rolls up to the global count.
  • Indirect access is a separate position. Document based pricing or named user pricing as elected.
  • Rehearsal cuts the bill 15 to 30 percent. Pre measurement cleansing removes the dormant overhang.
  • Audit defense is the entitlement record. The order documents and the certificate inventory are the position.

SAP runs license measurement through two transactions. USMM reads each individual SAP system. LAW aggregates the readings across the global landscape. The output is the audit position. The buyer side that does not rehearse the measurement before the official run carries an inflated position into the renewal cycle.

Engine licenses price on usage units. Package licenses price on user count. Each metric has a measurement rule and an aggregation rule. The cleansing motion removes dormant users, recovers retired engine usage, and reconciles the certificate inventory. The motion captures 15 to 30 percent at the renewal.

Engine and package metrics

SAP licenses split into two categories. Engine licenses price on usage. Package licenses price on user count. Each category has distinct measurement and aggregation rules. The buyer side reads both at every renewal.

Engine license metrics

Sales documents, purchase orders, contracts, payroll lines, materials, and transactions all serve as engine metrics. Each engine has a defined unit and a measurement window.

Package license metrics

Professional User, Limited Professional, Employee Self Service, Developer Access, and the application specific user types. Each user type carries a price and a usage scope.

Indirect access pricing

Indirect access runs as a separate position. The customer elects either document based pricing or named user pricing under the 2018 SAP licensing changes.

  • Pull the certificate inventory. Identify every engine and package license entitlement and the contracted quantity.
  • Map engines to systems. Identify which engines run on which SAP system instances.
  • Map users to roles. Identify the role to user type mapping that drives the classification.
  • Plot the indirect access position. Document the third party systems that interact with SAP and the chosen pricing model.

USMM and LAW mechanics

USMM stands for User and System Measurement. The transaction runs per SAP system. LAW stands for License Administration Workbench. The transaction aggregates USMM readings across the landscape into a single global position.

The USMM run

USMM reads the user master, the role assignments, the engine usage tables, and the relevant transaction logs. The output is the per system measurement.

The LAW aggregation

LAW consolidates USMM outputs from every SAP system. The aggregation prevents double counting for users that exist in multiple systems. The output is the global position.

The transmission to SAP

The LAW output is transmitted to SAP through the System Landscape Directory. The transmission is the official audit position.

TransactionScopeOutputBuyer side use
USMMSingle SAP systemPer system countRehearsal at any time
LAWGlobal landscapeAggregated countFinal pre transmission
SLAWGlobal landscape with consolidation rulesCleansed aggregationOptimization layer
Customer CenterOnline portalTransmitted positionAudit submission record

Common measurement traps

Five traps appear in nearly every SAP audit. Each inflates the measurement. Each has a documented mitigation pattern.

Dormant users counted as Professional

Users that have not signed in for ninety days remain classified at the highest user type. The mitigation is dormant user reclassification before USMM runs.

Role to user type misclassification

A user assigned a Professional role for a one off task carries that classification across the audit period. The mitigation is the role rationalization motion.

Engine usage from retired transactions

Retired transactions remain in the engine measurement until the table is cleared. The mitigation is the engine reset before USMM runs.

Indirect access drift

New third party systems that integrate with SAP increase the indirect access surface. The mitigation is the integration audit before renewal.

Test and training users on production

Test users that hold production system access count as production users. The mitigation is the system separation review.

Rehearsing the measurement

The rehearsal motion runs USMM and LAW against the production landscape before the official measurement window. The output identifies the gaps and the optimization opportunities. The rehearsal runs ninety days before the official run.

  • Run USMM on each system. Pull the per system measurement and the user type breakdown.
  • Run LAW for the global view. Aggregate across systems and identify the duplicates.
  • Compare to the certificate inventory. Identify the gap between measured position and entitled position.
  • Identify the cleansing motions. Dormant user reclassification, role rationalization, engine reset.

Cleansing the position

The cleansing motion has four steps. Each step removes a specific source of measurement inflation. The motion runs in the ninety day window between the rehearsal and the official measurement.

  1. Dormant user reclassification. Reclassify users with no sign in across the prior ninety days down to a lower user type.
  2. Role rationalization. Remove Professional roles assigned for one off tasks and replace with task specific roles.
  3. Engine usage reset. Clear retired transactions from the engine measurement tables where contractually permitted.
  4. Indirect access audit. Document every third party system that integrates with SAP and confirm the pricing model election.

The audit response

The audit runs on the LAW transmission. The buyer side response holds three artefacts. The order document inventory. The certificate inventory. The cleansed measurement record. These artefacts are the audit defense.

The order document inventory

Every SAP order document from the initial purchase through every subsequent amendment. Each document carries an engine list, a user count, and a usage right scope.

The certificate inventory

Every SAP license certificate matched to the corresponding order document. The certificate is the entitlement evidence.

The cleansed measurement record

The USMM and LAW output after the cleansing motion. The record demonstrates the buyer side measurement discipline.

SAP license measurement worksheet showing USMM per system output and LAW aggregated global position with cleansing motions annotated against the count
Ninety days of rehearsal cut the global position by twenty two percent on average. The cleansed measurement holds at the official run.

What to do next

The checklist takes the buyer from the renewal letter to the executed strategy. The window is the renewal anniversary. The earlier the work starts, the wider the option set.

  1. Pull the certificate inventory. Identify every engine and package license entitlement and the contracted quantity.
  2. Map the SAP landscape. Identify each system, the engines on the system, and the user population.
  3. Run the USMM rehearsal. Per system measurement across the production landscape.
  4. Run the LAW aggregation. Global view with the duplicate removal applied.
  5. Run the four cleansing motions. Dormant user reclassification, role rationalization, engine reset, indirect access audit.
  6. Re run USMM and LAW. Confirm the cleansed position before the official measurement.
  7. Submit the official measurement. Transmit through the SAP Customer Center.
  8. Run Vendor Shield review. Independent buyer side review at every gate.

Frequently asked questions

What is USMM in SAP licensing?

USMM stands for User and System Measurement. The transaction runs inside each individual SAP system and reads the user master, the role assignments, the engine usage tables, and the relevant transaction logs. The output is the per system measurement that feeds the LAW aggregation. USMM is the rehearsal point for the buyer side that wants to optimize the measurement before the official run.

How does LAW differ from USMM?

LAW stands for License Administration Workbench. The transaction aggregates USMM outputs from every SAP system in the landscape. The aggregation removes duplicate counting for users that exist in multiple systems. The LAW output is the global position that gets transmitted to SAP through the Customer Center. USMM is per system. LAW is the global view.

What user types does SAP measure?

SAP measures users across several types. Professional User, Limited Professional, Employee Self Service, Developer Access, and the application specific user types. Each user type carries a different price and a different usage scope. The user master role assignments drive the classification. The buyer side optimizes the assignments to land users at the lowest viable user type.

How are engine licenses measured?

Engine licenses price on usage units that vary by engine. Sales documents, purchase orders, contracts, payroll lines, materials, and transactions all serve as engine metrics. Each engine carries a defined unit and a measurement window. USMM reads the engine usage from the relevant transaction tables. The audit position is the measured usage against the contracted quantity.

What is the indirect access position?

Indirect access covers third party systems that interact with SAP without a direct human user sign in. The customer elects either document based pricing under the 2018 SAP licensing changes or named user pricing for indirect users. The election is in the order document. The buyer side documents every third party integration and confirms the pricing model election at every renewal cycle.

How much can rehearsal cut the measurement?

Across nine SAP compliance reviews completed by Redress, the rehearsal motion cut the measured position by an average of twenty two percent. The cut came from four cleansing motions. Dormant user reclassification, role rationalization, engine usage reset, and indirect access audit. The cut held into the official measurement without any user losing access to required functionality.

What are the buyer side audit defense artefacts?

The audit defense holds three artefacts. The order document inventory covering every SAP order from the initial purchase through every amendment. The certificate inventory matching each entitlement to the order document. The cleansed USMM and LAW measurement record demonstrating the buyer side measurement discipline. These three artefacts hold the audit position.

How does Redress engage on SAP compliance?

Redress runs the certificate inventory, the USMM rehearsal, the LAW aggregation, the four cleansing motions, and the official measurement submission inside the Vendor Shield subscription and the Renewal Program. The work includes the contract review, the user master analysis, the role rationalization plan, the engine measurement review, and the indirect access audit.

How Redress engages

Redress runs this practice inside the Vendor Shield subscription, the Renewal Program, the SAP service line, and the Software Spend Assessment.

Read the related SAP Intelligent Spend Group licensing, the SAP Knowledge Hub, the benchmarking service, and the Benchmark Program.

Model the exposure for your specific environment with the SAP RISE TCO calculator.
Open the Calculator →
White Paper · SAP

Download the SAP RISE Negotiation Guide.

The companion playbook covers the RISE with SAP commercial frame, the conversion math from on premises maintenance, the FUE counting rule, and the buyer side moves that hold the discount band.

Independent. Written for CIOs, CFOs, and procurement leaders. No vendor partner affiliation.

SAP RISE Negotiation Guide

Open the playbook in your browser. Corporate email only.

Open the Paper →
USMM
System tool
LAW
Aggregation
22%
Rehearsal cut
90d
Rehearsal window
4
Cleansing motions

The SAP audit reads what the system reports. The system reports what the buyer side does not clean. Ninety days of rehearsal cuts the measurement by twenty two percent without losing a single user.

Buyer side SAP compliance reviewer
Nine SAP compliance reviews completed across discrete manufacturing and process industries
More Reading

More from this practice.

SAP Hub →
Intelligent Spend Group Licensing
SAP · Spend
Intelligent Spend Group Licensing
Ariba, Concur, Fieldglass metrics.
12 min read
SAP Advisory Services
SAP · Services
SAP Advisory Services
Buyer side advisory across SAP.
9 min read
SAP Knowledge Hub
SAP · Hub
SAP Knowledge Hub
All SAP research in one place.
7 min read
Software Benchmarking
Benchmarking
Software Benchmarking
Independent cost benchmarks.
8 min read
Benchmark Program
Programs
Benchmark Program
Tier two and three vendor benchmarks.
8 min read
Editorial photograph of an SAP compliance review workshop with CIO and procurement around the boardroom table

Rehearse the measurement. Cleanse the position.

Nine SAP compliance reviews completed with median twenty two percent measurement reduction. Every engagement starts with one conversation.

Buyer side intelligence, monthly.

Cost benchmarks, license rightsizing patterns, and the negotiation moves that worked. Written for buyer side teams running active vendor decisions.