What is lapse in SAP FS-PM - Policy Management?

SAP Term: lapse

• Component: FS-PM

• Component Name: Policy Management

• Description: Status of an insurance contract that precedes reversal and that is set for the following reasons: The policyholder has failed to pay the due premium payment on time, and also not within an agreed grace period. Recurring substitution for the insurance contract has failed, which means the reserve is not sufficient to settle the substitution premium of an insurance contract.

Smart SAP Assistant

• Key Concepts: 
  Lapse is a term used in SAP FS-PM Policy Management to refer to the expiration of a policy. When a policy lapses, it is no longer valid and must be renewed or replaced. 
  
  How to use it: 
  In SAP FS-PM Policy Management, users can set a lapse date for a policy. This lapse date determines when the policy will expire and can be set for any length of time. Once the lapse date has been reached, the policy will no longer be valid and must be renewed or replaced. 
  
  Tips & Tricks: 
  It is important to keep track of lapse dates for policies in order to ensure that they are renewed or replaced in a timely manner. Setting reminders for yourself or your team can help ensure that policies are not allowed to lapse without being addressed. 
  
  Related Information: 
  For more information on SAP FS-PM Policy Management, please visit the SAP Help Portal at https://help.sap.com/viewer/product/FS-PM/1.0/en-US.