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Edit Third-Party Collections

0 Kudos

Hi,

Anybody who know about TX ‘/PM0/ABM_EMPLOYER’ (Edit Third-Party Collections) in FS-PM?

Actually I want know the purpose of this TX. Please let me know if you have any experience with this.

Any input would be helpful.

Best regards,

Kyoungkeun

1 ACCEPTED SOLUTION

former_member184578
Active Contributor
0 Kudos

Hi,

This transaction is used to create a Third Party Collections.

When creating a policy using New business at contract level, in collects tab, you add the Premium payer, There you will have the option for selecting Collections type in the 'Contract-specific Partner Assignment' section.

Here, you have the provision to select the Third-party collection and assign the Third Party collection number. When the Third-party collection number is assigned, it indicates the Third party collections agreement, in which the premiums are not collected from the premium payer himself but from the third party collection ( e.g, broker / agencies etc., ).

hope this helps you,

Regards,

Kiran

View solution in original post

2 REPLIES 2

former_member184578
Active Contributor
0 Kudos

Hi,

This transaction is used to create a Third Party Collections.

When creating a policy using New business at contract level, in collects tab, you add the Premium payer, There you will have the option for selecting Collections type in the 'Contract-specific Partner Assignment' section.

Here, you have the provision to select the Third-party collection and assign the Third Party collection number. When the Third-party collection number is assigned, it indicates the Third party collections agreement, in which the premiums are not collected from the premium payer himself but from the third party collection ( e.g, broker / agencies etc., ).

hope this helps you,

Regards,

Kiran

0 Kudos

Good answer, Kiran!

Two additions:

1) It's correct that the premium is collected from the third party but the acutal scenario is to use the third party to collect the money from the actual premium payer. In general, the third party collects the premiums for a larger number of policyholders and the insurance company only collects the total amount from the third party. A functionality called 'broker collection' in FS-CD is used for this (find more info here: Broker Collections - SAP Library) . Even though it is called 'broker collection', it can also be used with partners that are not brokers, hence it is called 'third party collection' in FS-PM to indicate its more generic usage potential. A common example is an employer that offers an insurance as part of a group contract and collects the premium by deducting it from his employees' salaries (that's why the technical name of the transaction and the business object is 'employer'). Apart from bundling the collection, a report can be created from FS-CD for the third party listing the invidual items to be collected.

2) The main functionality of the FS-PM transaction is that it creates the necessary master data in FS-CD to be used with the broker collection functionality.

Cheers,

Michael