Key Takeaways
- This checklist covers five work streams: contract review, system measurement, user population analysis, engine metric validation, and ongoing governance.
- Critical actions (marked ⚠ CRITICAL) must be completed before any SAP measurement submission or audit response — skipping them is how enterprises accept overcharged positions.
- The full checklist takes 8–16 weeks to complete depending on organisation size and internal resource availability; the critical items can be addressed in 2–4 weeks.
- Each checklist item includes the responsible function (ITAM, SAP CoE, Legal/Procurement, HR), the required data sources, and the expected output.
- FUE governance is not a one-time exercise — the ongoing governance section should be scheduled as a recurring quarterly process.
How to Use This Checklist
This SAP FUE checklist is designed for organisations that have never systematically managed their FUE position, as well as for those preparing for a specific trigger event (audit, renewal, RISE migration, M&A). Items are prioritised as Critical, High, or Medium. Work through the Critical items first — they establish the data foundation on which all other analysis depends.
The checklist references the full technical and strategic guidance in our SAP FUE complete guide, practical analysis guide, and cost reduction strategies. Use those resources for detailed implementation guidance on each item.
📋 Checklist Priority Key
⚠ CRITICAL — Must complete before any SAP measurement submission or audit response. Skipping creates locked-in overexposure. | 🔴 HIGH — Address within 30 days; significant cost or risk implications. | 🟡 MEDIUM — Address within 90 days; ongoing cost management.
Work Stream 1: Contract Review and Definition Analysis
Work Stream 1 — Owner: Legal/Procurement + ITAM
Contract Definitions and FUE Provisions
Locate all SAP contract documents — Master Agreement, all Order Forms, General Terms and Conditions, and Licence Metric Schedules for every SAP product in use. Create a central register of all SAP contractual documents. ⚠ Critical
Extract every FUE conversion ratio — Document the specific FUE conversion table in your contract (Professional = X FUE, Limited Professional = Y FUE, Employee = Z FUE, etc.). Do not assume SAP's standard ratios apply — many enterprise contracts have negotiated variations. ⚠ Critical
Map every engine metric provision — For each SAP product, identify the engine metric (employee count, payroll units, document volume, spend volume), the measurement formula, and the annual true-up mechanism. Record the current contractual rate per unit. ⚠ Critical
Define "employee" from the contract — Extract the precise definition of "employee" or equivalent term used in each engine metric provision. Flag any terms that are undefined or ambiguous — these are grounds for favourable interpretation. 🔴 High
Review the entity schedule — Confirm which legal entities are included in the FUE measurement scope. Check whether any entities have been acquired, divested, or restructured since the contract was signed, creating potential exclusion or reclassification arguments. 🔴 High
Check contract vintage and applicability — Note the contract signature date. Agreements older than 5 years may contain definitions more favourable to the customer that SAP is attempting to apply more broadly. Flag for legal review. 🟡 Medium
Identify renewal dates and negotiation windows — Record every contract expiry date and the earliest date at which renewal discussions can begin. FUE renegotiation is most effective 12–18 months pre-renewal. Set calendar reminders. 🔴 High
Work Stream 2: System Measurement and USMM Analysis
Work Stream 2 — Owner: SAP CoE + Basis Team
USMM Output and Raw Data Analysis
Run USMM internally — do NOT generate or submit a LAW file — Execute transaction USMM to generate a local measurement. Export the full user-level detail. Do not submit any data to SAP until the full independent ELP has been completed. ⚠ Critical
Export USMM user detail to spreadsheet — Pull every user record including user ID, system, licence type classification, last logon date, and user group. This is the baseline dataset for all FUE analysis. ⚠ Critical
Apply the contractual FUE conversion ratios to the USMM output — Calculate the FUE total using your specific contract's conversion table, not SAP's standard table. Record the delta between the two calculations. ⚠ Critical
Identify all accounts with last logon date more than 12 months ago — These are candidates for deactivation. Cross-reference against HR system to confirm employment status before any changes. 🔴 High
Identify and reclassify service/system accounts — Flag all batch, RFC, communication, and interface user accounts. Verify they are typed as system users in SU01, not as Named User types contributing to FUE. 🔴 High
Review multiple system landscape measurement — If you have a multi-system or multi-client landscape, verify that USMM is aggregating correctly across all relevant systems. Duplicated users across systems inflate the total FUE count. 🟡 Medium
Work Stream 3: User Population Analysis and Reclassification
Work Stream 3 — Owner: ITAM + SAP CoE + HR
Named User FUE Reduction
Cross-reference USMM user list against HR active employee data — Export active employee list from your HRIS. Compare against USMM user population. Every USMM user not in the active employee list is a candidate for exclusion (with appropriate contractual justification). ⚠ Critical
Identify and document terminated employees with active SAP accounts — Any employee who left the organisation and retains an active SAP account inflates FUE and creates security risk. Disable these accounts and document with HR exit records. ⚠ Critical
Flag contractors and agency workers for contract-based exclusion analysis — Pull contractor population from HR/procurement. Verify whether your contract's "employee" definition excludes them. Document the population size and contractual basis for exclusion. 🔴 High
Analyse Professional-classified users for Limited Professional eligibility — For the top 30% of Professional users (by licence cost), pull 12-month activity logs via SM20. Identify users performing read-only or limited transaction functions eligible for reclassification. 🔴 High
Validate subsidiary/affiliate user inclusion against entity schedule — Review which entities are contributing users to the USMM count. Verify each entity's inclusion against the contract's entity schedule. Flag entities that should be excluded. 🔴 High
Build the independent Effective Licence Position (ELP) — Compile all the above adjustments into a formal ELP document that shows the USMM baseline, each adjustment category with contractual or factual basis, the adjusted user count by licence type, and the resulting FUE total. This document is your negotiating position. ⚠ Critical
Work Stream 4: Engine Metric Validation
Work Stream 4 — Owner: ITAM + HR + Finance
Engine Metric Count Accuracy
Extract current engine metric count from SAP HCM (or source system) — Pull the total employee count as measured in SAP HCM. Note the as-of date and the specific report or infotype used to generate the count. ⚠ Critical
Cross-reference HCM count against HR system active headcount — Compare SAP HCM total against your HRIS active employee count. Document the delta and the reasons for any discrepancy (inactive records, historical employees, test records, etc.). ⚠ Critical
Verify which employee groups the contract requires to be counted — Apply the contract's "employee" definition to the HCM population. Calculate the contractually required count versus what SAP would measure. Quantify the reduction opportunity. 🔴 High
For Ariba or spend-based metrics: validate reported spend against financial records — If Ariba is licensed on spend volume, compare the Ariba-reported managed spend against your finance system's procurement data. Discrepancies are common and challengeable. 🟡 Medium
For Digital Access: map all third-party system connections — Document every non-SAP system connecting to S/4HANA. For each connection, identify the document types generated (Orders, Deliveries, Invoices, etc.) and the annual volume. Compare against your Digital Access licence position. 🔴 High
Model 3-year engine metric growth scenarios — Project headcount, transaction volume, and spend growth under base, mid, and high scenarios. Calculate the engine metric cost trajectory under each scenario. Use this to inform renewal negotiation positions. 🟡 Medium
Work Stream 5: Ongoing FUE Governance
Work Stream 5 — Owner: ITAM + SAP CoE
Quarterly Governance Programme
Implement automated HR-to-SAP provisioning/deprovisioning — Integrate your HR system with SAP user administration so that employee exits trigger SAP account deactivation within 24–48 hours. This prevents future inactive account accumulation. 🔴 High
Schedule quarterly licence type review for all new users — Establish a governance process that reviews the licence type assignment for every new SAP user within 30 days of provisioning. Prevent over-classification at the point of onboarding. 🔴 High
Schedule annual USMM internal run and ELP refresh — Run USMM annually (never submitting to SAP without review) and update the independent ELP to reflect any changes in user population, contract terms, or organisational structure. 🔴 High
Review engine metric actuals against projections quarterly — Track actual headcount and transaction volume against your modelled projections. If growth is exceeding projections, trigger a contract renegotiation discussion 12+ months before the next true-up. 🟡 Medium
Maintain role governance to prevent FUE creep — Implement quarterly access reviews using SAP GRC or equivalent tooling to identify role accumulation. Ensure any Professional-level access additions are reviewed for licence type impact. 🟡 Medium
Document every SAP communication and measurement request — Maintain a register of all SAP account team communications, measurement requests, and health check invitations. Never respond to a measurement request without independent FUE review. Refer all measurement requests to your legal team and ITAM manager. ⚠ Critical
Ownership Map: Who Does What
FUE management is cross-functional. Assign ownership clearly before starting the programme:
- ITAM Manager / SAP Licence Manager: Programme owner. Responsible for the overall FUE position, ELP documentation, and SAP commercial communications. Primary liaison with external advisers.
- SAP Basis / CoE: Responsible for USMM execution, user account data, and technical user classification. Implements account hygiene changes and role remediation.
- Legal / Procurement: Responsible for contract interpretation, entity schedule verification, and renewal negotiation. Approves any FUE position submitted to SAP.
- HR: Provides active employee data, contractor population data, and employee definition documentation. Supports provisioning/deprovisioning integration.
- Finance: Validates engine metric data for spend-based products (Ariba) and models cost impact of engine metric growth scenarios.
For organisations without dedicated SAP licensing expertise, our independent advisers can operate as the ITAM/programme owner function or in a parallel review capacity alongside your internal team. For more on the specific FUE risks this checklist addresses, see our guide on SAP FUE key risks and mitigation.
Frequently Asked Questions
How long does completing this checklist typically take?
For a medium-sized enterprise (2,000–10,000 SAP users), the Critical items typically take 3–6 weeks with dedicated ITAM and SAP CoE resource. The full checklist including engine metric validation and governance setup takes 10–16 weeks. Larger, more complex landscapes with multiple SAP systems and international entity structures take proportionally longer. Engaging external advisers typically accelerates the Critical work streams by 40–60%.
What if we receive an SAP audit letter while working through this checklist?
Prioritise the Critical items in Work Streams 1, 2, and 3 immediately. Do not respond to SAP's audit letter, agree to a measurement timeline, or provide system access until you have an independent ELP completed and reviewed by specialist advisers. Most SAP audit letters provide 30+ days to respond — use that time to build your position. Contact our SAP audit defence team immediately if an audit letter has arrived.
Can we use this checklist if we're planning to migrate to RISE with SAP?
Yes — and it is particularly important to complete the checklist before RISE migration. Your current FUE and engine metric position becomes the baseline for RISE Licence Unit calculation. A clean, reduced position translates directly into lower RISE subscription costs for the full migration term. Any reductions you achieve before signing the RISE contract lock in savings for 3–5 years. Our RISE advisory service integrates FUE optimisation directly into the RISE negotiation process.
How do we prioritise if we can only address two or three items immediately?
Focus on: (1) locating and reviewing your contracts to understand FUE definitions, (2) running USMM and exporting user-level data without submitting anything to SAP, and (3) cross-referencing that data against your active HR records to identify terminated employee accounts and obvious misclassifications. These three steps establish the foundation for everything else and take control of your position before SAP has any leverage.
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