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.

ERP Software Editions: One size doesn’t fit all

A vendor may offer different editions of a software product for different levels of functionality. Of course, the higher edition you choose, the higher the price.

So how can you determine which one you need?
First, it is important to be comprehensive in determining the functionality you need for every phase of your project—now and in the future.

Once you confirm that the functionality is available for all your long-term needs, you can decide how much of it you need to buy right now.

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.

Can ERP Add additional modules ?

Ask: Can I add additional modules, or transition to the advanced version, as my needs change in the future?

If you have the option to upgrade to the higher edition later, then purchase the edition that gives you the functionality you need for at least the first year. This will save you money in several ways.

Is the ERP system priced by concurrent users or named users?

In our opinion, concurrent user pricing is usually the most cost effective option.
This means, if you have 10 people who use the system, but only 5 of them need access at the same time, you only need to pay for 5 licenses.

To Save: If some people only need access to reports, consider publishing these on a web portal with limited access instead of buying an extra user license.