SAP Digital Access Licensing
- Document-based model: Charges based on the number of specific documents processed.
- Indirect access fees: Charges for external applications interacting with SAP indirectly.
- User-independent: Licensing is not tied to the number of users.
- Simplified compliance: Streamlines the process of tracking usage and compliance.
SAP Digital Access Licensing
SAP (Systems, Applications, and Products in Data Processing) is a widely used enterprise resource planning (ERP) system that manages business operations and customer relations.
In recent years, SAP has introduced new licensing models, and one of the most significant shifts is in SAP Digital access licensing. This type of licensing is crucial for organizations as it governs how indirect access to SAP data is managed and charged.
Understanding SAP Digital Access Licensing is essential for businesses to ensure compliance and avoid unexpected costs.
This article will cover the types of SAP digital access, the concept of indirect access, and how businesses can optimize their licensing strategy.
What is SAP Digital Access?
SAP Digital Access refers to how non-SAP systems or third-party applications access and use SAP data. Traditionally, SAP licensing focused on direct users—employees or others who logged into the SAP system and used its functionalities.
However, as businesses increasingly adopt automation and integration technologies, SAP systems are accessed indirectly via applications, bots, or other systems.
For instance:
- A CRM system pulling customer data from SAP.
- A web application is querying SAP for order status updates.
- A sensor in a manufacturing plant that updates SAP with production data.
These indirect access scenarios created challenges in licensing, as traditional user-based models couldn’t accurately capture the value of this usage.
Hence, SAP introduced the Digital Access Model, which shifts the focus from user licensing to licensing based on the documents created or processed within SAP.
Why the Shift to Digital Access?
SAP recognized that businesses were increasingly integrating third-party applications, IoT devices, and machine learning systems with SAP systems.
This led to indirect use cases that were difficult to quantify with traditional user-based licenses. In some cases, businesses were found to be under-licensed for these indirect usages, which led to significant financial penalties.
The Digital Access Model was introduced to clarify these gray areas and ensure that businesses paid for the value derived from SAP’s data, regardless of how it was accessed. This model provides a more transparent, document-based approach to licensing.
Types of SAP Digital Access
SAP Digital Access is charged based on the number and type of documents created or processed in SAP. The types of documents that can trigger licensing fees are clearly defined by SAP and fall into nine key categories:
- Sales Documents
- Invoice Documents
- Purchase Documents
- Service & Maintenance Documents
- Manufacturing Documents
- Material Documents
- Quality Management Documents
- Financial Documents
- Human Resource Documents
Each document type represents a different aspect of the business process, and creating, updating, or reading these documents through third-party applications can incur licensing costs.
Let’s look at each document type in more detail.
1. Sales Documents
These documents include sales orders, quotations, inquiries, and contracts. For example, if a third-party CRM system sends a new sales order into SAP for processing, it creates a sales document, which would trigger a digital access charge.
- Example: A salesperson enters an order in a CRM system, and the CRM sends the order to SAP for further processing. Creating the sales order in SAP would count toward digital access usage.
2. Invoice Documents
This category includes customer invoices, vendor invoices, and credit memos. When an external system generates or updates an invoice within SAP, a document is created, and a licensing charge is applied.
- Example: An e-commerce system generates an invoice when a customer purchases an item. The invoice data is sent to SAP for storage and processing, and an invoice document is created.
3. Purchase Documents
Purchase documents include purchase orders, requests for quotations, and purchase contracts. Any indirect creation of these documents, such as a procurement system interfacing with SAP, incurs licensing fees.
- Example: A procurement department’s purchasing system sends a purchase order to SAP, creating a purchase document in SAP’s system. This interaction is counted as part of the digital access.
4. Service & Maintenance Documents
These are documents related to service requests, maintenance orders, and service confirmations. If an external application (a customer service portal) interacts with SAP to generate service orders, it triggers document licensing.
- Example: A customer logs a service request on a third-party portal, which creates a service order in SAP. The document creation falls under digital access.
5. Manufacturing Documents
Production orders, planned orders, and work instructions fall into this category. If a manufacturing execution system (MES) or any IoT device sends data to SAP to create or update manufacturing orders, it incurs a digital access charge.
- Example: A smart manufacturing system automatically sends production orders to SAP based on real-time demand. Each production order created within SAP from this external data would be counted.
6. Material Documents
Material documents are generated when goods are received, issued, or transferred within SAP. If a warehouse management system or an automated logistics platform sends information to SAP to update inventory, these interactions count toward material documents.
- Example: A warehouse management system updates SAP with inventory movements, such as goods receipts from a supplier. The material document created in SAP would be charged under digital access.
7. Quality Management Documents
These include documents related to quality inspections and quality notifications. Systems that track quality control data and feed this information into SAP would trigger these documents.
- Example: A quality control system logs a defect, which creates a quality notification in SAP. This interaction is tracked under the digital access model.
8. Financial Documents
Financial documents are broad and include general ledger entries, accounts payable, accounts receivable, and asset accounting. When third-party systems like payroll or financial management applications interface with SAP to create these documents, digital access charges are incurred.
- Example: A payroll system processes employee salaries and generates accounting entries in SAP’s financial system. These entries would be counted as financial documents under SAP Digital Access.
9. Human Resource Documents
These include personnel records, employment contracts, timesheets, and payroll documents. Any external HR system interacting with SAP to create or modify these documents falls under this category.
- Example: An external HR system manages employee timesheets and sends the data to SAP for payroll processing. The creation of timesheet documents in SAP is counted as digital access.
Licensing Based on Document Usage
In the Digital Access Model, businesses are charged based on the number of documents created or accessed through indirect use. This usage-based model provides more flexibility than user-based models, but it also requires careful management to avoid unexpected costs.
Monitoring and Managing Digital Access Usage
Businesses must monitor and manage their document usage closely to avoid overspending on SAP Digital Access. SAP provides tools to help organizations track the number of documents created through indirect access.
Key steps to manage licensing include:
- Identify Indirect Access Scenarios: Businesses must identify all the external applications and systems that indirectly access SAP, whether through APIs, IoT devices, or third-party software.
- Use SAP’s Estimation Tools: SAP offers estimation tools that help businesses calculate document usage and predict potential costs under the digital access model. This allows for budgeting and forecasting.
- Optimize Integrations: Businesses can optimize how third-party systems interact with SAP by consolidating integrations or using middleware platforms to reduce the number of documents created.
- Audit Regularly: Regular audits of indirect access can help ensure compliance and prevent surprise licensing fees. Auditing tools are available within SAP to help businesses track and report usage.
Benefits of the Digital Access Model
While the digital access model may seem complex, it offers several benefits to businesses, including:
- Transparency: Businesses pay for what they use rather than being charged for every user, which can lead to more predictable costs, especially for organizations that rely heavily on automation.
- Scalability: As businesses grow and integrate more systems with SAP, the document-based model scales more efficiently than user-based licenses.
- Flexibility: The model allows businesses to innovate and adopt new technologies, such as IoT and machine learning, without worrying about complex user-based licensing structures.
Challenges and Considerations
Despite its advantages, the digital access model can be challenging to implement. Some key considerations include:
- Complexity of Estimation: Accurately estimating the number of documents created by third-party systems can be difficult, especially in complex environments with multiple integrations.
- Potential for Unexpected Costs: Without careful monitoring, businesses could face unexpected costs if the number of documents generated exceeds their initial estimates.
SAP Digital Access Licensing FAQs
What is SAP Digital Access Licensing?
SAP Digital Access Licensing is a model in which customers are charged based on the number of specific business documents processed rather than the number of users accessing the system.
What types of licenses are available under SAP Digital Access?
SAP Digital Access typically includes document-based licenses, user-independent licenses, and licenses for indirect access by third-party systems.
What is document-based licensing in SAP Digital Access?
Document-based licensing means customers are charged based on the number of specific document types processed, such as sales orders, invoices, or purchase orders.
What is indirect access in SAP Digital Access Licensing?
Indirect access refers to third-party systems or applications that connect to SAP to retrieve or send data, even without direct user interaction. These interactions are also licensed.
How are third-party integrations handled in SAP Digital Access Licensing?
Third-party integrations that indirectly access SAP data are charged under the indirect access licensing model based on the documents processed by those systems.
Does SAP Digital Access Licensing replace user-based licenses?
Yes, SAP Digital Access is a user-independent model, meaning customers no longer need to license based on the number of users accessing the system.
How does document counting work under SAP Digital Access?
SAP counts specific document types when created or updated within the system. This is the basis for determining licensing costs.
What are the document types covered by SAP Digital Access Licensing?
The document types covered include core business transactions such as sales orders, invoices, purchase orders, and goods receipts.
Is SAP Digital Access Licensing mandatory?
SAP Digital Access is optional, but it offers an alternative to traditional user-based licensing, especially for companies with extensive indirect access.
How can I monitor document usage for SAP Digital Access?
SAP provides tools and reports to help track the number of documents processed, enabling businesses to manage and optimize their licensing costs.
Does indirect access licensing cover only external systems?
Indirect access includes external third-party systems and internal non-SAP applications interacting with SAP data.
Can existing customers switch to SAP Digital Access Licensing?
Yes, existing SAP customers can switch to Digital Access, but they should carefully evaluate whether it aligns with their system usage and business processes.
How does SAP Digital Access benefit companies with high transaction volumes?
Companies processing large volumes of documents or with many third-party integrations may find Digital Access Licensing offers more predictable costs than user-based licensing.
Are non-production environments covered under SAP Digital Access Licensing?
Document processing in non-production environments, such as test or development systems, can still require Digital Access licensing.
What happens if document usage exceeds the licensed amount?
If document usage exceeds the licensed quantity, customers must purchase additional licenses to cover the excess usage.
