What is settlement type in SAP FS-CM - Claims Management?

SAP Term: settlement type

• Component: FS-CM

• Component Name: Claims Management

• Description: Specifies how the shares in a distribution plan are settled. &EXAMPLE& Examples from coinsurance: Leading insurer Own settlement

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• Key Concepts: 
  Settlement type is a feature of the FS-CM Claims Management component of SAP. It is used to define the way in which claims are settled. It determines the payment method, the payment terms, and the payment currency. It also defines the accounting rules that will be used to process the settlement. 
  
  How to use it: 
  Settlement type is used to define the payment method, payment terms, and payment currency for a claim. It also defines the accounting rules that will be used to process the settlement. To set up a settlement type, go to the FS-CM Claims Management component in SAP and select “Settlement Type” from the menu. Enter the details of the settlement type and save it. 
  
  Tips & Tricks: 
  When setting up a settlement type, make sure to enter all relevant information such as payment method, payment terms, and payment currency. This will ensure that all payments are processed correctly and efficiently. 
  
  Related Information: 
  For more information on setting up settlement types in SAP FS-CM Claims Management, please refer to SAP Help documentation or contact your local SAP support team.