Dynamic Product Proposal, I could say as an automated version of Item Proposal, is similiar in the functionality. DPP analyses the customer's sales history and proposes the goods which the customer might buy in the current Sales order. Even though it uses the Condition Technique, instead of conditional tables it uses the Functional modules that takes into consideration on the past sales. However the consultant can customise it for the number of past Sales orders as well as the logic on which the materials are proposed - AND / OR logic.
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http://www.maheshwaran.net/index.php/component/k2/item/2-dynamic-product-proposal-in-sd#sigProGalleriad82b868923
Customizations:-
1. Define the Procedure for Dynamic Product Proposal and assign it to the document type.
2. In the Customer Master for Sold to Party, go to Sales Area Data and populate the DPP field (Std is A)
3. Create the condition records for the combination of Sales Area / Customer / DPP (Doc) / DPP (Cust) in the transaction code - SDPV (SAP Easy Access --> Sales and Distribution --> Sales --> Environment --> Generate Product Proposal). If successful, it will show you the number of proposals generated.
4. Create a Sales Order for the above mentioned Document type, Customer for which condition records were generated and you can see that the Sales Order items are prepopulated with the Proposed Items. If the customer doesn't want to buy certain items, ignore them without entering the ordered quantity. Once you save the document and reopen in Change mode, you can find only the items that were needed by the customer.
This is such a simple topic and doesn't need much configurations also.
I am not touching on the standard Item Proposal as it would have been covered in the normal SD.