What is replacement business in SAP FS-PM - Policy Management?

SAP Term: replacement business

• Component: FS-PM

• Component Name: Policy Management

• Description: New business with calculable values or assumed data. Calculable values can include premiums or reserves. External capital can also be included as a calculable value. Assumed data includes the insured person or the premium payer, for example. The calculable values or assumed data can be transferred from one or more previous contracts to one or more new contracts. Examples: Replacement of capital-sum life insurance with capital-sum annuity insurance. Replacement of private vehicle insurance with commercial vehicle insurance. Reserve carryforward from one insurance company to another.

Smart SAP Assistant

• Key Concepts: 
  Replacement business is a feature of the FS-PM Policy Management component of SAP. It allows users to replace existing policies with new ones, while maintaining the same policy number. This helps to ensure that all policies are up-to-date and compliant with current regulations.
  
  How to use it: 
  To use the replacement business feature, users must first create a new policy in the FS-PM Policy Management component. Once the policy is created, users can then select the “Replace” option from the menu. This will open a window where users can enter the policy number of the existing policy they wish to replace. Once the policy number is entered, users can then select “Replace” to complete the process.
  
  Tips & Tricks: 
  When replacing an existing policy, it is important to make sure that all of the information in the new policy is up-to-date and accurate. Additionally, it is important to ensure that all of the necessary documents and forms are included in the new policy.
  
  Related Information: 
  For more information on using the replacement business feature in FS-PM Policy Management, please refer to SAP’s official documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to use this feature.