Program Guide For Value-Added Resellers
Program Guide For Value-Added Resellers
Program Guide For Value-Added Resellers
16 Rewarding Success
18 A Dedicated Resource
Role of the Partner Services Advisor
How Your Designated Partner Services Advisor
Engages with You
2
19 Your Entitlements 33 Understanding the Process
Important Information About Service Entitlements Time Frames and Expiration Dates
SAP Program Office
20 Overview of Training, Qualification, How to Request MDF
and Certification
Tips for Success
Curriculum Formats
How to Claim MDF for a Completed Initiative
Role-Based Training
22 Rewards for Active Participation 36 Initiatives That Do Not Qualify for MDF
General Partner Benefits 37 General Policies
Partner Education Claim Submissions and Approvals
Business Enablement Benefits Claim Audit
Active Quality Management MDF Earning
Software Benefits Expiry Rules
Marketing and Selling Support Benefits Submitting Claims and VAT (Varies from Country to
Solution Development Support Benefits Country)
Technical Support Adjustments to Your MDF Account
Amendments to the MDF Program
30 An Introduction to MDF MDF Requests
Initiatives That Qualify for MDF Use Logo Usage
MDF Initiatives
31 Support for Promoting Your Business
How to Earn MDF 41 Value Points Eligibility Details
MDF for Software and Services Sales Euro Currency Conversion
Jump-Start MDF
Funds Management Access FOR Preoperational
Partners
3
Welcome to the SAP PartnerEdge Program
4
Welcome to the SAP PartnerEdge Program
Exceptional Value
The SAP PartnerEdge program aims to deliver exceptional value and reward partners for their
commitment to SAP. Your membership provides:
•• Effective engagement with SAP
•• Access to tools and resources to develop new opportunities and grow your business
•• Training and enablement to extend your expertise
•• Opportunities for market differentiation
Our award-winning partner program, with robust benefits and enablement resources, is
designed to help you build your business and drive success with offerings that help customers
create value and gain a competitive advantage using SAP solutions. When you choose to partner
with SAP, you have the opportunity to represent a comprehensive and growing portfolio of
on-premise and on-demand solutions.
5
Welcome to the SAP PartnerEdge Program
Program Overview
The SAP PartnerEdge program provides your organization with a robust set of business enable-
ment resources and program benefits that rank among the best, according to industry analysts.
Program Overview
Program levels There are three program levels: bronze, silver, and gold. Each level entitles you to an impressive
set of program benefits that increase as you advance to a higher level via our unique Value
Points system.
Value Points Partners earn Value Points in three areas: revenue, competency – capability building, and
marketing initiatives. For complete details, please see “Earning Your Way to a Higher Program
Level” in the “Program Levels” section of this guide.
Validated expertise SAP-validated expertise is a program benefit that enables partners to state that the
organization has achieved SAP-validated expertise in a specific solution or industry. Partners
that have achieved this validation may use the term to help differentiate their competence and
market focus. It may not be available in all regions.
Product authorization Partners must attain authorization before selling – a specific ongoing requirement that
includes training and qualification or certification for each SAP® product family, as defined in
your Region-Specific Program Information guide.
Support authorization To provide value-added reseller–delivered support, your organization must be certified as a
partner center of expertise, which involves employee training, qualification, and certification.
Region-Specific Program This concise document complements this program guide, providing all the necessary regional
Information information related to your partner type. It includes ongoing program requirements, solution-
specific requirements, Value Points earnings, program benefits, and rates for market develop-
ment funds.
Market development funds Depending on your status and program level, you may have the opportunity to earn MDF
(MDF) for your demand-generation and training activities. For details, please refer to the “Market
Development Funds” sections of this guide.
SAP Channel Partner This site is a secure, centralized online resource that provides information, tools, training,
Portal site and specific applications to manage your SAP partnership (http://channel.sap.com).
(SAP Business ByDesign™ Business Center is accessible via the portal.)
Partner services advisor The advisor serves as your designated personal contact, complementing other SAP contacts
and providing access to education and enablement support resources.
6
Welcome to the SAP PartnerEdge Program
Program Requirements
For new partners, minimum entry requirements include accreditation requirements for the
SAP PartnerEdge program. Upon satisfactory completion of minimum program requirements
(including at least one product authorization), your organization will be entered into the pro-
gram as an operational partner at the bronze level.
As an official member of the SAP channel partner family at the bronze level, your organization:
•• Is authorized to resell agreed-upon products and services
•• Begins receiving the program benefits, including earning MDF
•• Receives the SAP PartnerEdge program e-welcome kit
•• Gets full access to the SAP Channel Partner Portal site
•• Receives a welcome e-mail with key information and a special ID (called a portal user ID) for
accessing SAP solutions
•• Is eligible to use the SAP partner logo and SAP trademarks2
•• Determines the support delivery model
Signed channel Each applicant must sign the channel partner agreement for
partner agreement the SAP® PartnerEdge™ program that includes the terms and
conditions for the partner relationship.
7
Welcome to the SAP PartnerEdge Program
As an authorized partner, you must abide by the SAP PartnerEdge program ongoing requirements
to maintain your status.
SAP reserves the right to terminate the channel partner agreement if your organization does not:
• Pay annual fees
• Meet at least one product authorization
• Meet or exceed minimum annual revenue
• Submit a business plan
• Keep accounts payable in good standing
All of the requirements listed in the tables must be met by the partner. In July and January of
each year, SAP will verify that partners are meeting the ongoing program requirements and may
take action accordingly.
8
Welcome to the SAP PartnerEdge Program
Annual fee Partners must pay any required annual fees in full. Existing partners are invoiced in full at the
beginning of each year. The amount of the annual fee is listed in your Region-Specific Program
Information guide.
For new partners, this fee will be prorated based on the quarter in which the partner joins.
Please see below. Prospective partners receive an invoice from SAP upon application approval.
•• Q1 start = 100% of the fee
•• Q2 start = 75% of the fee
•• Q3 start = 50% of the fee
•• Q4 start = 25% of the fee
The program fee for partners entering the program after the 10th day in the last month of each
quarter is calculated and invoiced from the following quarter.
Business plan Business plans outline specific goals, including revenue and training activities. A partner organi-
zation must submit a business plan during the recruitment phase and then annually to meet the
requirements of the program. SAP provides the template and timeline for review and completion
to all partners, and the SAP partner manager will make best efforts to collaborate in developing a
plan that both parties will agree to. The business plan template is available in the Manage My
Partnership application, which you can access via the SAP Channel Partner Portal site.
Please note: If you are a new partner entering the program between January and July, you
should use the current year’s business plan template. If you enter the program later in the year,
you will have the option to use either the current year’s planning template or the next year’s.
If you are obtaining authorization for another product, you are required to update your business
plan during the new-product onboarding phase.
Product authorization Fulfilling the specific requirement for product authorization is mandatory for each SAP
product family prior to selling those products. This is achieved by having employees take
the required training and any associated Web assessments or certification exams, thereby
meeting the minimum number of trained employees for each product family. Your organiza-
tion must maintain at least one product authorization to remain an operational partner.
Product families and associated training requirements are described in your Region-Specific
Program Information guide. SAP may develop new training curriculums for niche products
within a solution portfolio. This training and corresponding Web assessments are needed for
product authorization. A partner that completes only the niche product training can sell only
that specific product. Additionally, SAP may add new product authorizations or product
focus areas that have specific training requirements. More information can be found in SAP
Channel Partner Portal. See the “SAP PartnerEdge Education” section in this guide for the
appropriate training roles.
9
Welcome to the SAP PartnerEdge Program
Business plan Submit a yearly business plan in line with SAP’s financial year, using the forms provided in the
Manage My Partnership application:
•• The SAP partner manager will work with your organization to develop a mutually
agreed-upon plan.
•• Your organization maintains ownership of your business plan and planning data.
•• The business plan must be submitted no later than the first quarter of each new year
Product authorization Maintain the minimum number of trained individuals required for your country or region.
An employee is qualified or certified by satisfactorily completing the required training and
passing the corresponding Web-based assessment (for qualification) or in-person exam
(for certification). Partners must maintain a minimum level of trained and qualified or certified
employees.
To sell more than one SAP® product, partners need to achieve and maintain product authori-
zation for each product. Partners may be deauthorized if the authorization requirements are
not maintained for a specific product family.
SAP may develop new training curricula for niche products within a solution portfolio. This
training and corresponding Web assessments are needed for product authorization. A partner
that completes only the niche product training can sell only that specific product. Additionally,
SAP may add new product authorizations or product focus areas that have specific training
requirements. More information can be found in the SAP Channel Partner Portal site.
Support authorization To provide value-added reseller–delivered support, your organization must be certified as a
partner center of expertise. This comprises several requirements.
Certified support consultants fulfill the following roles:
•• System administrator
•• Message processor
•• Support coordinator
•• The necessary support infrastructure – the SAP Solution Manager application
management solution
•• A successfully passed SAP audit – for detailed information, please see
http://channel.sap.com
10
Welcome to the SAP PartnerEdge Program
Minimum annual Partners must maintain the minimum annual revenue defined in your Region-Specific Program
revenue Information guide:
•• Only partners that have been in the program for a full calendar year will be required to meet
the annual revenue requirement, which will be in line with SAP’s financial year (January 1
through December 31).
•• Partners that carry multiple product authorizations will be required to meet a revenue re-
quirement equal to the sum of each of the product’s individual annual revenue or subscrip-
tion order value requirements.
•• Partners carrying multiple product authorizations can meet the revenue requirements on
any one or a combination of products.
•• If partners carrying multiple products fail to produce any revenue for one of the products,
SAP may deauthorize that partner for that particular product.
Accounts payable Ensure that your SAP accounts payable are always in good standing. If your accounts payable
are not in good standing, your organization will not be able to move up a program level, even if
you have the Value Points required for a higher program level.
11
Product Authorization
During this period, your organization will receive limited access to SAP Channel Partner Portal,
where you and your designated staff can access the online education content for the required
training sessions and assessments.
Once you achieve product authorization, you can then start selling. The section below details
how to get authorized.
For value-added resellers (VARs), product authorization is achieved when the required number
of employees within your organization complete mandatory training and pass the qualification
and certification for each product family you plan to sell. The minimum number of trained
individuals for each product family is listed in the Region-Specific Program Information guide
applicable for your country.
SAP may develop new training curricula for niche products within a solution portfolio. This
training and corresponding Web assessments are needed for product authorization. A partner
that completes only the niche product training can sell only that specific product. Additionally,
SAP may add new product authorizations or product focus areas that have specific training
requirements. More information can be found in the SAP Channel Partner Portal site.
If your organization represents multiple SAP solutions in the marketplace, you must complete
the product authorization requirements for all solutions. If you have any questions, please con-
sult your SAP partner manager
Product authorization is a key element of the minimum program entry requirements and the
ongoing program requirements. The loss of an employee trained or certified by SAP affects
whether you meet the ongoing program requirements for product authorization. It is your
responsibility to notify SAP when a trained employee leaves your company, and to correct and
update any deficiencies in the Manage My Partnership application, which you can access via the
SAP Channel Partner Portal site.
It is best to select another individual quickly who will take the necessary qualification or
certification to avoid possible termination from the program.
12
Product Authorization
Deadlines
New partners have six months to complete the product authorization requirements. If product
authorization is not achieved within that period, partners face the possibility of termination of
their partnership agreement with SAP.
Existing partners that choose to represent an additional SAP product also must meet the
required six-month product authorization deadline.
When a new release becomes available in your country, you will receive notice no less than six
months in advance for employees to get qualified or certified on the new release.
Support Authorization
All partners must decide between SAP-delivered support and VAR-delivered support.
SAP-delivered support means that you sell the SAP solution and SAP provides the necessary
support. For new partners, this model implies less effort. Your customers have the choice
between SAP Standard Support and SAP Enterprise Support services.
VAR-delivered support means that you sell the SAP solutions and also provide the support.
You need a certified partner center of expertise with certified support consultants and an
operational support infrastructure. Your customers also have the choice of SAP Standard
Support or SAP Enterprise Support.
13
Program Levels
All new partners enter the program at the bronze level, with the
opportunity to attain a higher program level that offers more benefits
(see Figure 1).
SAP calculates your program level based on the number of Value Points you earn in three areas:
•• Revenue
•• Competency – capability building
•• Marketing initiatives
You can find your Value Points balance in the Manage My Partnership application.
Each program level requires a defined amount of Value Points (refer to your Region-
Specific Program Information guide).
At the end of each month, SAP will check your organization’s Value Points balance. Provided
your company has met the required Value Points threshold for a higher program level, SAP will
automatically upgrade your program level at the beginning of the following month. Most Value
Points expire 12 months after they are earned. To find out what the expiration rules are and how
you can earn Value Points for the different areas, see the “Value Points Eligibility” tables in the
“Reference” section at the end of this guide.
Gold Level
Highest
commitment
Most benefits
e
as
re
nc
Silver Level
i
ts
Higher commitment
efi
n
Elevated benefits
be
er
rtn
Pa
Bronze Level
Program entry point
Standard requirements
Business benefits
14
Program Levels
Once you reach a program level, your organization maintains that level by maintaining
the required Value Points range. Level-up evaluations are done monthly. Level-down
evaluations are done in January and July.
Moving Up a Level
When your organization has met or exceeded the Value Points threshold for a higher program
level, advancement to the next level will occur in the beginning of the following month. (SAP
strives to achieve this by the third workday.) You will then begin receiving the accompanying
benefits of the higher program level.
If SAP determines that your organization is failing to maintain the Value Points threshold during
the twice-a-year check (January and July), it will be moved down to the appropriate program
level.
15
Value Points
Rewarding Success
Value Points activities and initiatives are organized and earned in three areas: revenue;
competency – capability building; and marketing initiatives.
Partners begin to earn Value Points during the onboarding phase, but Value Points will not be
counted toward your program level until your organization becomes operational.
As a new partner, you will enter at the bronze level and can begin earning your way toward
the next levels (silver and gold) as the Value Points process is formally initiated. You can check
your Value Points statement located in the Manage My Partnership application in SAP Channel
Partner Portal.
Note: If SAP requires payment prior to product delivery to the partner, then Value Points will be
allocated after payment has been received in full. Value Points are only awarded for products on
the current price list. They are not awarded for legacy products that are not on the current price
list.
To learn more about the Value Points available in your region, see your Region-Specific Program
Information guide.
Important note: In the Value Points tables in your Region-Specific Program Information guide,
you will see a set maximum number of Value Points you can earn for each activity. However,
please do not discontinue activities when you have earned the maximum number, because
those Value Points will be used to replace expiring Value Points.
16
Validated Expertise
Validated expertise is a program benefit that enables partners to state that their organization
has achieved SAP-validated expertise in a specific solution or industry. Partners that have
achieved this validation may use the term to help differentiate their competence and market
focus.
While your SAP product authorizations are a vital and necessary component of your ongoing
program participation, the validated expertise designation is an important part of a basic
business tactic. It is intended to build confidence among your prospective customers in your
abilities to deliver an SAP solution that satisfies their business needs.
The validated expertise designation highlights to customers not only your solution expertise but
also that you have successfully worked with other customers to deliver value in the respective
industry or solution area.
The validated expertise designation is globally available to our partners.4 Once it is granted, you
can use it on your Web site, marketing literature, business cards, and other vehicles and media.
You can find an application and more specific rules in SAP Channel Partner Portal, or you can
contact your partner services advisor for further details. The validated expertise designation is
valid for one year from the date issued, when you will need to reapply.
17
Partner Services Advisor
A Dedicated Resource
A unique and special program benefit is the assignment of a designated partner services advisor,
who will act as one of your personal contacts and complement your other SAP resources. Your
partner services advisor5 primarily focuses on your capability enablement and SAP PartnerEdge
program support. In contrast, your SAP partner manager focuses on your overall relationship
with SAP, engaging with you on joint business planning and performance tracking and assisting
you with day-to-day business matters and specific sales opportunities.
After you have signed the partner agreement, SAP’s global partner services delivery team will
provide you with necessary details about your partner services advisor (including telephone and
e-mail information).
If you don’t know who your partner services advisor is, you can contact the partner support
center at [email protected].
As a new partner, you can expect your advisor to proactively schedule an introductory session.
Based on your business priorities, the advisor develops a tailored enablement plan for your
organization.
Depending on your experience level, the enablement plan can comprise a blend of remote ser-
vices such as:
•• Enablement sessions – one-to-many enablement sessions
•• Focus sessions – personalized one-on-one online meetings
Please note: Your partner services advisor assists with capability-building and program queries
and does not replace SAP standard product support. Please refer to the Technical Support Guide
for further details. In the area of support, the partner services advisor:
Footnote
•• Can only provide assistance in routing incidents or requests to the appropriate support
organization 5, SAP reserves the right to reas-
•• Does not provide on-site visits and handling of remote consulting topics sign an advisor without forewarn-
•• Is authorized to do a spot-check audit of any partner requirements related to product support. ing. SAP may adjust the description
of the advisor’s role and tasks
In cases where the support request is generated from a customer incident, service will be according to changes in technology
provided only if the customer has subscribed to an SAP maintenance model, either SAP and software upon prior written
Standard Support or SAP Enterprise Support. notice to the partner.
18
Partner Enablement Services
Your Entitlements
Your partner services advisor helps provide you with partner enable-
ment services. Your organization’s program level (bronze, silver, or gold)
determines the number of service entitlements you can consume
throughout a year, and that number increases as you achieve higher
program levels. (The number of service entitlements by program level is
listed in your Region-Specific Program Information guide.)
Your partner services advisor can provide you with an up-to-date list of available enablement
services. It is the partner’s responsibility to fully utilize the service entitlements within a calendar
year. We therefore suggest that you appoint a key contact who can plan your service entitle-
ments with the partner services advisor to maximize your service entitlement usage.
SAP will always strive to meet your request for a session but cannot guarantee that each request
can be met should your organization exceed this recommended level of consumption in any one
calendar quarter. In case a service that you request is not available through the partner enable-
ment calendar, or cannot be offered by the partner services delivery organization, SAP may offer
a customized service, subject to availability, for an additional fee. For details on the consumption
rate of services, please contact your partner services advisor.
19
SAP PartnerEdge Education
SAP helps your employees become better prepared to develop, sell, implement, or deploy
your SAP solutions with confidence. Our intelligently designed training is organized by job
role to help ensure that individual employees get the right training.
SAP PartnerEdge Education is offered in three levels, with progressively more challenging
content at each level. For new partners, Level 1 is the foundation training. As the SAP product
portfolio expands, additional training opportunities may be offered.
Curriculum Formats
Once they complete the course work, your employees must pass tests to become qualified or
certified. The tests consist of:
• Web assessments used for qualification
• Proctored exams at a certified testing center for SAP certification
• A combination of both, depending on the employee’s role
Web assessments that are linked in a series must all be completed to be counted toward
product authorization (a minimum and ongoing requirement) or Value Points. Web assess-
ments are offered in various local languages. All linked Web assessments should be completed
in the same language.
Role-Based Training
The “Roles” table summarizes the training provided for the different job roles. The role may vary
depending on the SAP solution. Please see the Education section of SAP Channel Partner Portal
for additional information and a detailed training matrix. Testing that requires an in-person
proctored exam will be held at a certified testing center.
20
SAP PartnerEdge Education
Sales executive Sell to customers (for partners that sell SAP® Business
ByDesign™, this role was formally known as account
executive)
Presales consultant Work with the sales team to define customer needs and
recommend the appropriate application (for partners that sell
SAP Business ByDesign, this role was formally known as the
solution advisor)
Support consultant Set up the support infrastructure and deliver support for
customers from a certified partner center of expertise
(applicable to VAR-delivered support only)
Note: We strongly recommend that partners have the ability to demonstrate the technology.
We encourage partners to maintain and have access to a current functioning demo environ-
ment in support of the solutions they are selling.
21
Program Benefits
The SAP PartnerEdge program offers rich benefits that reward your
organization for active participation and success with SAP products and
programs. Actual benefits may vary by country.
Refer to the Region-Specific Program Information guide in your e-welcome kit or in the SAP
Channel Partner Portal site to see which benefits are available in your area. While many benefits
are available to all partners, some are level or product specific. Your organization will receive
more benefits and more rewards as higher program levels are attained.
22
Program Benefits
Jump-Start Resources
New partners may receive bundled support to simplify learning and minimize start-up
investment.
Partner Conferences
SAP partner conferences and events offer an opportunity to learn about the latest products and
program developments and provide a chance to meet SAP executives and colleagues.
SAP Financing
The SAP Financing service is designed to benefit your customers by improving cash flow,
optimizing their budgets, and improving the ROI of their SAP projects. SAP Financing can be
used to finance all software, hardware, and services costs of an SAP solution for a period of up
to seven years. Partners are encouraged to explore the benefits of offering SAP Financing to
their customers. SAP Financing is not available in all countries. You can find additional informa-
tion about SAP Financing in SAP Channel Partner Portal.
Partner Education
Please see the “SAP PartnerEdge Education” section earlier in this guide for details on this
program benefit.
23
Program Benefits
The following benefits help you grow your business relationship and market base with SAP.
Opportunity Sharing
An automated lead-distribution process equitably shares leads with partners by geographic
region, based on program level.
Active quality management, a recently launched global quality accreditation program for
channel partners, can help your organization adopt a quality approach for processes and
delivery methodologies. The SAP Active Quality Management organization does this by
collaborating with channel partners and providing helpful templates, tools, and processes.
By achieving SAP accreditation in active quality management, your team can improve customer
satisfaction, drive success, and increase profitability.
24
Program Benefits
Software Benefits
Software benefits are available based on program participation and level and product
authorization. SAP distributes these benefits at the time of availability.
Software is made available to the partner company based on existing SAP license terms.
Certain license and maintenance fees may apply in accordance with the prevailing and relevant
SAP price list and terms per your local subsidiary
Demo Software
Demo software is made available to partners. Fees may apply.
Product Briefings
All partners have the opportunity to receive the latest product briefings via different events or
modes. These include SAP Channel Partner Portal, SAP Business ByDesign Business Center for
partners selling SAP Business ByDesign, and electronic newsletters or mailings.
You may have access to a variety of marketing and selling support and resources to help you
sell better, market better, and grow your business.
Demand-Generation Tools
Find demand-generation tools in SAP Channel Partner Portal, including the new online cam-
paign creation tool. With this tool, you now have a simple, cost-effective way to generate quality
sales leads for your organization.
Using this tool, you can develop targeted demand-generation campaigns from a library of
materials – including e-mails, postcards, direct mailers, brochures, and more. Leverage demand-
generation campaign messaging as well as prebuilt templates – or build your own campaigns.
You can view, customize, and execute comprehensive marketing campaigns at little to no cost to
your business.
In North America and the Asia-Pacific-Japan and Latin America regions, the tool is called the
SAP Virtual Agency partner campaign creator. In Europe, the Middle East, and Asia, it is called
SAP partner campaign creator.
25
Program Benefits
SAP may also provide you with additional collateral for use in your marketing efforts (for
distribution to prospective customers). Such collateral, as well as all marketing tools, is
provided without warranty of any kind by SAP.
Marketing Training
The SAP channel marketing university is a free online training Web site created especially for
SAP partners for the small and midsize enterprise market. You will have access to 10 training
modules covering basic marketing concepts, demand-generation fundamentals, marketing
planning and execution, lead management, and success metrics. All of the training modules
have been specifically created to enable you to drive your own demand-generation campaigns.
Standard Discounts
SAP offers a discount on the list price of products you are authorized to sell, commensurate with
your program level. Refer to the channel partner agreement and discount letter for more information.
Commission
Resellers of SAP Business ByDesign that opt to earn commission (sell on SAP paper), in
countries where this is option is available, will be paid commission on net revenue to SAP after
the customer has paid SAP. Refer to the SAP Business ByDesign partner agreement.
Comarketing Opportunities
Partners have opportunities to comarket with SAP. Silver and gold partners may receive additional
packages and detailed options.
26
Program Benefits
Partner Networking
On-site partner events provide a venue for partners to network with and promote their
businesses.
Presales Enablement
Receive presales support from SAP product experts and salespeople on SAP products.
Promotions
SAP periodically sponsors promotions for partners. Look for information in the portal or in your
local or global Channel Partner Newsflash.
Sales Tools
SAP has a variety of Web-based and CD resources and hard-copy tools to aid you through the
customer engagement lifecycle.
SAP supports partners with solution certification. The following benefits are scaled to your level
in the program.
27
Program Benefits
Technical Support
The following benefits are designed to provide knowledge, services, and access to SAP’s
support infrastructure to help you succeed in your relationship with SAP and with your
customers. Please see the SAP PartnerEdge Technical Services Guide for additional details on
remote services available to SAP channel partners.
Free license for SAP SAP Solution Manager, enterprise edition, comprises all the
Solution Manager, functionality needed to manage, support, and continuously
enterprise edition optimize a customer’s landscape and applications, including
(SAP Business all operational processes along the entire solution lifecycle.
All-in-One solution)
28
Program Benefits
Other Opportunities
SAP periodically conducts training and other events. Participation is dependent upon program
level, and SAP may limit invitations to select partners.
Note: Please be advised that on the issue of termination, the provisions of the channel partner
agreement and its exhibits apply. Any unused benefits are forfeited upon termination.
29
Market Development Funds
An Introduction to MDF
This section covers the basics of earning MDF, their proper usage, and
how to ensure a smooth MDF process from start to finish.
Many vendors in the IT industry overlook the fact that partners also need help marketing their
solutions and developing their markets. We see that as an imperative. Therefore, depending on
your status, program level, and region rules, you may have the opportunity to earn MDF for
promoting your business. Please check your Region-Specific Program Information guide to see
if you can participate.
A wide variety of initiatives can be funded by your accumulated MDF. Keep in mind that the
types of initiatives and marketing campaigns allowed, and the percentage of MDF that may be
used to cover the cost of each, vary by region or country.
For regional reimbursement schedules and approved initiatives, see the Region-Specific
Program Information guide in your e-welcome kit, go to http://channel.sap.com, or check
with your partner services advisor.
You may also consult the section “Market Development Funds: Initiatives That Do Not Qualify
for MDF” in this guide.
30
Market Development Funds
The SAP PartnerEdge program allows your company to accumulate funding for initiatives
and programs to grow your SAP business. The rate at which you earn MDF varies by region;
see specifics in the benefits table in the Region-Specific Program Information guide in your
e-welcome kit or in the SAP Channel Partner Portal site (http://channel.sap.com).
Funds are calculated at the beginning of the month for the previous month’s performance.
If available in your region, MDF may be earned when you transact SAP software licenses.
MDF earnings for subscription sales will be calculated based upon the annual contract
value per sale.
For sales completed in a calendar month, MDF become available on or about the third working
day of the following month. For example: for all sales completed in December, MDF are noted as
earned and are available in your MDF account on approximately the third working day of January.
For MDF earned on software license or subscription sales that are subsequently canceled (in
part or entirely), the associated MDF earnings will be corrected and appropriate adjustments will
be made to your MDF account.
Note: If SAP requires payment prior to product delivery, then MDF will not accrue until after
payment has been received in full.
Please note that the following do not count as license sales for MDF earnings:
•• Maintenance sales
•• Nonreselling revenue (such as software benefits including development licenses, demos,
in-house products, and so on)
•• Software licenses sales not on the current price list
MDF can only be earned in the country where you are located.
Jump-Start MDF
Jump-start MDF are for new partners only, and are available only in some regions and countries.
Footnote Once you sign the channel partner agreement for SAP PartnerEdge, your program jump-start
contribution may be returned to you in the form of jump-start MDF for your use in market
6. Funds earned by resellers of development.
SAP Business ByDesign earning
a commission will be based on
net order value to SAP less any Learn your MDF percentage rates and flat amounts by visiting
commission entitlements. http://channel.sap.com/partnering.
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Market Development Funds
We allow our partners to access and use MDF that are available when your VAR status is at
“agreement started” but not yet “active.” This enables you to begin planning your demand-
generation initiatives using MDF without having to wait until you complete all the program
requirements to become authorized.
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Market Development Funds
SAP has one of the industry’s most flexible policies in terms of how
long your MDF are valid for use – up to 21 months. For an overview of
the process to request and claim MDF, refer to Figure 3.
At any stage of the process, contact your partner manager or your partner services advisor if
you have questions or would like guidance on such topics as MDF account balance, campaign
planning, initiative execution, and timelines.
Program rules: An initiative request (formerly known as activity request) must be approved be-
fore you begin the initiative. We recommend you make the request at least one week before the
planned activity’s start date to ensure that approvals are completed in time. The amount of an
MDF claim may not be deducted from SAP invoices for products or services.
To be eligible for a new initiative request and reimbursement, you must keep your accounts pay-
able with SAP in good standing. Partners with status “being reviewed,” “notified of termination,”
or “in termination” in the Manage My Partnership application cannot submit a new initiative re-
quest until their program status has been switched to “operational” by SAP. However, partners
can continue to earn funds, and funds requests that are approved can be continued and brought
to reimbursement.
Partners with status “terminated’’ in the Manage My Partnership application will not be able to
raise any requests nor submit any claims. However, all funds that are at status “claim approved”
by the SAP program office can be continued and brought to reimbursement. Partners at this sta-
tus will not be able to earn MDF, and all access to funds management will also be removed.
SAP reserves the right to withhold reimbursement of MDF or retract MDF if a partner is not in
compliance with SAP PartnerEdge program guidelines.
by SAP by SAP
33
Market Development Funds
When you enter your marketing initiative request in the MDF management application, the
respective funds automatically move to “allocated” status. If you decide to cancel your request,
funds will be moved back to “available” status.
You get access to your MDF about one month after you have earned them. The MDF expiration
cycle is based on the calendar year, but these funds do not expire at the end of the calendar
year, as with many other programs.
For example, if you earn MDF as a result of January 2012 sales, funds become available in
February 2012, and you have until October 31, 2013 (21 months), to submit a claim for a
marketing initiative at the latest; otherwise, the funds will expire.
For more details on the MDF expiry rules, see the section “Market Development Funds: General
Policies” in this guide.
See “General Policies” and “Initiatives That Do Not Qualify for MDF” in the “Market Development
Funds” sections of the guide for important details and exceptions regarding requests and claims,
or visit the Manage My Partnership application in SAP Channel Partner Portal.
For your convenience, SAP has invested in regional program offices to fully administer, manage,
and verify MDF. These program offices serve as your main point of contact for claiming MDF and
will assist you with the claims process. Please note that the reimbursements will be handled
directly by your local SAP subsidiary.
Follow these steps to request funds online before starting your marketing initiative:
1. Click the MDF Management link in the My Partnership section of SAP Channel Partner Portal
(http://channel.sap.com).
2. Use the funds management application to request initiatives.
3. Once approved by SAP, proceed with your marketing initiative.
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Market Development Funds
The partner invoice must be marked clearly to indicate the MDF claim ID.
Please show a clear breakdown of costs in the invoice to help us process your claim and provide
reimbursement more quickly. If you are not sure about the invoice format, contact your local
SAP program office or refer to the help and training document in the MDF management
application.
Within approximately two weeks of invoices being verified, your local SAP subsidiary will reim-
burse you in your local currency aligned with current practices established by SAP for your
country. (The reimbursement may be via bank transfer or remitted in the form of a general
credit against your accounts receivable balance.)
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Market Development Funds
The following expenses do not qualify for reimbursement by SAP from MDF and are not factored
into the calculation of total qualifying initiative costs:
•• Meetings with end users intended for relationship building
•• Meetings with SAP or internal meetings
•• Fees for software implementation
•• Equipment for support or resale
•• Penalty or cancellation charges for missed, late, or changed bookings
•• Legal, tax consulting, or accounting fees (unless specifically identified as allowable)
•• Competitive content, sponsorship, or training
•• Expenses eligible for reimbursement under a separate SAP program
•• Equipment for support of normal business operations
•• Standard office stationery costs, such as business cards or other business forms
•• VAT, local or foreign, that is not recoverable by the partner
•• Entertainment events for you or your customers, such as concerts, theater performances,
sightseeing tours, or sponsorships
•• Programs such as incentive programs, salesperson incentives or recognition events, or any
efforts related to your own employee programs or competitions
•• Development for Web sites to be used for advertising
•• Travel and living expenses (such as hotel rooms)
•• Employee salaries
•• Charges for lost assets
•• Services that support normal business operations – for example, conference calls or
corporate signage
•• Charges for expedited order processing and shipping
•• Sporting events such as golf or tennis tournaments, either as participant, observer, or sponsor
•• Social events not associated with an approved, focused marketing initiative, including venue
expenses, meals, and beverages
•• Charges that have already been claimed for reimbursement through SAP Channel Partner
Portal as part of a different SAP relationship
•• Posting of ads to the SAP job portal
•• Past activities for which expenses were incurred prior to the availability of sufficient MDF
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Market Development Funds
General Policies
Claims must be submitted via the funds management application in SAP Channel Partner Portal
before the funds request expires.
Each MDF request may include only one claim. A claim may include multiple invoices, although
all invoices and proof-of-performance paperwork for the marketing initiative must reference the
MDF request approval number and be filed with the claim at the same time.
All supporting documents (proof of performance) must be retained for future reference.
SAP may request these in some cases during the verification process.
Claim approval and reimbursement are at the discretion of the SAP program office based on
SAP PartnerEdge program guidelines.
You will be notified directly by the SAP program office of any claims that have been rejected
and the corresponding reason. These MDF will be deallocated or, based on timing, may expire.
No additional claims may be entered for that initiative. SAP reserves the right to reject reim-
bursement for any such initiative or activity through MDF.
SAP will not reimburse any external supplier or vendor directly. Reimbursements for any costs
incurred by the partner are issued only to the SAP partner.
Partners may not deduct the amount of an MDF claim from SAP invoices for products or
services.
To be eligible for program participation, including new initiative request entry and reimburse-
ment, you must keep your accounts payable with SAP in good standing.
The default currency of a partner’s MDF account is the currency of the related sales organization
(company code). Currently, it is possible to run a partner (MDF) account as well as all other
functions (such as business planning) in one currency only. Besides the default currency, it is
possible to select a currency for a country, which can be different from the sales organization
currency (such as local currency, U.S. dollars, and so on). MDF will be approved based on the
selected country currency.
In case your invoice is issued in a different currency, the conversion rate of the day of claim
approval will be the basis for reimbursement. The partner account, including the partner
business plan, will be based on the country currency selected.
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Market Development Funds
Claim Audit
The SAP program office randomly reviews claims throughout the year to ensure thorough
compliance with the MDF rules and guidelines. Keep any supporting documentation (all invoices
plus other backup as stipulated in the proof of performance) to present to the SAP program
office upon request.
All claims are subject to verification by SAP. Relevant documentation and financial records
must be kept on file for three years (or the period specified in your country) in the event that
SAP or an independent auditor elects to conduct a review of these records on your premises.
We recommend that you review supporting documentation to ensure legibility and that separate
files are maintained for each claim so that information will be easy to provide upon request.
MDF Earning
Expiry Rules
You may use MDF earned in a previous calendar year, but the time frames for claiming MDF do
change. Funds earned in the previous year must be claimed for an initiative in the MDF manage-
ment application no later than October 31. Otherwise, the funds will expire on October 31 of the
current calendar year. No exceptions to this rule will be allowed under any circumstances.
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Market Development Funds
When submitting a claim after an initiative has been executed, provide all required invoices
showing the net amount and VAT. The maximum claimable amount is the originally claimed
amount – or less if total costs of the initiative are lower than anticipated.
Regardless of where services were purchased or which VAT is declared on third-party invoices,
MDF reimbursement will always be calculated on the net amount. However, on partner invoices,
you need to add your own VAT as required by local tax law for reimbursement of the VAT. Local
country rules apply.
MDF account adjustments may be made as a result of mergers or from a correction to the
account. A correction will always reference the reason and be applied against a specific item.
MDF accounts for terminated partners will be suspended immediately upon termination.
Reimbursement of completed initiatives will still be honored, provided the claim is submitted
prior to termination. An approved MDF request for which a claim form has not yet been sub
mitted will be canceled.
SAP can amend the MDF program without the partner’s consent if any of the following
conditions are met:
•• Principal obligations of the MDF program remain substantially unaffected
•• Amendments are caused by compulsory requirements of third parties, for which SAP is not
culpably responsible
•• Amendments are in the interest of the authorized partner, in that processes are improved or
services are more efficiently provided, without the authorized partner incurring any major
disadvantage
•• SAP increases the scope of its MDF program
SAP shall give notice of amendments, drawing attention to the right to object (please see below)
if the amendment does not meet the criteria set above. Amendments that meet the above
criteria become effective four weeks after written notification.
Partners can object to an amendment that does not meet the above listed criteria and
terminate the channel partner agreement in accordance with Article 8, sections 2 and 3,
of the SAP PartnerEdge General Terms & Conditions.
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Market Development Funds
MDF Requests
For partners with a formal, ongoing, in-house production department for collateral materials
or marketing campaign services, in-house production costs for creation or production may be
reimbursed. To obtain reimbursement, you must state the total creation and production costs.
Include a list of actual itemized costs and a published rate sheet (set rates for pages or portions
of pages, rather than for hours worked).
SAP reserves the right to verify in-house production capabilities and published rates. If pub-
lished rates are found to be substantially higher than third-party rates, reimbursement will be
based upon third-party rates.
Logo Usage
You are entitled to use the SAP channel partner or product logo only according to terms of the
channel partner agreement for VARs and the Logo and Trademark License (Exhibit 5 to the
channel partner agreement for VARs).
MDF Initiatives
To find out which MDF initiatives are available for reimbursement in your region, please refer to
the Region-Specific Program Information guide available in your e-welcome kit or in SAP Channel
Partner Portal. For more detailed descriptions and guidelines on each MDF initiative, go to SAP
Channel Partner Portal.
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Reference
All initiatives that earn Value Points are time-stamped and expire on
set dates. Value Points have specific eligibility criteria. Your Value Points
statement, which includes these details, can be found in the My Partner-
ship section of SAP Channel Partner Portal
Software license or subscription 12 months from the time of the invoice Value Points assignment is based on
sales to net-new or current or the subscription order being booked the sales order amount for net soft-
customers with SAP ware licenses or subscription sales.
For resellers of the SAP® Business
ByDesign™ solution earning a commis-
sion, Value Points will be determined
on net order value to SAP less any
commission entitlements. Mainte-
nance renewals and nonreselling
revenue such as software benefits are
not included.
A net-new customer is defined as:
•• A customer that has not purchased
SAP software previously
•• A customer that has not purchased
SAP software licenses within the
last 3 years, based on the sales
order date
All other software sales are classified
“current customers.”
A Value Points correction may occur in
the case of a customer contract can-
cellation in which the corresponding
Value Points received will be deleted.
Value Points are awarded to the extent
that the contract can be validated by
SAP as accurate. If SAP requires pay-
ment prior to product delivery, then
Value Points will be allocated after
payment has been received in full.
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Reference
Additional trained and certified or 12 months from the time the activity Value Points are granted for additional
qualified employees is completed and Value Points are partner employees trained, certified,
awarded or qualified by satisfactorily undergo-
ing the required training and passing
the corresponding Web-based or in-
person exams.
Individuals must pass all Web assess-
ments aligned with the training cur-
ricula or exams with a score of 80% or
higher to be qualified and earn Value
Points. (This applies only to certifica-
tions, qualifications, or successful
completion of a training workshop by
a partner’s employees.)
A partner employee is defined as an
SAP partner contact in the Manage
My Partnership application.
A company must maintain its mini-
mum level of trained and certified or
qualified employees. Additional train-
ing and achievement of associated
qualification and certification must
take place if a new SAP certification
version becomes available or if a certi-
fied or qualified employee leaves the
partner organization.
Development efforts – certification For certification, six months following A partner solution that receives SAP
or qualification of new partner- the release of a new version of SAP certification or qualification is eligible
developed solutions; annual review software (specific timing will be clearly for Value Points. When qualification
of qualified SAP® Business All-in-One communicated in SAP Channel Partner needs to be updated, the partner
partner solutions Portal) must meet the eligibility rules for
Please note: This qualifying Value For qualification, Value Points expire in qualification outlined in SAP Channel
Points activity is only available if and 15 months if annual review is not Partner Portal.
where certification or qualification successful.
can be obtained. If annual review is not successful, all
related Value Points for solution qualifi-
cation may expire.
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Reference
Participation in select marketing and 12 months from the time the initiative is If available in your region, eligible
demand-generation activities that completed, the performance is evalu- marketing initiatives are indicated in
produce tangible results ated, and Value Points are awarded the MDF initiative table in the Region-
Specific Program Information guide
available in your e-welcome kit or in
the SAP® Channel Partner Portal site.
For some initiatives, quality results
must be attained to be eligible for
Value Points.
A partner may earn Value Points for a
marketing initiative by using the regis-
tration form in SAP Channel Partner
Portal.
Partners should complete their mar-
keting initiative before submitting the
registration form. The Value Points are
awarded once SAP approves the reg-
istration.
Customer references 12 months from the time the reference is A qualified customer reference has
accepted and Value Points are awarded been accepted by the SAP customer
reference program and is identified as
“active.”
Use the registration form in SAP
Channel Partner Portal to submit a
customer reference.
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Reference
Important notes:
•• Calculation errors regarding Value Points are corrected and appropriate adjustments are
completed as soon as SAP becomes aware of the problem. You do not have a claim to any
program benefits (including but not limited to any funds) based on an incorrect calculation
of Value Points.
•• Value Points requiring a registration process may not be awarded in the month they were
initially requested. Any Value Points that are not awarded in the month registered and are
deemed valid requests will be credited in the month following.
SAP performs the conversion from euros to other currencies using the official reference rate
published by the European Central Bank (ECB). The exchange rate on the last day of the month
for transactions occurring in the following month is applied; the relevant exchange rates can be
found at www.ecb.de/stats/exchange/eurofxref/html/index.en.html. This amount does not
include tax or VAT. (In rare cases where there is no official ECB reference rate, we refer either to
WM/Reuters at www.wmcompany.com or another reliable source.)
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channel.sap.com
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase Inc.
Sybase is an SAP company.
Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered
trademarks of Crossgate AG in Germany and other countries. Crossgate
is an SAP company.
All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.