Submit proposal
  • 31 Jan 2024
  • 4 Minutes To Read
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Submit proposal

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Article Summary

Before submitting a proposal for approval, it is possible to review all the information included in the proposal under the Open proposals section.

View proposal

Before submitting a proposal for approval you can review all the information included in the proposal.

You can:

  • View a default proposal by selecting the Details.
  • Create a custom proposal by selecting the Copy of a defaul proposal and view proposal by selecting the Edit.

View proposals

The user can review information about the proposal including detail on the investment pools, classes, accounts, income and expenses, as well as deductions. These are explained individually in the following section.

1. View Pools
View Pools displays information about investment pools. These parameters are described below.

View pools in proposal

ParameterDescription
Pool nameThe name is defined by a user under Pool configurations
Start date of the poolThe date when the Pool is created in Pool configurations
Gross profitThe value is calculated using this formula: Pool Gross profit = Pool Income - Pool Expenses
Net profitThe value is calculated using this formula: Pool Net profit = Pool Gross profit - Pool Deductions
Profit rateThe value is calculated using this formula: Profit rate = Pool Gross profit - Pool Deductions
Eligible account balancesThe sum of the eligible balance of all available accounts associated with the selected pool.
Bank share %This % represents the percentage of the bank's total profit share and it is defined under the Class configurations
Customer share %This % represents the percentage of the customer's profit share and it is defined under the Class configurations

2. View Classes
View Classes displays information about investment classes. These parameters are described below.

View pools in proposal

ParameterDescription
Class nameThe name is defined under the Class configurations by a user
Number of accounts in ClassThe total number of accounts in the Class
WeightingThe weighting parameter assigns relative importance to the investment classes for purposes of calculating the proportional profit distribution and it is defined under the Class configurations
Weighted BalanceThe class balance multuplied by the weighting criteria.
Total applied weighted balanceThe class balance multuplied by the weighting criteria.
Bank investment balanceThis amount represents the bank's investment accounts balance based on the weighting criteria
Customer account balanceThis amount represents the customer's investment accounts balance based on the weighting criteria
UtilisationThis % represents the percentage of the profit amount which is dedicated for distribution
Profit shareThis is the total sum of the Bank share amount and the Customer share amount at a Class level
Profit rateThis is the profit rate at Class level. It is calculated using this formula: Profit rate = Class Profit shared amount / Total applied weighted balance * 100
Mudarib share from profitThis amount represents the amount from fixed rate rule (which is defined at Class configurations)
Bank shareThis amount represents the total bank share and includes the bank investment account + total of bank share % defined at a class level + Mudarib share from fixed rate rule.

3. View Accounts
View Accounts displays account level information. These parameters are described below.

You can view the Accounts associated with the specific Investment Class by selecting the activated Class name.

View accounts

Then you can view information about Accounts:
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ParameterDescription
AccountsThis number shows the number of accounts included in a Class
BalanceThis amount shows the total balances of all accounts in a Class
Bank % amountThis amount shows the cumulative balance of the Bank share investment accounts in a Class
Customer profit shareThis amount shows the culumative balance of the Customer share accounts under a Class
Mudarib amount adjustmentThis amount shows the adjustment of profit rates or amounts that affect the Mudarib share account
Accounts IDThis identification number is reflected from the Mambu Deposit Account
BalanceThis amount shows the eligible balance of the Account during the profit period
Bank shareThe bank share % that is defined by a user under the Class configurations
Customer shareThe customer share % that is defined by a user under the Class configurations
Bank share amountThis amount shows the calculated profit amount for all of the bank's accounts
Customer share amountThis amount shows the calculated profit amount for all of the customer's accounts
Customer profit rateThis % shows the calculated profit rate from the customer profit amount, which is calculated by the system for distribution on account
Customer profit amountThis amount shows the calculated profit amount by the system for distribution on account

4. View Income & Expenses
View Income & Expenses displays information on Income and Expenses and their contribution to the Gross Profit Calculations for the investment pools. These parameters are described below.

  • Income & Expenses graph
    This view allows a user to compare Investment Pools by Income & Expenses.

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  • Income & Expenses information
    Detailed information about Income and Expenses including allocation methods and distribution across Pools can be viewed by selecting Details

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5. View Deductions
View Deductions displays detailed information on Deductions and their constribution to the Gross Profit Calculations for the investment pools. The graph shows the difference by the Pools.

  • Deductions graph

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  • Deductions information
    Detailed information about Deductions including deduction rules and their impact on the Net Profit Calculations can be viewed by selecting Details
    Note: the order of the deduction categories are important for the sequence in which the deductions are processed in the profit calculation. In the table you can see how each Deduction category impacts Net profit.

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Submit proposal

After reviewing the proposal, the next step of the Islamic profit sharing process is to submit the proposal for approval.

You can:

  • Submit a custom proposal by selecting the Ready for approval.
  • Default proposals are automatically sent for approval by the system. The next section describes the apporval process in detail.

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