What is premium obligation phase in SAP FS-PM - Policy Management?

SAP Term: premium obligation phase

• Component: FS-PM

• Component Name: Policy Management

• Description: The phase of an insurance contract after the contract start date in which premiums must be paid. In this phase, the costs and the risk premium are completely removed from the premium.

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• Key Concepts: 
  The premium obligation phase in SAP FS-PM Policy Management is a stage in the policy life cycle where the policyholder is obligated to pay premiums. This phase begins when the policy is issued and ends when the policy matures or is terminated. During this phase, the policyholder must make regular payments to keep the policy in force. 
  
  How to use it: 
  In SAP FS-PM Policy Management, the premium obligation phase is used to track and manage the payment of premiums by policyholders. The system can be configured to automatically generate reminders for policyholders when their payments are due, and to generate reports on overdue payments. 
  
  Tips & Tricks: 
  When setting up the premium obligation phase in SAP FS-PM Policy Management, it is important to ensure that all relevant information about the policyholder and their payment schedule is accurately entered into the system. This will help ensure that all payments are tracked and managed correctly. 
  
  Related Information: 
  The premium obligation phase in SAP FS-PM Policy Management is closely related to other stages of the policy life cycle, such as underwriting, claims processing, and policy renewal. Understanding how these stages interact with each other can help ensure that policies are managed effectively throughout their life cycle.