Acumatica License Types: Choosing the Best One for You

Selecting the right license type for your Acumatica ERP system is a critical decision that can significantly affect your business operations and costs. Acumatica offers several licensing programs, each designed to cater to different business needs and usage scenarios. In this blog, we'll explore the various Acumatica license types and help you make an informed choice that aligns with your organization's needs.

Transaction Tier Consumption Licensing

One of the most popular and unique Acumatica license types is transaction tier consumption licensing. This licensing model is particularly well-suited for organizations looking to leverage Acumatica's cloud-based ERP system while maintaining cost efficiency. It is calculated based on your monthly commercial transaction volume and your monthly ERP transaction volume. Here's how each of these works:

Monthly Commercial Transaction Volume

Acumatica calculates your monthly commercial transaction volume based on the highest of the following metrics:

  • Shipments
  • A/R invoices
  • Sales orders
  • Purchase orders
  • Customer payments
  • A/P payments
  • A/P bills
  • Purchase receipts

Let's illustrate this with an example: Suppose your company processes 700 sales orders, 500 customer payments, 300 A/P invoices, 600 A/R invoices, and 200 shipments in a month. In this scenario, sales orders have the highest count, so your monthly commercial transaction volume would be 700.

Monthly ERP Transaction Volume

Besides commercial transactions, Acumatica also considers your monthly ERP transaction volume. This metric is based on how frequently you create or edit Acumatica objects. The flexibility of the transaction tier consumption model shines here, as you can purchase additional ERP transactions with no more licenses.

For organizations that create and edit many Acumatica objects each month, such as property management companies tracking maintenance requests, this flexibility proves invaluable. Even if your monthly transaction volume increases substantially, you have the option to scale up without a complete overhaul of your licensing structure.

More on Transaction Tiers

Should your transaction volume grow rapidly, you can seamlessly transition to a higher tier to accommodate your expanding needs. Many users opt for this licensing model to balance control and flexibility.

However, it's crucial to note that exceeding your licensed monthly transaction volume over three times in a 12-month period could result in non-compliance with licensing requirements. Therefore, careful monitoring and assessment of your transaction volumes are essential.

Named User Licensing and Concurrent User Licensing

While transaction tier consumption licensing offers flexibility based on transaction volume, Acumatica also provides alternatives for organizations with different preferences and usage patterns.

Named User Licensing

Named user licensing requires purchasing a license for each user within your organization. Each user has a unique name and password, and users cannot share passwords. While this approach may seem less flexible, it doesn't limit your ability to add new users to the system. It simply limits the number of active users that can exist at once. Acumatica stands out as the only ERP vendor that offers unlimited users under this licensing model, making it suitable for companies of all sizes.

Concurrent User Licensing

Concurrent user licensing charges you based on the number of users simultaneously accessing the ERP system. While this approach can help control costs, it comes with a limitation—once you reach the maximum number of simultaneous users, additional employees may not access the system until a current user logs out.

If the transaction tier consumption model doesn't align with your company's structure or preferences, concurrent user licensing presents a viable alternative.

Choosing the right Acumatica license type is important for a successful ERP implementation. Factors like transaction volume, scalability needs, and user management preferences should be considered. Understanding the different licensing models will help you make an informed decision that supports your organization's goals and growth. Acumatica offers licensing options based on transaction tier consumption, named users, or concurrent users. Choose wisely and use Acumatica to improve your business's ERP capabilities.

Ready to dig deeper into the world of Acumatica licensing types to find the one that is the best fit for your business and its needs? Download our ebook, "Acumatica Cloud ERP Licensing Explained.

And if you still have questions after reading or would like a personalized Acumatica quote, reach out to our team of Acumatica experts today! We'll be happy to help.

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