Resource-Related Billing: DIP Profiles in SAP S/4HANA

05.12.2024

End of Maintenance for Resource-Related Billing in SAP S/4HANA

Resource-related billing encompasses all costs incurred for a project or order, such as consulting hours, travel time, or – most notably – maintenance expenses. These costs can be consolidated into a single invoice using the Dynamic Item Processor (DIP) profile.

What Are Dynamic Item Processor Profiles?

Dynamic Item Processor (DIP) profiles, are tools that aggregate specific types of data into dynamic items. This data might originate from a project, an order, or a contract. Within the dynamic item processor, the data is condensed, grouped, and allocated. The profile itself defines settings for characteristics, sources, and material determination. Additionally, it specifies how the system should process the dynamic items further. The main processes covered by DPP profiles include quotation creation (or sales pricing) and billing. Billing is divided into resource-related billing and lump-sum billing.

Resource-Related Billing: DIP Profiles in SAP S/4HANA

Resource-Related Billing: the Future or the Past? SAP Customer Service DIP Profiles in SAP ECC and SAP S/4HANA (Source: SAP SE)

Where Do DIP Profiles Exist?

In the legacy SAP ECC system, DIP profiles were part of the Customer Service (CS) module. The impending discontinuation of ECC support in 2027 has raised concerns for many customers, as the CS module was not initially planned for integration into the SAP S/4HANA landscape.

What Are Compatibility Packs?

SAP's Compatibility Pack offers a way to address concerns about losing popular ECC functionalities. ECC customers migrating to SAP S/4HANA have turned to the CS Compatibility Pack, enabling them to retain proven processes and continue accessing familiar source types. This pack serves as a bridge between the old and new system landscapes. However, the compatibility mode for CS is expected to expire by 2030. This means that DIP profiles can only be operated within CS until the migration is complete. This timeline allows businesses to prepare for upcoming changes, and XEPTUM is ready to assist you in this transition.

On-Premise and Private Cloud Solutions?

In SAP S/4HANA, a significant portion of the Customer Service (CS) module from SAP ECC has been integrated into the Service module, which consolidates various customer service functionalities, including elements from the legacy CS module as well as parts of CRM and PM. The SAP Service module is structured into three main areas: Customer Service, Service Operations, and Field Service. A key development is the migration of Dynamic Item Processor (DIP) profiles to the Field Service area with the release of SAP S/4HANA 2022 FPS01. These profiles can now be configured within the Customizing section under Service Processes in the Extended Service Execution area. This process is designed to support services that require detailed planning and execution, with its core feature being the integration of financial aspects of service delivery with the planning and execution functionalities of maintenance management.

DIP Profiles and Resource-Related Billing in SAP S/4HANA

End of maintenance, but happy end of migration? Resource-Related Billing in SAP Customer Service almost completely migrated to SAP S/4HANA.

What are the Challenges in Implementation?

Migrating DIP profiles for cost allocation poses challenges, particularly in adapting to new data sources. Resource-related billing requires sources containing relevant data for processing, such as contracts or orders. These typically include details about the task type, available time, hourly rates, and materials used.

In SAP ECC, applications from the SD module, such as SD contracts, were frequently used. However, in SAP S/4HANA Service, SD contracts can no longer serve as sources for DIP profiles. Similarly, it is unclear whether time recording using the CAT2 table will remain suitable for these profiles.

A compelling solution involves leveraging the Service module’s integrated service contract. Time recording is also seamlessly supported through the new MyTimeSheet app.

What are the Solutions in the Public Cloud?

DIP profiles are not available in the Public Cloud, but new opportunities for resource-related billing have emerged. One of the latest innovations includes Solution Orders and Quotations, which offer straightforward time recording and billing capabilities.

Unlock the Full Potential of Resource-Related Billing in SAP S/4HANA! XEPTUM is here to ensure a smooth transition, implement tailored solutions, and optimize your processes. Contact us today to learn how we can make your billing processes more efficient!

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