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

SAP Term: provisional premium receivable

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Estimated amount for an insurance premium that has not yet been completely calculated, but which is to be collected by the insurance company. The customer is to make provisional down payments for the premium receivables. The system posts provisional premium receivables as statistical down payment requests.

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• Key Concepts: 
  Provisional premium receivable is a term used in the Financial Services Collections and Disbursements (FS-CD) component of SAP. It is a type of receivable that is created when a customer pays a premium for an insurance policy before the policy is issued. The premium is held in a provisional account until the policy is issued, at which point it is transferred to the customer's account. 
  
  How to use it: 
  In SAP, the provisional premium receivable can be created by entering the customer's payment information into the system. This will create a receivable that can be tracked and monitored until the policy is issued. Once the policy is issued, the receivable will be transferred to the customer's account. 
  
  Tips & Tricks: 
  When creating a provisional premium receivable in SAP, it is important to ensure that all of the customer's payment information is accurate and up-to-date. This will help to ensure that the receivable is transferred correctly when the policy is issued. 
  
  Related Information: 
  The FS-CD component of SAP also includes other features such as collections and disbursements, payment processing, and reconciliation. These features can be used to manage and track payments from customers and ensure that all payments are processed correctly.