We present a consistent treatment of heavy quarks for jet production in DIS at NLO accuracy. The method is based on the ACOT massive factorization scheme and dipole subtraction method for jets. The last had to be however extended in order to take into account initial state splittings with heavy quarks. We constructed relevant kinematics and dipole splitting functions together with their integrals. We partially implemented the method in a MC program and checked against the known inclusive result for charm structure function.
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