What is substitution phase in SAP FS-PM - Policy Management?

SAP Term: substitution phase

• Component: FS-PM

• Component Name: Policy Management

• Description: The phase of an insurance contract, after expiration of the premium obligation phase, where the risk premium, certain cost elements, and premiums from any supplemental insurances are taken from the fund assets and not from the premium itself. If the policyholder continues to pay the premium nevertheless, this amount increases the existing fund assets.

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• Key Concepts: 
  The substitution phase in SAP FS-PM Policy Management is a process that allows users to replace existing policy documents with new ones. This process is used to ensure that the policy documents are up-to-date and compliant with the latest regulations. The substitution phase is triggered when a new policy document is uploaded into the system. 
  
  How to use it: 
  To use the substitution phase, users must first upload the new policy document into the system. Once the document is uploaded, the system will automatically trigger the substitution phase. During this phase, the existing policy documents will be replaced with the new ones. The system will also generate a report that outlines which documents were replaced and which ones were not. 
  
  Tips & Tricks: 
  When uploading a new policy document, make sure to double-check that all of the information is accurate and up-to-date. This will ensure that the substitution phase runs smoothly and that all of the documents are compliant with the latest regulations. Additionally, it is important to keep track of which documents were replaced during the substitution phase so that they can be easily accessed in the future. 
  
  Related Information: 
  For more information about SAP FS-PM Policy Management, please visit https://help.sap.com/viewer/product/FS_PM/en-US. Additionally, you can find more information about substitution phases in SAP systems at https://help.sap.com/doc/saphelp_fspm50/5.0/en-US/f2/f2_substitution_phase_overview_en.pdf.