Overview and Purpose

• Material Type DIEN is primarily used for both procurement of services (MM) and sales of services (SD).
• Facilitates intangible (non-stock) services management in a manner similar to physical materials but without tracking inventory.
• After SAP MM 4.0, organizations can opt to use the External Service Master rather than DIEN for procuring services.

Key Functional Highlights

1. Integration Between MM and SD

• • A single DIEN record can support both service purchasing (MM) and service sales (SD), enabling smoother integration and consistent master data.
  • Suitable for scenarios where a service requires billing without a tangible goods movement.

1. Business Considerations

• • Decide whether to manage services through the Material Master (DIEN) or the External Service Master, depending on complexity, compliance, and reporting needs.
  • Understand how it affects pricing, valuation, and contract management throughout the service lifecycle.

1. Prerequisites for Implementation

• • Correct configuration of material type DIEN in transaction OMS2 (generally set as a non-stocked material with no quantity/value updates).
  • End-users must be trained on service-specific master data maintenance to avoid confusion with physical goods materials.

Technical Highlights for SAP Consultants

1. Configuration (OMS2)

• • In standard SAP, DIEN is often preconfigured as non-stock, with no goods receipt or inventory valuation.
  • Verify or adjust attributes in transaction OMS2 to ensure they align with the organization’s service procurement and sales processes.

1. Views and Screens in the Material Master

• • Basic Data: Ensure correct base unit of measure (e.g., EA, HRS) and descriptions.
  • Purchasing View: Needed if DIEN is used for external service procurement (e.g., item category ‘D’ for service POs).
  • Sales Views: Essential for setting up service pricing, taxes, and billing in SD.
  • MRP Views: Typically not relevant for services, as no stock or MRP processes apply.

1. Service Procurement Scenarios

• • When raising a Purchase Order with DIEN, you usually create a service entry sheet instead of a goods receipt.
  • If using External Service Management (including Service Master Records), ensure correct setup to avoid duplication or confusion with DIEN materials.

1. Accounting and Valuation

• • DIEN materials are generally non-valuated in the inventory sense.
  • Instead, costs are captured via account assignment (e.g., cost centers, projects, or orders), and revenues flow into CO for analysis.

1. Post-S/4HANA Considerations

• • In SAP S/4HANA, organizations may use the Limit Items approach or the Service Master for service procurement, reducing reliance on DIEN.
  • Evaluate whether to continue with DIEN or transition to newer procurement objects based on the S/4HANA roadmap.

Key Takeaways for End-Users

1. No Physical Stock

• • DIEN materials do not track quantity in inventory or require a traditional goods receipt.

1. Basic Master Data Maintenance

• • Maintain clear service descriptions and ensure the unit of measure is correct (e.g., hours, jobs) to facilitate accurate ordering and billing.

1. Purchasing & Sales Transactions

• • Purchasing: A service entry sheet is used to confirm delivered services, replacing a physical goods receipt.
  • Sales: When selling services, orders can be billed without a delivery process since there’s no physical shipment.

1. Accounting Implications

• • No inventory valuation applies to DIEN; costs or revenues are recorded at the time of service entry or billing.

1. Reporting

• • DIEN-related transactions appear in purchasing and sales reports but not in inventory stock reports. Use the correct reporting tools and parameters for services.