How to reduce SAP subscription costs

FUE, or Full Use Equivalent, is a billing unit used in the SAP subscription model, primarily in the context of SAP Cloud ERP and the RISE with SAP program. In this model, the customer does not purchase separate licenses for each user type but instead contracts for a specific pool of FUEs, and different types of system access have different billing weights.

For example, 1 FUE corresponds to 1 advanced-use user, 5 core-use users, or 30 self-service users. Developer access is billed differently and has a separate weighting.

This approach offers greater flexibility and allows costs to be better aligned with actual system usage. It works particularly well in organizations where a large group of users performs only simple, self-service tasks. At the same time, it requires very strict control over roles, permissions, and actual system usage. Incorrect user classification or overly broad permissions can artificially inflate license consumption, thereby creating the risk of additional costs.

One of our clients faced this challenge after implementing the SAP Cloud ERP Private Edition system.

The implementation covered key areas of finance and controlling, materials management, and sales and distribution: FI, CO, MM, and SD. The system’s users include business specialists and administrators responsible for the technical development and maintenance of the SAP Basis environment. Each of them uses the system according to their assigned user type: advanced, core, self-service, or developer.

During the implementation planning phase, it was estimated that the company would need 60 FUEs to run its business efficiently and provide technical support. This allocation was specified in the contract with SAP.

After the first few weeks of operation, the billing system showed consumption at 103 FUE, which was significantly above the contracted limit. In subsequent reporting cycles, the consumption rate reached approximately 180%. This meant there was a risk of significant additional costs for the RISE with SAP subscription.

All for One was a partner in the implementation project, so it was a natural step to ask a trusted partner to investigate why the actual use of FUE differed so significantly from the assumptions, and which roles and permissions were responsible for the elevated user classifications.

It was crucial to maintain the system’s full business functionality. Optimization could not consist of simply restricting access, but rather of precisely tailoring permissions to users’ actual tasks.

An additional challenge was the way data was reported on the SAP side. Consumption data in SAP for Me – Private Cloud Consumption is updated periodically, usually monthly, and it can take several weeks for the effects of changes to fully synchronize. This meant that the project required not only technical adjustments but also proper planning for verifying results and business communication.

The work began with an analysis of user classifications in terms of FUE using the SLIM_USER_CLF_HELP report. This made it possible to identify the roles and authorization objects that elevated users’ classification to the Advanced Use level, including in the areas of workflow, FI/CO, and procurement, and in selected scenarios also ML/Actual Costing, e.g., through the K_ML_VA object.

A “from users to roles” approach was used. First, user groups with the greatest potential for optimization were identified, and then recurring roles within those groups were pinpointed. This made it possible to focus efforts where adjustments to the authorization model would have the greatest impact.

The next step was to review and revise the roles in PFCG. “Light” test role variants were created, in which selected advanced permissions were restricted or separated. Some of these permissions were transferred to roles intended for a smaller group of key users who actually needed extended access.

The optimization was carried out in a way that did not disrupt users’ ongoing work. Test users were created, and verification was performed in the DS4 development system. Subsequently, client-side process tests were run to confirm that the changes to roles did not negatively impact the execution of business tasks.

Another important aspect of the project was organizing the historical role entries. Using the PRGN_COMPRESS_TIMES report, we removed outdated assignments that had been left over and could have caused discrepancies in the FUE results.

In addition, the user classification reporting component was updated by implementing SAP TCI Note 3113382, version 91. As a result, the SLIM_USER_CLF_HELP report was based on the current classification definitions.

The effects of the changes were monitored in SAP for Me – Private Cloud Consumption, taking into account SAP’s monthly measurement cycle. This was crucial for the proper interpretation of the “before/after” results and for confirming that the changes to the system were reflected in the consumption reports.

The project was not limited to a one-time adjustment of roles. The work was conducted iteratively so that each change could be safely tested, its impact on processes verified, and the results confirmed in subsequent reporting cycles.

It was also important to “wrap up” the issue not only on the system side but also on the billing side. Measurement in a private cloud environment is performed on a monthly basis, and making the data available in SAP for Me may require additional processing time. Therefore, communication and business decisions were planned with the data update schedule in mind.

This approach reduced the risk of jumping to conclusions and enabled a controlled transition from diagnosis, through role model adjustment, to the confirmation of results in official SAP reporting.

The project involved the SAP Cloud ERP Private Edition environment in the RISE with SAP model, encompassing the PS4 production system and the DS4 development system.

The work utilized standard SAP tools for analyzing and adjusting roles and user classifications: SLIM_USER_CLF_HELP, PFCG, SUIM, the PRGN_COMPRESS_TIMES report, and the implementation of SAP TCI Note 3113382. The results were verified in the SAP for Me – Private Cloud Consumption portal.

As a result of this work, we were able to ensure consistency between the effects of role changes and consumption reporting in SAP for Me. The Consumption metric was reduced from approximately 180% to 90%.

By limiting excessive permissions and better aligning roles with actual responsibilities, the number of users classified as “Advanced Use” has decreased. Streamlining the role model and removing historical legacy elements facilitates ongoing system maintenance and future FUE verification cycles.

The most important business outcome was a significant reduction in the risk of incurring additional RISE with SAP subscription costs resulting from over-provisioning of licenses. At the same time, the optimization was carried out without limiting the functionality of business processes, which was one of the key objectives of the project.

The case study described here shows that, in the RISE model, FUE control is not a one-time licensing activity, but rather an element of ongoing management of roles, permissions, and actual system usage. It requires a combination of technical expertise, knowledge of business processes, and an understanding of how consumption is reported on the SAP side.