What is dormant loss in SAP FS-RI - Reinsurance?

SAP Term: dormant loss

• Component: FS-RI

• Component Name: Reinsurance

• Description: A loss that was delivered by the source system with the status "dormant" and is therefore considered as not relevant for reinsurance by SAP S/4HANA Insurance for reinsurance management in the first step. This classification of the delivered loss is checked in the activation background job. The status of the loss provides information about whether a loss is a dormant or an active loss. Dormant losses remain in the standard shadow table of SAP S/4HANA Insurance for reinsurance management.

Smart SAP Assistant

• Key Concepts: 
  Dormant loss is a term used in the FS-RI Reinsurance component of SAP. It is a type of loss that is not expected to be paid out in the near future, but may be paid out at some point in the future. This type of loss is typically associated with long-term contracts or policies that have a long duration. 
  
  How to use it: 
  In SAP, dormant losses are recorded as an expense in the financial statements. This expense is then offset by a corresponding asset, which is also recorded in the financial statements. The asset represents the potential future payment of the dormant loss. The asset and expense are both reported on the balance sheet and are used to calculate the company's net income. 
  
  Tips & Tricks: 
  When recording dormant losses in SAP, it is important to ensure that the asset and expense are both reported accurately. This will ensure that the company's financial statements are accurate and up-to-date. Additionally, it is important to monitor any changes in the potential future payment of the dormant loss, as this could affect the company's financial statements. 
  
  Related Information: 
  For more information on dormant losses and how they are recorded in SAP, please refer to SAP's documentation on FS-RI Reinsurance. Additionally, you can consult with an SAP expert for further guidance on this topic.