Protecting your “Protected List Price”

Written By: Bob Callanan of Business Ready Solutions

from September 4, 2012

When you first purchased Dynamics GP, Microsoft provided you with a Protect List Price (PLP). Your PLP is an important number as it is used in the calculation of your annual support plans and enhancement plans with Microsoft. Your PLP only changes if you add/remove users or modules.  For example, if you purchased your Dynamics GP system with a PLP of $20,000 in 2005 and have not added any new users or modules, your enhancement plan would have been 16% of $20,000 or $3,200 each year.

However, if you don’t protect it, you lose it. Here’s a recent example. A client failed to renew their enhancement plan on time – they missed the renewal date by less than one week. As a result, they lost their old PLP and a new one was calculated using the higher of the old PLP or the current list price. Their PLP jumped from $20,000 to $25,000 and their enhancement plan jumped from $3,200 to $4,000 annually.

In conclusion, make sure you are aware of your enhancement plan expiration dates and got your renewal processed well in advance.