In the insurance and financial management industry, efficiently handling complex financial transactions, conducting risk assessments, and managing contract accounts is critical for success.
This is where SAP FSCD (Financial Services in Collection and Disbursement) comes in to help!
By seamlessly integrating cutting-edge contract and policy management technology with the intricacies of financial operations, SAP FSCD redefines how insurance and financial organizations manage their financial processes, collections, and disbursements.
In this article, we discuss the core functionalities, benefits, and real-world applications of SAP FSCD, unveiling its role in revolutionizing the landscape of financial services and enhancing operational excellence across the industry. We’ll also take a look at how our SAP consultant team at Surety Systems can help manage your SAP FS-CD operations and maximize your overall investment.
Let’s get started!
What is SAP FSCD?
The SAP Financial Services in Collections and Disbursements (FS-CD) module is designed specifically for the insurance industry, and it allows companies to perform all necessary collection and disbursement processes on a cross-LoB basis.
SAP FS-CD also makes it easier for users to leverage connections with coinsurance business partners and brokers to map invoicing processes across the entire organization.
With SAP FSCD functionality, companies can efficiently handle the following tasks:
- Payment processing
- Open item accounting
- Incoming payment processing
- Correspondence and dunning
- And more!
Understanding SAP Collections and Disbursements (FS-CD)
SAP Collections and Disbursements provides an integrated interface and intelligent capabilities that help organizations in the insurance business industry manage all the processes required for sub-ledger accounting and streamline billing for brokers and coinsurance business partners.
The main functions of SAP FS-CD are part of the Business Function Set (BFS), and the BFS must be activated to allow users to implement the Collections and Disbursements module and build the proper customizations as outlined in the company’s implementation guide.
By leveraging the SAP FS-CD module and its integrations with other core SAP solutions, companies can manage and transfer business partner master data between systems and control the posting of required master data to administrative systems, like Claims Management, Commission Management, Reinsurance Management, and Policy Management systems.
Key Capabilities of the SAP FSCD Solution
1) Master Data
The SAP Financial Services Collections and Disbursements module offers enhanced master data governance capabilities, including solutions for Financials, Custom Objects, Business Partner, Customer, Supplier, and FI Contract Account.
Here are the main capabilities of each master data management option:
- Financials: Enables customers to manage and control the creation, redesign, and deletion of financial master data across their SAP system and offers more information about the activities needed to configure activities in Master Data Governance for Financials.
- Custom Objects: Provides the information needed to set up Master Data Governance for Custom Objects and supplements the information required to customize financial master data.
- Business Partner: Offers the information needed to set up Master Data Governance for Business Partner, allows users to execute customization activities, and enables customers to control the creation and management of business partner master data more effectively.
- FI Contract Account: Provides the information needed to configure, customize, and monitor FI Contract Account master data and supplements the information provided in Customizing.
2) Financial Customer Care
Financial Customer Care resources in SAP FS-CD provide service center agents access to their customer’s financial data through an intelligent, web-based user interface.
With these resources, companies can manage operations across the Interaction Center WebClient, streamline industry-specific functions, and facilitate better integration with Contract Accounts Receivable and Payable.
3) Contract Accounting
The Contract Accounting component acts as a subledger, comprising all the core functions of Contract Accounts Receivable and Payable and offering built-in integrations with SAP Finance and other business-critical SAP solutions.
It helps organizations across industries implement the most critical functions of accounts receivable accounting, including payment, posting, and dunning for larger document volumes.
4) Credit and Collections
By leveraging the Credit and Collections Management component, companies are enabled to streamline credit management and process delayed payments in a centralized location.
Core Processes Encompassed in the SAP FSCD System
Here are a few of the main business processes covered in the SAP FS-CD module:
- Business Transactions: With SAP FS-CD, companies can leverage automation tools to process and post business transactions more efficiently and manage required definitions to control the general procedures and customized features needed for optimal performance.
- Coinsurance: The coinsurance business component of the SAP FS-CD module is only required for companies that share risks with other companies in the insurance industry, and it helps them manage contracts for premium shares and claim shares and post premiums and claims to the associated contract.
- Payment: With a flexible, intelligent payment processing foundation, SAP FS-CD makes it easier for organizations to process and manage payment transactions for premiums and claims and customize their payment management processes to meet customer and company needs.
- Posting: At its core, SAP FS-CD is designed to help companies create master data for posting and processing relevant insurance business transactions, automatically posting related documents, and processing documents for future correspondence.
- Broker Collections: SAP FS-CD initiates the payment process for brokers, including individual agents or small companies, and facilitates efficient communication between brokers and their customer base if needed.
Main Advantages of the Collections and Disbursements Module
SAP FSCD offers a multitude of advantages that empower organizations to streamline their financial operations, enhance experiences for customer and SAP business partner groups, and make data-driven decisions in an increasingly complex financial landscape.
Here are some of the main advantages of SAP Financial Services in Collection and Disbursement:
- Integrated Financial Management: The FSCD module in SAP provides a comprehensive and integrated platform for managing financial operations, including collections, disbursements, and accounting. This streamlines financial processes, reducing the need for disparate systems and manual interventions.
- Efficient Collections: The module offers advanced tools for efficient and automated collections management. It enables organizations to optimize their debt collection strategies, reducing outstanding receivables and improving cash flow for incoming payments.
- Real-time Visibility: SAP FSCD provides real-time insights into financial data, allowing organizations to monitor their financial positions, transaction statuses, and performance metrics. This visibility facilitates informed decision-making and enhances financial planning.
- Automation and Workflow: Automation of repetitive tasks and workflows is a key advantage of SAP FSCD. This reduces manual effort, minimizes errors, and accelerates financial processes, leading to increased efficiency across your contract accounts receivable and payable operations.
- Flexible Payment Processing: The module supports multiple payment method options, including electronic funds transfer, credit card payments, and direct debits. This flexibility caters to diverse customer preferences and improves payment processing efficiency.
- Compliance and Regulation: FSCD in SAP helps organizations stay compliant with financial regulations and industry standards. It incorporates features that assist in adhering to legal and regulatory requirements, reducing the risk of penalties and legal issues.
- Enhanced Customer Experience: With streamlined collections processes, organizations can offer better customer experiences. SAP FSCD enables personalized interactions and timely communication, fostering stronger customer relationships.
- Accurate Financial Reporting: The module’s robust reporting and analytics capabilities enable organizations to generate accurate and comprehensive financial reports. This supports financial transparency, audit readiness, and informed decision-making and helps companies manage billing processes more efficiently.
- Risk Management: FSCD in SAP provides tools for assessing and managing financial risks. It aids in identifying high-risk customers, evaluating creditworthiness, and implementing risk mitigation strategies across the entire insurance sector.
- Integration with Other SAP Modules: SAP FSCD seamlessly integrates with other important SAP modules, such as SAP CRM (Customer Relationship Management) and SAP ERP (Enterprise Resource Planning). This integration promotes data consistency and collaboration across various departments.
- Customization and Configurability: Organizations can tailor SAP FSCD to their specific business requirements through customization and configuration options. This adaptability ensures that the module aligns with unique business processes and cross-industry tasks.
- Cost Savings: By automating tasks, reducing manual errors, and enhancing efficiency, SAP FSCD contributes to cost savings in the long run. Organizations can allocate resources more effectively and minimize operational expenses.
How Can We Help?
Whether you need help outlining plans for a new SAP implementation project, additional support managing your most important incoming and outgoing payment methods, or just an extra hand connecting your internal administrative systems for improved efficiency, Surety Systems is here to help.
Our team of senior-level, US-based SAP consultants has the skills, experience, and know-how to handle all your project needs, from implementation to integration, upgrade, enhancement, and everything in between. Your technology. Your priorities. Our expertise. That’s just the way we roll at Surety.
And, in the past three years, our team of SAP consultants has been engaged on more than 100 consulting projects, making us the perfect fit for all your unique SAP project needs!
Getting Started with Our Team
Interested in learning more about how SAP FS-CD facilitates more efficient premiums and claims management and fosters more efficient transaction posting by administrative systems, or where our SAP consulting services can fit in your organization?
Contact us today to get started!