2/18/13 DIP profile -- Is it required for service request or service done?

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DIP Profile
DIP profile -- Is it required for service request Resource related billing after assessment cycle om

or service done? project

Pulling materials and services to quotation from Project
through DIP
Makal asked Dec 3, 2008 | Replies (14)
Resource Related Billing
Travel Expenses in Resource Related Billing
Dear experts PS and CATT
In my project, we are creating project only after Sales Order. And we are using Question on RRB customizing
Milestone billing. So I'm not going to create any DIP profiles, as I feel it's not required service prod in service contract and service order thro
RRB!
in my scenario.
But my client does Turn key projects & usually their projects involve 1 year warranty White Papers & Webcasts
after project completion. During the warranty period, if any part or component of the Lower IT Costs with Oracle Database 11g Release 2
final product fails/ malfunctions, in that case my client has to replace it. In such Top 5 Hidden Costs in Conferencing
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scenario, how do I capture cost? Our SD consultant is insisting me to create DIP
servers
profiles for this purpose. I do not want to use DIP profile only for this purpose. 3 Key Areas to Reduce Costs with Lean Techniques

Companies
Please suggest me/ Guide me.
SAP Real-Time Data

Thanks & Regards

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14 Replies

bengt replied Jan 1, 0001 0

Why not just keep the project over the warranty period to capture the cost? / Bengt

bengt replied Jan 1, 0001 0

I don't quite understand the problem. If you just want to capture the cost, you do it in
the same way as you do it in the project before warranty.
The persons on site have to act as normal SAP users to capture time spent and
handle material consumption or have other persons to do it for them.
/Bengt

Makal replied Jan 1, 0001 0

Exactly. I need DIP profile only when I'm doing RRB or project creation during
business inquiry.
Warranty is free of cost for the customer of my client. But for my client it's cost.

For example ABC company is executing a project for XYZ company. ABC will give 1
year warranty for it's executed project to XYZ company. During this warranty period, if
some component or part fails, then ABC has to replace it. For XYZ it's free, but for
ABC it'll cost extra.
So how ABC should capture it?

bengt replied Jan 1, 0001 0

Do you have a project before warranty??? /bengt

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Kartik Krishnan replied Jan 1, 0001 0

Hey Amar,

Whats wrong with all the other consultants in your project dude? They all seem to be
dumping the work on you??

Ok, listen DIP profiles are used only in the Resource Related Billing scenario. I.e, you
bill in the customer based on the actual costs incurred + a mark up you define as a
condition type for the pricing procedure of the debit memo request. DMR is kind of a
precursor for the billing document in RRB projects.

Warranties have NOTHING to do with RRB and DIP profiles, for the main reason that
RRB generates revenue! And warranties are pure expense objects for the supplying
company aka your client.

The best way to handle warranties is through a warranty contract(VA41/42/43). Ask

your SD consultant to create a new condition type which essentially offers a 100%
discount on whatever contract value you have.So the net value of the contract = 0.

Create a service order(IW31/32/33) and post costs on it through time

reporting/procurement of services. Settle the service order to the contract and settle
the contract to a suitable receiver, like a G/L account or cost center. OR use the
contract itself as the cost object and account assign purchase orders to it and post

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costs for time spent through direct activity allocation like KB21N. If you use CATS,
configure it to allow time reporting on Sales orders.
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But I still think your SD guy has to work on ensuring that there is no revenue
generation on the contract through an appropriate pricing procedure. You do not
need PS for this! Since its a warranty contract, the max you will have is hardware
replacement or sale of services. Why would need a project for all this?

Just suggestions! Take in best light!

Kartik

Kartik Krishnan replied Jan 1, 0001 0

Well, you wouldn't need a DIP profile to capture resource costs either.

You have multiple solutions:

a)If you use CATS, use a service order to report time against and then settle the
service order to the warranty contract.

b)Use direct activity allocation KB21n to send costs directly from the resource cost
center to the warranty contract

DIP profiles are used only for two things as per SAP:

a)Sales Pricing
b)Billing/result analysis for RRB projects/sales orders

Regards,
Kartik

Makal replied Dec 3, 2008 0

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I can keep the project over warranty period. But how do you capture replacement of
compnents/ parts in the project?

Can you please elaborate steps in detail?

Thanks

bengt replied Dec 3, 2008 0

Hi
I thought you were supposed to just capture cost.
Are you talking about installed base capture? /Bengt

Makal replied Dec 3, 2008 0

My client does electrical substation installation kind of projects. I hope, now you'll
have clear idea about the scenario. Electrical sub-station will have control panel,
transformers, towers etc..
Control panel itself will have many electrical components in it. If whole Control panel
doesn't work after substation installation or if a particular component from the control
panel stops functioning. My client has to replace it, as it's still in warranty period.In
such scenario, how do I capture the costs?Please mention the steps.

Thanks

Makal replied Dec 3, 2008 0

Sorry for not able to put it properly. I'm new to SAP implementation. My SD consultant
is arguing with me that, I need to maintain DIP profile for capturing the costs during
the service (i.e. during warranty period). I wasn't sure why he feels like that. When I
asked him, he told me, it's a PS part he don't know much.

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Thanks

bengt replied Dec 3, 2008 0

You need DIP profiles if you are doing a RRB process, where you Invoice the
customer 'automatically' based on your costs incurred.
For me a warranty is free of charge - only cost collection, so I don't understand why
RRB and DIP should be used. /Bengt

Milind replied Dec 3, 2008 0

Kartik is completely correct.

Once SD has created an order with zero revenue, you will be capturing cost using
standard inventory postings for COGS and you will not have to do anything else.
Milind

Milind replied Dec 3, 2008 0

In addition to cost of components if you have to capture cost of resources then you
will have to create DIP profile, process it as a service order and then
you will be able to achive everything together.
Milind

Makal replied Dec 3, 2008 0

Kartik
Thanks again.
Since we are not using CATS, we can use option B from your suggestions.

Thanks to everybody.

Regards

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