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Collections and Disbursments FS-CD

The Business Process of Collections and Disbursements
SAP for Insurance gives you the tools you need to initiate and process incoming and outgoing payments.You can request incoming payments such as premiums from customers in the form of direct debits, debit memo procedures, or payment cards. You can initiate disbursements such as commissions with a bank transfer or check. With SAP solutions, you can increase transparency and accountability, lower operating costs, and reduce demands on working capital through fewer returns, more efficient processes, and improved collections.
SAP for Insurance covers the key activities involved in collections and disbursements, including:

• Master data adapting and posting – SAP solutions let you create the master and transaction data required for incoming payments or disbursements initiated internally or made by a customer on the basis of an invoice. You can create open items from the posting data.
  
  
• Direct debit and credit processing – With SAP solutions, you can process automatic payments through methods such as electronic credit transfers, debit memos, checks, and credit cards. Flexible clearing control lets you process customer-initiated payments.
  
  
• Returns handling – SAP for Insurance lets you process as returns those debit memos that you have submitted to your bank but that haven't been cashed by the customer. Response can be immediate and rule-based to trigger follow-on processes.
  
  
• Daily reconciliations – SAP solutions allow you to perform daily reconciliation tasks pertaining to the general ledger. You can consolidate and transfer collections and disbursements data to the general ledger for profitability analysis.
  
  
• Financial closing – With SAP solutions, you can perform preliminary work for the creation of financial statements. You can prepare monthly, quarterly, and annual financial statements, handling foreign currency valuation, valuation or adjustment of receivables, reclassification of receivables and payables, or deferred revenue postings. You can also reconcile the general ledger and special ledger and prepare data for internal and external auditors.

Policy Management

Business Partner

Topics/Areas in FS-CD

Master Data

• Background to the SAP Business Partner concept
• Business partners, contract accounts, insurance objects
• Control parameters on master data level
• Master data interfaces

• Data transfer
• Integration
• G/L account determination
• Document structure (main and subtransactions)
• Integration into G/L
• Account balance display
• Payment plan

• Correspondence definition and types
• Handling correspondence and Customizing

Clearing & Payment Lots

• Definition and concepts of clearing
• Incoming payments and payment lots
• Manual and automatic processing of available items
• Clearing control

• Processing incoming and outgoing payments
• Control parameters in the payment program
• Setting and executing the payment program
• Customizing the payment program parameters
• Payment card processing
• Generating payment media

Returns

• Handling and configuring returns
• Managing bank collections

Dunning

• Dunning concept in FS-CD
• Configuration and execution of the dunning program
• Dunning history

• Interest calculation settings
• Item and balance interest calculation

Installment Plans

• Definition of an installment plan
• Configuring and posting an installment plan
• Calculating interest on an installment plan

• Broker master data
• Broker hierarchy
• Broker desktop
• Broker reports
• Account balance
• Correspondence