What is 'actual cash value' in SAP FS-CM - Claims Management?

actual cash value - Overview

• Component: FS-CM

• Component Name: Claims Management

• Description: Replacement cost at the time of loss less depreciation

actual cash value - Details

• 
  Key Concepts: 
  Actual Cash Value (ACV) is a term used in the FS-CM Claims Management component of SAP. It is the amount of money that an insurance company pays out to a policyholder for a claim, which is equal to the cost of replacing or repairing the damaged property minus depreciation. 
  
  How to use it: 
  In FS-CM Claims Management, ACV is used to calculate the amount of money that an insurance company pays out to a policyholder for a claim. The ACV is calculated by subtracting depreciation from the cost of replacing or repairing the damaged property. 
  
  Tips & Tricks: 
  When calculating ACV, it is important to consider the age and condition of the damaged property in order to accurately calculate depreciation. 
  
  Related Information: 
  For more information on ACV and how it is used in FS-CM Claims Management, please refer to SAP's documentation on the topic.