SAP self-declaration products – industry specific metrics

The knowledge about SAP self-declaration products and their metrics can make a difference during an SAP audit, but it’s even better to have it before and be prepared when the moment arrives. So, how can you build that knowledge? We aim to help you by sharing our knowledge. A few weeks ago, we started an article series on this topic. First, we talked about enterprise metrics, then we continued with the technical metrics, and we’ll end today with the last article in this series, focused on the industry specific metrics.

What are these and why would you choose to license your software programs on say barrel of oil produced or production tons? Because your business success is best reflected in how much you produce. The more you produce, the more you sell. Selling more means your business grows, which has a direct impact on your software consumption. Hence, the licensing costs will be proportional to your production. Production grows, revenue grows, licensing costs grow.

Industry Specific Metrics

Barrel of oil equivalent per day (BOEPD)

As the name indicates, BOEPD is used in the Oil and Gas industry and allows “aggregating the produced, scheduled or sold quantities of hydrocarbons from both conventional and unconventional sources over the prior 12 consecutive months […]” (Software Use Rights).

For example, while gas production is generally measured as cubic meter per day, it needs to be converted into its equivalent in barrels of oil in order to determine the total quantity of oil & gas produced. This way, compliance can be calculated. For these conversions, calculators that transform the barrels into barrels of oil equivalent per day can be used.

Production tons

This metric is applicable to large enterprise customers in industries that involve production movements. It is defined as “the production volume over the period of a year” and involves transporting both internally (within the same company) or externally (for customers and partners) using any transportation method (rail, marine or truck).

Cash flows

This metric is specific for end users in the banking sector and represents the total number of cash flow transactions being processed by the licensed application per day.

Using cash flows as metric for your banking software (e.g. SAP Liquidity Management Banking) will ensure a fair consumption and a growth of licensing costs directly impacted by the number of cashflows transacted.

Common compliance issues for industry-specific metrics

The same risks apply to the industry specific metrics as for the rest of the self-declarable metrics. End users tend to overlook monitoring the compliance for these applications.

It is recommended to document your business progress and production results and see how your licensing is affected by that (at least) every 6 to 12 months.

In case you register a drop in your production volumes, there might be risks of paying much more for your software than you need to.

Have you identified your license metrics? Are you in doubt which one would suit your needs best or how to check if you’re compliant when using SAP self-declarable licenses? Book a meeting with one of our SAP experts at info@b-lay.com.

This article was published on 19-12-2019