What is target investment in SAP FS-PM - Policy Management?

SAP Term: target investment

• Component: FS-PM

• Component Name: Policy Management

• Description: Investment according to the target principle. With this investment model, it is not the actual premium receipt that is used as the basis for investment, but the agreed premium. This investment model has the following characteristics: Contractually agreed premium Investment of contractually agreed premium Premiums are receivables Debit entry for contractually agreed premiums

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• Key Concepts: 
  Target investment is a feature of SAP FS-PM Policy Management that allows users to set a target investment amount for a policy. This target amount is used to calculate the expected return on the policy and to compare it to the actual return. The target investment amount can be adjusted over time as needed.
  
  How to use it: 
  To set a target investment amount for a policy, users must first create a policy in SAP FS-PM Policy Management. Once the policy is created, users can select the “Target Investment” option from the menu and enter the desired amount. The target investment amount can be adjusted at any time by selecting the “Edit” option from the menu.
  
  Tips & Tricks: 
  When setting a target investment amount, it is important to consider the expected return on the policy. Setting an unrealistic target investment amount may lead to disappointment when the actual return does not meet expectations. It is also important to remember that the target investment amount can be adjusted at any time if needed.
  
  Related Information: 
  For more information about SAP FS-PM Policy Management, please visit https://help.sap.com/viewer/product/FS-PM/latest/en-US.