What is 'formal start' in SAP FS-PM - Policy Management?

formal start - Overview

• Component: FS-PM

• Component Name: Policy Management

• Description: Time/date of contract acceptance and legal occurrence of an insurance contract, determined by the insurance company issuing the policy. The formal start is the start of the insurance contract in a legal sense. The contract comes about thanks to two matching declarations of intent application and acceptance.

formal start - Details

• 
  Key Concepts: 
  Formal Start is a feature of the SAP FS-PM Policy Management component. It is used to define the start date of a policy and the associated policy documents. This feature allows users to set up policies in advance and have them automatically start on a specified date. 
  
  How to use it: 
  To use the Formal Start feature, users must first create a policy and its associated documents. Once the policy is created, users can set the start date for the policy by selecting the “Formal Start” option in the policy settings. The start date can be set to any date in the future. 
  
  Tips & Tricks: 
  When setting up a policy with Formal Start, it is important to remember that all associated documents must also be set up with a start date that matches the policy’s start date. This ensures that all documents are in effect when the policy starts. 
  
  Related Information: 
  For more information on using Formal Start in SAP FS-PM Policy Management, please refer to the official SAP documentation.