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

SAP for Insurance covers the key activities involved in collections and disbursements, including:

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

Collections and disbursements is enabled with SAP applications such as SAP Insurance Collections and Disbursements. To find out how SAP Insurance Collections and Disbursements can help you improve your collections and disbursements, please complete the "Contact SAP" form and request information about industry applications.