What is treaty calculation rule in SAP (FS-RI - Reinsurance)?

SAP Term: treaty calculation rule

• Component: FS-RI

• Component Name: Reinsurance

• Description: Treaty calculation rules represent the relationship between treaties or between treaties and treaty portfolios. They are a set of rules that are used to group posting data from source treaties and copy this to target treaties.

Smart SAP Assistant

• Key Concepts: 
  Treaty calculation rule is a feature of the FS-RI Reinsurance component of SAP. It is used to define the calculation logic for reinsurance treaties. It allows users to define the conditions and parameters that will be used to calculate the reinsurance premiums and liabilities. 
  
  How to use it: 
  To use the treaty calculation rule, users must first define the reinsurance treaty in the system. This includes setting up the reinsurer, ceding company, treaty type, and other parameters. Once this is done, users can then create a treaty calculation rule that defines how the premiums and liabilities will be calculated. The rule can be based on a variety of factors such as risk type, coverage period, and more. 
  
  Tips & Tricks: 
  When creating a treaty calculation rule, it is important to ensure that all of the parameters are correctly set up. This will ensure that the calculations are accurate and that there are no discrepancies between the ceding company and reinsurer. Additionally, it is important to review the rule periodically to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  For more information on treaty calculation rules in SAP FS-RI Reinsurance, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature effectively.