Sap fs340 en col95_part_nw_arani

FS340FS-PM Workshop (Release 5.1) -

SAP Policy ManagementSAP for Industries - SAP for Insurance

Date

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Education Website

Participant HandbookCourse Version: 95Course Duration: 3 Day(s)Material Number: 50101103

An SAP course - use it to learn, reference it for work

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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About This Handbook FS340

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Procedures

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iv © 2011 SAP AG. All rights reserved. 2011





ContentsCourse Overview ............................................................................. vii

Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Overview SAP Policy Management ...............................................1Architecture.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Unit 2: Business Transactions ............................................................ 25New Business ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Central Access and Resumption ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Change... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Change Option ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Reversal and Reset .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Unit 3: Components within FS-PM ......................................................107Inquiry Policy Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Accounting Component .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130Correspondence ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135Object Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144Time Model .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161Fund Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173

Unit 4: Master Policy and Mass Change ...............................................203InForce Business Configurator.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204

Unit 5: Product Management .............................................................239Master Policy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240Mass Processing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253

Unit 6: Summary SAP Policy Management............................................271Summary... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272

2011 © 2011 SAP AG. All rights reserved. v





Contents FS340

vi © 2011 SAP AG. All rights reserved. 2011







Course OverviewTarget AudienceThis course is intended for the following audiences:

• Customer End User• Project team members• Presales• Consultants

Course PrerequisitesRequired Knowledge

• SAP01 SAP Overview

Recommended Knowledge

• Basic knowledge of processes in insurance

Course GoalsThis course will prepare you to:

• Use Policy Management efficient• Understand the architecture of Policy Management• Get an overview of the processes and functions of Policy Management• Perform the most important process steps within the SAP Policy Management

system

Course ObjectivesAfter completing this course, you will be able to:

• Describe the architecture of Policy Management• Understand the processes and functions of Policy Management• Execute the important functions in FS-PM• Perform the business processes for in-force business management

2011 © 2011 SAP AG. All rights reserved. vii





Course Overview FS340

viii © 2011 SAP AG. All rights reserved. 2011





Unit 1Overview SAP Policy Management

Unit Overview[Enter a brief overview of the unit.]

Unit ObjectivesAfter completing this unit, you will be able to:

• Describe the SAP House of Insurance• Explain the architecture of FS-PM• Name the tasks of product management• Explain how the product and contract are linked• Describe the structure of business processes• List the important components of contract management• Explain sample content.

Unit ContentsLesson: Architecture.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2011 © 2011 SAP AG. All rights reserved. 1





Unit 1: Overview SAP Policy Management FS340

Lesson: Architecture

Lesson OverviewArchitecture

Product management Sample content

Product and contract model

Construction of business processes

Components of contract management

Sample content

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Describe the SAP House of Insurance• Explain the architecture of FS-PM• Name the tasks of product management• Explain how the product and contract are linked• Describe the structure of business processes• List the important components of contract management• Explain sample content.

Business Example[Enter a business example that helps the learner understand the practical businessuse of this lesson.]






FS340 Lesson: Architecture

Figure 1: SAP for Insurance: Solution Overview

Figure 2: Architecture: Basic System and LoB Enhancements







Figure 3: Technical Basis for FS-PM

Figure 4: Architecture of the Technical Basis







Figure 5: Technical Basis - Workplace

Figure 6: Central Development and Administration of Insurance Products







Figure 7: Development and Maintenance of Products

Figure 8: Components of Product Manager







Figure 9: Development Environment for Product Manager

Figure 10: Mirroring Product and Contract Model







Figure 11: Mapping Product and Contract Model

Figure 12: Provision of Product Data for Runtime







Figure 13: Product Management - Components of Product Manager

Figure 14: Central Control of Business Processes







Figure 15: Development of Business Processes

Figure 16: Development of Business Processes







Figure 17: Controlling Business Processes

Figure 18: Basis Business Processes in Process Management







Figure 19: Business Transactions - Technical Change Example

Figure 20: Inclusion of Authorizations and Workflows when ProcessingBusiness Processes







Figure 21: Basic Functions in Contract Management

Figure 22: Business Objects in Contract Management







Figure 23: Transitions for Business Objects

Figure 24: Sample Content - Sales Products







Figure 25: Sample Content Life - Elementary Products I

Figure 26: Sample Content Life - Elementary Products II







Figure 27: Sample Content P and C - Products

Figure 28: Sample Content P and C - Elementary Products I







Figure 29: Sample Content P and C - Elementary Products II

Figure 30: Sample Content P and C - Elementary Products III

Figure 31: Sample Content P and C - Elementary Products IV







Figure 32: Specific Enhancements in In-Force Business Management







Lesson Summary

You should now be able to:• Describe the SAP House of Insurance• Explain the architecture of FS-PM• Name the tasks of product management• Explain how the product and contract are linked• Describe the structure of business processes• List the important components of contract management• Explain sample content.

Related Information

• [Enter an optional eference using the URL or CrossReference tag to additionalinformation that learner may find useful. Examples include websites orwhitepapers. Delete if not used.]






Unit Summary FS340

Unit SummaryYou should now be able to:• Describe the SAP House of Insurance• Explain the architecture of FS-PM• Name the tasks of product management• Explain how the product and contract are linked• Describe the structure of business processes• List the important components of contract management• Explain sample content.

Related Information

• [Enter an optional reference using the URL to additional information that learnermay find useful. Examples include websites or whitepapers. Delete if not used.]






FS340 Test Your Knowledge

Test Your Knowledge

1.






Test Your Knowledge FS340

Answers

1.

Answer:














Unit Summary FS340






Unit Summary FS340






Unit 2Business Transactions

Unit Overview


• Enter, check and calculate an application in new business.• Execute a risk assessment.• Release an application.• Find an open application• Resume an application• Display a policy / contract / coverage• Use the fast inquiry function• Set Prima Nota• Perform a risk assessment• Explain how the Change business process is executed• Navigate in the Change business process• Explain the execution of predating• Explain the reimplementation of business transactions• Create a Change Option• Accept and refuse the change option• Release the policy• Reverse policies• Explain the difference between Reversal and Reversal Notification• Reset business processes






Unit 2: Business Transactions FS340

Unit ContentsLesson: New Business ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Exercise 1: New Business ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Lesson: Central Access and Resumption ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Exercise 2: Risk Assessment and Release ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Lesson: Change... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Exercise 3: Execution of Changes to a Policy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Lesson: Change Option... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Exercise 4: Change Option ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Lesson: Reversal and Reset .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Exercise 5: Reversal and Reset .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97






FS340 Lesson: New Business

Lesson: New Business

Lesson OverviewNew Business process description

Business objects

Application entry

Check and calculate

Risk assessment

Release an application


• Enter, check and calculate an application in new business.• Execute a risk assessment.• Release an application.








Figure 33: Master Data

Figure 34: The New Business Process







Figure 35: Elementary Objects in New Business

Figure 36: Mapping Product and Contract Model







Figure 37: Create New Business

Figure 38: Create New Business







Figure 39: Navigation Tree

Figure 40: New Business: Access







Figure 41: New Business: Enter Commission Data

Figure 42: Create Business Partner Data







Figure 43: New Business: Enter Contract Data

Figure 44: New Business: Enter Adjustment Data







Figure 45: New Business: Enter Adjustment Data

Figure 46: New Business: Enter Collection Data
























Figure 52: New Business: Enter Benefit Data















Figure 55: New Business: Check Application

Figure 56: New Business: Calculate Application







Figure 57: Workflow Inclusion

Figure 58: New Business: Forward Application







Figure 59: New Business: Forward Application

Figure 60: Set Prima Nota and Display Discrepancy







Figure 61: More Functions in New Business - Locks

Figure 62: More Functions in New Business - Special Risk







Figure 63: Risk Assessment

Figure 64: Create Change Option







Figure 65: More Functions in New Business - Correspondence

Figure 66: More Functions in New Business - Commission







Figure 67: Release of Application

Figure 68: Further Information













Exercise 1: New Business

Exercise ObjectivesAfter completing this exercise, you will be able to:• Enter an application in New Business• Check application.• Release application.

Business ExampleOur field service employee John received an application from a new customer. Johnneeds to enter it in the system and then issues a new policy for the Blue Sky Insurance.

Task:Create an application with the start date 01.05.2010, application receipt date24.04.2010 and application date 15.04.2010. Choose the New Business acquisitiontype, <Own Agent> distribution channel and <Life Capital> sales product(92H0000S0000), and leave the application number empty (is assigned by the system).

1. Note your policy number .....

Note your application number .....

2. Create yourself as the policyholder for the policy to be processed, in the BusinessPartner system. Remember, too, that you need to enter your date of birth under“Identification”. You also have to enter your personal identification data underthis item. In the Payment Transactions tab page enter bank details (not youractual bank details, please) and save your data.

Note your partner number .....

3. Once you return to application entry, you still have to enter a commissionparticipant (PV01). To do this, you need to select a commission contract usingthe input help and confirm it using <Data Release>. The system copies theparticipant role directly or provides it to you for selection in the input help.

4. Now include the product PG100 Combined Insurance and select it for processing.Check whether the data that you have entered in the policy was transferred to thecontract. Specify an insurance duration of 10 years.

Was the contract end date set to 01.05.2016?

Continued on next page







5. Enter a complete tax exemption and tax country Germany, and select thecalculation based on premium. In the Adjustment tab page, enter a lineardynamic adjustment with an increase of 10%. Enter yourself as the premiumpayer. If you select debit memo as the payment recipient method, you must alsoselect the bank details. Under the Premium option, enter a monthly premiumof 200€.

6. Now enter the coverage G100 for processing. Enter an endowment benefit totalof EUR 200.000€. Check whether surplus usage is subject to accumulatedinterest.

7. Check that you are entered as the insured person and then conclude processing.

8. You now need to calculate the application.

9. Now save your entries and leave the application entry.

Do not release the application.







Solution 1: New BusinessTask:Create an application with the start date 01.05.2010, application receipt date24.04.2010 and application date 15.04.2010. Choose the New Business acquisitiontype, <Own Agent> distribution channel and <Life Capital> sales product(92H0000S0000), and leave the application number empty (is assigned by the system).

1. Note your policy number .....

Note your application number .....

a)

2. Create yourself as the policyholder for the policy to be processed, in the BusinessPartner system. Remember, too, that you need to enter your date of birth under“Identification”. You also have to enter your personal identification data underthis item. In the Payment Transactions tab page enter bank details (not youractual bank details, please) and save your data.

Note your partner number .....

a) Mark the line Policyholder and select the glass.

Figure 69: Policyholder

Create a new Business Partner by selecting the button Create

Figure 70: Create

Select a Person and enter the name FS-PMxx (xx stands for yourgroupnumber). Fill in an address and bank details (not your actual bankdetails, please)








Figure 71: Payment Transactions

In the Identification tab you enter the date of birth and occupation andthe ID-number.

Figure 72: Identification

Figure 73: Commission

Then you the new Businesspartner to your policy.








3. Once you return to application entry, you still have to enter a commissionparticipant (PV01). To do this, you need to select a commission contract usingthe input help and confirm it using <Data Release>. The system copies theparticipant role directly or provides it to you for selection in the input help.

a)

Figure 74:

Figure 75:

Select the Commission Contract PV01 and Complete

4. Now include the product PG100 Combined Insurance and select it for processing.Check whether the data that you have entered in the policy was transferred to thecontract. Specify an insurance duration of 10 years.

Was the contract end date set to 01.05.2016?

a)

Figure 76: Create & Process Contract








5. Enter a complete tax exemption and tax country Germany, and select thecalculation based on premium. In the Adjustment tab page, enter a lineardynamic adjustment with an increase of 10%. Enter yourself as the premiumpayer. If you select debit memo as the payment recipient method, you must alsoselect the bank details. Under the Premium option, enter a monthly premiumof 200€.

a)

Figure 77: Calculate Rule Type

In the Adjustment tab page, enter a linear dynamic adjustment with anincrease of 10%. Enter yourself as the premium payer. If you select debitmemo as the payment recipient method, you must also select the bankdetails. Under the Premium option, enter a monthly premium of 200€.

Figure 78: Adjustment Rate








6. Now enter the coverage G100 for processing. Enter an endowment benefit totalof EUR 200.000€. Check whether surplus usage is subject to accumulatedinterest.

a)

7. Check that you are entered as the insured person and then conclude processing.

a)

8. You now need to calculate the application.

a)

9. Now save your entries and leave the application entry.

Do not release the application.

a)

Figure 79: Save Entries







Lesson Summary

You should now be able to:• Enter, check and calculate an application in new business.• Execute a risk assessment.• Release an application.

Related Information







FS340 Lesson: Central Access and Resumption

Lesson: Central Access and Resumption

Lesson OverviewSearch for a policy and application

Resume a policy

Set Prima Nota

Perform a risk assessment.

Perform a discrepancy analysis

Release a policy


• Find an open application• Resume an application• Display a policy / contract / coverage• Use the fast inquiry function• Set Prima Nota• Perform a risk assessment








Figure 80: Central Access - Scope of Functions and Screen Structure

Figure 81: Start Central Access







Figure 82: Central Access - Search Functionality

Figure 83: Central Access - Result Lists and Navigation







Figure 84: Transitions for Business Objects









Figure 87: Risk Assessment - Evaluation







Figure 88: Risk Assessment - Underwriting Decision

Figure 89: Risk Assessment - Risk Clearing







Figure 90: Discrepancy

Figure 91: Discrepancy

Figure 92: Release and Refuse Application













Exercise 2: Risk Assessment and Release

Exercise ObjectivesAfter completing this exercise, you will be able to:• Search for a policy and application• Resume a policy• Set Prima Nota• Perform a risk assessment.• Perform a discrepancy analysis• Release a policy

Business ExampleOur field service employee John had a call with the customer who told him that hewants to invest 200€ a month. The sum insured is dependent on the monthly premium.John now has to find the open application and enter the data’s in the system. After thathe has to make a risk assessment, check the application and release the policy.

Note: After each conclusion of a business transaction, you need to save thedata so that you can restart the exercise if the system crashes.

Task:1. Go to Central Access and search for your application number.

2. Resume the application.

3. Select on Contract Level the Calculation role Type <Calculation based onPremium>.

On the premium tab enter the monthly premium of 200€.

4. Complete and calculate the application.

5. Set the Prima Nota

6. Start the risk assessment and answer the questions.

7. Create an underwriting decision <Increase Amended Conditions/Restrictions>on coverage level. Include a <Medical Surcharge Premium> of 10%.

8. Display the discrepancies.

9. Release the application.







Solution 2: Risk Assessment and ReleaseTask:1. Go to Central Access and search for your application number.

a) Go to Policy Management → In–Force business Management → NewBusiness

Figure 93: Policy Management/In-Force business Management/NewBusiness

2. Resume the application.

a)

Figure 94: Resumption of Processing

3. Select on Contract Level the Calculation role Type <Calculation based onPremium>.

On the premium tab enter the monthly premium of 200€.

a)

4. Complete and calculate the application.

a)








5. Set the Prima Nota

a) Prima Nota

6. Start the risk assessment and answer the questions.

a)

Figure 95: Risk assessment








7. Create an underwriting decision <Increase Amended Conditions/Restrictions>on coverage level. Include a <Medical Surcharge Premium> of 10%.

a) Process Underwrting Decision.

Figure 96: Underwrting Decision

Create Underwriting Decision on contract level.



8. Display the discrepancies.

a) Discrepancy


a)







Lesson Summary

You should now be able to:• Find an open application• Resume an application• Display a policy / contract / coverage• Use the fast inquiry function• Set Prima Nota• Perform a risk assessment

Related Information








Lesson: Change

Lesson OverviewChanges to existing insurance contracts

Navigation in Change business process

Predating business transactions

Reimplementation of contract processing


• Explain how the Change business process is executed• Navigate in the Change business process• Explain the execution of predating• Explain the reimplementation of business transactions







FS340 Lesson: Change

Figure 99: Change Business Process

Figure 100: Access to Change Business Process







Figure 101: Standard Navigation Tree

Figure 102: Alternative Navigation Tree







Figure 103: Context Menu for Change

Figure 104: Cross-LoB Business Transactions

Figure 105: Life Insurance-Specific Business Transactions for Change







Figure 106: Business Transactions for Change in Non-Life Insurance

Figure 107: Input Help

Figure 108: Positioning at Start of Business Process







Figure 109: Positioning at End of Business Process

Figure 110: Predating Business Transactions







Figure 111: Removal of Predating

Figure 112: Retroactive Changes - Reimplementation of Processing







Figure 113: Reimplementation of Processing - Example

Figure 114: Universal Change Business Process













Exercise 3: Execution of Changes to a Policy

Exercise ObjectivesAfter completing this exercise, you will be able to:• Independently make changes to a policy• Distinguish effective and predated processing• Understand Undo and Redo

Business ExampleJohn received a letter from a customer that he wants to change his policy. He wants tochange the payment frequency for the future and , on He has to execute this changesand issue new versions of the policy. You are to change the duration and increasethe benefit.

Task 1:

1. Start the Business Process Change and select your policy with the “EffectiveDate” <01.10.2011>. Enter an application date and the application receipt date.Select policy as processing level.

2. Select on contract level Change Attributes and Change Payment Frequency.Change the Payment Frequency to <Annually>.

3. Calculate and complete the change.

4. Conclude the business transaction and release the policy.

5. Execute an extension of the policy duration for an existing policy.


Task 2:

1. Start the Business Process Change once again and select your policy with the“Effective Date” <01.07.2010>. Enter an application date and the applicationreceipt date. Select policy as processing level.

2. Select on contract level Change Attributes and Change Adjustment. Change theAdjustment to <5%>.








Solution 3: Execution of Changes to a PolicyTask 1:

1. Start the Business Process Change and select your policy with the “EffectiveDate” <01.10.2011>. Enter an application date and the application receipt date.Select policy as processing level.

a)

2. Select on contract level Change Attributes and Change Payment Frequency.Change the Payment Frequency to <Annually>.

a)


a)


a)

5. Execute an extension of the policy duration for an existing policy.

a)


a)

Task 2:

1. Start the Business Process Change once again and select your policy with the“Effective Date” <01.07.2010>. Enter an application date and the applicationreceipt date. Select policy as processing level.

a)

2. Select on contract level Change Attributes and Change Adjustment. Change theAdjustment to <5%>.

a)


a)







Lesson Summary

You should now be able to:• Explain how the Change business process is executed• Navigate in the Change business process• Explain the execution of predating• Explain the reimplementation of business transactions

Related Information








Lesson: Change Option

Lesson OverviewChange Option

Changes to existing insurance contracts

Navigation in Change business process

Predating business transactions

Reimplementation of contract processing


• Create a Change Option• Accept and refuse the change option• Release the policy


Figure 115: Change Option






FS340 Lesson: Change Option

Figure 116: Elementary Objects in New Business













Exercise 4: Change Option

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create a change option.• Accept and refuse the change option.• Release the policy.

Business ExampleThe customer wants to increase his investment. He asks John for two different offers.

1. Increase the monthly premium to 300€2. Increase the benefit to 50.000€

John has to create two offers.

After a certain period the customer accepts the first change option. John has to issuethe new policy.

Task:1. Go to the Business Process Change.

2. Enter your Policynumber, select the effective date 01.11.2010 and choose theprocessing level.

3. Start the Change option process and select the reason <Increase Premium> andnote <3.600€>.

Mark the contract level and execute “change attributes” and “changebenefit/premium”.

Change the premium to <3.600€>.

Calculate and complete the change option.

4. Start the Change Option process once again and select the reason <IncreaseBenefit> and note <50.000€>.








Figure 117: Increase Benefit

Change the Calc.Rule Type to <Calculation based on Sum insured>.

Select the coverage and change the endowment benefit total to <50.000>.


5. Note your application number .....

6. Save the Change options and exit

7. Go to Central Access and resume the application.

8. Refuse the Change Option <Increase Benefit>

9. Accept the Change Option <Increase Premium>








Solution 4: Change OptionTask:1. Go to the Business Process Change.

a) Go to Policy Management → In–Force business Management → Change

2. Enter your Policynumber, select the effective date 01.11.2010 and choose theprocessing level.

a)

3. Start the Change option process and select the reason <Increase Premium> andnote <3.600€>.

Mark the contract level and execute “change attributes” and “changebenefit/premium”.










a) Change Option

Figure 118: Entry of Change Option Data

Mark the contract level and execute ‘change attributes’ and ‘changebenefit/premium’.

Figure 119: Change benefit/premium


Figure 120: Change the premium


Calculate and complete complete

4. Start the Change Option process once again and select the reason <IncreaseBenefit> and note <50.000€>.








Figure 121: Increase Benefit

Change the Calc.Rule Type to <Calculation based on Sum insured>.

Select the coverage and change the endowment benefit total to <50.000>.


a)

Figure 122: Calculation based on Sum insured


Calculate and complete complete

5. Note your application number .....

a)

6. Save the Change options and exit

a)

7. Go to Central Access and resume the application.

a)








8. Refuse the Change Option <Increase Benefit>

a)

Figure 123: Refuse

9. Accept the Change Option <Increase Premium>

a)

Figure 124: Accept


a) Release







Lesson Summary

You should now be able to:• Create a Change Option• Accept and refuse the change option• Release the policy

Related Information








Lesson: Reversal and Reset

Lesson OverviewBusiness Transactions Reversal

Business Transaction Reset


• Reverse policies• Explain the difference between Reversal and Reversal Notification• Reset business processes


Figure 125: Reversal - Processing Steps






FS340 Lesson: Reversal and Reset

Figure 126: Reversal Notification

Figure 127: Reset







Figure 128: Reset - Process Flow

Figure 129: Reset - Reactivate Contract Status







Figure 130: Reset - Reset Business Process

Figure 131: Reset - Reinstatement After Premium Waiver Without Premium Gap







Figure 132: Reset - Oppose Adjustment

Figure 133: Reset - Reinstatement After Reversal







Figure 134: Reset - Other Business Transactions













Exercise 5: Reversal and Reset

Exercise ObjectivesAfter completing this exercise, you will be able to:• Reverse policies• Explain the difference between Reversal and Reversal Notification• Reset business processes

Business ExampleJohn receives a call from the Sales person that the policy has to be reversed, becausethe customers don’t want this policy. After a certain period the customer changes hismind and John has to reset the reversal.Note: After each conclusion of a business transaction, you need to save the data sothat you can restart the exercise if the system crashes.

Task:Go to the Business Process Reversal.

1. Enter your Policy number, select the Processing Level <Policy Processing>and the effective date 01.09.2010 and the Reversal Reason <Both Parties inAgreement>.

Execute the reversal and release the policy.

2. Start the Business Process Change with the Effective Date <01.08.2010>

Check if there are changes possible.

Refuse the application.

3. Go to the Business Process Reset.

Enter your Policy number, select the Processing Level <Policy Processing> andthe Business Transaction <Perform Reinstatement after Reversal>.

Release the policy.

4. Go to the Business Process Reversal.

Enter your Policynumber, select the Processing Level <Policy Processing>and the effective date 01.01.2012 and the Reversal Reason <Both Parties inAgreement>.

Execute the reversal and release the policy.Continued on next page
















Solution 5: Reversal and ResetTask:Go to the Business Process Reversal.

1. Enter your Policy number, select the Processing Level <Policy Processing>and the effective date 01.09.2010 and the Reversal Reason <Both Parties inAgreement>.


a)




a)

Figure 135: Business Process Change

Refuse

3. Go to the Business Process Reset.

Enter your Policy number, select the Processing Level <Policy Processing> andthe Business Transaction <Perform Reinstatement after Reversal>.

Release the policy.

a)

4. Go to the Business Process Reversal.








Enter your Policynumber, select the Processing Level <Policy Processing>and the effective date 01.01.2012 and the Reversal Reason <Both Parties inAgreement>.


a)




a)







Lesson Summary

You should now be able to:• Reverse policies• Explain the difference between Reversal and Reversal Notification• Reset business processes

Related Information







Unit Summary FS340

Unit SummaryYou should now be able to:• Enter, check and calculate an application in new business.• Execute a risk assessment.• Release an application.• Find an open application• Resume an application• Display a policy / contract / coverage• Use the fast inquiry function• Set Prima Nota• Perform a risk assessment• Explain how the Change business process is executed• Navigate in the Change business process• Explain the execution of predating• Explain the reimplementation of business transactions• Create a Change Option• Accept and refuse the change option• Release the policy• Reverse policies• Explain the difference between Reversal and Reversal Notification• Reset business processes







Test Your Knowledge

1.

2.

3.

4.

5.







Answers

1.

Answer:

2.

Answer:

3.

Answer:

4.

Answer:

5.

Answer:














Unit Summary FS340






Unit Summary FS340






Unit 3Components within FS-PM

Unit Overview


• Display a policy / contract / coverage.• Calculate and display benefits.• Display transaction and date data.• Display application journal and contract journal data.• Execute a model calculation.• Use the fast inquiry function.• Understand the role of the Accounting Component within FS-PM• Explain the difference between cash flow and non-cash flow elements• Describe process flows• Understand how to create correspondence in FS-PM Correspondence

Management• Implement various business scenarios using functionalities of FS-PM

Correspondence Management• Understand how to create and change Insurance Objects• Explain the difference between an Insurable Object and Insured Object• Understand time model functionality within FS-PM• Explain the difference between scheduled and unscheduled changes• Define time model functions• Explain processing of time models• Update policies• Describe the ULI sample products• List and maintain the fund range data and fund range element data






Unit 3: Components within FS-PM FS340

• List and maintain the fund data• Understand the cross-application functions in contract management for the ULI

products• Understand the use of fund data• Apply the business processes in contract management to ULI products

Unit ContentsLesson: Inquiry Policy Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109

Exercise 6: Policy Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125Lesson: Accounting Component .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130Lesson: Correspondence ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135

Exercise 7: Correspondence... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141Lesson: Object Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144

Exercise 8: Object Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Lesson: Time Model .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161

Exercise 9: Update ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167Lesson: Fund Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173

Exercise 10: Create an Insurance with Funds Investment.. . . . . . . . . . . . . . .189






FS340 Lesson: Inquiry Policy Journal

Lesson: Inquiry Policy Journal

Lesson OverviewInquiry in Dialog Mode

Use of Effective Date in Inquiry

Business Objects in Business Process Inquiry

Business Transactions

Journal Management

Model Calculation

Fast Inquiry


• Display a policy / contract / coverage.• Calculate and display benefits.• Display transaction and date data.• Display application journal and contract journal data.• Execute a model calculation.• Use the fast inquiry function.






Figure 136: Use of Effective Date for Inquiry

Figure 137: Access: Inquiry in Dialog







Figure 138: Business Transactions at Policy Level

Figure 139: Business Transactions at Contract Level







Figure 140: Business Transactions at Coverage Level

Figure 141: Overview







Figure 142: Application Journal

Figure 143: Contract Journal







Figure 144: Contract Management: Journal Management

Figure 145: General facts about the Journal







Figure 146: Versioning

Figure 147: Tasks Journal & Time Model







Figure 148: Journalization

Figure 149: New Business - Sequence







Figure 150: New Business: Technical Sequence

Figure 151: Change: Sequence







Figure 152: Change - Technical Sequence

Figure 153: Reactivation





Figure 154: Reactivation: Sequence

Figure 155: Reactivation Sequence







Figure 156: Reactivation: Technical Sequence

Figure 157: Model Calculation: Overview of Functions







Figure 158: Model Calcualtion: Calculation Variants

Figure 159: Example of a Business Transaction Flow in Inquiry







Figure 160: Release for Inquiry Business Process

Figure 161: Business Process Fast Inquiry







Figure 162: Inquiry - Policy Journal: Summary













Exercise 6: Policy Journal

Exercise ObjectivesAfter completing this exercise, you will be able to:• Understand the Business Process Inquiry• Display application journal date• Display contract journal data

Business ExampleJohn has an internal audit. The auditor ask him to explain all the process steps ofthe poliy.


Task:Start the Business Process “Inquiry”.

1.

2. Enter your Policynumber, load the current policy status and choose theprocessing level <Policy Processing>.

3. Select the Contract Journal.

See which Business Process reversed Processes

Start scrolling in the Contract Journal and verify all executed changes

4. Select the Application Journal.

Select the Display Level <All> and Display Specific Processing <All Processing>

Start scrolling in the journal to display the information’s which are relevantfor the auditor








Solution 6: Policy JournalTask:Start the Business Process “Inquiry”.

1.

a)


a)

Figure 163: Policy Management/In-Force business Management/In-quiry

3. Select the Contract Journal.

See which Business Process reversed Processes








Start scrolling in the Contract Journal and verify all executed changes

a)

Figure 164: Business Process

Figure 165: Verify all executed changes

4. Select the Application Journal.

Select the Display Level <All> and Display Specific Processing <All Processing>








Start scrolling in the journal to display the information’s which are relevantfor the auditor

a)

Figure 166: All Processing


a)





Lesson Summary

You should now be able to:• Display a policy / contract / coverage.• Calculate and display benefits.• Display transaction and date data.• Display application journal and contract journal data.• Execute a model calculation.• Use the fast inquiry function.

Related Information










Lesson: Accounting Component

Lesson OverviewOverview

Business Scenarios

Process Steps and Process Flows


• Understand the role of the Accounting Component within FS-PM• Explain the difference between cash flow and non-cash flow elements• Describe process flows


Figure 167: Accounting Component




FS340 Lesson: Accounting Component

Figure 168: Accounting Component - Central Tasks

Figure 169: Accounting Component

Figure 170: Accruement of Non-Cash Flow Documents







Figure 171: Accounting Component - Selected Elements and theirCharacteristics

Figure 172: Accounting Component - Accounting Process






FS340 Lesson: Accounting Component

Figure 173: Accounting Component - Additional Account Assignment

Figure 174: Overview: Summary







Lesson Summary

You should now be able to:• Understand the role of the Accounting Component within FS-PM• Explain the difference between cash flow and non-cash flow elements• Describe process flows

Related Information







FS340 Lesson: Correspondence

Lesson: Correspondence

Lesson OverviewCorrespondence – Overview

FS-PM Correspondence Management – Business Scenarios


• Understand how to create correspondence in FS-PM CorrespondenceManagement

• Implement various business scenarios using functionalities of FS-PMCorrespondence Management


Figure 175: FS-PM Correspondence Management - Sample Content







Figure 176: Business Scenario 1 - Automatic Scheduling of Correspondence

Figure 177: Business Scenario 2 - Manual Scheduling of Correspondence(Policy level)





Figure 178: Business Scenario 3 - Preview of Scheduled Correspondence

Figure 179: Business Scenario 4 - Manual Scheduling of Correspondence(Contract / Coverage level)





Figure 180: Business Scenario 5 - Manual Changes of Correspondence























Exercise 7: Correspondence

Exercise ObjectivesAfter completing this exercise, you will be able to:• Understand how to create correspondence in FS-PM• Implement various business scenarios using functionalities of FS-PM

Correspondence Management

Business ExampleAfter John has checked all payments he writes a letter to the customer explainingthe premium.


Task:

1. Start the Business Process ‘Inquiry’.


3. Start Correspondence.

4. Add a <User–Defined Letter> to the correspondence control.

Add a Free Text Module and enter any free text.

Start the print preview and check if everything is written down.

Release the document








Solution 7: CorrespondenceTask:

1. Start the Business Process ‘Inquiry’.

a)


a)

3. Start Correspondence.

a)

4. Add a <User–Defined Letter> to the correspondence control.

Add a Free Text Module and enter any free text.

Start the print preview and check if everything is written down.

Release the document

a)


a)





Lesson Summary

You should now be able to:• Understand how to create correspondence in FS-PM Correspondence


Correspondence Management

Related Information








Lesson: Object Management

Lesson OverviewBusiness Scenarios

Process Steps and Process Flows


• Understand how to create and change Insurance Objects• Explain the difference between an Insurable Object and Insured Object


Figure 185: Interaction between Object Management and Business Processes






FS340 Lesson: Object Management

Figure 186: Business Scenarios - Object Management

Figure 187: Process Flow - Assign the Insured Object







Figure 188: Process Flow - Assign the Insured Object

Figure 189: Process Flow - Synchronize the Insured Object

Figure 190: Process Flow - Synchronize the Insured Object







Figure 191: Process Steps - Object Synchronization

Figure 192: Accumulation Forming













Exercise 8: Object Management

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create, display and change insurable objects• Synchronize insured objects

Business ExampleJohn receives a new application. He has to make a policy for a dog. He has to createan insurable object and then issue the policy.When he has finished the issuing he recognized that he entered the wrong breed. Hechanges the breed and synchronizes the policy.

Task:

1. Open object management and create an insurable object with the Category “Livestock” and the Type “Dog”. Enter the effective date “3 months ago from today”.

Enter the object characteristics.

Figure 193: Insurable Object: Central Access

– Give any name

– Use your Business Partner as pet owner

– Specify any breed

Note the object number

Save the object.








Figure 194: Complete

2. Check the insurable object. Display the insurable object you just created inobject management.

3. Create a new policy in the New Business business process with the effectivedate“ three months ago today”

Choose the sales product “Family Coverage” and the product “Livestock OwnerLiability”

Enter the data for the policy.

– Policyholder

– Duration (maximum 5 years)

– Commission participant

Assign your insurable object on contract level.








Figure 195: Assign your insurable object

Note the policy number

Calculate the policy and then release it.

4. Change the breed of your insurable object and synchronize the insured objectin the policy.

Call your insurable object in object management in the change mode using theeffective date “one month ago from today”. Change one or more characteristicsand save the object.








Figure 196: Change one or more characteristics

Switch to your Business Workplace and display the work time with the messageinforming you of the need to synchronize the object.

Figure 197: Business Workplace

Double click on the line and start the business transaction “Edit Insured Object”.Synchronize the insured object.








Figure 198: Business Transaction







Solution 8: Object ManagementTask:

1. Open object management and create an insurable object with the Category “Livestock” and the Type “Dog”. Enter the effective date “3 months ago from today”.

Enter the object characteristics.

Figure 200: Insurable Object: Central Access

– Give any name

– Use your Business Partner as pet owner

– Specify any breed

Note the object number

Save the object.








Figure 201: Complete

a)

2. Check the insurable object. Display the insurable object you just created inobject management.

a)

Figure 202: Display the Insurable Object

3. Create a new policy in the New Business business process with the effectivedate“ three months ago today”

Choose the sales product “Family Coverage” and the product “Livestock OwnerLiability”

Enter the data for the policy.








– Policyholder

– Duration (maximum 5 years)

– Commission participant

Assign your insurable object on contract level.

Figure 203: Assign your insurable object

Note the policy number

Calculate the policy and then release it.

a)

4. Change the breed of your insurable object and synchronize the insured objectin the policy.

Call your insurable object in object management in the change mode using theeffective date “one month ago from today”. Change one or more characteristicsand save the object.








Figure 204: Change one or more characteristics

Switch to your Business Workplace and display the work time with the messageinforming you of the need to synchronize the object.

Figure 205: Business Workplace

Double click on the line and start the business transaction “Edit Insured Object”.Synchronize the insured object.










a)









a)







Lesson Summary

You should now be able to:• Understand how to create and change Insurance Objects• Explain the difference between an Insurable Object and Insured Object

Related Information







FS340 Lesson: Time Model

Lesson: Time Model

Lesson OverviewEconomic Point of view

Time model functions

Time Model

Update


• Understand time model functionality within FS-PM• Explain the difference between scheduled and unscheduled changes• Define time model functions• Explain processing of time models• Update policies


Figure 208: What is the Time Model?







Figure 209: What is the Time Model Function?

Figure 210: Economic Point of View (1)









Figure 213: Time Model Functions







Figure 214: Scheduled vs. Unscheduled Time Model Functions

Figure 215: Correspondence Time Model Functions

Figure 216: Date- vs. Period-specific Time Model Functions

Figure 217: Date-specific Processing







Figure 218: Period-specific Processing

Figure 219: Processing Order of a Time Model Function







Figure 220: Processing Order Rules







Exercise 9: Update

Exercise ObjectivesAfter completing this exercise, you will be able to:• Understand how a series of planned processing is performed after a retroactive

change.

Business ExampleJohn has to execute a change for next year. After issuing the policy he wants to knowwhich are the next scheduled processes.

Task:1. Create a new policy.

Sales product: Life Capital, insurance start date: 01/01/2010, calculation basedon premium, insurance duration: 20 years, other input: any. Product: RiskInsurance, Payment Frequency: monthly; monthly premium: EUR 300, otherinput: any.

Release the policy.

2. Perform a technical change for increasing the premium.

Business transaction: Change Benefit/Premium, Effective date: 01/04/2011, newmonthly premium: EUR 20.








Figure 221: Benefit/Premium

Figure 222: Premium after Tax

3. Analysis of planned processing in the course of the update.

Find out which scheduled processing steps have been carried out in the course ofthe update and when the next schedule update takes place.







Solution 9: UpdateTask:1. Create a new policy.

Sales product: Life Capital, insurance start date: 01/01/2010, calculation basedon premium, insurance duration: 20 years, other input: any. Product: RiskInsurance, Payment Frequency: monthly; monthly premium: EUR 300, otherinput: any.

Release the policy.

a) Go to Policy Management → In–Force Business Management → NewBusiness

Figure 223: Contract Data

2. Perform a technical change for increasing the premium.

Business transaction: Change Benefit/Premium, Effective date: 01/04/2011, newmonthly premium: EUR 20.








Figure 224: Benefit/Premium

Figure 225: Premium after Tax

a)

3. Analysis of planned processing in the course of the update.








Find out which scheduled processing steps have been carried out in the course ofthe update and when the next schedule update takes place.

a) Go to Policy Management → In–Force Business Management → Inquiry

Figure 226: Policy Management/In-Force Business Management/In-quiry







Lesson Summary

You should now be able to:• Understand time model functionality within FS-PM• Explain the difference between scheduled and unscheduled changes• Define time model functions• Explain processing of time models• Update policies

Related Information







FS340 Lesson: Fund Management

Lesson: Fund Management

Lesson OverviewSample Products for Unit-Linked Life Insurance (ULI)

Fund Management

Cross-Application Functions in Contract Management

Business Transactions in Contract Management


• Describe the ULI sample products• List and maintain the fund range data and fund range element data• List and maintain the fund data• Understand the cross-application functions in contract management for the ULI



Figure 227: Fund Management - Features of Fund Range







Figure 228: Fund Management - Features of Fund Range Elements

Figure 229: Fund Management - Amendability of Fund Distribution







Figure 230: Fund Management - Example of a Changeable Fund Range

Figure 231: Fund Management - Example of a Fixed Fund Range







Figure 232: Fund Management - Overview of Fund Data

Figure 233: Fund Management - Example of a Stock Fund







Figure 234: Fund Management - Values for Fund Categories and Fund Types

Figure 235: Fund Management - Fund Distribution





Figure 236: Fund Management - Fund Conversion

Figure 237: Fund Management - Overview of the Business Processes

Figure 238: Fund Management - Functions in Fund Range BP







Figure 239: Fund Management - Business Processes for Processing GeneralFund Data

Figure 240: Fund Management - Business Processes for Processing FundPrices







Figure 241: Cross-Application Functions for ULI in Contract Management -Overview

Figure 242: Manage Basis for Conversion Quotation

Figure 243: Investment Logic - Determination of Fund Prices Using theInvestment Logic







Figure 244: Cross-Application Functions for ULI in Contract Management -Investment Models

Target principle: The premiums are set to debit with the release of the policy orchange and are requested by the customer. Regardless of cash receipt, investment ismade in the fund shares.

Actual principle: The premium is not set to debit and requested by the customer. Thereceipt of cash determines further investment.

Actual principle with payment request: The customer specifies the premium amountthat is invested using the actual principle. This amount can be parked in contractmanagement.

Actual principle without payment request: The premium amount that is invested usingthe actual principle is not known and is only applied to the contract after cash receipt.

Figure 245: Features of the Actual Principle

The investment model according to the actual principle ensures that transactions areonly initiated when a cash receipt is posted to the collections account. Unlike a targetinvestment, the investment is only triggered by the actual cash receipt. The payment







receipt date is used as the basis for the investment logic. Auditing acceptability isretained by the document flow. Target/actual investment models can be combinedwithin an elementary product.

• Example: In the case of state subsidized products, subsidy contributions can bemade as an additional deposit according to the actual principle.

The actual principle investment model leads to increased dependency betweenin-force business and collections. The processes must be synchronous and it mustbe possible to explain differences. The trigger for a business process in FS-PMwith unscheduled processing character is no longer just in FS-PM; this can also betriggered by collection transactions.

For the unit-linked sample product Premium Pension (PF110), you must enter therecurring premium with the target investment principle. One-off additional depositscan also be agreed for this product at or after the start of the contract. In addition tothe target investment principle, the investment model “Actual Investment Principlewith Payment Request” can also be used for these additional deposits. You can alsoforward a cash receipt in FS-CD to FS-PM and trigger the investment in FS-PM.

Figure 246: Actual Principle Without Payment Request











Figure 247: Process of Basic Functions for the Actual Principle WithoutPayment Request

• The basic function for investment according to the actual principle requiresadditional steps if the cash receipt comes from the premium payer and there areopen premium receivables. The open premium receivables are then clearedwith the cash receipt. Only the positive remaining amount is further processedaccording to the basic function.

• If a cash receipt is reported from another source, for example from a state subsidyauthority in the case of a subsidy product, the cash receipt is not cleared usingthe open premium receivables for the premium payer. The subsidy authority isdefined as the business partner with a separate contract account. This means thatthe cash receipt can be managed in a separate insurance relationship in FS-CD.

• If a cash receipt is posted in the past in FS-CD and this leads to the reversalof non-scheduled business transactions in FS-PM, the system creates an errorlog and further processing is required.

• If in contract management a retroactive change reverses an additional depositaccording to the actual principle, when the change is released this additionaldeposit is reimplemented in in-force business management. If execution of theResetting or Reversal business process affects an additional deposit according tothe actual principle, all corresponding cashflow and non-cashflow transactionsare reversed with the exception of the cash receipt posting. The premiumclearing posting that is reversed is forwarded to FS-CD for reimbursement ofthe cash receipt.

• If a cash receipt that has already been forwarded to FS-PM is reversed in FS-CDand a message to this effect exists in the information container, this messagetriggers subsequent activities in FS-PM. A separate related date is set that meansthat de-investment in the fund accounts for the reversed cash receipt is executedautomatically in FS-PM using a time model function.







Figure 248: Actual Principle with Payment Request

These additional deposits can be created in the Change BP in the Perform AdditionalDeposit business transaction. This triggers the processing of the aforementioned basicfunctions with the following enhancements:

• When you release the BP, the scheduled additional deposit is documented in thecontract journal on the processing date. A statistical posting for the amount ofthe payment request (cashflow transaction) is created for the collections systemin the accounting component.

• If the cash receipt is registered in the FS-CD collections system , this is reportedto FS-PM contract management and compared with the statistical posting. InCustomizing for FS-PM, you can specify whether processing of the alternativeamount is continued or completed according to the aforementioned basicfunction or whether processing can only be completed if the cash receipt matchesthe contractually agreed additional deposit value. More specifically:

– If the basic function is executed for non-agreeing amounts, the differencefrom the additional deposit amount is documented in the accountingcomponent as a cashflow transaction. The actual cash receipt is invested.

– If the basic function is terminated for non-agreeing amounts, the systemreturns an error. Investment is rescheduled for the next day. You needto make a manual correction for the additional deposit by reversing thebusiness process for the original additional deposit. A new additionaldeposit for the actual cash receipt amount is created using the targetprinciple investment model.

At the end of the basic function, the scheduled additional deposit is completedfor the business transaction (“Processed” status in contract journal).







Figure 249: Cross-Application Functions for ULI - Pending Processing forMissing Fund Prices

You cannot execute business processes for in-force business if the release cannot beperformed at the time of application entry because fund prices are missing for thefinal contract calculation. In this case, it must be possible to create the entry andautomatically release this at a later date. The application is pending between theapplication entry and release date.

When all the quotations are announced (release date), the application is resumed bybackground processing and the contract-relevant calculation is performed.

The release procedure controls which processes are pending and which are performedwith the final release. You can enter different values for the release procedure foreach product group.







Figure 250: Cross-Application Functions for ULI - Order Management

Preliminary orders are also known as assessed orders. Final orders are also known assettled orders.

Elementary order

• Unit: Number of fund shares• Elementary orders are created for each business transaction in contract

management (fund transaction) for each investment fund used (assessed andsettled orders)

Global order

• Unit: Number of fund shares• Elementary orders are bundled and summarized according to the fund,

investment direction, product, and object category• This enables you to track the difference between the assessed and settled orders

for a global order







Figure 251: Order Categories







Exercise 10: Create an Insurance with FundsInvestment

Exercise ObjectivesAfter completing this exercise, you will be able to:• Obtain information about the main properties of a fund range• Issue a policy with fund investment

Business ExampleMister Smith wants to invest an amount of 200,- € a month. He asks the Blue SkyInsurance for an offer. John has to create this offer for Mister Smith.

Task:

1. Create an new policy with the start date 01.01.2011. Choose the <Life Capital>sales product.

2. Select the product <Combined Unit–Linked Insurance>.

Enter on the tab Premium a monthly recurring premium of 200€.

Figure 252: Premium








Figure 253: Premium

3. Select on coverage level a fund range <P4>.

Change the percentage of the assignments.

Figure 254: Percentage of the Assignments

4. Complete, calculate and release the policy.







Solution 10: Create an Insurance with FundsInvestmentTask:

1. Create an new policy with the start date 01.01.2011. Choose the <Life Capital>sales product.

a)

2. Select the product <Combined Unit–Linked Insurance>.

Enter on the tab Premium a monthly recurring premium of 200€.

Figure 255: Premium








Figure 256: Premium

a)

3. Select on coverage level a fund range <P4>.

Change the percentage of the assignments.

Figure 257: Percentage of the Assignments

a)








4. Complete, calculate and release the policy.

a)







Lesson Summary

You should now be able to:• Describe the ULI sample products• List and maintain the fund range data and fund range element data• List and maintain the fund data• Understand the cross-application functions in contract management for the ULI


Related Information







FS340 Unit Summary

Unit SummaryYou should now be able to:• Display a policy / contract / coverage.• Calculate and display benefits.• Display transaction and date data.• Display application journal and contract journal data.• Execute a model calculation.• Use the fast inquiry function.• Understand the role of the Accounting Component within FS-PM• Explain the difference between cash flow and non-cash flow elements• Describe process flows• Understand how to create correspondence in FS-PM Correspondence


Correspondence Management• Understand how to create and change Insurance Objects• Explain the difference between an Insurable Object and Insured Object• Understand time model functionality within FS-PM• Explain the difference between scheduled and unscheduled changes• Define time model functions• Explain processing of time models• Update policies• Describe the ULI sample products• List and maintain the fund range data and fund range element data• List and maintain the fund data• Understand the cross-application functions in contract management for the ULI







Unit Summary FS340







Test Your Knowledge

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Answers

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Unit Summary FS340














Unit Summary FS340






Unit Summary FS340






Unit 4Master Policy and Mass Change

Unit Overview


• Explain the structure of msg.PM• Understand the interplay between Product Manager and Policy Management• Explain the functions and role of the IBC• Understand the usage and handling of policy templates

Unit ContentsLesson: InForce Business Configurator .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204

Exercise 11: In-Force Business Configurator .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223






Unit 4: Master Policy and Mass Change FS340

Lesson: InForce Business Configurator

Lesson OverviewProduct Manager msg.PM

In-Force Business Configurator


• Explain the structure of msg.PM• Understand the interplay between Product Manager and Policy Management• Explain the functions and role of the IBC• Understand the usage and handling of policy templates


Figure 258: Product Manager - Benefit Summary




FS340 Lesson: InForce Business Configurator

Figure 259: Product Management - Motivation

Figure 260: Product Management - Overview

Figure 261: SAP Policy Management Development and Maintenance Circle















Figure 264: SAP Policy Management Development Environment of ProductManager

Figure 265: Msg.PM Content Preview







Figure 266: Msg.PM Content Preview

Figure 267: GAMBA - Msg.PM Content





Figure 268: SAP Policy Management Mirroring Product and Contract Model

Figure 269: SAP Policy Management - Product Definition Corresponds toContract Model







Figure 270: Product Management - Service Oriented Approach

Figure 271: Product Management - Integration with Operative System







Figure 272: SAP Policy Management Product Design - Process Overview

Figure 273: SAP Policy Management Product Design - Process Overview







Figure 274: Product Management - Communication Between Product andContract Management

Figure 275: Export Reference Model





Figure 276: Export the Compilate - msg.pm Designer

Figure 277: Run the Compiler Plug-in







Figure 278: Product Manager - Management Summary

Figure 279: Course Overview







Figure 280: Business Scenarios In-Force Business Configurator

Figure 281: Product Data and Insurance Mathematics at Runtime - since FS-PMRelease 4.5







Figure 282: Role of the In-Force Business Configurator

Figure 283: Role of the In-Force Business Configurator







Figure 284: In-Force Business Configurator - Basic Access

Figure 285: In-Force Business Configurator - Policy Templates







Figure 286: In-Force Business Configurator: Operative Use

Figure 287: IBC: Policy Template Statuses







Figure 288: In-Force Business Configurator: Worklist

Figure 289: IBC: Write Protection Flags







Figure 290: IBC: Product Data Import

Figure 291: IBC: Mass Import







Figure 292: Management Summary















Exercise 11: In-Force Business Configurator

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create your own Policy Template• Set default values• Change assignment rules

Business ExampleThe Blue Sky insurance has new subsidiary. According to the market departmentthey have to use another brand for this branch. John has to create a new productwith a new name.


Task 1:

Task 2:

1. Go to “Product Templates/Edit Product Templates”.

2. Use the function Copy/Template and all Subtemplates to copy the product “LifeCapital”.

Figure 293: Life CapitalContinued on next page







Change all template IDs using the provided Excel sheet.

Figure 294: Change all template IDs

Name your product TRN_POL_xx (xx stands for your group–number).

Figure 295: Change Template Name

Release all templates.








Figure 296: Collective Release

Delete all sub–templates except “Combined Insurance” and “Risk Insurance”.

Figure 297: Deleting templates

Select the Contract Level and change the Rules Insured Object to <InsuredObject is identical Policy Holder>








Figure 298: Contract Level

Edit the Life Benefit Template, which is a Sub–template of the coverage–level.

Set the default value for the field ENDOWMATURITY_AM to <25.000>.

Figure 299: Default value


3. Go to the Business Process New Business and create a policy with the newtemplate.







Solution 11: In-Force Business ConfiguratorTask 1:

Task 2:

1. Go to “Product Templates/Edit Product Templates”.

a) Go to Policy Management → In–Force Business Management → ProductTemplates → Edit Product Templates

2. Use the function Copy/Template and all Subtemplates to copy the product “LifeCapital”.

Figure 300: Life Capital

Change all template IDs using the provided Excel sheet.








Figure 301: Change all template IDs

Name your product TRN_POL_xx (xx stands for your group–number).

Figure 302: Change Template Name









Figure 303: Collective Release

Delete all sub–templates except “Combined Insurance” and “Risk Insurance”.

Figure 304: Deleting templates

Select the Contract Level and change the Rules Insured Object to <InsuredObject is identical Policy Holder>








Figure 305: Contract Level

Edit the Life Benefit Template, which is a Sub–template of the coverage–level.

Set the default value for the field ENDOWMATURITY_AM to <25.000>.

Figure 306: Default value


a)








3. Go to the Business Process New Business and create a policy with the newtemplate.

a)







Lesson Summary

You should now be able to:• Explain the structure of msg.PM• Understand the interplay between Product Manager and Policy Management• Explain the functions and role of the IBC• Understand the usage and handling of policy templates

Related Information







FS340 Unit Summary

Unit SummaryYou should now be able to:• Explain the structure of msg.PM• Understand the interplay between Product Manager and Policy Management• Explain the functions and role of the IBC• Understand the usage and handling of policy templates






Unit Summary FS340







Test Your Knowledge

1.







Answers

1.

Answer:












Unit Summary FS340




Unit Summary FS340






Unit 5Product Management

Unit Overview


• Explain the Master Policy• Create a Master Policy• Assign Policies to a Master Policy• Exclude Policies from a Master Policy• Understand Mass Processing• Execute Mass Changes• Execute Updates to groups of Policies

Unit ContentsLesson: Master Policy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240

Exercise 12: Master Policy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243Lesson: Mass Processing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253

Exercise 13: Master Processing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257






Unit 5: Product Management FS340

Lesson: Master Policy

Lesson OverviewMaster Policy


• Explain the Master Policy• Create a Master Policy• Assign Policies to a Master Policy• Exclude Policies from a Master Policy


Figure 307: Standard VS Adjusted Policy Templates






FS340 Lesson: Master Policy

Figure 308: Assigning Policy Templates to Master Policy

Figure 309: Policy Templates Impacts

Figure 310: Enrollment and Exclusion of Individual Policies







Figure 311: Exclusion of Individual Policy 1/2

Figure 312: Exclusion of Individual Policy 2/2

Figure 313: Inclusion of Individual Policy







Exercise 12: Master Policy

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create your own Master Policy• Issue a new policy with a Master Policy• Assign an existing policy to a Master Policy• Exclude an existing contract from a Master Policy

Business ExampleThe Blue Sky insurance has a important customer. He offers all his employees aspecial Life Insurance. John has to create a new Master policy. Then he has toassign existing contracts to this Master Policy. At the next step one contract hasto be excluded from the Master Policy.


Task:

1. Go to “Master Policy / Create Master Policy”

Start the process.

Figure 314: Initial Screen

Name the Master Policy Life Insurance Master Group_xx

Create a new customer as an organization, name it Company Group_xx








Figure 315: Create Organization

Assign your Policy Template TRN_POL_xx to your Master Policy

Figure 316:

Master Policy Number ……………..

2. Start the Business Process New Business and create three policies:








Figure 317: New Business

Policy 1: Policy start date <01.01.2011> using your Master policy.

Policy Number ……………..



Policy 3: Policy start date <01.02.2010> WITHOUT using your Master policy.


3. Go to “Master Policy / Display Master Policy” and check on the tab“Where–UsedList” if the first two policies are displayed.

4. Start the Business Process Change.

Select the third policy and the effective date <01.01.2011>.

Execute the Business Transaction Sales Product Change using the transfer type<Template Change with Master Policy Change> and transfer the business toyour Master Policy number.








Figure 318: Master Policy number

5. Go to “Master Policy / Display Master Policy” and check on the tab“Where–Used List” if all three policies are displayed.

Figure 319: Master Policy / Display Master Policy’


Select the first policy and the effective date <01.06.2011>.

Execute the Business Transaction Sales Product Change using the transfer type<Template Change with Master Policy Change> and transfer the business outof your Master Policy.








7. Go to “Master Policy / Display Master Policy” and check on the tab“Where–Used List” if the changes are executed.







Solution 12: Master PolicyTask:

1. Go to “Master Policy / Create Master Policy”

Start the process.

Figure 320: Initial Screen

Name the Master Policy Life Insurance Master Group_xx

Create a new customer as an organization, name it Company Group_xx

Figure 321: Create Organization








Assign your Policy Template TRN_POL_xx to your Master Policy

Figure 322:

Master Policy Number ……………..

a)

2. Start the Business Process New Business and create three policies:

Figure 323: New Business





Policy 3: Policy start date <01.02.2010> WITHOUT using your Master policy.









a)

3. Go to “Master Policy / Display Master Policy” and check on the tab“Where–UsedList” if the first two policies are displayed.

a)


Select the third policy and the effective date <01.01.2011>.

Execute the Business Transaction Sales Product Change using the transfer type<Template Change with Master Policy Change> and transfer the business toyour Master Policy number.

Figure 324: Master Policy number

a)

5. Go to “Master Policy / Display Master Policy” and check on the tab“Where–Used List” if all three policies are displayed.








Figure 325: Master Policy / Display Master Policy’

a)


Select the first policy and the effective date <01.06.2011>.

Execute the Business Transaction Sales Product Change using the transfer type<Template Change with Master Policy Change> and transfer the business outof your Master Policy.

a)

7. Go to “Master Policy / Display Master Policy” and check on the tab“Where–Used List” if the changes are executed.

a)







Lesson Summary

You should now be able to:• Explain the Master Policy• Create a Master Policy• Assign Policies to a Master Policy• Exclude Policies from a Master Policy

Related Information







FS340 Lesson: Mass Processing

Lesson: Mass Processing

Lesson OverviewMass Processing

Mass Changes

Update of Group of Policies


• Understand Mass Processing• Execute Mass Changes• Execute Updates to groups of Policies


Figure 326: Mass Changes - FPP Framework







Figure 327: Mass Changes - FPP Framework

Figure 328: FPP Run System Access

Figure 329: FPP Run - Parameters







Figure 330: FPP Run - Example

Figure 331: FPP Run - Intervals







Figure 332: Management Summary







Exercise 13: Master Processing

Exercise ObjectivesAfter completing this exercise, you will be able to:• Understand Mass Processing• Execute Mass Changes• Execute Updates to groups of Policies

Business ExampleThe Blue Sky Insurance has recalculated the Master Policy. Because of the Loss ratioJohn has to add a surcharge to all policies belonging to this Master Policy.

John has to change all this policies and has to add a surcharge

Task:

1. Start the process “Mass Change”

Enter the Effective Date <01.06.2011> and select your Master Policy.

Figure 333: Mass Change: Initial Screen

Select Execution Levl <Coverage> and the Business Transaction ID <P_B_S_SPMDCT_AMD>








Figure 334: Mass Change: Selection of BTrans

Add a Medical Surcharge Premium of <15%>.

Figure 335: Medical Surcharge Premium

Figure 336: Mass Change Surcharge/Discount








Figure 337: Selection of BTrans

2. Go to “Periodic Processing”.

Start “Edit BTS Dates”, select your Master Policy and see if the change isexecuted and the status is green.

Go to “Inquiry” and control the changes.

3. Go to ‘Inquiry’ and control the changes.

Figure 338: Inquiry








Figure 339: Control the changes







Solution 13: Master ProcessingTask:

1. Start the process “Mass Change”

Enter the Effective Date <01.06.2011> and select your Master Policy.

Figure 340: Mass Change: Initial Screen

Select Execution Levl <Coverage> and the Business Transaction ID <P_B_S_SPMDCT_AMD>

Figure 341: Mass Change: Selection of BTrans

Add a Medical Surcharge Premium of <15%>.








Figure 342: Medical Surcharge Premium

Figure 343: Mass Change Surcharge/Discount








Figure 344: Selection of BTrans

a) Go to Policy Management → In–Force Business Management → MassChange

2. Go to “Periodic Processing”.

Start “Edit BTS Dates”, select your Master Policy and see if the change isexecuted and the status is green.

Go to “Inquiry” and control the changes.

a) Go to Policy Management → In–Force Business Management → PeriodicProcessing → Update policies and Contracts

Select your Master Policy and the target date 01.01.2012.

b) Save the run and Start Immed. In Background

c) Start “Edit BTS Dates” select your Master Policy and see if the changeis executed and the status is green.

Go to Policy Management → In–Force Business Management → PeriodicProcessing → Edit BTS Dates

Figure 345: Edit BTS Dates








3. Go to ‘Inquiry’ and control the changes.

Figure 346: Inquiry

Figure 347: Control the changes

a)





Lesson Summary

You should now be able to:• Understand Mass Processing• Execute Mass Changes• Execute Updates to groups of Policies

Related Information





Unit Summary FS340

Unit SummaryYou should now be able to:• Explain the Master Policy• Create a Master Policy• Assign Policies to a Master Policy• Exclude Policies from a Master Policy• Understand Mass Processing• Execute Mass Changes• Execute Updates to groups of Policies





Test Your Knowledge

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Answers

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Answer:

2.

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Unit Summary FS340






Unit Summary FS340






Unit 6Summary SAP Policy Management

Unit Overview


• describe the characteristics and architecture of SAP Policy Management• describe key functions of SAP Policy Management

Unit ContentsLesson: Summary ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272






Unit 6: Summary SAP Policy Management FS340

Lesson: Summary

Lesson OverviewSAP Policy Management Architecture

Key Functions of SAP Policy Management

Release Planning

Planned Functions


• describe the characteristics and architecture of SAP Policy Management• describe key functions of SAP Policy Management


Figure 348: SAP Policy Management has a Balance between Robustness andFlexibility to Match Global and Local Constraints






FS340 Lesson: Summary

Figure 349: Key Functions of FS-PM






Unit 6: Summary SAP Policy Management FS340

Lesson Summary

You should now be able to:• describe the characteristics and architecture of SAP Policy Management• describe key functions of SAP Policy Management

Related Information







FS340 Unit Summary

Unit SummaryYou should now be able to:• describe the characteristics and architecture of SAP Policy Management• describe key functions of SAP Policy Management






Unit Summary FS340







Test Your Knowledge

1.







Answers

1.

Answer:






















Course Summary FS340

Course SummaryYou should now be able to:

• Describe the architecture of Policy Management• Understand the processes and functions of Policy Management• Execute the important functions in FS-PM• Perform the business processes for in-force business management

Related Information

• [Enter an optional reference using the URL to additional information that learnermay find useful. Examples include websites or whitepapers. Delete if not used.]






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