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The Magic of Calculating NAV Maintenance

One topic that seems to create a great deal of confusion is how NAV maintenance (Annual Enhancement) is calculated.

If you want to see the breakdown of costs associated with your Protected List Price you can simply scroll down below your quote. This will offer a detailed explanation of the Protected List Price that the Annual Enhancement is calculated from.

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It is broken down in this way:

Microsoft calculates Annual Enhancement based on 16% of the software value held by any particular company. This is the total amount of Users, Tables, etc. that any company holds up until that point and is reflected in a company’s Protected List Price or PLP. The NAV Administrator for your company can log into PartnerSource at any time and look at a quote for your Annual Maintenance Renewal. This provides a breakdown of what your annual maintenance will cost.

See below:

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If the customer in this example wanted to know how they got to the Protected List Price of $34,820 they would simply view their current registered modules.

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This will give them the following breakdown:

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Another question that arises is how NAV Maintenance is calculated when a new product (User, Tables, etc.) is purchased. Maintenance is calculated the same way as above and is 16% of the software value of that order. It is pro-rated based on the number of days between the order date and the day the Annual Enhancement (maintenance) for that account expires.

Below is an example for a purchase of Tables. The 10 pack of Tables was $800. The maintenance on that is calculated at 16% of that amount and then multiplied times the number of days left from the day of purchase until their annual Enhancement expiration date. The Annual Enhancement amount for the entire year for this order would be $128 but because there are only 175 days left until their Annual Enhancement expiration date that number is pro-rated. $128 divided by 365 days in the year is roughly $.35 a day. This multiplied out times 175 days gives you the $61.37 below.

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Microsoft Dynamics NAV Partner Innovia Consulting

Innovia Consulting

Innovia Consulting

Innovia is a multiple-award-winning Microsoft Dynamics NAV and Business Central consulting firm known for delivering innovative Microsoft ERP systems while providing exceptional client-focused service. With five project teams and a dedicated support team, Innovia has the resources to handle all types of ERP projects.

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