What is down payment for provisional premium receivable in SAP FS-CD - Collections/Disbursements?

SAP Term: down payment for provisional premium receivable

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Payment made by the customer, which partially or fully clears a provisional premium receivable.

Smart SAP Assistant

• Key Concepts: 
  Down payment for provisional premium receivable is a feature of the Financial Services Collections and Disbursements (FS-CD) component of SAP. It allows customers to make a down payment on an insurance premium that is due in the future. This payment is held in a provisional account until the full premium is due, at which point it is transferred to the insurer. 
  
  How to use it: 
  To use this feature, customers must first set up a provisional account in SAP. This account will be used to hold the down payment until the full premium is due. Once the account is set up, customers can make a down payment for their insurance premium. The amount of the down payment will be held in the provisional account until the full premium is due, at which point it will be transferred to the insurer. 
  
  Tips & Tricks: 
  It is important to note that down payments for provisional premiums are not refundable. Therefore, customers should make sure they are able to pay the full premium when it is due before making a down payment. Additionally, customers should keep track of their down payments and make sure they are transferred to the insurer when the full premium is due. 
  
  Related Information: 
  For more information about down payments for provisional premiums, please refer to SAP’s documentation on Financial Services Collections and Disbursements (FS-CD). Additionally, customers can contact their SAP representative for more information about setting up a provisional account and making down payments for insurance premiums.