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Clarifying License Cost Modeling: TCO Extension vs IT Component–Application Link

  • November 5, 2025
  • 4 replies
  • 386 views

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Hi everyone,

I'm working on cost modeling in LeanIX and I have a question regarding how to best represent license costs—especially in cases where a shared technology platform (e.g., SAP) supports multiple business applications.

Context:

  • SAP licenses are purchased centrally, but used across several applications (e.g., Finance, Procurement, HR).
  • In LeanIX, I’ve already entered these costs on the IT Component–Application relation, since the licenses are tied to the SAP component.
  • The Application TCO extension also allows me to enter license costs directly on the Application fact sheet, but this creates a duplication of cost data (TCO doesn’t use IT Component-Application relation costs)

Questions:

  1. Should shared technical costs like licenses be entered in the TCO extension at the application level, or is it more appropriate to model them on the IT Component–Application link when the licenses are centrally managed and technically scoped?
  2. I know the TCO extension supports reporting costs per organization, and ideally I’d like to model both costs per organization and costs per provider. Is there a recommended way to do this without duplicating data?

I’d like to avoid double-counting while staying aligned with TCO and TBM principles. Any best practices or guidance on how LeanIX recommends handling this kind of scenario would be greatly appreciated.

Thanks in advance!

Best answer by edes

Here’s what I did to solve my problem.

I followed this guide Cost Management | SAP Help Portal in the advanced cost management section with customized configurations.

I modified the calculation to include the total annual cost in the total cost of ownership.

I think for now that’s a good solution for us, but please let me know if someone finds something else! 

4 replies

Jim Harry
  • Sophomore
  • November 6, 2025

We haven’t started this yet, but I’m interested in this as well.  I’d love to apply costs at the licensed component level and be able to apply a % based on usage or something similar. 


GiannisAnt
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  • Veteran
  • November 6, 2025

I heard from a colleague that went to Hague that there are some changes coming regarding cost modeling.

So maybe hold your horses a bit.


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  • Author
  • Rookie
  • Answer
  • November 10, 2025

Here’s what I did to solve my problem.

I followed this guide Cost Management | SAP Help Portal in the advanced cost management section with customized configurations.

I modified the calculation to include the total annual cost in the total cost of ownership.

I think for now that’s a good solution for us, but please let me know if someone finds something else! 


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  • Author
  • Rookie
  • November 10, 2025

We haven’t started this yet, but I’m interested in this as well.  I’d love to apply costs at the licensed component level and be able to apply a % based on usage or something similar. 

I don’t know if you saw this part of the documentation in the “Advanced Cost Management with Customized Configurations” on this page Cost Management | SAP Help Portal.

It explains how to modify calculations to apply total annual cost from IT component in the TCO calculation and also how to split TCO cost on organizations with a % or even with user count.