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

SAP Term: collection premium

• Component: FS-PM

• Component Name: Policy Management

• Description: This amount represents the individual receivable against the premium payer for the collection period. It is the result of the specifics of indivudual contracts and is based on upstream premiums, tariff premiums, premium before tax, and premium after tax.

Smart SAP Assistant

• Key Concepts: 
  Collection Premium is a feature of the SAP FS-PM Policy Management component. It allows insurers to collect premiums from policyholders in a timely and efficient manner. The collection premium feature enables insurers to set up payment plans, track payments, and manage collections. 
  
  How to use it: 
  To use the collection premium feature, insurers must first set up payment plans for their policyholders. This includes setting up payment schedules, payment amounts, and payment methods. Once the payment plans are set up, insurers can track payments and manage collections. They can also view reports on payments and collections. 
  
  Tips & Tricks: 
  When setting up payment plans for policyholders, it is important to consider the policyholder’s financial situation. This will help ensure that the policyholder is able to make timely payments and that the insurer is able to collect premiums in a timely manner. 
  
  Related Information: 
  The collection premium feature is part of the SAP FS-PM Policy Management component. Other features of this component include policy administration, claims management, and reporting.