What is distribution plan relationship in SAP FS-PM - Policy Management?

SAP Term: distribution plan relationship

• Component: FS-PM

• Component Name: Policy Management

• Description: Entity of the "in-force business" business object that controls which contract element is assigned to which distribution plan in coinsurance business. With normal coinsurance business, a contract element policy, contract, coverage package or coverage can only be assigned to one distribution plan. Within a policy, there can only be several contract elements with distribution plan relationships if the contract elements are independent of one another in the hierarchy. With participation transfer business, there can be two distribution plan relationships per contract element. In the distribution plan, they describe the relationship to the original coinsurers inbound and to the insurers involved in the participation transfer outbound. Within a policy, these relationships must also be independent of one another in the hierarchy.

Smart SAP Assistant

• Key Concepts: 
  Distribution plan relationship is a feature of the FS-PM Policy Management component of SAP. It allows users to define relationships between different distribution plans, such as a parent-child relationship. This allows users to create a hierarchy of plans and manage them in an organized manner.
  
  How to use it: 
  To use the distribution plan relationship feature, users must first create a parent plan and then create child plans that are related to the parent plan. The user can then assign different values to each child plan, such as different levels of discounts or different payment terms. The user can also set up rules for how the child plans interact with each other, such as which one takes precedence if there is a conflict.
  
  Tips & Tricks: 
  When setting up distribution plan relationships, it is important to consider how the different plans will interact with each other. For example, if one plan offers a higher discount than another, it may be beneficial to set up rules that ensure the higher discount is always applied. Additionally, it is important to consider how changes to one plan will affect the others in the hierarchy.
  
  Related Information: 
  For more information on using the distribution plan relationship feature in SAP FS-PM Policy Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on using this feature.