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Introduction

SAP for Insurance is a comprehensive SAP solution for meeting the challenges faced by insurance companies. Insurance companies can use SAP for Insurance to cope with ever-changing customer and market requirements, by controlling economics and profitability.

This document focuses on the Collection and Disbursements (FS-CD) module as a key module of the SAP for Insurance Solution. The short overview of other components from the SAP for Insurance Product Family will be given below.

SAP for Insurance Family

Insurance includes the following components:

FS-CD - Collections and Disbursements
With the Collections & Disbursements solution you can carry out cross-industry tasks relating to collections/disbursements, such as accounts receivable and/or payable accounting, handling of payments, processing of incoming payments and dunning. This is a key component of the SAP Insurance Product Family.

FS-CM - Claims Management
 The Claims Management component provides efficient and transparent processing of claims and claim bundles.

FS-CS - Incentives and Commission Management
Incentive and Commission Management (ICM) is a solution that enables all industries to represent all types of variable remuneration for employees and partners. It provides up-to-date and clear information on earned and expected commission and incentives.

FS-RI - Reinsurance Management
The Reinsurance component helps insurance and reinsurance companies to manage their insured risks and to calculate the amounts to be passed to other reinsurance companies.

FS-PM - Policy Management
Financial Services Policy Management (FS-PM) is a policy management system that is not just of interest to insurance companies operating on a global basis, but it is also ideally suited to implementation on a regional basis. This is guaranteed by integration in the SAP landscape, which stands for the security and future of your investment.
 

Integration

SAP for Insurance is an integral component within the SAP solutions, and can be combined with them to deal with more business-related tasks.  
Collections/Disbursements form the integrated interface to the SAP R/3 General Ledger and SAP R/3 Controlling. An open interface allows the inclusion of administrative systems such as Commission Management, Claims Management, Reinsurance Management and Policy Management.

Contract Accounts Receivable and Payable (FI-CA)

The Contract Accounts Receivable and Payable component is a sub-ledger developed for industries with a large customer base and a correspondingly high volume of documents to post. These include insurance, utilities, and telecommunications companies. This component provides standard accounts receivable and accounts payable functions including posting, payments, and dunning.
 

Master Data

Business Partner

The business partner contains central data, such as name, address, and bank details. It can have different characteristics, depending on the assigned role category, for example, customer, service technician, bill-to party. This data is created in a centralized master record. The business partner can be used to manage the different people and institutions with which you maintain business relationships in a standard fashion. Business partners are divided into various groups, to which different attributes are allocated.

IS-U differentiates between:
- Individuals
- Organizations
- Groups

The specific roles of the business partner in FS-CD are:

- Claimant

- Payer

- Payment Recipient

- Broker

- Correspondence Recipient- Policyholder

Contract Account

Every posting in Collections/Disbursements is assigned to a business partner and a contract account, or an insurance relationship from which a contract account is determined. In the master record for the contract account or the insurance object, you define parameters that control posting and processing for the documents in the Collections/Disbursements system. These include, for example, settings for payments and dunning. A contract account master record contains the following data:
- Parameters that are contract account-specific, or which are on the contract account-business partner relationship.
- Parameters that define underlying properties for the contract account (such as account management, tolerance group), and which are exclusively on the contract account.
- Parameters that define collections/disbursements, correspondence, dunning; you can also define these parameters for the insurance relationship.

Contract account data is stored in the FKKVK, FKKVKP and FKKVK_CORR tables.
 
The contract account category is used to define master data constellations and the field selection for a contract account. It determines the some contract account attributes like whether you are allowed to assign only one business partner or more than one to a contract account etc.  Possible contract account category types are: Premium Account, Broker Account, Depot Account etc.

INSURANCE OBJECT

The insurance object belongs to the master data, and is one of the central structures in the Collections/Disbursements system, alongside the business partner and the contract account. The main significance of the insurance object, namely its role in making settlements, is attained when you assign one or more business partner(s) to an insurance object and the unique link to a contract account.
Possible types of Insurance Object are:
- Insurance Policy
- Broker Contract
- Commission Contract
- Claim Number
- Deposit Contract
 The data for IO is stored in the tables: DIMAIOB and DIMAIOBPAR.

Master Data Relationships

The following relationships exist between Business Partner, Contract Account and Insurance Object:

- A contract account is assigned to just one business partner as the account holder.

- A contract account, for which an account holder is defined, can be assigned to another business partner that is not the account holder.

- Multiple contract accounts can be assigned to a business partner.

- An insurance object can be assigned to multiple business partners. More than one insurance object can be assigned to a business partner.

- Just one contract account is assigned to each unique business partner/insurance object relationship (insurance relationship). Multiple insurance relationships can be assigned to a contract account.
   

Core Business Processes

The following business processes should be described there in the nearest future. 

FS-CD Processes

- Import From Legacy Systems and  Payment Plan Creation

- Billing and Invoicing 

FI-CA Processes

- Payment Run

- Dunning Run   

Typical Problems/Issues 

Below is the short overview of the possible problems. 

FS-CD

- Import from legacy systems (Transaction KCLJ) could be both performance and functional critical.
- Payment Plan Execution (Transaction VYSPA) is performance critical.
- Payment Plan could be also functional critical especially when the payment frequency conditions are changed on the regular basis.
- Dunning procedure is functional critical because of insurance business specifics.
 

FI-CA

- FS-CD uses FI-CA engine therefore all typical FI-CA pain points are inherited. These are mainly the mass activities: Payment Run, Automatic Clearing, Correspondence Run and  Dunning.
 

FS-CD Important Transactions

TRANSACTION

DESCRIPTION

INSOCREATE

Create Insurance Object

INSOCHANGE

Change Insurance Object

INSODISP

Display Insurance Object

VYSPA

Payment Plan Execution

KCLJ

Direct Input (Import from Legacy Systems)

 

 

FS-CD Important Tables

TABLE

DESCRIPTION

DIMAIOB

Insurance Object data

DIMAIOBPAR

Relationship with Business Partner (Insurance Relationship)

VVSCPOS

Payment Plan data

VVSCITEM

Payment Plan proceeded items


Important FI-CA-Transactions / Reports

TRANSACTION

DESCRIPTION

FPP1/2/3

Create/Change/Display Business Partner

CAA1/2/3

Create/Change/Display Contract Account

FPL9

Account Display

FPVA

Dunning Proposal

FPVB

Dunning activity Run

FPY1

Payment run

FPMA

Automatic Clearing

 

Important FI-CA-Tables

PROCESS AND TRANSACTIONS

INSERT

UPDATE

Posting FI-CA documents (FPE1 and all posting transactions like payment run, payment lot, reversal...)

DFKKKO: Header Data in Open Item Accounting Document
DFKKOP: Items in contract account document
DFKKOPK: G/L Items in contract account document
DFKKOPW: Repetition Items in contract account document
DFKKSUM*:  Documents transferred to General ledger (reconciliation keys)

Same tables (for example for clearing, reversal...)

Transfer to general ledger (FPG1)

 

DFKKSUM*

 

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  1. Guest

    Hi David,

    good entry point to FS-CD.

    I would expect in addition the FS-CD processes

    - insurance dunning run (besides FI-CA dunning run),

    - broker collection run and 

    - co-insurance run.

    Regards,

    Tobias