Let’s discuss about what is the difference between FS-CD and FPSL. SAP FPSL (Financial product subledger) is SAP’s solution for not only insurance but the entire financial services industry sector like banks, insurances, reinsurance companies, fintechs and corporates. It is designed for these corporations to keep up with key accounting regulations, like IFRS 9, IFRS 17 and US GAAP. 

SAP FPSL is SAP’s solution to support various financial services corporations to manage finance products as separate sub-ledger and enable instant financial insight at any level of detail for analytics and reporting. 

Similarities 

Lets first discuss about the similarities between FS-CD and FPSL 

• FS-CD and FPSL both are subledger systems i.e. they are designed to capture and record contract level posting details. They both capture transactions that happen on each insurance policy unlike General ledger which captures only the aggregated amount. 
• Both FS-CD and FPSL use double sided accounting meaning each subledger document has both +ve and -ve figures. 
• Both have out of the box capabilities to transfer the aggregated postings to GL.
• Both rely on GL configurations like company codes, charts of accounts, exchange rates, currencies etc. .
• Both have contract account and business partner as master data. 

Differences

Lets now talk about differences which may be more interesting. 

• FPSL is not open item managed, unlike FS-CD which is open item managed. When you post a document ( for example premium to be paid by customer and posted as receivable ), FS-CD knows that this document/posting has a receivable amount which is open and should be cleared when customer makes the payment. But FPSL does not know whether it’s a receivable or an open item. 
• Unlike FS-CD, FPSL does not have operational features like (payments, correspondence etc.). More details on the specific chapters. 
• FS-CD does not have calculation features like estimated cash flow, accruals, deferrals etc. 
• FPSL is industry-independent like FI-CA, but FS-CD is insurance-specific.