Setting up Deposit Products with Profit Sharing

A Shari'ah-based deposit product allows you to set up in advance the parameters for a type of deposit that you wish to regularly offer, where returns are shared between the account holder and the institution. These products are flexible and highly customisable, designed to create individual accounts that distribute profits based on predetermined agreements.

Create a Shari'ah-based deposit product

For general setup and configuration instructions, please refer to the main guidelines under Setting Up New Deposit Products. However, there are some specific configurations that apply to a profit sharing product:

1. Navigate to Administration > Products > Deposits and click New Deposit Product.
2. In the Creating a New Deposit Product screen at Administration > Products > Deposit, select Profit Sharing: Yes.
3. This will cause the following to happen:
   • The Interest Rate section will disappear, and you will no longer be able to configure the interest calculations for the product.
   • The Overdraft Conditions section will have the Allow Overdraft option disabled.
   • the Accounting Rules section will have additional Cash and Accrual categories for Profit Expense and Profit Payable.
     
4. After creating the product, it will appear in the list of products, with the Calculation Method column listed as Profit sharing.
   • The product cannot be changed to an interest-based product once it has been created.
   • The existing deposits product cannot be enabled with Profit sharing.