What Is an SAP SUR? How to Negotiate & Manage Software Use Rights
Why Understanding the SUR Matters
The SAP Software Use Rights (SUR) schedule is one of the most crucial yet often overlooked components of your SAP licensing agreement.
It defines exactly what your organization is entitled to use under your SAP contracts: the specific user license types, package licenses, usage allowances, and restrictions.
If these terms are misunderstood or mismanaged, it can lead to costly compliance gaps or overspending on licenses you don’t need. In short, errors in interpreting or executing your SUR can directly hit your IT budget or expose you to audits.
From a strategic standpoint, negotiating favorable terms in the SUR can provide significant cost savings and audit protection. By ensuring the SUR language aligns with your actual usage and business needs, you gain flexibility.
For example, clarifying how a certain type of indirect usage is handled or getting more lenient user definitions can mean the difference between a smooth SAP audit and a multimillion-dollar true-up bill.
Procurement leaders and CIOs who approach the SUR with a critical, vendor-skeptical eye often find opportunities to remove ambiguity and secure more favorable terms.
In summary, understanding the SUR isn’t just a legal necessity – it’s a financial safeguard and an opportunity to optimize your SAP investment.
Read our SAP negotiations guide.
Understanding the SAP SUR (Software Use Rights)
So, what exactly is the SAP Software Use Rights schedule? In simple terms, the SUR is an official document attached to your SAP contract that outlines how you can use the software. It’s essentially the rulebook for your SAP licenses.
The SUR defines:
- Named User License Types: Every category of user license (such as Professional, Limited Professional/Functional, Developer, Employee Self-Service, etc.) is described here, including what each type of user is allowed to do in the SAP system. For instance, a Professional User might have full access to all SAP modules and functionality, whereas a Limited User could be restricted to specific modules or tasks. The SUR spells out these distinctions.
- Package License Rights: Beyond individual users, your SAP agreement may include package or engine licenses (for example, licensing based on the number of employees, orders processed, revenue, or other metrics for specific SAP modules). The SUR defines how those packages can be used. It will state the allowed usage metrics, the scope of what’s included, and any restrictions. For example, if you licensed an SAP CRM package measured by the number of customers, the SUR will detail what is counted as a “customer” and what functionality is covered under that package.
- Allowed Usage Methods: Importantly, the SUR covers how users and external systems can access SAP. This includes terms related to direct versus indirect access. “Direct” users are those who log in to SAP directly. “Indirect access” refers to scenarios where a third-party application or an automated process connects to SAP data or functions (for example, a web portal retrieving data from SAP in the background). The SUR often outlines the types of indirect use permitted under your licenses and which require additional licensing. This has become a hot topic, as undefined indirect usage can lead to surprise audit findings if not addressed.
- Restrictions and Special Clauses: The SUR document will also list prohibited uses or special conditions. For example, it may clarify that you cannot use a developer license for production activities, or that certain bundled rights are only for non-production systems, etc. Essentially, it establishes the parameters and boundaries for the lawful use of SAP software within your organization.
It’s worth noting that the SUR is a binding part of your SAP agreement. When you sign an SAP contract (such as a license agreement or Cloud agreement), the SUR schedule is incorporated by reference, meaning you are legally committed to abide by those usage terms.
SAP periodically updates its standard SUR document (typically annually), and the version tied to your contract will govern your use. If you enter a new contract or undergo a migration (such as moving to S/4HANA or RISE with SAP), an updated SUR may apply – so it’s crucial to review it each time.
In essence, the SUR defines the playing field for your SAP usage.
A deep understanding of this document is necessary for anyone managing SAP licenses, as it clearly outlines the boundaries between compliant use and potential violations.
Now, let’s discuss how to approach negotiating this important document to your advantage.
Preparation & Negotiation Strategies
Before signing any SAP agreement, whether it’s a new purchase, an upgrade, or a renewal, preparation is crucial.
The goal is to review and negotiate the SUR terms so they fit your organization’s needs and minimize risk.
Here are critical strategies to consider:
- Review Named User Categories Against Your Workforce: Take a hard look at the defined user types in the SUR and compare them to the roles in your organization. Do the standard categories (Professional, Limited, Developer, Employee Self-Service, etc.) make sense for how your employees use SAP? Ensure you’re not forced into buying overly expensive user licenses for roles that only need limited access. For example, if 80% of your SAP users just run reports or input basic data, they probably don’t all need “Professional User” licenses. Negotiate to include lower-cost categories for users (such as Limited or Self-Service users) in the contract. If a certain job role in your company doesn’t cleanly fit an SAP definition, discuss it with SAP – sometimes you can get a custom definition or clarify which category they should fall under. The key is alignment between user definitions and your actual workforce, so you’re not over-paying due to a mismatch.
- Clarify Indirect Access Upfront: Indirect access has been a notorious gray area in SAP licensing. Don’t leave it vague – push for written clarity in the SUR on what counts as indirect use and how it’s licensed. For instance, if you have a third-party system (say, a portal or middleware) that pulls data from SAP or pushes transactions into SAP, explicitly define in your contract how those interactions are covered. You might negotiate that certain read-only interactions by third-party apps do not require additional licenses (sometimes referred to as “static read” access). Or if data flows out of SAP to another system for viewing, perhaps that’s exempt. On the flip side, for indirect creation of SAP transactions (like an e-commerce site creating sales orders in SAP), decide whether you will cover that via named users, a special “interface user” license, or a package license (e.g. license the interface itself or use SAP’s Digital Access document model if it’s more cost-effective). The goal is to avoid the scenario where, during an audit, SAP claims you need 500 extra licenses for all your portal users who never directly log into SAP. Negotiate those terms now, get them in writing in the SUR or contract addendum, so you have predictability and protection. A vendor-skeptical approach here is healthy – assume that if it’s not explicitly allowed, SAP might later count it as non-compliant. So nail down the exceptions and understandings during negotiation.
- Negotiate Flexibility for Changing License Needs: Your SAP usage today won’t be the same as it will be in three years. People’s roles change, projects come and go, and you might transition to new SAP solutions. Thus, try to build flexibility into the SUR terms. One effective approach is negotiating the right to reclassify or exchange licenses over time. For example, you could include a clause allowing you to convert a certain number of Professional user licenses to Limited user licenses (or vice versa) at specific intervals or renewal time, to adjust to actual usage needs. If you’re on a subscription model, ensure you can rebalance the mix of user types annually without heavy penalties. With perpetual licenses and maintenance, you may negotiate swap rights, allowing unused licenses of one type to be partially credited towards another type. Additionally, watch out for any SUR clauses that artificially limit flexibility – historically, SAP sometimes had rules like requiring a certain ratio of Professional to Limited users (to prevent everyone from getting cheap licenses). If your contract has any such ratios or limits on license type mixing, push to remove or relax them. The more freedom you have to optimize your license allocation, the more you can save in the long run.
- Investigate Package License Metrics and Protect Yourself: If you are licensing SAP packages (such as engines or modules priced by metrics like revenue or number of employees), pay close attention to how those metrics are defined in the SUR. Make sure the definitions align with how you measure that metric internally. For example, if a package is licensed by “annual revenue”, clarify if that’s total gross revenue, a specific business unit’s revenue, or something else. If it’s by “employee count”, ensure it excludes contractors or part-time if appropriate. Negotiate caps or forecast protections if possible – for instance, if you expect growth, consider locking in a price for an increased band of usage now to avoid a significant cost increase later. Also, clarify if indirect access by external users might inadvertently count toward those metrics. Essentially, eliminate ambiguity so you aren’t caught off guard by how SAP calculates your usage against entitlements.
In any negotiation with SAP, preparation is key to success.
Come armed with data: know your current user counts, how each user uses the system, what your integration points are, and where you have potential compliance exposure.
By demonstrating a deep understanding of your environment, you also signal that you won’t be easily persuaded into unnecessary purchases.
And remember, everything in the contract is on the table – including the SUR schedule. SAP’s standard terms are a starting point, not an inevitability.
Successful procurement leaders often maintain a healthy skepticism and ask “what if” on every clause: What if we reorganize? What if we add a new interface? What if this user’s role changes? By addressing those in the contract, you ensure you’re covered for the future.
Ongoing SUR Management Practices
Negotiating a good contract is only half the battle. Managing your SAP Software Use Rights on an ongoing basis is where the real savings and compliance assurance come to life.
Leading enterprises treat SUR management as a continuous discipline in their software asset management. Here are some best practices to adopt:
- Regular License Audits and User Reviews: Don’t wait for SAP to audit you – audit yourself. Implement a quarterly or at least biannual internal review of all SAP user accounts and license assignments. Use SAP’s tools (like USMM and LAW reports) or third-party license management tools to see how each user is using SAP. Compare this with their assigned license type. This practice will highlight misclassified users (e.g., someone with a Professional license who is only running very basic transactions, or conversely, someone with a Limited license who inadvertently uses a function reserved for Professionals). By catching these issues early, you can reassign the proper licenses or adjust user permissions before they become an official compliance issue. Regular internal audits not only keep you compliant, but they also often reveal opportunities to downgrade licenses and save money. For example, if you find 50 users with expensive licenses aren’t utilizing any advanced features, you might reassign them to a cheaper category in the next true-up cycle.
- Align Usage with SUR Definitions: Each user’s activities must stay within the scope of their licensed rights. This may require coordination with your SAP security team to ensure that, for instance, a user with an Employee Self-Service license isn’t accidentally given a role that allows them to execute transactions for which they’re not licensed. Aligning usage involves translating the SUR document into system controls. You might maintain a mapping of SAP roles to license types – e.g., certain sensitive transaction codes might only be assigned to users who have Professional licenses. By technically enforcing the SUR definitions, you reduce the chance of accidental non-compliance. Also, monitor indirect usage: if a new interface or report is set up, ensure it doesn’t introduce an unlicensed scenario. Essentially, keep your actual system usage in lockstep with the entitlements described in the SUR.
- Optimize and Reclassify When Appropriate: Ongoing management should include optimization. If someone’s role changes and they no longer need high-level access, downgrade their license type promptly. Likewise, if a team starts using a new SAP module heavily, you might need to upgrade some licenses or acquire additional rights – it’s better to do that proactively than to be caught under-licensed. Develop a process with IT and HR so that whenever an employee’s role or department changes, their SAP access and license assignment are reviewed. Many companies integrate this into their offboarding and role-change checklists (e.g., when someone moves from Finance to a field role, adjust their license accordingly). This responsiveness ensures you’re always in alignment with actual needs and not paying for unnecessary privileges.
- Document All Adjustments and Rationale: Keep a meticulous record of changes related to licensing and usage rights. For every user you reclassify from one license type to another, note the date, what changed in their role or usage, and why you made the decision. Also, document any interpretations of ambiguous SUR terms that you are relying on (especially if you have an informal understanding with SAP reps on something). This creates an audit trail that demonstrates your diligence and good faith. In the event of an SAP audit, having this documentation shows that you have an active compliance program – it can sometimes even deter auditors from digging too deeply if it’s clear you’re on top of things. And if there is a dispute, your records will support your case, showing that you’ve been trying to do the right thing according to the contract.
- Keep the SUR Document Handy and Train Stakeholders: Make sure the latest applicable SUR (the exact version tied to your contract) is readily accessible to your software asset management team, IT administrators, and anyone responsible for user provisioning. Train these stakeholders on the key points, such as license definitions and indirect use rules. If everyone understands the “rules of the game”, they are less likely to accidentally create a compliance issue. For instance, your IT staff should be aware that creating a generic login that multiple people share is against SUR rules (SAP requires each individual to have their license, and “multiplexing” like that is prohibited). By ingraining SUR awareness into your IT governance, you can prevent many problems before they arise.
- Periodic True-Up and Renewal Alignment: Align your internal review cycles with your contract true-up or renewal dates to ensure seamless alignment. In the months leading up to a renewal, do a comprehensive usage analysis. This will inform your negotiation for the renewal (e.g., you might decide to drop certain licenses or need additional ones). It also ensures you enter any official true-up process with clean, optimized data. Remember, renewal time is leverage time – if you’ve managed your SUR well, you might find you can reduce your license counts or negotiate better terms, because you have evidence of what you truly need (and don’t need).
By treating SUR management as an ongoing process, you flip the script from being reactive (scrambling during an audit) to proactive (continuously optimizing and staying compliant).
Companies that embrace this discipline often experience not only year-over-year cost savings, but also significantly less anxiety when the dreaded SAP audit notice arrives.
Expert Recommendations for SAP SUR Success
Drawing on industry best practices and hard-earned lessons, here are six expert recommendations to help you master your SAP Software Use Rights:
- Audit User Classifications Regularly – Make it a routine to regularly audit your SAP user list and license allocations internally. Ensure every user is assigned the correct license type as defined in the SUR. If someone is classified as a Professional user, it should be because their job activities truly require that broad level of access. Regular audits will catch any drift and let you correct course (for example, downgrading users who don’t need full access or upgrading those who do) long before SAP’s auditors come knocking.
- Clarify Indirect Access Rights – Don’t leave indirect usage to interpretation. Have frank discussions with SAP and include a written agreement in your contract that outlines what constitutes indirect use in your environment. This may include listing specific third-party systems or scenarios, along with their licensing details. The more clarity you have, the less likely you’ll face an ugly surprise later. Pushing for this clarity may also involve adopting SAP’s digital access licensing model or obtaining special provisions – do whatever is necessary to ensure both you and SAP have a shared understanding of indirect access in your SUR.
- Negotiate Reclassification Rights – The ability to adjust your license mix over time is incredibly valuable. Try to negotiate terms that let you reclassify or swap user licenses as your needs change. For instance, as your organization evolves, you might want to convert some developer licenses to professional licenses or vice versa. Having a clause that allows a proportion of licenses to be converted at renewal (with appropriate cost adjustments) can save you from being stuck with shelfware or shortages. It gives you the agility to respond if, for instance, a new department starts using SAP heavily (requiring more high-level licenses) or if a project concludes (freeing up some licenses).
- Document Everything – Maintain a solid paper trail (or digital log) of all things related to your SAP use rights and license management. This includes internal decisions on user classifications, results of any license audits you conduct, communications with SAP representatives about how certain usage is covered, and any approvals or exceptions you’ve been granted. In the face of an audit, this documentation is your friend: it demonstrates that you are actively managing your licenses in good faith. It can also quickly resolve misunderstandings – for example, if an auditor flags a use case, you can pull out an email or contract clause that shows it’s permitted. Good documentation turns what could be a protracted debate into a non-issue.
- Align SUR Review with Renewals – Leverage your contract renewal or annual true-up cycles to do a comprehensive review of your Software Use Rights and compliance position. This is the ideal time to clean house: remove unused accounts, rectify any license type mismatches, and ensure your usage is aligned with entitlements. By doing this ahead of negotiations, you enter discussions with SAP from a position of strength, armed with precise knowledge of what you need (and what you don’t). Furthermore, renewal is often a time when SAP is more willing to make concessions or adjustments – if you present a well-reasoned case (for example, showing data that 200 of your users could legitimately be Limited users instead of Professional), you might secure a contract update that saves you money moving forward. Essentially, treat the SUR as a living document that gets revisited at each renewal so it always reflects reality and optimal terms.
- Train Licensing Stakeholders – Ensure that everyone involved in SAP licensing and usage understands the SUR and its implications. This includes procurement teams, IT administrators, SAP project managers, and even relevant folks in finance or legal. Conduct briefings or training sessions on the do’s and don’ts of the SUR. When these stakeholders plan new projects or changes (like deploying a new SAP module, integrating a new software tool, or onboarding a batch of users), they will know to consider the licensing impact and compliance requirements. A well-informed team is your first line of defense against unintentional SUR violations. For example, if your development team knows that connecting a new app to SAP could count as indirect usage, they’ll proactively involve the license manager to assess the impact. That kind of awareness across the organization ensures that SUR compliance is a shared responsibility, not just the SAM manager’s job.
By following these expert recommendations, your enterprise will be in a much stronger position to optimize SAP license usage, minimize unnecessary costs, and confidently face any audits or vendor discussions.
In essence, treating the Software Use Rights schedule not as fine print to file away, but as a strategic tool to be actively negotiated and managed, separates the organizations that pay only for what they truly need from those that overspend or get caught off-guard.
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