Negotiating Erp Agreements

If you`re negotiating against a software company of all sizes, you may run into the problem of sales recognition. The main responsibility for software revenue detection is AICPA Position Statement (SOP) 97-2. While the requirements of SOP No. 97-2 to know when software companies can detect revenue seem simple, the application of these rules is far from simple. There is also a component called vendor Specific Objective Evidence, which can make it even more difficult to understand the recognition of turnover for the typical customer. 3 – Don`t sign the contract SAP will give you. The contract you must sign is entirely written in support of SAP. There are many provisions that need to be negotiated. The SAP standard form contract includes inappropriate use restrictions, liability limitations and guarantees. All these things can be negotiated. Other standard provisions are missing from the SAP form contract. In the absence of formal negotiations, it will be difficult to hold SAP to account for the common problems that may arise.

As a general rule, Panorama customers achieve cost savings ten times the cost of trading services. And Panorama`s performance guarantee ensures that every customer receives a significant discount on their software purchase or doesn`t pay us a cent for the time they negotiate on their behalf. As most project teams are well aware, negotiating ERP contracts is one of the most complex activities an organization will experience. The magnitude of these agreements is due to the scale, strategic importance and range of options. The challenge is exacerbated – ERP software pricing is complex. Most companies have not structured or negotiated such an agreement and do not have the confidence or experience to work effectively. Are you ready to explore how ERP contract negotiations can benefit your team? Contact us for Experts-Insights to gain the confidence you need to manage the size and complexity of these agreements. Ensuring that you buy the right number of users is one of the most important rules. You can`t make them back if you buy too much.

And if you don`t buy enough, it might have influenced your discount by the seller (the bigger the deal, the bigger the discount). Buy 5 to 10% less than you think you really need if fully implemented and get a price freeze for 3 years to be able to buy up to your needs if you find out what you really need (after walking live). Suppliers are selling you more and more! Maintenance and support costs can be charged on the list or the discounted price (that`s a lot if you`re watching for five years). Consider negotiating a support fee each year, or buy three years in advance for a discount. For example, if you receive a significant discount on the ERP supplier`s list price, but you accept an excessively restrictive standard subsidy that prevents you from allowing access to the software to third parties (including your subsidiaries, independent contractors and subsidiaries) increases the likelihood that you will violate the scope of the license. Rest assured that every rebate you have successfully negotiated is minimal if, compared to the fee charged to you by the ERP provider, you increase the amount of the license grant that you did not trade. For start-up technology providers, we create contracts that protect interests and inspire valuable long-term customer relationships. We create standard form contracts, including master software agreements, order forms, service level agreements, service agreements, work declarations, third-party reseller contracts and third-party software integrator agreements. Some of our customers agree to beat up their supplier at their own expense during supplier negotiations. However, negotiating a contract with your software provider doesn`t just minimize costs.