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Former Member

DIP Profile & T&M Consulting

Dear Experts

My project is based on professional service & implementation for IT Company

I need to know the concept of DIP profile & how to configure the same.

My scenario is T&M (Manhours) consulting for IT company. I need to configure the same in SAP


Deepu Pillai

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3 Answers

  • Best Answer
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    Former Member
    Oct 08, 2008 at 12:39 PM

    Dynamic Item Processor (DIP)

    It have a dual purpose:

    1. used for Cost Planning in Easy Cost Planning.

    2. Used for Billing in Revenues & Earnings.

    In short DIP's profiles calculate & summarize information for use in both Planning & Billing.

    DIP Profiles are the basis upon which Sales Pricing determines two things:

    1. What Easy Cost Planning sources are used for simulated sales pricing.

    2. What Actual values are used to prepare Customer Billing.

    ODP1 is the T-code. Maintain Profiles for Quatation & Billing.

    Usage, Chracteristics, Source, Selection Criteria, Material Determination, Criteria.

    DIP Profiles are used to gather the relevant actual costs from both WBS elements & Network Activities.

    I think this much is enough to undertand.



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    • Hi Ansar

      DIP is not used for planning in Easy Cost Planning.

      DIP can be used for creating quotation in SD based on plan costs. Plan costs can be done using Easy Cost Planning.



  • Oct 08, 2008 at 12:33 PM

    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

    also you need to set up partner function for project defintion

    I suggest you read SAP help as it is not possible to detail the configuration here as this will be based on your indicidual requirements

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    Former Member
    Oct 24, 2008 at 07:32 AM


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