The main objective of this paper is to answer a question “Does predefined ERP implementation methodology work for state owned companies in transitioning countries?” The focus will be on state owned companies from Bosnia and Herzegovina, as it is typical transitioning company. Paper will treat selected issues which could trouble ERP implementation trough predefined ERP implementation methodology for SAP ERP. This paper presents observations/remarks based on experience of authors in SAP ERP implementation projects in public sector in Bosnia and Herzegovina. Author’s goal is to provide useful insight into predefined ERP implementation methodology (in theory) and issues that arise in real life ERP projects. Also, it should provide structural knowledge for all stakeholders involved in the process of ERP implementation in public sector.