What are the Initial Setup and Implementation Costs for SAP Business One ERP?

SAP Business One – Initial Setup Costs

The initial setup (or licensing) costs of SAP B1 is determined by multiple factors including:

• Number of ERP users
• Type of deployment – on-premises or the cloud
• Functional requirements of your business

Here are some of the functional requirements of the small business that can influence its pricing:

• The business is looking to move from its basic accounting tool to an integrated ERP solution comprising of advanced financial budgeting & accounting functions.
• The business is looking for an ERP with advanced business functions – including finance, distribution, inventory management, and business intelligence.
• The business is looking for a comprehensive ERP solution with modules on finance, distribution, production, CRM, and business intelligence.

Each of these functional requirements can influence the SAP B1 ERP setup expenses for any organization.

The initial investment for SAP B1 also includes the following 2 factors:

1. Number of Users

SAP Business One follows a license-based cost model where every user needs a license to access and use the ERP system. The SAP Business One licensing cost increases with the number of users. Hence, small enterprises must correctly estimate the number of users when buying the SAP B1 license.

2. Deployment Mode

Small businesses can choose to deploy their SAP B1 system as an on-premises installation or a cloud-hosted solution. On-premises deployment of SAP B1 has a higher setup cost as compared to its cloud version. Additionally, on-premises deployment could also incur hardware costs for your small business.

Next, let’s discuss the implementation costs of SAP Business One for small enterprises.

SAP Business One – Implementation Costs

SAP Business One implementation costs vary depending on the size and complexity of your business operations. Which are the factors that can influence the implementation costs? Here’s the SAP B1 implementation cost breakdown:

1. ERP Configuration Costs

To meet your business requirements, SAP Business One must be configured for your business processes and systems. This typically necessitates the expertise of an industry-experienced SAP implementation partner – and can involve some implementation cost (depending on the level of required ERP configuration).

2. Data Migration

Do you need to migrate your data from legacy systems to the new SAP B1 system? If yes, then you may incur some additional migration costs. The cost of this migration process depends on the size and complexity of your data sources.

3. Employee Training

To maximize ERP adoption across your enterprise, you also need to train your employees on how to use SAP Business One. Training sessions help them easily transition and start using the ERP tool in quick time. Typically, a professional SAP B1 training session for employees include:

• Customized training depending on each user’s role
• In-depth training on ERP modules
• ERP customization techniques

4. Post-implementation Support

After ERP implementation, you may incur additional support costs for:

• Regular SAP B1 updates
• Ongoing maintenance
• Troubleshooting issues

A SAP implementation partner may charge additional fees for post-installation support – which could be on an annual recurring basis.

In Summary

At the first glance, the SAP Business One setup and implementation costs may look substantial especially for small companies. However, in the long run, these companies can reduce their business costs thanks to their investment into SAP B1 ERP. Further, by investing into SAP B1, you can gain a significant advantage in a competitive market.

If you are looking for an experienced and affordable ERP implementation partner, Praxis Info Solutions is the right choice. As an authorized SAP partner, Praxis has years of experience in implementing cost-efficient ERP solutions providers for its customers.

We can help you streamline your SAP B1 installation and implementation costs. Contact us today.