Configuring Income
  • 15 Feb 2024
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Configuring Income

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Article Summary

Income covers the different income categories from the investments. For example, within a real estate investment pool you may have income categories for rental property income and another for business property income.

You can:

  • Create different income categories by selecting Create Income Category.
  • 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 Income 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.

Income

Income parameters

ParameterDescriptionRequired
Effective dateThe date when the change should be implemented.YES
NameThe name of the income category. Include at least 3 or more letters or numbers, symbols cannot be used.YES
StatusWhether the income category is currently active or inactive.YES
DescriptionDocument additional details or context related to the income category.NO
AccountIdentifies the GL account associated with the income.YES
Income sourceThe source of the income. NOTE: default value - Islamic finance, not editable for Early Access.YES
Allocation methodSpecifies the method employed for allocating profits (Select option from drop-down: Average balance (default); Number of accounts; Percentage). Will not have any impact if the pool:income relationship is 1:1.YES
PoolsThe investment pools that are associated within the profit-sharing system.YES

Allocation method

  1. Average Balance (Default):
    This method calculates profit allocation based on the average balance of accounts over a specified period, typically a day or a month. It ensures that profit distribution reflects the overall balance of accounts during the defined period.

  2. Number of Accounts:
    With this method, profit allocation is determined by the total number of accounts participating in the profit-sharing scheme. Each account receives an equal share of the total profit, regardless of individual balances. It provides a more egalitarian approach to profit distribution.

  3. Percentage:
    This method allocates profit based on the percentage of each account's balance relative to the total balance of all participating accounts. Accounts with higher balances receive a proportionately higher share of the profit, reflecting their greater contribution to the pool of funds.


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