ERP maintenance plan lapse

What is the policy or penalty if I let my maintenance plan lapse and want to join again later?

You might be tempted to let your maintenance contract lapse with plans to sign up again when the next version is released. Make sure you understand any penalty fees involved so you can determine whether this will really save you money.

Remember, if you cancel your maintenance plan you may not be eligible for promotions offered. If you are using payroll modules make sure you can still access annual payroll and tax updates if you let your plan lapse.

Maintenance fees are like insurance. We all wish we didn’t have to pay it, but when we need it, we’re sure glad it’s there. So, just add the maintenance fee into your annual budget and leave it there.

Maintenance Fees: Insurance you actually need

Just about every software vendor will require you to pay an annual fee based on a percentage of the software list price.

This fee has various aliases such as maintenance fee or enhancement plan.

The percentage can lower after the first year. The plan may not always be required, but it is always strongly recommended.

In addition, your Partner may have their own annual maintenance plan for support calls, preventative maintenance checks or other services.

normal maintenance fees will be from 15% - 18% per annum on software cost.