What is advance premium in SAP FS-PM - Policy Management?

SAP Term: advance premium

• Component: FS-PM

• Component Name: Policy Management

• Description: A premium that is calculated based on a provisional estimated reported value and that the insurer charges at the start of the insurance period. When the insurer determines the actual premium based on the final reported value during reported value settlement, the advance premium is balanced.

Smart SAP Assistant

• Key Concepts: 
  Advance Premium is a feature in the FS-PM Policy Management component of SAP that allows customers to pay their premiums in advance. This feature allows customers to pay their premiums before the due date, which can help them avoid late fees and other penalties. 
  
  How to use it: 
  To use the Advance Premium feature, customers must first log into their SAP account and navigate to the FS-PM Policy Management component. Once there, they can select the “Advance Premium” option and enter the amount they wish to pay in advance. After entering the amount, customers can then submit their payment and receive confirmation of their payment. 
  
  Tips & Tricks: 
  When using the Advance Premium feature, it is important to remember that any payments made in advance will not be applied until the due date of the policy. Additionally, customers should make sure that they have enough funds in their account to cover the amount they are paying in advance. 
  
  Related Information: 
  For more information about the Advance Premium feature, customers can visit SAP’s website or contact their customer service representative. Additionally, customers can also find helpful tutorials and FAQs about this feature on SAP’s website.