DIP file

Used in CS:
1. Resource-related billing request creation: mapping service items into service material
2. Quotation creation

IMG:
1. ODP1: define DIP profile, including related sales document type/service material determination
2. OIOL: assign DIP profile to service order type
3. OIOA: config Service Order Type, set Revenue Posting

The price for customer-specific services are not always defined in a contract as fixed prices, nor can they always be determined using standard pricing. This is the case if, for example, no empirical values exist for specific services, and therefore the services cannot be calculated adequately before conclusion of a contract. In such cases resource related billing can be carried out.

DIP profile is used to summarize the data.Data is summarized - from defined sources, such as planned cost totals records or actual cost line items - using the dynamic item processor (DI processor) and is regulated by the settings you enter in the dynamic item processor profile (DIP profile).

In SD, the DIP profile can be assigned to the order type.


the concept is really resource related billing
i.e you bill based on the usage of time and materials and provide necessary mark ups

to do this you need to configure what is known as DIP (Dynamics Items Processor) profile
this profile collects cost and converts them to the relevant service material in sales order for billing

e.g. you use activity type 5 hrs and you want to invoice for 5 hrs
cost is based on activity type rate set in KP26 say 70 per hour
create service material Labour
set pricing condition for Labour as 100 per hour (or you can add condition in sales order to get mark up
once you confirm 5 hrs on your project this can be captured via DIPprofile settings to create a billing document of 5 hrs based on 100 per hour

cost = 5 x 70
Rev = 5 x 100