What is 'dividend usage' in SAP FS-PM - Policy Management?

dividend usage - Overview

• Component: FS-PM

• Component Name: Policy Management

• Description: The way in which the annual dividend of a life insurance policy is put to use. Examples of usage types: Accumulated interest Bonus Fund investment

dividend usage - Details

• 
  Key Concepts: 
  Dividend usage is a feature of SAP FS-PM Policy Management that allows users to define how dividends are used in the policy. This includes setting up rules for how dividends are allocated, such as whether they are used to pay premiums, increase the policy’s cash value, or be withdrawn as cash. 
  
  How to use it: 
  To use dividend usage in SAP FS-PM Policy Management, users must first define the dividend rules. This includes setting up the rules for how dividends are allocated and specifying the order in which they are applied. Once the rules have been set up, users can then apply them to policies and view the results. 
  
  Tips & Tricks: 
  When setting up dividend rules, it is important to consider the policyholder’s needs and preferences. For example, if a policyholder wants to use dividends to increase their policy’s cash value, then they should set up a rule that allocates dividends to this purpose first. 
  
  Related Information: 
  For more information on dividend usage in SAP FS-PM Policy Management, please refer to the official documentation on the SAP Help Portal.