Licensing and Costs of DAR in SAP S/4HANA Explained

In SAP S/4HANA, DAR stands for Document and Reporting Compliance (Advanced Reporting) — but in the AI/ML & Finance context that we have been discussing (Inventory Provision, Classification), DAR usually refers to “Data Attribute Recommendation”.

🔹 DAR = Data Attribute Recommendation

It is an SAP AI Business Service that helps automate and improve master data classification and enrichment.
Instead of manually assigning categories (e.g., material group, provision category), DAR uses machine learning to predict and recommend the right value based on historical data and attribute patterns.
It works by learning from existing training data in your S/4HANA system (e.g., how materials were classified in the past).

🔹 How DAR fits into S/4HANA Inventory Provision

Training
- DAR is trained on historical materials data, stock movements, and past provisioning decisions.
Prediction / Recommendation
- When a new or unclassified item needs provision categorization, DAR suggests whether it should be Normal, Slow-Mover, High Risk, or Obsolete.
- This recommendation is passed into a Decision Table (BRF+) to assign the Provision Rate (0%, 25%, 50%, 100%).
Integration
- DAR is exposed via Fiori Apps or APIs.
- Can be embedded in AI-based Inventory Provision Process Flow with Predictive Accounting and posting.

✅ In short:
DAR in S/4HANA = AI/ML service (Data Attribute Recommendation) that automates attribute classification, reducing manual work and increasing accuracy in financial processes like inventory provision.

Now Let’s clarify how Data Attribute Recommendation (DAR) is licensed in SAP S/4HANA, and particularly how its AI/ML service is priced.

Is DAR a Chargeable Service in SAP S/4HANA?

Yes, DAR (Data Attribute Recommendation) is an AI-powered service that supports automating data classification and enrichment in S/4HANA. It’s part of the SAP AI Business Services portfolio and requires separate licensing when used in production environments.

Pricing Model Overview

SAP offers DAR (and other AI services) under two main licensing options:

Pay-As-You-Go (PayGo) on SAP BTP (Business Technology Platform)
Enterprise Agreements (BTPEA) purchasing bundled credits

These credits are known as AI Units, which are consumed based on your usage pattern

How AI Units Work

AI Units act like a virtual currency specifically for AI feature consumption.
Usage is tracked via SAP-defined business metrics (e.g., number of predictions or classification jobs).
Each metric translates into AI Units based on SAP’s conversion rules

Key Notes:

AI Units typically have an annual expiration—they don’t rollover year to year .
You can purchase AI Units standalone or get them bundled with other offerings (e.g. RISE with SAP tiers).

What’s the Cost?

SAP doesn’t publicly disclose exact per-unit costs, as pricing depends on volumes, contract types, and negotiations. However, based on industry sources and typical business models:

A sticky estimate is that one AI Unit may cost a few Euros at list price.
For example, a starter pack of 100 AI Units may be priced between €500–€1,000 (pre-discount)
Heavy usage can scale costs, but the economy of scale typically brings per-unit pricing down.

Summary of Licensing & Cost Model

Licensing Option	Description
AI Units (PayGo or Bundle)	You’re charged per classification/run/action, measured in AI Units
Pricing Guidance	~€500–€1,000 for 100 units; actual price varies by negotiation and usage
No Rollover	Unused units expire—use them within the contractual period
Best Practice	Use SAP’s AI Estimator Tool and track via SAP for Me dashboard

Bottom Line

DAR is chargeable: it’s not included for free—even if S/4HANA is licensed, DAR requires separate BTP consumption.
Cost model: Based on AI Units that represent your AI consumption. While public pricing isn’t fixed, market data suggests a few Euros per unit, with bundles offering better value.
What to do next: Use SAP’s AI Estimator Tool for better planning, monitor usage via SAP for Me, and align with your account rep on the best purchase model (PayGo vs. Enterprise Credit).

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Here’s the AI Unit Estimation Template in a simple table format one can use directly (and I can also prepare it in Excel for you if you want):

Scenario	Materials	Runs/Year	Predictions/Year	AI Units (1k = 1 Unit)	Est. Cost (Low €500/100 Units)	Est. Cost (High €1000/100 Units)
Baseline (All, Monthly)	10,000	12	120,000	120	€600	€1,200
Quarterly Run	10,000	4	40,000	40	€200	€400
Critical Materials Only	2,500	12	30,000	30	€150	€300

This way, you can plug in your material count and frequency to see how DAR consumption translates into AI Units + annual cost.

Disclaimer : Above figures are approximations / sample example. For exact Rates, please check SAP Website/representative.