What is down payment in SAP FS-PM - Policy Management?

SAP Term: down payment

• Component: FS-PM

• Component Name: Policy Management

• Description: Advance payment to insurance company. A down payment can occur if the policyholder transfers a cash amount to the agent when the contract is concluded. It does not represent a premium but is used for recurring premium collection before the premium payer has to pay further amounts. A timely down payment fulfils the requirement for timely premium payment keyword: Redemption premium for material start.

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• Key Concepts: 
  Down payment is a payment made by a customer to a vendor before the delivery of goods or services. In SAP FS-PM Policy Management, down payments are used to manage the payment process for customers and vendors. The down payment is recorded in the system and can be used to track the progress of the payment process. 
  
  How to use it: 
  In SAP FS-PM Policy Management, down payments can be created and managed using the Down Payment Request (DPR) transaction. The DPR transaction allows users to create a down payment request for a customer or vendor, specify the amount of the down payment, and track the progress of the payment process. 
  
  Tips & Tricks: 
  When creating a down payment request in SAP FS-PM Policy Management, it is important to ensure that all relevant information is included in the request. This includes the customer or vendor name, the amount of the down payment, and any other relevant information such as payment terms or due dates. 
  
  Related Information: 
  For more information on how to use down payments in SAP FS-PM Policy Management, please refer to the SAP Help documentation. Additionally, there are several online resources available that provide detailed instructions on how to use down payments in SAP FS-PM Policy Management.