What is contract model in SAP FS-PM - Policy Management?

SAP Term: contract model

• Component: FS-PM

• Component Name: Policy Management

• Description: Defines the formation of contract elements, which the policyholder can select when purchasing a sales product. The contract model enables the instancing of contract elements from the product elements from selection options, the system creates a policy with individual contract data for the policyholder.

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• Key Concepts: 
  Contract Model is a feature of the SAP FS-PM Policy Management component. It is used to define the terms and conditions of a contract between two parties. It allows users to create and manage contracts, as well as track and monitor their progress. The contract model also provides a framework for managing the contractual relationship between two parties. 
  
  How to use it: 
  The Contract Model feature of SAP FS-PM Policy Management can be used to create and manage contracts. It allows users to define the terms and conditions of a contract, as well as track and monitor its progress. The contract model also provides a framework for managing the contractual relationship between two parties. 
  
  Tips & Tricks: 
  When creating a contract, it is important to ensure that all relevant information is included in the contract model. This includes details such as payment terms, delivery dates, and any other relevant information that may be necessary for the successful completion of the contract. Additionally, it is important to ensure that all parties involved in the contract are aware of the terms and conditions of the contract. 
  
  Related Information: 
  For more information on SAP FS-PM Policy Management and its Contract Model feature, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials on how to use this feature.