Exploring the key features and capabilities of SAP FS-CD – Noshtek

What is SAP FS-CD?

SAP FS-CD is a software program that enables insurance and re-insurance companies to automate their processes of collecting and paying out premiums and claims. It works seamlessly with other SAP modules that handle different aspects of insurance operations such as Policy Management, Claims Management, Reinsurance Management, and Incentive & Commission Management. SAP FS-CD is a vital part of SAP for Insurance solutions. This article will discuss some of the main features and functions that SAP FS-CD provides.

Open Item Accounting

SAP FS-CD uses open-item accounting to manage the posting data from different administrative systems. An open item is receivable or payable that has not been cleared yet. SAP FS-CD assigns each open item to a sub-ledger account and a G/L account. It also tracks the due date, payment method, currency, amount, and other attributes of each open item. Open item accounting enables SAP FS-CD to perform various functions such as payment processing, dunning, interest calculation, correspondence, and clearing.

Payment Processing

SAP FS-CD supports various payment methods such as bank transfer, check, direct debit, credit card, and cash. It can process incoming and outgoing payments in different currencies and exchange rates. It can also handle partial payments, overpayments, underpayments, refunds, and reversals. SAP FS-CD can generate payment media files for electronic transfers and print forms for checks and other documents. It can also send payment confirmations and reminders to customers and business partners.

Dunning

SAP FS-CD can perform a dunning to remind customers of their overdue payments. It can create dunning proposals based on predefined rules and criteria. It can also generate dunning letters and notices in different languages and formats. SAP FS-CD can apply dunning charges, interest rates, and discounts to open items. It can also update the dunning level and status of each open item.

Correspondence

SAP FS-CD can create correspondence for various purposes such as invoices, statements, receipts, notifications, and reports. It can use predefined templates or custom forms to generate correspondence in different languages and formats. It can also send correspondence via different channels such as email, fax, mail, or online portal. SAP FS-CD can store correspondence history and documents for future reference.

Broker Accounting

SAP FS-CD can handle broker accounting for insurance companies that work with brokers or agents. It can calculate commissions, fees, and bonuses for brokers based on predefined rules and agreements. It can also manage broker settlements, invoices, payments, and balances. SAP FS-CD can support different types of brokers such as direct brokers, sub-brokers, pool brokers, and group brokers.

Coinsurance Business

SAP FS-CD can handle the coinsurance business for insurance companies that share risks with other insurers or reinsurers. It can process coinsurance contracts, premiums, claims, and settlements. It can also calculate coinsurance quotas, shares, and commissions. SAP FS-CD can support different types of coinsurance such as proportional coinsurance, non-proportional coinsurance, and facultative coinsurance.

Information System

SAP FS-CD provides an information system that allows users to monitor and analyze the collection and disbursement processes. It offers various reports and queries that cover different aspects such as open items, payments, dunning, correspondence, broker accounting, and coinsurance business. It also provides key performance indicators (KPIs) and dashboards that show the status and performance of the processes.

Integration Functions

SAP FS-CD integrates with other SAP modules through an open interface that transfers posting data from administrative systems to SAP FS-CD. It also transfers status and process information from SAP FS-CD back to the administrative systems. Additionally, SAP FS-CD integrates with the SAP G/L and Controlling modules to transfer accounting data for financial reporting and controlling purposes.

Customer-Specific Enhancement Options

SAP FS-CD offers various options for customers to enhance the standard functions according to their specific needs and requirements. For example, customers can use user exits, business add-ins (BAdIs), enhancement spots, or customizing tables to modify or extend the functionality of SAP FS-CD.

 

So, SAP FS-CD is a powerful and flexible software application that enables insurance companies and re-insurers to automate and optimize their collection and disbursement processes. It also integrates with other SAP modules and provides an information system for monitoring and analysis. Different customers can customize and enhance SAP FS-CD to meet their specific needs and requirements. SAP FS-CD is a valuable solution for insurance companies that want to improve their cash flow management and customer satisfaction.