What is elementary product calculation module in SAP FS-PM - Policy Management?

SAP Term: elementary product calculation module

• Component: FS-PM

• Component Name: Policy Management

• Description: The level below the elementary product coverage. This level is a requirement for life insurance policies to be able to differentiate between the shares of the elementary product for accounting and tax purposes. The following elementary product calculation modules are defined for the sample products of the LIFE line of business Basic calculation module Adjustment calculation module Bonus calculation module Increase calculation module Subsidy calculation module Additional payment calculation module

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• Key Concepts: 
  The elementary product calculation module is a component of the FS-PM Policy Management system in SAP. It is used to calculate the cost of a product based on its individual components. This module takes into account the cost of materials, labor, overhead, and other factors to determine the total cost of the product. 
  
  How to use it: 
  The elementary product calculation module can be used to calculate the cost of a product by entering the individual components and their associated costs. The module will then calculate the total cost of the product based on these inputs. The user can also adjust the cost of each component to get an accurate estimate of the total cost. 
  
  Tips & Tricks: 
  When using the elementary product calculation module, it is important to ensure that all components and their associated costs are accurately entered into the system. This will ensure that the total cost of the product is accurately calculated. Additionally, it is important to keep track of any changes made to the components or their associated costs as this could affect the total cost of the product. 
  
  Related Information: 
  The elementary product calculation module is part of SAP's FS-PM Policy Management system. Other components of this system include pricing rules, customer segmentation, and policy management. Additionally, this module can be used in conjunction with other modules such as inventory management and order management to provide a comprehensive view of a product's total cost.