SAP Licence

[Former Member]

Dear All,

Our company is going to implement SAP business 1, Our consultant is asking us to pay the SAP license fees and AMC charges upfront. My management is the opinion that the AMC will be active only after the system going on live and AMC has to be paid only after complete activation of the system.

Please advise on the issue

Further my consultant informed us that the AMC is paid to the SAP whether this is correct

change title Message was edited by: Paul Finneran

[Former Member]

AMC means Annual Maintenance Contract. whether it is mandatory to pay the same along with the SAP licence charges

Please advise

[Johan_H]

Hi,

To my knowledge, any and all contracts (AMC) related to SAP Business One are between the customer (you) and the SAP Partner (the consultant). The technical support, and free product updates that go with the AMC, are provided by the SAP Partner. The SAP Partner is responsible for the quality of your installation.

The system can be installed with a (free) demo license, but in that case only on a single machine (not on a server-client environment). To be able to implement a productive system, you do need a license.

It depends on local law, and how much SAP trusts the SAP Partner and how much the SAP Partner trusts the customer, when payment for the license is due (before or after go-live). In any case, the customer pays to the SAP Partner, and the SAP Partner pays to SAP.

So if you consultant wants you to pay upfront, that probably means that they do not have the necessary credit themselves with SAP.

If you have not already done so, I recommend that before you proceed with the implementation, you interview several SAP Partners, and maybe get some recommendations from other companies that run SAP Businesss One, and determine if your current consultant really is the best one for you. Remember, the customer determines with which SAP Partner they want to work. This is not dependent on your geographical location, SAP or anything else.

You may also ask about this issue in the SAP Business One group on LinkedIn, in which case I recommend that you mention what country your company operates in.

Regards,

Johan

[Johan_H]

Hi,

What do you mean with "AMC" ?

Regards,

Johan