What is calculation based on investment in SAP FS-PM - Policy Management?

SAP Term: calculation based on investment

• Component: FS-PM

• Component Name: Policy Management

• Description: Calculation of the sum insured, based on the investment amount in unit-linked insurance products desired by the policyholder. The difference between this and the calculation based on premiums is that the investment amount corresponds to the premium for the main insurance, and premiums for supplementary insurance are not included.

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• Key Concepts: 
  Calculation based on investment is a feature of the FS-PM Policy Management component of SAP. This feature allows users to calculate the return on investment (ROI) of a particular policy or project. It takes into account the cost of the policy or project, as well as any potential savings or revenue generated by it. The calculation is based on the expected return on investment over a certain period of time.
  
  How to use it: 
  To use this feature, users must first enter the cost of the policy or project into the system. They must also enter any expected savings or revenue generated by the policy or project. Once this information is entered, the system will calculate the expected return on investment over a certain period of time.
  
  Tips & Tricks: 
  When entering data into the system, it is important to be as accurate as possible. This will ensure that the calculation is accurate and that the expected return on investment is realistic. Additionally, it is important to consider any potential risks associated with the policy or project before entering data into the system.
  
  Related Information: 
  This feature is part of SAP's FS-PM Policy Management component, which provides users with tools to manage and monitor policies and projects. Additionally, this feature can be used in conjunction with other features such as budgeting and forecasting to help users make informed decisions about their policies and projects.