- 20 Feb 2024
- 2 Minutes To Read
- Updated On 20 Feb 2024
- 2 Minutes To Read
Deductions within the profit-sharing framework include various categories such as Mudarib, risk, administration fees or others. Multiple deductions can be associated with a Pool. and the sequence for treating these deductions in profit sharing calculations can be managed at the Pool level.
It's possible to create a Pool without any Pool category. Additionally, a Pool an be created with a 0% or 0 amount for a Deduction category, specifically if there's a requirement to establish a deduction category solely for Mudarib share purposes.
- Create different deduction categories by selecting Create Deduction.
- You can add deduction categories and specify an effective date for each category by accessing Modarib Share Settings.
- Edit existing options by selecting the Actions button and then choosing Create New Version.
- View existing options by selecting the Actions button and then opting for View.
- Copy existing options by selecting the Actions button and then choosing Create New Deduction from this.
- Deactivate existing options by selecting the Actions button and choosing Deactivate.
- Delete existing options by selecting the Actions button and then opting for Delete.
Note: First, establish a deduction GL account, then define the deduction category, configure the Mudarib Share Settings and finally update the processing sequence at the Pool level.
|The date when the change should be implemented.
|The name of the deduction category. Include at least 3 or more letters or numbers, symbols cannot be used.
|Whether the deduction category is currently active or inactive.
|Document additional details or context related to the deduction.
|One of the deduction categories must pertain to Mudarib shares. This account will be utilised for modifications in calculated interest rates and the percentage of utilisation.
|Identifies the specific type of profit-sharing to use (Percentage or Amount). These types show how to calculate the amount for the Deduction category from Gross profit. The deduction can be either positive or negative. A negative deduction decreases the distributable profit, while a positive deduction increases it.
|Default percentage / amount
|Sets the initial percentage for the deduction rule.
|Minimum percentage / amount
|Sets the minimum percentage for the deduction rule.
|Maximum percentage / amount
|Sets the maximum percentage for the deduction rule.
|Pools that are associated with the deduction. The sequence of Deductions categories in the Pools are very important, as they show priorities of calculations.