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

SAP Term: novation

• Component: FS-PM

• Component Name: Policy Management

• Description: Change to an existing life insurance policy, which can lead to a changed tax situation, and is to be regarded as concluding a new contract.

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• Key Concepts: 
  Novation is a feature of SAP FS-PM Policy Management that allows users to create and manage contracts and policies. It enables users to define the terms of a contract, such as the duration, payment terms, and other conditions. It also allows users to track the progress of a contract and make changes as needed.
  
  How to use it: 
  To use novation in SAP FS-PM Policy Management, users must first create a contract template. This template will define the terms of the contract, such as the duration, payment terms, and other conditions. Once the template is created, users can then create a new contract based on the template. The contract can then be managed and tracked using the novation feature.
  
  Tips & Tricks: 
  When creating a contract template in SAP FS-PM Policy Management, it is important to ensure that all of the necessary information is included. This includes details such as payment terms, duration, and any other conditions that need to be met. Additionally, it is important to review the contract regularly to ensure that all of the terms are still valid and up-to-date.
  
  Related Information: 
  For more information on novation in SAP FS-PM Policy Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FS_PM_POLICY_MANAGEMENT/latest/en-US