What is subsidy rate in SAP FS-PM - Policy Management?

SAP Term: subsidy rate

• Component: FS-PM

• Component Name: Policy Management

• Description: Percentage rate with which the premiums and additional payments are subsidized, taking the maximum subsidy premium into account. The subsidy rate is specified by the subsidy agency and is valid for a subsidy period.

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• Key Concepts: 
  Subsidy rate is a feature of the SAP FS-PM Policy Management component. It is used to define the amount of subsidy that a customer can receive for a particular policy. The subsidy rate is calculated based on the customer's income, the policy's terms and conditions, and other factors. 
  
  How to use it: 
  In order to use the subsidy rate feature, the customer must first provide their income information. This information is then used to calculate the subsidy rate. The customer can then select a policy and enter the subsidy rate into the system. The system will then calculate the amount of subsidy that the customer will receive for that policy. 
  
  Tips & Tricks: 
  It is important to ensure that all of the customer's income information is accurate in order to get an accurate subsidy rate calculation. Additionally, it is important to review all of the terms and conditions of a policy before entering the subsidy rate into the system. 
  
  Related Information: 
  The SAP FS-PM Policy Management component also includes features such as premium calculation, policy renewal, and policy cancellation. Additionally, there are other components within SAP that can be used in conjunction with FS-PM Policy Management such as SAP FI-CA (Financial Contract Accounting) and SAP FI-SL (Financial Statement Ledger).