User Manual Guide: Profit Calculation System

Transcription

1 User Manual Guide: Profit Calculation System Path Solutions Version

2 Table of Contents 1. Overview Workflow Using the Mouse to Define Screen Layouts <SHIFT> + LEFT KEY LEFT KEY < SHIFT > + RIGHT KEY RIGHT KEY Toolbar Lookup/Query in Application Information Parameters Control Record Maintenance Approve Update After Approve Profit Calculation Group Maintenance List By Code By Description Account Class Maintenance List By Code By Description General Ledger Maintenance General Ledger List By Code By Description Accounts Type Maintenance List By Code By Description Fixed Maturity Accounts Maintenance List Balance Sheet Accounts Contra Accounts FID: Page 2 of 181

3 3.7. General Accounts Maintenance List Balance Sheet Accounts Contra Accounts Internal Accounts Maintenance List Balance Sheet Accounts Contra Accounts Maintain Accounts Rates Maintenance Trial Run - Profit Calculation Approve Trial Run Profit Calculation Final Run Profit Calculation Produce Letters to Accounts Holders Reprint Calculation Delete Calculation Records Populate Account with Rate Set Account Pools URIA Accumulated Profit by CIF Outstanding Profit Profit Write-off Zakat Process Reports Detailed Profit Calculation Participation Total for Accounts by CIF Average Balance Report Rate of Return Report Participation Factor History Profit Accruals Details History FID: Page 3 of 181

4 1. Overview This User Manual Guide helps the user to become more acquainted with the new system environment. In this module, the user works on step-by-step procedures to define the detailed information about the workflow procedures and concepts employed in Islamic Profit Calculation and the other modules. The maintenance and processing of both transactions and static data are subject to certain workflow procedures inherent throughout the system. The procedural explanation is mentioned below with the help of screen layouts. Conventions used in this manual Different symbols are used in this text to denote various types of information. This symbol is used to indicate all the related topics of the specific field or option. This symbol is used to indicate all the key points of the specific field or option. IslamicProfitCalc is a fully integrated module with the following modules in the system: NostroVostro Non-internal Accounts are defined in NostroVostro, where the user can define the Nostro accounts for the Company accounts and Vostro accounts for the Clients accounts. The Non-internal accounts can be retrieved in IslamicProfitCalc. Accounting The General Ledger Codes (for On Balance Sheet items) and Contra Chapter Codes (for Off Balance Sheet items) for the client as defined in Accounting are to create the detailed account codes for the internal and the non-internal Accounts. The GL Code of 6 digits is defined in Accounting. The same code can be defined under NostroVostro. NostroVostro deals with Non-internal General Ledger and Contra Chapter Codes defined under Accounting. The final Account code can be invoked in Accounting for creating the transactions. CIF The CIF defined under the CIF module is a part of the Non-internal accounts created in NostroVostro. It gives detailed information about Customers, Suppliers, Counter- Parties and Contributors. FID: Page 4 of 181

5 Assets ASSETS handles the international, as well as the local portfolios/shares/funds transactions. The transactions are posted to Accounting through the Post to Accounting process. IslamicInvest Islamic Invest handles the treasury transactions created for the Islamic investments. The transactions are posted to Accounting through the Post to Accounting process. DirectInvest DirectInvest fully caters for direct investments. Each deal represents many companies of different types and roles, such as Syndication companies (Synco), Permanent voting companies (PV), Permanent non-voting companies (PNV), Holding companies (HolCo), and Operating companies (OpCo), etc. Data entry is done at a macro level; thus, minimizing time and error. The system handles all kind of investments, such as investment placements, Self-Lending, REITS. etc. Registrar The fund registrar module enables the bank to present its funds on the counter at the level of the different branches. The system allows the management of funds and clients investments in these funds, such as subscriptions and redemptions management at branch level along with the related revenue analysis, NAV calculation and client position revaluation CTS The transactions entered in CTS (Client Transaction Management) are updated online to the respective account codes in the Accounting. The user does not need to process the posting procedure. The Islamic Profit Calculation is designed to compute and distribute the generated profits from the bank s investments to the depositors accounts in compliance with Islamic Shari a. The profit distribution is based on management set criteria and parameters. FID: Page 5 of 181

6 1.1. Workflow In order to access Islamic Profit Calculation module, the user should be granted the related access privileges at the level of SADS Access Privileges Maintenance Option. To access the Islamic Profit Calculation module, the user has to log in to IMAL Islamic Mal using his User Id and Password. In addition, he must input the corresponding Company and Branch codes. The password is case sensitive; the user should input the password as defined in the system. Otherwise, the system displays a warning message Invalid Log on User ID and Password. FID: Page 6 of 181

7 A list of the applications that the user has been given access to is shown in the IMAL Islamic Mal window. FID: Page 7 of 181

8 The user can either double click on IslamicProfitCalc to open the application, or he can right-click on it whereby a Login window opens allowing him to log in to IslamicProfitCalc. FID: Page 8 of 181

9 After clicking on the Login button, the following screen is displayed. The screen is divided into four parts as mentioned below. Header: Header is shown at the top of the screen Menu: Menu is shown under the Header, at the left side of the screen Workspace: Workspace is shown under the Header, at the right side of Menu. Bottom: Company Name, Branch Name, User Name, Running Date and Time are displayed at the bottom of the screen FID: Page 9 of 181

10 When the user clicks on the Action button displayed at the top of the screen, the dropdown menu is shown containing the following options: Close The Close option closes the screens that are opened earlier. Preference The Preference option is divided into three sub-options viz. Menu, Color and Idle. The module displays the preferences defined by the System Administrator in SADS. The user in this module can modify these preferences. Menu The Menu option displays four sub-options viz. Maximize, Normal, Auto Hide and Change Fonts. If the user clicks on Maximize, the screen fully occupies the workspace. On the other hand, if the user clicks on Normal, it retains its initial size. The Auto Hide function can work either with Maximize or with Normal. This function enables the Workspace Area to cover or uncover the Menu Area depending upon the mouse movements. The Font function enables the user to increase or FID: Page 10 of 181

11 decrease the font size and select a font type other than the one defined for the user in SADS. Color The user can change the colors defined for him in SADS by clicking on the Color option and choosing from the various colors to change the color for Header, Menu Text, Background and Workspace. After selecting the color, the user clicks on Apply; hence, the color that was selected is displayed on the screen. The user clicks on OK to close the corresponding window. The color remains the same as long as the user does not log out from IMAL Islamic Mal. FID: Page 11 of 181

12 Idle If the System Administrator grants the access privileges to the user in SADS, the user can change the Idle preference defined for him in SADS by clicking on the Idle option. The user sets his idle preferences i.e. the number of hours and minutes for the system or windows to automatically Shutdown. Upon clicking on the Idle option, the screen is displayed as shown below. In Shut down, the System logs out the user if, after a period of time defined under the Idle option, he did not use the computer. Running Date This option allows the user to specify and, later on, to modify the system date. It is automatically updated during the End of Day process. Only one user should be logged into the system at the time of changing the running date. FID: Page 12 of 181

13 User Running Date The user can temporarily update the system s running date on his machine only by accessing the User Running Date option. The system restores the original Running Date at the next log on. The user can change the User Running Date even if other users are logged in to the system since the change only affects the system running on his machine. FID: Page 13 of 181

14 Switch Branch The user invokes this option to switch branch. He can choose the Branch name from the Drop down list box. He invokes the Ok button to confirm his choice or he can click on the Cancel button to close the window. FID: Page 14 of 181

15 Password The user can change the password defined for him in SADS by clicking on the Password option. First, the old password or predefined password from SADS is to be inputted. Second, the user inputs the new password. He reconfirms the new password by inputting it again. Then, he clicks on OK to confirm the password. This process replaces the old password with the new password. The password is case sensitive. FID: Page 15 of 181

16 Calculator To use the calculator, the user clicks on the Calculator option. The calculator is also available by double clicking on any numeric field. FID: Page 16 of 181

17 Printer Setup The user sets the default printer for the application via this option. Restart By clicking on this option, the system logs out the user from the application, and displays the login screen. Then, the user inputs his User ID and the other details to relogin. Exit By clicking on this option, the user logs out from the application. FID: Page 17 of 181

18 1.2. Using the Mouse to Define Screen Layouts The Menu options related to screen layouts can be invoked by clicking any mouse key or mouse key + SHIFT on the area above the workspace <SHIFT> + LEFT KEY The <SHIFT> + LEFT KEY menu displays the following screen-layout options: Help The help option is invoked to get detailed information about any screen, field, option, etc The user invokes this option either from the menu or by pressing the F1 key. FID: Page 18 of 181

19 About A screen is displayed, as shown below, containing detailed information about the module used, such as, its version number, the company which developed it, the license name and the user ID. Show Full Screen The Workspace area is maximized by covering the Menu area via this option. Hide Full Screen The Menu area is maximized by covering the Workspace area via this option. Divide Screen The Menu area and Workspace area are divided equally via this option. FID: Page 19 of 181

20 Default Screen The Default Screen, which is the initial screen, is displayed via this option. It only works when the screen is in Show Full Screen, Hide Full Screen or Divide Screen modes LEFT KEY The LEFT KEY menu displays the following screen-layout options: Normal The screen opened retains its normal size in the workspace. Please refer to Menu under Preferences Minimize The screen opened in Normal/Maximize mode is minimized, and its header is displayed at the bottom of the workspace area. FID: Page 20 of 181

21 Maximize The screen opened in Normal/Minimize mode is maximized by covering the Menu area via this option. Normal All The multiple screens opened in Minimize/Maximize mode are displayed in Normal display via this option. Minimize All The multiple screens opened in Normal/Maximize mode are minimized, and their headers are displayed at the bottom of the workspace area via this option. Maximize All The multiple screens opened in Normal/Minimize mode are maximized by covering the Menu area via this option. Prev Sheet The user can view the previous sheet from the multiple sheets available on the screen via this option. Next Sheet The user can view the next sheet from the multiple sheets available on the screen via this option. FID: Page 21 of 181

22 < SHIFT > + RIGHT KEY The < SHIFT > + RIGHT KEY menu displays the following screen-layout options: Menu Preference Please refer to Menu option under Preference. Color Preferences Please refer to Color option under Preference. Idle Preference Please refer to Idle option under Preference. Expand Tree This option shows the sub-menus available under the selected Menu header. The tree can also be expanded by double clicking on each Menu header. FID: Page 22 of 181

23 Collapse Tree This option undoes the Expand Tree option. The menu tree can also be collapsed by double clicking on each Menu header. Startup Menu This option opens the START menu for Windows. Close The user closes the current screen in the workspace area via this option. Close All The user closes all opened screens via this option. Exit The user logs out from the system via this option. FID: Page 23 of 181

24 RIGHT KEY The RIGHT KEY menu displays the following screen-layout options: Floating The toolbar can be moved to any part of the screen via this option. Show Text The text displayed under each button in the toolbar can either be removed or displayed via this option. Show Tips The notes that are displayed, after pointing the cursor on each button, are either removed or shown via this option. FID: Page 24 of 181

25 Cascade The multiple screens opened can be viewed in the workspace area via this option. Tile Horizontal The multiple screens are displayed horizontally in the workspace area via this option. Tile The multiple screens are displayed vertically in the workspace area via this option. Layer A single screen, from the multiple opened screens, is displayed in the Maximize mode in the workspace area via this option. Arrange Icons The buttons scattered all over the screen are arranged in order via this option. FID: Page 25 of 181

26 1.3. Toolbar The toolbar consists of different buttons that help the user operates in the application. The number and type of buttons vary from one screen to another, depending on the type of processes that can be done in the screen. One commonly used technique, in the toolbars, is the CRUD, which is displayed only after clicking on the Maintenance menu. This technique allows the user to Create, Retrieve, Update, and Delete the records. The CRUD technique used for each maintenance process is available as well in the Records drop-down menu. The following represent the main buttons found in the toolbars: Close Please refer to the Action Menu. SMART This option allows the user to link additional fields that are non-existing in the system. These fields become part of the record. This option must be enabled and defined in SADS. FID: Page 26 of 181

27 Application Maintenance at the level of SADS module. Record In the Record option, the user can input information related to a single record. The user can change this information, add to it or remove it. In the Record Log option, the user can input information related to a single record. Contrary to the Record option, the user cannot change the information or delete it. He can only input new information. In the Entity option, the user can input information related to all records in a single entity. The user can change this information, add to it or remove it. In the Entity Log option, the user can input information related to all records in a single entity. Contrary to the Entity option, the user cannot change the information or delete it. He can only input new information. There is a trace log for all the information input previously. The information can be saved as a text file, assigned to the printer to generate a hard copy, or sent via . Create The screen for creating a record is displayed via this option. Retrieve By invoking this button, a Lookup/Query window pops up to the user, allowing him to select the desired record. Update This option saves the created record or the changes done to an already existing record. Delete This option deletes a certain record after retrieving it from the Lookup/Query window. FID: Page 27 of 181

28 First This button retrieves the first record. Previous This button retrieves the previous record. Next This button retrieves the next record. Last This button retrieves the last record. Audit Report This option allows an administrator to inspect users actions, such as creation, deletion, retrieval, and modification on a specific record, in a specific screen, in any application. For this option to work and for its button to be enabled, it should be activated from the SADS module at the level of Application Maintenance screen. Application Maintenance Screen at the level of SADS module This option is only to be checked next to the maintenance screens and not all of the screens. By invoking this option, an Audit Report window is displayed, as shown below. FID: Page 28 of 181

29 The Action Date, Action Type, User ID, and Machine ID column are displayed in the window. The listed information only relate to the specific record for which the Audit Report window was invoked. Action Date It displays the exact date and exact time of the user s action on the record, in a specific screen. Action Type It displays the specific action that the user has done on the record, in a specific screen. The actions are Create, Retrieve, Delete, and Update. User ID It displays the user who is responsible of the action done on the record, in a specific screen. Machine ID It displays the exact computer from which the action was done on the record, in a specific screen. FID: Page 29 of 181

30 The user can choose to filter the displayed information by specifying a search criterion in the Filter By and = fields. If the user selects from the list an action of Update type, the Details button is enabled. By clicking on Details, Audit Report Details window is displayed, containing the details pertaining to the updating action done on the record. The Field Name, Old Value, New Value, Modification Date, and Running Date columns are displayed in the window. FID: Page 30 of 181

31 Field Name This column displays the name of the field where the action was done. Old Value It displays the old value, which was replaced with the new value before updating the record. Before inputting the new value, the field could have been empty. New value It displays the new value which replaced the old value in the field specified in Field Name in the record on which the updating action was done. Modification Date It displays the exact date and exact time of the user s updating action on the specified field, in the record, in a specific screen. Running Date It displays the running date of the system at the time when the updating action was done on the specified field. FID: Page 31 of 181

32 1.4. Lookup/Query in Application Right clicking on a field or clicking on the Retrieve button in the toolbar in specific screens opens a Lookup/Query window allowing the user to retrieve a record, as shown below. The title of the Lookup/Query window changes depending on the field or screen from which the window was invoked. After clicking on the Retrieve button in the Lookup/Query window, the button is converted into a Query button, and the records are displayed, as shown below. The user can choose a record either by selecting it and clicking on OK or by double clicking on it. FID: Page 32 of 181

33 Furthermore, the user can limit his search by specifying a search criterion in the Lookup/Query window. The criterion can be defined by inputting specific value(s) in specific field(s) and/or by using the Like % function. Then, after clicking on the Retrieve button in the Lookup/Query window, this button is converted into a Query button, and only the records that correspond to the search criterion are displayed. The Like % function retrieves all records starting with the value, which is case sensitive, preceding the %. For example, if the user inputs Like BA% in the Brief Name field and clicks on Retrieve in the Lookup/Query window, all the records starting with BA in their brief name are displayed in the window. This function applies only on non-numeric fields. The user inputs specific value(s) in specific field(s) to retrieve the corresponding records. For example, the user inputs 1 in the Civil Code field. Then, he clicks on Retrieve in the window. If the record of civil code 1 already exists, it is displayed to the user in the Lookup/Query window. Otherwise, no record is displayed. If the user clicks on Query, the search criterion - which the user had already specified before clicking on Retrieve - is again displayed to him. Thus, enabling him to modify it. FID: Page 33 of 181

34 2. Information Security is an important consideration in any automation system. Each and every action, i.e. Creating, Retrieving, Updating, Deleting, Suspending or Reactivating a record, is subject to the access privileges granted to the user attempting to carry out that function. Each and every user must be assigned access privileges via SADS, the System Administration and Security module. The Authorized User defined in SADS can define the Parameters for Profit Calculation Group, Account Class, and Accounts Type. Some of the parameters are already defined in the Accounting and NostroVostro modules viz. Fixed Maturity Accounts, General Accounts, Internal Accounts and General Ledger. The elements under the Maintenance menu option comprise the parameters and controls of the system. That being said, defining these elements constitutes a primary prerequisite to the operation of the system. Each option is explained in detail with the help of the following screen layouts: Profit Calculation Group Details Account Class Details General Ledger Details Accounts Type Details Fixed Maturity Accounts Details General Accounts Details Internal Accounts Details Maintain Account Rates The parameters for the IslamicProfitCalc define the Profit Calculation Group, Modarib Rate and Risk Provision. When clicking on Parameters, the various options under parameters are displayed in the Menu Area. After defining the parameters, the user can launch the Trial Run and Final Run processes, produce letters to account holders, reprint calculation, delete calculation records, populate account with rate, set account pools, retrieve URIA accumulated profit by CIF, check the outstanding profit of a CIF, write off certain profit after a certain amount of time and launch the Zakat process. The maintenance screens are explained in detail in the manual. The user can also generate reports for the Profit Calculation under the Reports menu. The following reports are available under Reports option: Detailed Profit Calculation, Participation Total for Accounts By CIF. Average Balance Report, Rate of Return Report and Participation Factor History. If assigned proper access privileges at the level of SADS, the user can save the listing, which is displayed on the screen, as a text file, or he can send it to the printer to generate a hard copy. FID: Page 34 of 181

35 3. Parameters The elements under the Maintenance menu option comprise the parameters and controls of the system. Defining these elements constitutes a primary prerequisite to the operation of the system Control Record This menu controls IslamicProfitCalc options in the system Maintenance The user invokes this option to define the standard parameters that affect the IslamicProfitCalc module. Under this option the CRUD Technique is available that helps the user Create, Retrieve, Update and Delete a record. The Reference of the Control Record - Maintenance screen is P001. FID: Page 35 of 181

36 The following fields are available: Status The system displays the status of the record, whether it is Created, Approved, Modified or Deleted. The user invokes the button and a Status Details window appears displaying the status (Created / Approved / Modified / Deleted) of the record by User ID and by Date. The screen is displayed as mentioned below: FID: Page 36 of 181

37 Profit Calculation Group This field represents the Profit Calculation Group. It can be either Profit Group Code or Profit Group Name. The user selects the Profit Calculation Group from the Drop down list box. This is a mandatory field. The Profit Calculation Groups are created at the level of the Parameters Profit Calculation Group. Modarib A/C This field represents the Modarib account which is used to record the Bank s deduction value as a result of Modarib Profit revenue.. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. The account is in the base currency of the company Risk Provision A/C This field represents the risk provision account which is used to record the resulting deduction value pertaining to Risk Provision. FID: Page 37 of 181

38 The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. This account is in the base currency of the company. Cost of Fund A/C (Weaa El Mudaraba) This field represents the cost of fund account which is the account where the expenses related to the revenue generating assets are recorded. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. These expenses are a percentage of the regular expenses of the bank. The allocated percentage is defined at the level of Parameters - General Ledger.- GL Factor %. Post Below Min. Balance Accounts Profit Into This field represents the account in which will be posted the profit that goes to the depositor s account whenever his balance falls below the minimum required for it. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Other Provision A/C This field represents the other provision account which is used to record any additional deduction value. It is a liability account. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. This account is in the base currency of the company. Bank Contribution A/C This field represents the account in which the contribution amount to be paid by the bank as profit for customers is accrued. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. In the Currency part of the account number, the Pool currency is automatically displayed in case the pool has different currencies. Liability transferred to revenue A/C This option represents whether to allow the user to specify a revenue account in case the liability accounts are defined in the GL Details button for the Assets/Rev/Expenses Basis drop down list box. - If it is flagged, the account field appears whereby the user can specify a revenue account either by inputting it manually or by retrieving from the Lookup/Query window. In addition, the liability accounts must be defined in the GL Details button for the Assets/Rev/Expenses Basis drop down list box. FID: Page 38 of 181

39 - If it is not flagged, the account field is invisible. Hence, the user cannot specify a revenue account. Apply penalty for system generated charges This field represents whether to apply penalty for system generated charges or not. The values available for this option are: Yes and No. - If the user selects the Yes value, at the level of Parameters - Maintain Account Type screen, the system adds the value of the Profit Withheld on Withdrawal Amount field, at the level of the Maintain Account Type Details screen, to the validity date of a charge transaction. - If he selects the No value, the charge transaction s validity date is not modified. Include Foreign Currency Revaluation Transactions in the Profit Calculation This field represents whether to include the FC Revaluation transactions in the Profit Calculation process or not. The values available for this option are: Yes and No. - If the user selects the Yes value, the FC Revaluation transactions will be included in the Profit Calculation process. - If he selects the No value, the FC Revaluation transactions will not be included in the Profit Calculation process. Include Demand Deposit Accounts for Depositors in Profit Distribution This field represents whether to include the demand deposit accounts in the Profit Calculation process or not. The values available for this option are: Yes and No. - If the user selects the Yes value, the Demand Deposit accounts will be included in the Profit Calculation process. - If he selects the No value, the Demand Deposit accounts will not be included in the Profit Calculation process. Apply direct, indirect allocation of assets and expense This option enables the user to choose whether he wants the system to consider the direct and indirect assets and expenses in the calculation of the average assets that generated revenue and WEI Al Mudarabah or not. - If it is set to No, upon processing the profit calculation, the system will not consider the direct and indirect assets and expenses in the calculation. - If it is set to Yes, the system will consider the direct and indirect assets upon processing the profit calculation of the average assets that generated revenue and WEI Al Mudarabah. In this case, the following calculations will be made: FID: Page 39 of 181

40 1- The calculation of the Average Assets that generated Revenues will be as follows: Average assets that generated Revenues = Direct Assets of the pool + Indirect assets amount allocated to the pool. The indirect assets amount allocated to the pool will be equal to: (Total Assets defined as Indirect Assets) * (Assets that are generating income and are directly related to specific pools and defined as Assets at the Control Record level of each pool) / (Total Assets defined as Direct assets) 2- The calculation of WEI Al Mudarabah will be as follows: Total expense of the Pool = Direct Expense of the pool + General expense amount allocated to the pool. The General Expenses amount Allocated to the pool will be equal to: (Total Expenses defined as indirect Expenses) * (Assets that are generating income and are directly related to specific pools and defined as Assets at the Control Record level of each pool) / ( Total assets defined as Direct Assets) The user specifies if an Asset/Expense is direct or indirect at the level of General Ledger Maintenance screen in the Allocation to Pools based on Drop down list box. If an Asset/Expense is set to Indirect, the system will not allow the user to insert the specified GL in the Assets/Rev/Expense Basis GL details button. Assets That Generated The Revenue Based On This field represents the method of calculation for the assets that generate the revenue. The user specifies the method from the Drop down list box. The available options are Average and Ending Balance. - If he selects the Average value, the total of assets that generate the revenue are calculated based on the days of the deposits done on a specific account. - If he selects the Ending Balance, the total of assets are taken into consideration without any constraint. Profit Calculation Days Based On This field represents whether the profit calculation days is based on the actual days or the currency days. The user specifies the method from the Drop down list box. The available options are: Actual Days and Currency Days. FID: Page 40 of 181

41 - If he selects the Actual Days value, the calculation of the profit will be based on the actual number of days of the month during which the profit calculation is being processed. - If he selects the Currency Days value, the calculation of the profit will be based on the Currency Days of the account for which the Profit Calculation is being processed General Accounts Distribution Periodicity This field represents the periodicity based on which profit will be distributed for General Accounts. The user specifies the periodicity from the Drop down list box. The available options are: Monthly, Quarterly, Semi-annually and Yearly. - If he selects the Monthly value, when processing Profit Distribution, the system will credit the current account by the amount of profit generated on a monthly basis. - If he selects the Quarterly value, when processing Profit Distribution for a month different than March, June, September or December, the system credits the non-matured profit payable account specified at the level of the Maintain Account Type Details screen by the amount of profit generated. Otherwise, the system debits the non-matured profit payable account specified at the level of the Maintain Account Type Details screen by the accumulated profit and credits the current account by the same amount. - If he selects the Semi-annually value, when processing Profit Distribution for a month different than June or December, the system credits the non-matured profit payable account specified at the level of the Maintain Account Type Details screen by the amount of profit generated. Otherwise, the system debits the non-matured profit payable account specified at the level of the Maintain Account Type Details screen by the accumulated profit and credits the current account by the same amount. - If he selects the Yearly value, when processing Profit Distribution for a month different than December, the system credits the non-matured profit payable account specified at the level of the Maintain Account Type Details screen by the amount of profit generated. Otherwise, the system debits the nonmatured profit payable account specified at the level of the Maintain Account Type Details screen by the accumulated profit and credits the current account by the same amount. Consider Other Provision, Modarib and Risk Provision A/C Based on This field defines whether the Modarib, Risk, Cost of Fund and Other Provision Accounts should be taken from the Maintain Control Record, from the Maintain Account Type Details screens for each account type or from the total of the gross distributable profit. FID: Page 41 of 181

42 The user specifies basis on which the system must take into consideration the values of the Modarib, Risk, Cost of Fund and Other Provision Accounts from the Drop down list box. The available options are: Control Record, Account Type and Total. - If he selects the Control Record value, when running profit distribution, the system generates accounting entries based on the accounts specified at the level of the Maintain Control Record screen. - If he selects the Account Type value, when running profit distribution, the system generates accounting entries based on the accounts specified at the level of the Maintain Account Type Details screen for each account type. Modarib, Risk, Other Provision Computation On This field represents whether the net profit calculation will be based on the residual or total of the original gross profit. The user specifies the net profit computation from the Drop down list box. The available options are: Residual and Total. - If he selects the Residual value, the system will deduct the other provision % from the original gross profit, then the modarib % will be deducted from the remaining amount, then the risk provision % will be deducted from the remaining amount after deducting the modarib %. The remaining amount will be the net profit. - If he selects the Total value, the system will deduct the modarib, risk and other provision from the original gross profit amount. Profit Calculation Process is This field represents whether the profit calculation process will be generated for all branches or for a specific branch. The user specifies the profit calculation process from the Drop down list box. The available options are: Consolidated and By Branch. - If he selects the Consolidated value, the profit Calculation is run for all branches at one time. - If he selects the By Branch value, the profit Calculation is run for that specific branch. Other Provision Name This field represents the name of the Other Provision A/C. The user specifies the name. He can input up to a maximum of 15 alphanumeric characters. The name will appear in all the reports where the Other Provision A/C is used. FID: Page 42 of 181

43 Assets/Rev/Expenses Basis This field represents whether the calculation of the profit for the assets, revenues and expenses are based on A/C level or on Currency or on both Currency and GL. The user specifies the method of calculation from the Drop down list box. The available options are: Currency, A/C Level and Currency-G/L - If he selects the A/C level value, the profit is calculated for each account. The Profit Calculation Group should be defined for each account at the level of the Fixed Maturity or General Accounts screens depending on the account type. - If he selects the Currency value, the assets/revenues/expenses accounts are grouped by currency and then the profit is calculated. The user should define the Profit Calculation Group for each currency upon invoking the Currency Profit Calculation Groups button. - If he selects the Currency-G/L value, the same GL is specified in different pools with its related participation factor in each pool. A G/L Details button appears to the user. Upon invoking it a new screen pops up containing the General Ledgers that form the Assets and Revenues that generate profit, as shown below: FID: Page 43 of 181

44 The following fields are available: G/L Code The field represents the code of the general ledger assets or revenues that are to be considered in the profit calculation. The user specifies the G/L code either by inputting it manually or by retrieving it from the Lookup/Query window. The description of the General Ledger is automatically displayed next to the code in the G/L Name field. G/L Factor This field represents the percentage of the previously selected GL to be taken into consideration while running the profit calculation. The user specifies the percentage. He can input up to a maximum of 6 alphanumeric characters. G/L Accounts Upon invoking this button, an Accounts Details window is displayed whereby the user can view all the accounts created under the selected G/L code for the currency of the pool and all the branches, as shown below: FID: Page 44 of 181

45 Next to each account, the check box allows the user to specify whether the account will be included in the pool or not. It is defaulted as checked. The user unchecks an account to exclude the account from the profit calculation process. This is applicable for the assets and revenues accounts. Any new account created using the specified G/L will be considered as included; unless the user unchecks the flag. Add The user invokes this button to add a line. Delete The user invokes this button to delete a line. Ok The user invokes this button to exit the screen. Source of Funds Basis This field represents whether the calculation of the profit for the source of funds is based on Currency or on both Currency and GL. The user specifies the method from the Drop down list box. The available options are: Currency and Currency-G/L. - If he selects the Currency value, the source of fund accounts are grouped by currency and then the profit is calculated. - If he selects the Currency and GL value, a G/L Details button appears next to this field. Upon invoking it, G/L Codes screen pops up containing the General Ledgers that form the source of funds. The window is displayed as shown below: FID: Page 45 of 181

46 The following fields are available: G/L Code This field represents the code of the general ledger that is the source of the fund. The user selects the code either by retrieving it from the Lookup/Query window or by inputting it manually. The description of the General Ledger is automatically displayed next to the code in the G/L Name field. The system checks on the GL defined by the user whether it is already participating in another pool or not; If the user specifies a GL already participating in a pool, the system displays a Cannot Proceed message indicating that the G/L Code is Duplicate as shown below: FID: Page 46 of 181

47 Factor Details Upon invoking this button a window is displayed whereby the user specifies a participation factor for each GL based on a balance range. Upon record entry in this window, the system does not consider the Profit Calculation Factor, Applicable up to Balance and Other Factor values from the main screen anymore. Instead, it considers the values of the Balance and Factor specified at the level of the Factor Details button. The window is displayed as shown below: FID: Page 47 of 181

48 The following fields are available: Line No The system automatically displays a line number when the user adds a new factor details line. From Balance This field represents the value of the starting balance for which the factor is applied. The system automatically displays a balance based on the previous line s To Balance. In the first line, the value of the From Balance field is Zero. Then at the second line, the value of the From Balance field will be equal to the value of the To Balance (of the first line) + 1. If the To Balance of the first line is 100,000, for example, the From Balance of the second line is going to be 100, = 100,001. The Factor is applied starting from this value. To Balance This field represents the value up to which the factor is applied. The user specifies the value. He can input up to a maximum of 17 alphanumeric characters. FID: Page 48 of 181

49 Factor % This field represents the factor percentage based on it the participation of each GL is calculated The user specifies the percentage next to each balance range. Modarib Rate % This field represents the percentage that the institution decides to take. The user specifies the percentage. Risk Provision % This field represents the percentage of the average balance of the above mentioned GL to be kept as risk provision The user specifies the percentage. Other Provision % This field depends on the institutions laws and those of the country's governing financial body. The user specifies the percentage. At the level of the Populate Account with Rate screen when the user chooses the value Populate Accounts By Account Type, the system will populate the values of the Risk Provision %, Modarib Rate % and Other Provision % fields to all the accounts related to specific GLs. Contribution % This field represents the percentage of the Modarib Fees to be paid by the bank as profit for the customers. The user defines the percentage. He can input up to a maximum of 6 numeric characters, including 3 decimal points. This is a non mandatory field. When final run is processed, the accounting entries that will pass are: DR Bank Contribution towards customer profit DR Expense CR Customers Accounts CR Risk Provision CR Profit Equalization Provision CR Modarib Fees Example: Consider the contribution rate as 10%. FID: Page 49 of 181

50 Equalization Modarib Risk Prov The contribution amount will be * 10%= This contribution amount will be added to the net distributable profit. PCS001 FID: Page 50 of 181

51 If the contribution percentage is defined, the Contribution Amount will appear in the PCS006 and PCS008 reports. At the level of the PCS006 (Profit Calculation Details report) and PCS008 (Summary of profit calculation), Net Distributable Profit Before Contribution and Net Distributable Profit After Contribution fields will be also available. FID: Page 51 of 181

52 PCS0006 FID: Page 52 of 181

53 PCS0008 Add The user invokes this button to add a line. Delete The user invokes this button to delete a line. Ok The user invokes this button to exit the screen. Add Additional Reference to transaction Description This option allows the user whether to add an additional reference to the transaction description or not. - If it is flagged, the Transaction Description column will only show the Transaction description and the related account number. - If it is not flagged, it will show an empty column. FID: Page 53 of 181

54 Transaction Type This field represents the transaction type for each calculation group. The user specifies the transaction type either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. When the system generates an accounting entry for that calculation group, the description of the entry is the description of the Transaction Type specified for the Calculation Group at the level of the Control Record. The transaction types are defined in Accounting module - Transaction Type screen. FID: Page 54 of 181

55 Recalculation at the end of distribution period This option allows the user whether to apply the recalculation at the end of distribution period or not. - If it is flagged, the distribution rate will be conducted on an average rate for the announced distribution period, and not based on the monthly net distributed profits accumulated in the payable account, which is the normal system behavior. The average rate is conducted based on the following formula: Average rate = Sum of Net distributable profit per pool for all the months of the period Sum of total Participation per pool An adjustment reversal entry will be affecting the payable account whereby entries will be as follows: DB CR Payable Account with the adjustment amount Modarib Account At the end of the selected period, the marked amount of the Reversed Amount i.e. by reversed amount is the accounting entry that will occur in case of: - Waiving of profit when account balance is below minimum balance or Zero Reversal amount: Sum of all the accumulated profit up to date - Withdrawal is affecting previous months or periods Reversal amount: Summation of Participation factor of the W/D amount from the backdated effective date multiplied by Average Rate of the period (note that in PCS007 amounts will be shown by month) Since the above listed entry will occur in the same month, it will be based on the current month rate. Hence, the customer profits are being revaluated on the Average Rate s end of period. Basically, also this entry should be revaluated on this average rate. The reversal amount of the month will be generated in the PCS007 report with the applicable backdated effective date and the revaluation entries will be generated in the Extra report printed at the end of the recalculation period, showing the exact amount to be reversed from modarib to A/P or vice versa. - If it is not flagged, the calculation will be as per the normal system behavior; a monthly calculation based on a monthly rate for each month of the period. FID: Page 55 of 181

56 Example: A bank is running a distribution pool on semi-annual basis whereby it will only give profit to his depositors in June and December (or periodically). This Bank announces a Unified Profit rate over the six - month period whereby basically it will be distributing the profit to the participating customers based on this Unified Rate. As known in IslamicProfCalc module, the Net Profits for customers accumulated in the payable account are based on the Net Monthly Rates till the distribution date. On the distribution date, which means June, and due to the Final run, the system will calculate based on an Average Rate for the whole period based on the above listed formula; whereby an extra report will be printed showing all the new data and the differences between the old monthly rates and the recently Calculated Average rate for each account. Based on this final rate and after checking on each account, the system will check for the increased or decreased amount of profit calculated for each account to reverse the amount from the Payables Account to the Modarib Account. Taking a numerical example; a six month fixed maturity account having the following: Net Monthly Profit New Net Monthly Profit Difference Amount Amount based on Avg Total -100 This -100 amount will be reversed from the Payables account to the Modarib account as per the above listed accounting entry. FID: Page 56 of 181

57 Reports Display: PCS007: Extra Report: FID: Page 57 of 181

58 TAX Transaction Type This field represents the TAX transaction type for each calculation group. The user specifies the TAX transaction type either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Zakat Transaction Type This field represents the Zakat transaction type for each calculation group. The user specifies the Zakat transaction type either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Use the Approve Trial Run This option allows the user to choose whether to only process at the level of Final Run Profit Calculation screen the trial run approved at the level of Approve Trial Run Profit Calculation screen for the selected pool by generating a log or not. - If it is flagged, the system will only process at the level of Final Run Profit Calculation the trial run approved at the level of Approve Trial Run Profit Calculation screen for the selected pool. - If it is not flagged, the system will run the process without generating a log. Allocation of Revenues based on Participation This option allows the user to choose whether the allocation of the revenues will be based on the participation or the participation factor. - If it is flagged, the system will use the participation in the Gross Profit formula, instead of the participation factor. - If it is not flagged, the system will compute the allocation of revenues based on the participation factor. Apply Charges on Distributed Profit This option enables the user to choose whether he wants to apply charges on tax or not. - If it is flagged, the system will apply charges on tax and the Charge Transaction Type field will appear. - If it is not flagged, then no charges will be applied on tax and the Charges Transaction Type field will not be shown. Chrg Transaction Type This field represents the code of the transaction type for the charges. The user specifies the code either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. FID: Page 58 of 181

59 Consider Value Date as This option allows the user to choose as what to let the system consider the value date of the JV profit. The user specifies the value from the Drop down list box. The available options are: First Day of the Subsequent Month, Last Day of Profit Calculation Month and System Date. - If he selects the First Day of the Subsequent Month value, the system will consider the value date of the JV Profit as the first day of the next month. - If he selects the Last Day of Profit Calculation Month value, the system will consider the value date of the JV Profit as the last day of Profit Calculation month. - If he selects the System Date value, the system will consider the value date of the Profit JV same as Trade Date in Accounting module. For example, if in 15/02/2007, the user runs the final run for January, the value date of the profit JV will be the same as the trade date which is 15/02/2007. Include Equity This option allows the user to choose whether to include the equity or not for the calculation of the profits. The user specifies the value from the Drop down list box. The available options are Not Applicable, Equity = Assets Liability and Assets = Equity + Liability. - If he selects the Not Applicable value, the system will behave normally without considering the equity in the profit calculation. - If he selects the Equity = Assets Liability value, the system will consider equity in the calculation. The equity will be the Assets generating revenues total account type participation. A new report PCS009 will appear, along with the other reports. The formula of the gross distributable profit will be in this case: Gross profit = (Revenues Expenses)*(1- Equity/( Total participation + Equity). In the report PCS009, equity line will appear at the end of the report. FID: Page 59 of 181

60 - If he selects the Assets = Equity + Liability value, the system will consider the assets generating revenues formula: Average of daily deposit accounts balance during period + Average of shareholders equity group of accounts daily balance during period. A GL/details button appears whereby the user defines the shareholders equity GL s capital, gift account, retained earnings etc. After defining the GL s, the user invokes the Factor Details button in order to enter the Participation Factor, Modarib, Risk Provision and other provision rates that will be applied on the total of the shareholders equity accounts. The system calculates the total of the shareholders equity account by deducting debits from credits. Example: A-Capital 50,000,000 Credit B-Gift Account (if any) 30,000,000 Debit C-Retained earnings 5,000,000 Debit Total Balance = A -B C = 15,000,000 Credit (Credit Debit) The profit calculation will be based on the total balance amount of 15,000,000 Credit. In the PCS006 screen, the equity line will appear. The Net revenue after WEI Al FID: Page 60 of 181

61 Mudarabah will be equal to the Gross Distributable Profit because the profit will be distributed to the shareholders equity and the customers. In addition, Profit A/C field will appear whereby the user specifies the account in which the profit of the shareholders equity will be credited. Each month, when the user runs the final run, the system will credit the shareholders profit account. When running the final run, if the total average amount calculated under shareholders equity is Debtor, the system will give an error message and will not allow the user to run PCS. GL/details Upon invoking this button, Equity G/L window is displayed whereby the user can define the shareholders equity GL s capital, gift account, retained earnings etc. FID: Page 61 of 181

62 The following fields are available: GL/Code This field represents the GL/Code of the shareholder s equity. The user specifies the GL code either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed in the G/L Name field next to the code. Add The user invokes this option to add a shareholders equity GL. Delete The user invokes this option to delete a shareholders equity GL. OK The user invokes this option to save the information and exit the window. FID: Page 62 of 181

63 Factor Details Upon invoking this button, a window is displayed whereby the user specifies the ranges, the participation factor modarib, risk provision, other provision and contribution for the shareholders equity accounts. This is a non-mandatory button. Revenue and Modarib Profit Details Upon invoking this button, a window will be displayed for the user to specify the range of the assets accounts that constitute differed revenues accounts. The system deducts the balances of these accounts from the values of the revenue generating assets when computing the profits. The window is displayed as shown below: From GL / To GL These fields represent the range of G/L codes. The user specifies the codes either by inputting them manually or by retrieving them from the Lookup/Query window. Insert The user invokes this button to specify several ranges. FID: Page 63 of 181

64 Delete The user invokes this button to delete an inserted line Close The user invokes this button to close this window. Currency Profits Calculation Groups Upon invoking this button, Revenue/Modarib Profit window will be displayed whereby the user can set the different currencies in the pool and specify precisely from the assets, revenues, expenses and liabilities the participants in a specific currency in the profit calculation process. The following fields are available in this window: Account Currency This field represents the currency code. The user specifies the currency from the Drop down list box. FID: Page 64 of 181

65 Applicable On This section allows the user to specify whether to apply the selected currency in the selected pool on assets, expenses and revenues or liabilities or both in the profit calculation process. The user sets it either to Assets, Expense, Revenue or Liabilities or to both of them. If both fields are flagged, the system will behave normally. If one of them is flagged, the system will behave basically on whether to include the assets or liabilities in the specified currency or not. Example: The already done Parameterization by customer is by Currency pools is a pool for each currency (USD; Euro; GBP) However, the customer has purchased some Euro bonds and would like to add them as assets in the USD pool with Euro revenues too. So the correct parameterization that should be done on this pool in the Revenue / Modarib Profit window is to insert the primary currency which is the USD and to flag both Assets, Revenue, Expense and Liabilities options. As for the added Euro Currency, the user only flags the Assets, Revenue, Expenses.. In that case, the system will show you under the GL-currencies details tab, all the USD and Euro Accounts for the related GLs whereby the user can select the appropriate for the profit calculation. As for the liabilities basis, only customers accounts in USD will participate in the profit calculation process. Insert The user invokes this button to specify several records. Delete The user invokes this button to delete an inserted line Close The user invokes this button to close this window. Included CIF Type The user invokes this button and a window is displayed as shown below: FID: Page 65 of 181

66 The following fields are available: CIF Type This field represents the CIF type code. The user specifies the CIF type either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description will be displayed in the CIF Type Description field next to the code. Add The user invokes this button to include several CIF types. Delete The user invokes this button to delete an inserted line. OK The user invokes this button to close this window. FID: Page 66 of 181

67 Journal Voucher Type Details The user invokes this button to specify the range of JV types created in imal*accounting module, which are treated as deposits. Consequently, the clients accounts affected with the specified JV types are considered in the profit calculation. The following fields are available in this window: No The system automatically displays a line number when the user adds a new range of JV type. From JV Type / To JV Type This field represents the range of JV type created in the Accounting module. The user specifies the range of JV types either by inputting it manually or by retrieving it from the Lookup/Query window. The user is able to input values equal to and greater than 900 in the From JV Type and To JV Type fields FID: Page 67 of 181

68 Treat as deposit This field represents whether the range of JV types is to be treated as deposits or not. The user checks either the Yes value or the No value. If Yes, the clients affected with the specified JV types are considered in the profit calculation. Penalty on W/D This field represents whether penalty is to be applied on withdrawals from these accounts or not. The user checks either the Yes value or the No value Add The user invokes this button to create several records. Delete The user invokes this button to delete an inserted line OK The user invokes this button to close this window. Automatically Create Accounts The user invokes this button to create any of the accounts of the profit calculation in a specific range of branches. A window is displayed as shown below: FID: Page 68 of 181

69 The following fields are available: The user selects the type of accounts that he wants to create. The available types of accounts are: Profit Accrual Accounts / Modarib Accounts / Cost of Fund Accounts / Risk Provision Accounts Division This field represents the division related to the created accounts. The user specifies the division either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Department This field represents the department related to the created accounts. The user specifies the department either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. FID: Page 69 of 181

70 Range of Branches From / To These fields represent the range of branches The user specifies the branches codes either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the code. Range of Types From / To These fields represent the range of account types. The user specifies in the From and To fields the range of account types either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the code. This section appears only if the Profit Accrual Accounts flag is checked. Print Created Accounts This field represents whether to print the created accounts or not. - If it is checked, the created accounts will be printed. - If it is not checked, the created accounts will not be printed. Create Accounts The user invokes this button to launch the process. Close The user invokes this button to close the window. FID: Page 70 of 181

71 Approve The user invokes this option to approve a record. He retrieves the record by selecting it from the Lookup/Query window, or by clicking on the First, Next, Previous and Last buttons. Then, he invokes the Approve button. The system asks him to confirm this process. Upon confirmation, the system displays the message that the record is approved. The status changes from Active to Approved. The Reference of the Control Record Approve screen is P001. FID: Page 71 of 181

72 Update After Approve The user invokes this option to update the record after it has been approved. He retrieves the record by selecting it from the Lookup /Query window, or by clicking on the First, Next, Previous and Last buttons. He invokes the Update button on the toolbar after making the necessary changes. The Reference of the Control Record Update After Approve screen is P001. FID: Page 72 of 181

73 3.2. Profit Calculation Group Maintenance The user invokes this option to create several profit calculation groups. Under this option the CRUD technique is available which will help to Create, Retrieve, Update and Delete a record. The Reference of the Maintain Profit Calculation Group screen is P002. The following fields are available: Profit Calculation Group This field represents the profit calculation group code. The user defines a unique code for the profit calculation group. He can input up to a maximum of 4 alphanumeric characters. This is a mandatory field. The same code cannot be used for creating another record. FID: Page 73 of 181

74 List Brief Name This field represents the brief name of the profit calculation group. The user defines the brief name of the profit calculation group in Latin. He can input up to a maximum of 20 alphanumeric characters. This is a mandatory field. Long Name This field represents the long name of the profit calculation group. The user defines the long name of the profit calculation group in Latin. He can input up to a maximum of 40 alphanumeric characters. This is a non-mandatory field. Arabic Brief Name This field represents the Arabic brief name of the profit calculation group. The user defines the brief name of the profit calculation group in Arabic. He can input up to a maximum of 20 alphanumeric characters. This is a non-mandatory field. Arabic Long Name This field represents the Arabic long name of the profit calculation group. The user defines the long name of the profit calculation group in Arabic. He can input up to a maximum of 40 alphanumeric characters. This is a non-mandatory field. The user invokes this option for the profit calculation group listing. There are two types of lists: List By Code and List By Description By Code The user invokes this option for the listing by Profit Group Codes of a particular range of records or for all the records. The Reference of the Profit Calculation Group List by Code screen is P002L1. FID: Page 74 of 181

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76 By Description The user invokes this option for the profit calculation group list by description of a particular range of records or for all the records. The Reference of the Profit Calculation Group List by Description screen is P002L2. FID: Page 76 of 181

77 3.3. Account Class Maintenance The user invokes this option to create account classification (whether it is a short-term deposit, long term, etc.) Under this option, the CRUD technique is available which helps Create, Retrieve, Update and Delete a record. The Reference of the Maintain Account Class screen is P0021. The following fields are available: Class Code This field represents the code of the account class. The user specifies a unique code for the account class. He can input up to 3 alphanumeric characters. This is a mandatory field. The same code cannot be used for creating another record. FID: Page 77 of 181

78 List Additional Reference This field represents a reference used to link a record to a corresponding field in another system. The user specifies the reference. He can input up to a maximum of 20 alphanumeric characters. The additional reference is encoded to help integrate the original code to the system upon creation of a new record, Brief Name This field represents the brief name of the class. The user defines the brief name of the class code in Latin. He can input up to a maximum of 20 alphanumeric characters. This is a mandatory field. Long Name This field represents the long name of the class. The user defines the long name of the class code in Latin. He can input up to a maximum of 40 alphanumeric characters. This is a mandatory field. Arabic Brief Name This field represents the Arabic brief name of the class. The user defines the brief name of the class code in Arabic. He can input up to a maximum of 20 alphanumeric characters. This is a non-mandatory field. Arabic Long Name This field represents the Arabic long name of the class. The user defines the long name of the class code in Arabic. He can input up to a maximum of 40 alphanumeric characters. This is a non-mandatory field. The user invokes this option for the Account Class listing. There are two types of lists: List By Code and List By Description By Code The user invokes this option for the listing by Codes of a particular range of records or for all the records. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Account Class List screen is P0021ML. FID: Page 78 of 181

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80 By Description The user invokes this option for the listing by Description of a particular range of records or for all the records. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Account Class List screen is P0021ML2. FID: Page 80 of 181

81 3.4. General Ledger The user assigns the General Ledger (GL) accounts to Profit Calculation Groups (each GL is assigned to one group) and specifies the percentage of the account s balance to be included in the Islamic Profit Calculation process for that group Maintenance The user invokes this screen to link a GL code to a Profit Calculation Group. Under this option the CRUD technique is available which will help to Create, Retrieve, Update and Delete a record. The user retrieves the desired GL and the full details of the account specified during the GL code creation in the Accounting module will be displayed. The Reference of the Maintain General Ledger screen is P003. In this screen, the user can only input values for the following fields, whereas, the values of the other available fields are retrieved. FID: Page 81 of 181

82 Allocation to Pools Based on This field represents whether the assets/expenses are either direct or indirect. The user specifies from the Drop down list box whether assets/expenses will be direct or indirect. The available options are: Not applicable, Direct and Indirect. - If he selects the Not applicable value, the GL is neither considered as direct nor as indirect. - If he selects the Direct value, the GL will be considered as direct, and the user will be able to input this GL at the level of Control Record Maintenance screen. - If he selects the Indirect value, the GL will be considered as indirect and the user will not be able to input the GL at the level of Control Record Maintenance screen. This field appears only if the Apply direct, indirect allocation of assets and expense flag at the level of the Control Record Maintenance screen is set to Yes. Profit Calculation Group This field represents the code of the profit calculation group to which this GL is assigned. The user specifies the code either by inputting it manually or by retrieving it from the Lookup/Query window. G/L Factor % This field represents the percentage of the General Ledger s account balance to be included in the Islamic Profit Calculation process for the specified group. The user specifies the GL Factor percentage General Ledger List The user invokes this option for the General Ledger listing. There are two types of lists: List By Code and List By Description By Code The user invokes this option for the General Ledger listing by Code. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the General Ledger List by Code screen is P003L1. FID: Page 82 of 181

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84 By Description The user invokes this option for the General Ledger listing by Description. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the General Ledger List by Description screen is P003L2. FID: Page 84 of 181

85 3.5. Accounts Type Maintenance The user invokes this option to specify the profit calculation details for the desired accounts types. Under this option, the CRUD technique is available that helps the user Create, Retrieve, Update and Delete a record. The user invokes the Retrieve button and obtain all the created account types in the imal*nostrovostro module. He clicks on the desired Account Type and the full details of this account (specified in the imal*nostrovostro module) will be shown. The Reference of the Maintain Account Type Details is P004. The user specifies the following Profit Calculation Details: FID: Page 85 of 181

86 The following fields are available: Profit Calculation Details Profit Withheld on Withdrawal Amount This field represents the method of penalty that should be applied in case of a withdrawal before the profit is calculated. The user specifies the method from the Drop down list box. The available options are: Previous deposit value and Specific value. - If he selects Previous deposit value, the system goes back to the previous deposit date and calculates the penalty. Example: If the client has 100,000 in his account that he deposited on the 5 th of the month, and he withdraws 20,000 on the 15 th, the penalty will be calculated as follows: 15 5 = 10 days. 10 x 20,000 = 200,000 (amount of the penalty). Profit will be calculated on the remaining 80,000 after the 15 th of the month. FID: Page 86 of 181

87 - If he selects Specific value, a Days field appears next to this field whereby the user specifies the number of days for the penalty that will be applied when a withdrawal occurs. If the number of days defined is 5, the penalty will be calculated as follows: Penalty = 5 days x withdrawal amount. Deposit effective in profit calculation after This field represents the date when the deposit will be effective in the profit calculation. The user specifies the date from the Drop down list box. The available options are: First working of the next month, Specific value and Include the first of the month. - If he selects the First working of the next month value, a Minimum Days field showing the number of days till the end of the month appears, and the profit will be calculated as follows: The original amount deposited is 100,000 on the 1 st of the month, and the chosen number of days is 15: Between the 1 st and the 15 th, profit will be effective on the month following the transaction date. Between the 16 th and the end of the month, profit will be effective on the third month after transaction date. If he selects Specific value, the number specified in the Days field will be the number of days after which the deposit will be effective in the profit calculation. - If he selects Include the first of the month, the system will distribute profits starting from the first day of the month for the deposits made the first day of the month. If the deposit was made in the second of the month, the effective date will be the first business day of the second month. Example: If the user specifies 20 in the Days field, every deposit made after this period will have their effective date the first business day of the third month. Distribution Periodicity This field represents the profit distribution periodicity of FMA. The user specifies the required value from the Drop down list box. The available options are: Monthly, Quarterly, Semi-Annually and Yearly. If he selects the Monthly value, the profit will be posted at the level of the last day of the month. - If he selects the Quarterly value, the profit will be posted at the level of the last day of the following months: March, June, September and December. - If he selects the Semi-Annually value, the profit will be posted at the level of the last day of the month June and December. - If he selects the Yearly value, the profit will be posted at the level of the last day of the month of December. FID: Page 87 of 181

88 Maturity Distribution This field represents the method on which the profit will be distributed at maturity. The user specifies the maturity distribution from the Drop down list box. The available options are: PCS- Full Profit and EOD- Partial Profit. - If he selects the PCS- Full Profit value, the system will distribute all profits from the PCS process at the end of the month. All maturities should be set at the end of the month by specifying the FMA Maturity Date field as Last Day of the Month in the Accounting module at the level of Parameters Control Record Maintenance screen, as shown below. The system will set all maturities and the EOM and profits will be fully distributed from PCS. - If he selects the EOD- Partial Profit value, the accumulated profits for previous months will be distributed when the user runs EOD at maturity date and the remaining profits of the current month will be distributed when final run of the month is processed. FID: Page 88 of 181

89 Example FMA account opened on 01/01/2008 with maturity date 15/03/2008. The profits accumulated in month 1 and 2 will be distributed when EOD is ran on 15/03/2008 and the remaining 15 days in month 3 will be distributed when Final run is processed for month 3. This field will appear only if the Distribution Periodicity Drop down list box is set to Maturity. Balance Calculation This field defines whether the calculation should be made based on minimum balance or average balance. The user specifies the balance calculation from the Drop down list box. The available options are: Average, Minimum, Opening Balance and Daily Minimum Average. - If he selects the Average value, the system calculates the average balance for liabilities accounts. Thus, it computes the profit accordingly. - If he selects the Minimum value, the system calculates the minimum balance for liabilities accounts. Thus, it computes the profit accordingly. FID: Page 89 of 181

90 Example: Date Dr Cr Balance Opening 20,000 20,000 Balance 15/01/2005 5,000 25,000 22/01/ ,000 15,000 If Average Balance, the total participation for the account is calculated as follows: [(20,000 * 15) + (25,000 * 7) + (15,000 * 9)]/ 31 If Minimum Balance, the total participation for the account is calculated as follows: [(15,000 * 15) + (15,000 * 7) + (15,000 * 9)] / 31 - If he selects Daily Minimum Average, the system will distribute profits taking into consideration the daily minimum balance of each account. It can be used for both current and FMA accounts. Example: A customer opened an account in 01/01/ /01/2007 deposit = Minimum balance day 1 = /01/2007 with /01/2007 deposit 2000 Minimum balance day 2 = /01/2007 no transactions occurred Min balance will be = This goes on for all the days of the month. The participations will be as followed: 01/01/ *1day = /01/ * 1day = From 03/01/2007 till 31/01/ *29days = FID: Page 90 of 181

91 Total participation for month 1= If he selects the Opening Balance value, the system will consider the opening balance when deciding in which tier the account will be placed. It is only for FMA Accounts Type. Example: Tier 1: 0 to Tier 2: to Account opened in 20/11/2007 with balance In month 11, the account will be considered in Tier 2 if the option is chosen. In case the option is not chosen, the account will be considered in Tier 1. Margin Account This option allows the user to choose whether to create a link between the A/Cs related to the same CIF while transferring a certain amount from an account to another account where the Margin Account flag is checked in order to compute their total balance in the profit calculation or not. - If it is checked, the system will consider the rates of the tier where the sum of the accounts balances fall in. - If it is not checked, the system will behave normally whereby it will consider the rates of the tier based on each account s balance separately. Example: Customer holding two saving accounts Account 1 Balance = 5,000 JOD Account 2 Balance = 10,000 JOD where the margin account flag is checked. Transfer from account 1 to account 2 an amount of 2,000 JOD The Modarib rates set by the bank are the following: From 0 to 10,000 JOD = 20 % From 10,000 to 15,000 = 18% The system sums up both accounts to 15,000 JOD and considers the Modarib rate as 18% for both accounts even though each account falls in the first tier where the Modarib rate is equal to 20 %. Auto Renew Account This field represents whether the account is set for renewal in NostroVostro and Retail modules or not. It is for information purpose only. - If it is flagged, the account is set for renewal in NostroVostro and Retail applications. FID: Page 91 of 181

92 - If it is not flagged, the account is not auto renewal in the NostroVostro and Retail applications. Equity Account This option allows the user to choose whether to include the account type in the equity calculation or not. - If it is flagged, the system will include the account type in the equity calculation at the level of the Parameters Control Record Maintenance screen under the Include Equity Drop down list box. - If it is not flagged, the system will not include the account type in the equity calculation. Cost of Fund A/C (Weaa El Modaraba) This field represents the cost of fund account. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Modarib A/C This field represents the Modarib account. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Risk Provision A/C This field represents the risk provision account The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Reverse Profit A/C This field represents the account in which will be posted the profit that goes to the depositor s account whenever his balance falls below the minimum required for it. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Other Provision A/C This field represents the other provision account which is used to record any additional deduction value. It is a liability account. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Bank Contribution A/C This field represents the account in which the contribution amount to be paid by the bank as profit for customers is accrued. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. FID: Page 92 of 181

93 In the Currency part of the account number, the Pool currency is automatically displayed in case the pool has different currencies. Apply Reversal on Previous Months This option represents whether the user wants the withdrawals to affect previous deposits done in previous months or not. - If it is flagged, the withdrawals will affect the previous deposits done in previous months. Hence, the system will reverse the profit in the current month based on the following formula: Profit to be Reversed = Participation factor of the withdrawal amount * Affected month Net Rate The accounting entries will be as follows: CR Modarib account DB Payable Account It will consider the reversed profits as bank revenue and will deduct them from the customer accumulated profits in the payable account to add them to the Modarib account. This flag will function based on certain parameterization; The Account should be of a fixed maturity date greater than one month. Profit Withheld on Withdrawal Amount Drop down list box should be set to Previous deposit value. Distribution Periodicity Drop down list box should be set to any periodicity other than Monthly. Affect Previous months flag must be checked. In addition, the system will generate in Reports PCS007 the withdrawn amount in base and foreign currency with their participation factor, effective date and the Reversed Profit amount in base and foreign currency under the Reversal Entries on Payable affecting previous months section. FID: Page 93 of 181

94 Reports PCS007: Factor Details Upon invoking this button, a Profit Calculation Factor Currencies window appears whereby the user specifies a participation factor by currency for each GL based on a specific balance range. FID: Page 94 of 181

95 The user specifies the currency codes from the Drop down list box. By selecting the All value, he can specify for all currencies the same factor %, modarib rate %, risk provision % and other factor %. He can insert a line by invoking the Add button, delete an inserted line by invoking the Delete button and Close the window by invoking the OK button. He invokes the Details button and a Profit Calculation Factor Details window appears whereby he can specify for each range of balance specific rates, as shown below: FID: Page 95 of 181

96 The following fields are available: Line No The system automatically displays a line number when the user adds a new factor details line. From Balance This field represents the value of the starting balance for which the factor is applied. The system automatically displays a balance based on the previous line s To Balance. In the first line, the value of the From Balance field is Zero. Then at the second line, the value of the From Balance field will be equal to the value of the To Balance (of the first line) + 1. If the To Balance of the first line is 100,000, for example, the From Balance of the second line is going to be 100, = 100,001. The Factor is applied starting from this value. To Balance This field represents the value up to which the factor is applied. The user specifies the value. He can input up to a maximum of 17 alphanumeric characters. FID: Page 96 of 181

97 Factor % This field represents the factor percentage based on it the participation of each GL is calculated The user specifies the percentage next to each balance range. Risk Provision % This field represents the percentage of the average balance of the above mentioned GL to be kept as risk provision The user specifies the percentage. Modarib Rate % This field represents the percentage that the institution decides to take. The user specifies the percentage. Other Factor % This field depends on the institutions laws and those of the country's governing financial body. The user specifies the percentage. At the level of the Populate Account with Rate screen when the user chooses the value Populate Accounts By Account Type, the system will populate the values of the Risk Provision %, Modarib Rate % and Other Provision % fields to all the accounts related to specific GLs. Contribution % This field represents the percentage of the Modarib Fees to be paid by the bank as profit for the customers. The user defines the percentage. He can input up to a maximum of 6 numeric characters, including 3 decimal points. This is a non mandatory field. When final run is processed, the accounting entries that will pass are: DR Bank Contribution towards customer profit DR Expense CR Customers Accounts CR Risk Provision CR Profit Equalization Provision CR Modarib Fees FID: Page 97 of 181

98 Example: Consider the contribution rate as 10%. Equalization Modarib Risk Prov The contribution amount will be * 10%= This contribution amount will be added to the net distributable profit. PCS001 FID: Page 98 of 181

99 FID: Page 99 of 181

100 If the contribution percentage is defined, the Contribution Amount will appear in the PCS006 and PCS008 reports. At the level of the PCS006 (Profit Calculation Details report) and PCS008 (Summary of profit calculation), Net Distributable Profit Before Contribution and Net Distributable Profit After Contribution fields will be also available. PCS0006 FID: Page 100 of 181

101 PCS0008 Profit Payable Accounts Payable Account This field represents the payable account number related to the profit. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Profit Accrual Details Profit Accrual This field represents the periodicity that is applicable for the profit accrual. The user specifies the periodicity that is applicable for the profit accrual from the Drop down list box. The available options are: Daily, Weekly, Monthly, Quarterly, Semi Annually, Yearly and No Accrual. Expense Account This field represents the expenses account related to the profit accrual booking. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. FID: Page 101 of 181

102 Accrual Account This field represents the accrued account related to the profit accrual booking. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Last Period Details The user invokes this button and a Last Period Accrued Currencies window appears as shown below: The following fields are available: Branch This field represents the code of the branch to which the calculation of the accrual is assigned. The user specifies the code either by retrieving it from the Lookup/Query window or by inputting it manually. The name of the branch is automatically displayed next to the code. FID: Page 102 of 181

103 CY This field represents the currency code for the account type. The user specifies the code either by inputting it manually or by retrieving it from the Lookup/Query window. The name of the currency is automatically displayed next to the code. Details The user invokes this button to specify for each range of balance an accrued percentage. A Last Period Accrued Details window is displayed as shown below: The following fields are available: From Balance / To Balance These fields represent the balance range. The user defines a balance range on which an accrued percentage will be applied. Accrued Percentage This field represents the accrued percentage by branch to be computed. The user defines the percentage. FID: Page 103 of 181

104 Range (-) / Range (+) These fields represent a sort of margin that allows the user to increase or decrease the accrued amount by a certain percentage. The user defines in the Range (-) field, the percentage value allowed for the accrued percentage to be maximum decreased. He defines in the Range (+) field, the percentage value allowed for the accrued percentage to be maximum increased. Accrued Amount This field represents the accrued amount computed by the system at the End of Day process and which is based on the percentage. The system displays the accrued amount at the End of Day process.. In the Final Run Process, the system reverses the accrual entry and the Accrued Amount becomes Zero. Insert Row The user invokes this button to add a line Delete Row The user invokes this button to delete a line. OK The user invokes this button to exit the screen. General Charges Schema Code Applied on Profit This field represents the charges schema code to be applied on the profit; the percentage of the tax amount will be deducted from the customer s account as charges, upon the profit distribution. The user specifies the charges schema code either by inputting it manually or by retrieving it from the Lookup/Query window. This is a non-mandatory field. The available charges schema codes are already created in CSMAdmin module at the level of Parameters System Parameters Charges Charges Schema Maintenance screen. The account specified in the charges schema will be considered as the account of the charges. FID: Page 104 of 181

105 Charges will be applied on tax. For example, if the tax percentage is 7.5% and the charge on tax is 10 %, then at the level of Charges Schema Maintenance screen the percentage to be specified will be calculated as follows: 7.5*10%, which is equal to Apply Upper Rounding On This option represents which charges and taxes to be rounded upon profit distribution. The user specifies from the Drop down list box the charges and taxes to be rounded in order to be deducted from the Customer s account. The available options are: Not Applicable, Tax, Charges and Both. - If he selects the Not Applicable value, the system will deduct the tax and charges on tax from the customer s account without rounding their amounts. - If he selects the Tax value, only the tax amount will be upper rounded in order to be deducted from the customer s account. - If he selects the Charges value, only the charges amount on tax will be upper rounded. - If he selects the Both value, the tax and charges on tax will be upper rounded in order to be deducted from the customer s account. Examples on rounding tax in Base currency and FC. 1- In case of Base currency, the entries will pass as follows: FMA account with 2211 SYP Taxable profits where 7.5% is the tax rate. Whereby the tax amount is calculated as follows: 2211 SYP x 7.5% = SYP This amount should be rounded to 166 SYP and deducted from the clients account. In case the tax amount is SYP = 166 SYP; it will also be rounded as 166 because the rounding should always be consider as an upper rounding. 2- In case of FC, the entries will pass as follows: Profit recorded on customer account as $, Tax Rate= 7.5% and FX rate = SYP/$ The FC Tax amount is equal to: USD x 7.5 % = $ Which is equal to in CV = USD x SYP/USD = SYP This amount is rounded to 399 SYP (this amount is recorded on the CV tax account) While the 399 SYP is equal to $ (399/45.85) (this amount will be debited from the depositors account with the intervention of the position accounts) FID: Page 105 of 181

106 The accounting entries will be generated as follows: DB Depositor Account with $ CR Position USD Account with 8.702$ DB Control (USD) SYP account with 399 SYP CR Tax CV account with 399 SYP Examples on rounding tax and charges on tax (local administration fees). 1- In case of Base currency, the system will behave as follows: FMA account with 2211 SYP Taxable profits where 7.5% is the tax rate and a local administration fee of 10%. The capital tax will be = 2211 * 7.5% = rounded 166 SYP The admin fees will be = * 10 % = rounded 17 SYP It will be automated by the system The accounting entries will be generated as follows: DB client account with tax amount CR the SYP tax account DB client account with Administration fees amount which is a percentage of the tax amount. CR the Administration fees account 2- In case of the FC, the system will behave as follows : USD FMA account with $ taxable profits and a 7.5% tax rate and exchange Rate of 50 SYP/$ and a local administration fee rate of 10%. The capital tax will = $ * 7.5% = USD The admin fees will= $ * 10 % = USD The USD is equal to SYP ( USD x 50 SYP/USD) Round it to 87 SYP book it to the Local Administration fees SYP account In parallel book 1.74 $ (87 SYP/ 50 SYP/USD) on the depositor s account. The flow will be totally automated The accounting entries for the local administration fees will be generated as follows: DB Depositor Account with 1.74 $ CR Position USD Account with 1.74$ DB Control ( USD) SYP account with 87 SYP CR local administration fees account with 87 SYP. FID: Page 106 of 181

107 Taxable Profit Percentage This field represents the percentage of taxable profit to be applied. The user specifies the percentage. He can input a value between 0 & 100. This is a non-mandatory field. Example If taxable profit percentage is 20%, tax 7.5% and Local Administration fees is 10% the percentage in the charges schema to be specified will be calculated as follows: 7.5% Tax * Taxable 20% of profits = 1.5% of tax on the total profit amount. Then, 1.5% * 10% Local Administration fees = 0.15% of total taxable profits which is the percentage to be considered in the charges schema. Min Balance For Distribution Upon invoking this button, Minimum Amount for Distribution window is displayed whereby the user can define the minimum average balance limit by currency below which the customer will not receive any profit. FID: Page 107 of 181

108 The following fields are available in this window: Currency This field represents the currency of the limit. The user specifies the currency code either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. This is a mandatory field. Description This field represents the currency description. The system defaults the currency description once the currency code is defined. Amount This field represents the limit average balance under which the customer will not receive any profits. The user can input it manually maximum 6 digits. OK The user invokes this button to save the defined limit. Insert The user invokes this button to add a line in order to specify the limits by currency. He can add as many lines as he wants as long as the previous line has a value. Delete The user invokes this button to delete lines. He can delete as many lines starting from the last line. Example: Amount in minimum balance for distribution button for currency KWD is Account opened in 01/01/ /01/2008 deposit /01/2008 withdrawal 4000 Average balance of the account for month of January 2008 will be: 5000 * 9 = * 22 = Average balance for month 1/2008 = /31 = < 5000 FID: Page 108 of 181

109 In this case, the account will not receive any profits because the average balance of the account is less than the limit specified in Minimum Balance for Distribution button. Zakat Details Apply Zakat This field represents whether to apply zakat for the specific account type or not. - If it is flagged, the Deduct Zakat from and Percentage fields become visible and the system will apply Zakat for the specific account. Example: Percentage = 2% Principle = Profit = 100 In case the Deduct Zakat from field is set to: 1- Principle: Zakat amount = Profit: Zakat amount = 2 3- Principle + Profit: Zakat amount = If it is not flagged, no Zakat percentage will be applied on the account type. Deduct Zakat from This field represents the method of calculating the zakat percentage. The user specifies the required value from the Drop down list box. The available options are: Principle, Profit and Principle + Profit. - If he selects the Principle value, the zakat percentage will be calculated from the principle amount in the account. - If he selects the Profit value, the zakat percentage will be calculated from the profit amount of the account. - If he selects the Principle + Profit value, the zakat percentage will be calculated from the sum of the principle and profit amount. Percentage This field represents the percentage value to be taken into consideration during zakat calculation. The user defines the value. Zakat Min Amount Upon invoking this button, Minimum Amount to Apply Zakat window is displayed whereby the user can define the minimum amount allowed for the balance to reach; in order for the system to apply Zakat on the general and FMA accounts. In case the FID: Page 109 of 181

110 available balance is below the defined minimum amount, the system will no longer apply the Zakat. The following fields are available: Currency This field represents the currency of the minimum amount. The user specifies the currency either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Amount This field represents the minimum amount below which the system will not consider the zakat calculation for the general and FMA accounts. The user defines the amount. He can input up to a maximum of 14 numeric characters. Insert The user invokes this button to add another Minimum Amount for another currency. FID: Page 110 of 181

111 Delete The user invokes this button to delete a Minimum Amount. Cancel The user invokes this button to exit the window. OK The user invokes this button to save the Minimum Amount details. Tax Details If the Enable Tax flag in the Accounting module at the level of Control Record is checked, these buttons would appear. In the Customer Service Management module at the level of CIF screens: - If the Declared Income field has a value, the system considers the CIF has declared his income and checks for Income ranges at the level of Declared button in IslamicProfitCalc module. - If the Declared Income field has no value, the system considers the CIF has not declared his income and checks for profit ranges at the level of Not Declared button in IslamicProfitCalc module. In the Declared button, the ranges are income ranges. However, the ranges in the Not Declared button are profit ranges. FID: Page 111 of 181

112 Tax Ranges for Declared and not Declared Income Declared Upon invoking this button, Define TAX by CIF Type with declared Income window is displayed whereby the user can define tax ranges by CIF Type with declared income. FID: Page 112 of 181

113 The following fields are available: CIF Type This field represents the CIF type for which the user specifies the income range and its corresponding tax rate. The user can input it manually or retrieve it from the Lookup/Query window. This is a non-mandatory field. From Amount This field represents the Income amount starting the income range for the specified CIF Type. The system defaults the value automatically. To Amount This field represents the Income amount ending the income range for the specified CIF Type. The user inputs the amount manually. FID: Page 113 of 181

114 In order to be able insert a new line for defining tax by another CIF Type with declared income, the user must input twelve 9s in To Amount to close the range for the specified CIF Type. Hence, he can insert a new line and specifies another CIF Type Tax Rate This field represents the Tax Rate of each range. The user defines the ranges manually. OK The user invokes this button to save the defined taxes by the CIF type with declared income. ADD The user invokes this button to add a line in order to specify ranges. He can add as many lines as he wants as long as the previous line has a value. FID: Page 114 of 181

115 Delete The user invokes this button to delete lines. He can delete as many lines starting from the last line. Not Declared" Upon invoking this button, Define TAX by CIF Type with not declared Income window is displayed whereby the user can define tax ranges by CIF Type with profit ranges and without declared income. The following fields are available in this window: CIF Type This field represents the CIF type for which the user specifies the income ranges and its corresponding tax rate. The user specifies the CIF Type either by inputting it manually or by retrieving it from the Lookup/Query window. This is a non-mandatory field. FID: Page 115 of 181

116 From Amount This field represents the profit amount starting the profit range for the specified CIF Type. The system defaults the value automatically. To Amount This field represents the profit amount ending the profit range for the specified CIF Type. The user inputs the amount manually. In order to be able to insert a new line for defining tax by another CIF Type without a declared income, the user must input twelve 9s in To Amount to close the range for the specified CIF Type. Hence, he can insert a new line and specifies another CIF Type Tax rate This field represents the tax rate for each range. The user defines the tax rates for the ranges. FID: Page 116 of 181

117 Exclude First A/C from Tax This option allows the user to choose whether to exclude tax from the first account or not. The available options are: YES and NO. - If it is set to YES, the system will exclude the tax from the first account. It must be set to YES only next to the ranges of the first account which is to be excluded. The rate specified next to this range will be used for the second account with profit less than the amount specified in the To Amount. - If it is set to NO, the system will not exempt any account from tax rates. OK The user invokes this button to save the defined taxes by the CIF type with not declared income. ADD The user invokes this button to add a line in order to specify new tax ranges. He can add as many lines he wants but the previous line must have a value. Delete The user invokes this button to delete lines. He can delete as many lines beginning from the last line. FID: Page 117 of 181

118 Parameterization: 1- In Accounting module, at the level of Control Record, check the Tax flag and define the account with the rates. 2- In Customer Service Management module, at the level of General Account - PT details tab, check the Apply tax flag and for FMA accounts check the Apply tax flag in the Instructions tab. 3- In IslamicProfitCalc module - Account Type, specify the tax ranges by CIF Type in Declared and Not declared buttons. 4- In Declared and Not declared buttons, specify the CIF types for which the tax rates and ranges will be applied. 5- Process a Trial run then a Final run. If no tax ranges were specified in the Declared and Not Declared buttons, the system will consider the tax ranges specified in Accounting module at the level of Control Record. FID: Page 118 of 181

119 CIF Type Examples: Case 1 General account: Declared button ranges Account Type Declared(Other Income Tab not empty) Other Income <Rs.300K Other Income Rs.301- Rs.600K Individual General No WHT 2.5 % 10 % SME General No WHT 5% 12% Not Declared button ranges Other Income > Rs.601K CIF Type Individuals SME Account Type General General Not Declared(Other Income Tab Empty) If the profit for the month is < 5, No WHT If the profit for the month is > 5, % However, if the customer has more than one General account, the 5,000 exemption is available for only one account. Consider: a- CIF 5039 has declared his income ( ) and has 2 accounts and b- CIF 7065 has not declared his income and has three accounts. The first two accounts profit below 5000 and the third account profits more than The system will apply a 2.5% tax rate on the accounts of the CIF 5039 because the declared amount at the level of CIF 5039 is which falls in the range of to As for the accounts of CIF 7065, the system will not apply tax on the first account because the profit is less than 5000 but will apply a 10% tax on the second account even though his profit is less than The system exempts only the first account that has profits less than and not all the accounts. As for the third account, the system will deduct 10% tax because the profit amount is more than FID: Page 119 of 181

120 CIF Type Case 2 FMA: Declared Button ranges Account Type Declared(Other Income Tab not empty) Other Income <Rs.300K Other Income Rs.301- Rs.600K Individual FMA No WHT 2.5 % 10 % SME FMA No WHT 5% 12% Not Declared button ranges: Other Income > Rs.601K CIF Type Individuals SME Account Type FMA FMA Not Declared (Other Income Tab Empty) 10 % 10 % Consider: c- CIF 5039 has declared his income ( ) and has 2 accounts and d- CIF 7065 has not declared his income and has three accounts. Tax will be applied for all the accounts. The system will apply a 2.5% tax rate on the accounts of the CIF 5039 because the declared amount at the level of CIF 5039 is which falls in the range of to As for the accounts of CIF 7065, the system will apply a 10% tax on all the accounts. In FMA, when the CIF did not declare his income, no account was exempted from tax. FID: Page 120 of 181

121 List The user invokes this option for the Accounts Type Listing. There are two types of lists: List By Code and List By Description By Code The user invokes this option for the Account Type by Code listing of a particular range of records or for all the records. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Account Type List by Code screen is P004L1. UMG OP5F4 DP: V1.3 DR: FID: Page 121 of 181

122 By Description The user invokes this option for the Account Type by Description listing of a particular range of records or for all the records. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Account Type List by Description screen is P004L2. UMG OP5F4 DP: V1.3 DR: FID: Page 122 of 181

123 3.6. Fixed Maturity Accounts Maintenance The user invokes this option to change the set rates (Modarib Rate and Risk Provision) on client account basis. Under this option, the CRUD technique is available that helps the user Create, Retrieve, Update and Delete a record. The user invokes the Retrieve button and a screen will be displayed by the system whereby all the client s fixed deposit accounts will be shown. He selects the desired account and the full details of the account (specified during the account creation in the imal*nostro Vostro module) will be shown. The Reference of the Maintain Fixed Maturity Accounts screen is P005. Profit Calculation Group This field represents the profit calculation group to which the account belongs. The user specifies the profit calculation group either by inputting it manually or by retrieving it from the Lookup/Query window. The values are defined at the level of the Parameters Profit Calculation Group screen. UMG OP5F4 DP: V1.3 DR: FID: Page 123 of 181

124 List Modarib Rate/ Risk Provision/ Other Provision The Modarib rate, Risk Provision rate and Other Provision rate will be defined by the user on client s account basis. The defined rates for a certain FMA GL will be displayed in the report PCS001. If, at this level the rates are not defined, the values will be retrieved from the Accounts Type screen or the Control Record screen. The user invokes this option for the listing of the Fixed Maturity Accounts Balance Sheet Accounts The user invokes this option for the listing of the Fixed Maturity Balance Sheet Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Fixed Maturity Accounts (Balance Sheet) List is P005L1. UMG OP5F4 DP: V1.3 DR: FID: Page 124 of 181

125 Contra Accounts The user invokes this option for the listing of Fixed Maturity Contra Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Fixed Maturity Accounts (Contra) List is P005L2. UMG OP5F4 DP: V1.3 DR: FID: Page 125 of 181

126 3.7. General Accounts Maintenance The user invokes this option to change the set rates (Modarib Rate and Risk Provision) on client account basis. Under this option, the CRUD technique is available that helps the user Create, Retrieve, Update and Delete a record. He retrieves the desired account and the full details of the account specified during the account creation in the NostroVostro module are shown. The Reference of the Maintain General Accounts screen is P006. Profit Calculation Group This field represents the profit calculation group to which the account belongs. The user specifies the profit calculation group either by inputting it manually or by retrieving it from the Lookup/Query window. The values are defined at the level of the Parameters Profit Calculation Group screen. UMG OP5F4 DP: V1.3 DR: FID: Page 126 of 181

127 List Modarib Rate/ Risk Provision/ Other Provision The Modarib rate, Risk Provision rate and Other Provision rate will be defined by the user on client s account basis. The defined rates for a certain general account GL will be displayed in the report PCS001. If, at this level the rates are not defined, the values will be retrieved from the Accounts Type screen or the Control Record screen. The user invokes this option for the General Accounts listing Balance Sheet Accounts The user invokes this option for the listing of the General Balance Sheet Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the General Accounts (Balance Sheet) List is P006L1. UMG OP5F4 DP: V1.3 DR: FID: Page 127 of 181

128 Contra Accounts The user invokes this option for the listing of General Contra Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the General Accounts (Contra) List is P006L2. UMG OP5F4 DP: V1.3 DR: FID: Page 128 of 181

129 3.8. Internal Accounts Maintenance The Internal Accounts screen allows specifying a Profit Calculation group for each internal account. Under this option, the CRUD technique is available that helps the user Create, Retrieve, Update and Delete a record. He retrieves the desired internal account and the full details of the account specified during the account creation are displayed. The Reference for the Maintain Internal Accounts screen is P007. Profit Calc Grp. This field represents the profit calculation group to which the account belongs. The user specifies the profit calculation group either by inputting it manually or by retrieving it from the Lookup/Query window. The values are defined at the level of the Parameters Profit Calculation Group screen. When the Profit Calculation screen is invoked, the user chooses the Profit Calculation Group for which the profit is calculated. The profit is generated for all the accounts that belong to this Profit Calculation Group. UMG OP5F4 DP: V1.3 DR: FID: Page 129 of 181

130 List Modarib Rate/ Risk Provision/ Other Provision The Modarib rate, Risk Provision rate and Other Provision rate will be defined by the user on client s account basis. The user invokes this option for the Internal Accounts listing Balance Sheet Accounts The user invokes this option for the listing of the General Balance Sheet Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Internal Accounts List screen is P007L1. UMG OP5F4 DP: V1.3 DR: FID: Page 130 of 181

131 Contra Accounts The user invokes this option for the listing of General Contra Account codes information. The list can be sent to the printer for hard copy by clicking on the "Print" button, and it can also be saved as a text file by clicking on the Save As File button. The Reference of the Internal Accounts List screen is P007L1 UMG OP5F4 DP: V1.3 DR: FID: Page 131 of 181

132 3.9. Maintain Accounts Rates Maintenance The user invokes this option to change the set rates for the point bearing GL s according to the amount limits. These values are set originally in the NostroVostro module. The user inputs the new rates for the point bearing GL's according to amount limits. The Reference of the Maintain Accounts Rates screen is P009. UMG OP5F4 DP: V1.3 DR: FID: Page 132 of 181

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134 4. Trial Run - Profit Calculation The user invokes this option to start the Trial Profit Calculation process. The Reference of the Trial Run Profit Calculation screen is POTR. Before running the process, the user needs to make sure that no other user is logged on to the company and that all the months within the profit calculation period are closed. Please refer to the user manual guide of the Accounting module for the closure of the days, months, and years procedures. Profit Calculation Period From Month/Year - To Month/Year This field represents the From and To month and year period of the Profit Calculation process. The user specifies the profit calculation period. Profit Calculation Group This field represents the profit calculation group to which the processing will be made UMG OP5F4 DP: V1.3 DR: FID: Page 134 of 181

135 The user specifies the Profit Calculation Group from the Drop down List box. Required Branches This field represents the required branches on which the process is to be run. The user specifies the required branches from the list. The available options are: Logged In Branch, All Branches, Specific Range and Specified Branches: - If he selects the Logged In Branch value, the process will be run on the logged in branch. - If he selects the All Branches value, the process will be run on all the branches. - If he selects the Specific Range value, the user specifies the range of branches on which the process will be run. - If he selects the Specific Branches value, the user chooses whether he wants to specify different branches in which the process will be run or not. Those branches can be defined by invoking the button, whereby the user can choose a unique code for each branch. These numbers might not be sequential. Upon invoking this button, a Branches window appears whereby the user will be able to specify the branches in which the process will be run. This will be applicable only if at the level of the Parameters, the Profit Calculation Process are set to By Branch and not Consolidated in the Control Record. UMG OP5F4 DP: V1.3 DR: FID: Page 135 of 181

136 The following fields are available: Branch This field represents the code of the Branch. The user specifies the Branch code either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed in the Description field next to the code. Insert The user invokes this button to insert a branch. Delete The user invokes this button to delete a branch. Ok The user invokes this button to save the input data. UMG OP5F4 DP: V1.3 DR: FID: Page 136 of 181

137 Define Additional Net Distributable Profit Upon invoking this button, a Specific Net Profit window appears whereby the user can modify the net distributable profit amount whenever the bank decides to change the net distributable profit amount when it realizes that the profits distributed in the market are different. The following fields are available: Net Distributable Profit This option allows the user to choose whether to Increase or Decrease the net distributable profit. Amount This field represents the amount of the net distributable profit to be increased or decreased. The user defines the amount. UMG OP5F4 DP: V1.3 DR: FID: Page 137 of 181

138 Process The user invokes this button to launch the Profit Calculation Trial Run. The system will ask to confirm with running the process. If the user confirms, the system will start running the process. During the process, if the system encounters accounts with invalid status, a report is generated containing all the accounts with status different than Active, Inactive, Dormant and Apply for Closure. The user gets a message informing him that a report for these accounts was printed. The report contains the following information: Account Number, Account Brief Name, Account Long Name, and Reason for which the account was listed in the report (its current status). The user can choose specific reports to be printed, all of them by invoking the Select All button or none of them by invoking the Cancel All button. He can invoke the Printer Setup button to check and/or modify the printer settings. He invokes the OK button to generate the printouts or Cancel to cancel the printing process. If he clicks on OK, the process is completed and the system displays a message that the Profit Calculation process (Trial) is successfully completed. The user reviews the trial process and on satisfaction he will launch the Final Run Profit Calculation procedure. UMG OP5F4 DP: V1.3 DR: FID: Page 138 of 181

139 Reports printed by the system: Detailed Accounts Profit Calculation Report Summarized Accounts Profit Calculation Report Wei Al Mudharabah Report. Profit To be Distributed Report. Assets that Generate the Revenue Report. Profit calculation Details Report. Summary of Profit Calculation Participation Details by Accounts reports. Letters to Account Holders Report (Latin/Arabic). The reports are displayed as follows: Detailed Accounts Profit Calculation report: This report shows details of the gross profit distributable to each account and the net profit due after deduction of the profit stabilization rate, modarib rate and risk provision. This will be based on the below formulas: Participation Factor Amount = Participation Factor percentage * Participation Total Gross Profit = Participation Factor Amount * Rate of return * accrual basis period Profit Stabilization Amount = Profit STBLZ Rate * Gross Profit Modarib Rate Amount = (Gross Profit Profit STBLZ) * Modarib Rate Risk Provision Amount = (Gross Profit Profit STBLZ Modatib amount) *Risk Provision Rate Net Profit = Gross Profit Profit STBLZ Modatib amount - Risk Provision Amount UMG OP5F4 DP: V1.3 DR: FID: Page 139 of 181

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141 Summarized Accounts Profit Calculation report: This report shows a summary amount by account type and CIF type for all customer participations and net profit due. UMG OP5F4 DP: V1.3 DR: FID: Page 141 of 181

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143 Wei Al Mudharabah report This report shows all the expenses General Ledgers to be deducted from the income generated before getting the gross profit distributable. UMG OP5F4 DP: V1.3 DR: FID: Page 143 of 181

144 Profit To Be Distributed report This report shows all the revenues General Ledgers to be included in the profit calculation. UMG OP5F4 DP: V1.3 DR: FID: Page 144 of 181

145 Assets That Generated The Revenue report This report shows all the Assets General Ledgers to be included in the profit calculation. UMG OP5F4 DP: V1.3 DR: FID: Page 145 of 181

146 Profit Calculation Details report This report shows a summary of the assets, revenues and expenses included in profit calculation and generated gross profit distributable. UMG OP5F4 DP: V1.3 DR: FID: Page 146 of 181

147 This report represents a summary of all above reports including all rates and profit generated for the selected period. UMG OP5F4 DP: V1.3 DR: FID: Page 147 of 181

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150 Formulas: Average of Assets that Generated Revenue: It is the total assets of the bank. Wei Al Mudaraba: Expenses already mentioned in the control record Revenue Generated: Already mentioned in the control record Net revenue after Wei Al Mudarabah= Revenue Wei Al Mudarabah Account Type Participation: Account type liabilities balance Account Type Participation Factor: account type participation with factor already mentioned in the control record factor details Gross Distributable Profit = Net revenue after Wei Al Mudarabah / Average of Assets that generated Revenue* Total Account type participation factor Requested Period Rate of Return on Investment = Gross distributable Profit / Total Account type participation factor Yearly Gross Rate of Return on Investment = Requested Period Rate of Return on Investment *currency days /Actual days in the period Account Type Gross Profit Share = Account type participation factor / Total Account type participation factor * Gross distributable Profit Account Type Gross Rate of Return = Account type Gross profit share / Account type participation * currency days /Actual days in the period Net Distributable Profit = Gross distributable Profit Modarib risk provision equalization Requested Period Net Rate of Return on Investment = Net Distributable Profit / Account type participation factor Yearly Net Rate of Return on Investment = Net Distributable Profit / Account type participation factor * currency days /Actual days in the period Account type Net Rate of Return = Account type net profit share / Account type participation* 100* currency days /Actual days in the period Account Type net profit share = Account type participation factor / Total of the Account type participation factor * Net Distributable Profit UMG OP5F4 DP: V1.3 DR: FID: Page 150 of 181

151 Participation Details By Accounts report This report shows the method of calculation of the Participation totals. It shows all the movements done on the account during the selected period and how the balance modified during that period. UMG OP5F4 DP: V1.3 DR: FID: Page 151 of 181

152 Close The user invokes this button to close the window. UMG OP5F4 DP: V1.3 DR: FID: Page 152 of 181

153 5. Approve Trial Run Profit Calculation When the "Final run with a specific log" flag is checked at the level of Control Record, the user must approve in this screen the trial run for a specific month in order to be able to proceed a final run for the approved trial run in the Final Run screen. Once the user invokes the Approve button, the status of the trial run becomes Approved. The following fields are available: Profit group This field represents the profit group for which the trial run will be approved. The user specifies the profit group from the drop down list box. The available values are previously defined at the level of the Month This field represents the month in which the user wants to retrieve the trial run. The user specifies the month by imputing it manually. Year This field represents the year in which the user wants to retrieve the trial run. The user specifies the month by inputting it manually. UMG OP5F4 DP: V1.3 DR: FID: Page 153 of 181

154 Retrieve The user invokes this button to retrieve all the trial runs for a specific profit group, month and year. Cancel The user invokes this button to cancel the approved trial run. Approve The user invokes this button to approve the selected trial run. Close The user invokes this button to close the screen. UMG OP5F4 DP: V1.3 DR: FID: Page 154 of 181

155 6. Final Run Profit Calculation The user invokes this option to start the Final Profit Calculation process. The Reference of the Final Run Profit Calculation screen is POFR. In the Final Run process, the system again asks the user to confirm proceeding with the process and printing the reports. If he accepts, the system starts the Final run process. The Final run posts the resulting transactions to their respective account codes. This results in updating the accounts balances in the General Ledger. The reports generated give the details of the computations and the resulting amounts posted to the related accounts. At the end of the process, the system displays the message that the Profit Calculation (Final) was processed successfully. The user invokes the Close button to close the screen. Approved Log Number This field represents the log number of the approved trial run that will appear by default after the user specifies the profit group, month and year. The system displays the value. Final run with a specific log flag should be checked at the level of Control Record. UMG OP5F4 DP: V1.3 DR: FID: Page 155 of 181

156 Define Additional Net Distributable Profit Upon invoking this button, Specific Net Profit window appears whereby the user can modify the net distributable profit amount. UMG OP5F4 DP: V1.3 DR: FID: Page 156 of 181

157 Example of profit distribution for fixed maturity accounts: Let A be Fixed Maturity Account Account Opening Date: January 15 th, 2006 Account Maturity Date: March 15 th, 2006 On January 31 st, 2006, the user processes the Final Run Profit Calculation. Suppose the Net Profit Share for A is 100. The system will credit by 100 the Non-Matured Payable Account specified at the level of the Maintain Account Type Details screen. On February 28 th, 2006, the user processes the Final Run Profit Calculation. Suppose the Net Profit Share for A is 200. The system will credit by 200 the Non- Matured Payable Account specified at the level of the Maintain Account Type Details screen. On maturity date, March 15 th, 2006, the user runs the End of Day. The system keeps the Net Profit Share on the Non-Matured Payable Account. On March 31 st, 2006, the user processes the Final Run Profit Calculation. Suppose the Net profit share for A from March 1 st till March 31 st is 100. The system will debit by 300 (100 from January and 200 from February) the Non-Matured Payable Account and Credit by 400 one of the following accounts: Payable Account, Deposit Account, UMG OP5F4 DP: V1.3 DR: FID: Page 157 of 181

158 Offending Account, Profit Account or Maturity Account based on the account instructions. 7. Produce Letters to Accounts Holders When the system completes the Final Run of the profit calculation process, the user invokes this option to generate letters to the accounts holders specifying the balance and details of their accounts. The Reference of the Produce letters to Account Holders screen is POPL. The user selects the period, From Month/Year and To Month/Year, for which letters to accounts holders are generated. The user invokes the OK button when ready, or Cancel to cancel the operation. The letters are displayed on the screen and can be assigned to the printer to generate a hard copy. UMG OP5F4 DP: V1.3 DR: FID: Page 158 of 181

159 8. Reprint Calculation The user invokes this option to reprint the calculation sheets for the Profit calculation of a previously processed period. The Reference of the Reprint Profit Calculation Details is PORC. In the grid, the system displays the Profit Calculation Groups for which the profit calculation was run. The user selects the Profit Calculation Log Details Line and then invokes the Print button to reprint the selected Calculation Log Details. He invokes the Close button to cancel the operation and Printer Setup to check and/or modify the printer settings. UMG OP5F4 DP: V1.3 DR: FID: Page 159 of 181

160 9. Delete Calculation Records The user invokes this option to delete the calculation records for Profit calculations processed in prior periods. The Reference of the Delete Profit Calculation Details screen is PODC. The user selects the Profit Calculation Log Details Line and then invokes the Delete button to delete it. He can invoke the Close button to cancel the operation. If a Final Run log is deleted, the system will reverse all related accounting entries. 10. Populate Account with Rate The user invokes this option to change the Modarib rate, the Risk Provision Rate and/or the Profit Calculation Group on all the GL codes or only on a range of GL codes, which he specifies in the screen. The user also chooses whether the change affects all CIFs or a range of CIFs. UMG OP5F4 DP: V1.3 DR: FID: Page 160 of 181

161 This process is used to specify the rates of the GL accounts instead of going on accountby-account basis as described at the level of Parameters - General Ledger Maintenance screen. The Reference of the Populate Account with Rate screen is POPR. UMG OP5F4 DP: V1.3 DR: FID: Page 161 of 181

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163 Populate Accounts By This field allows modifying the rates of specific accounts based on a specific criterion. The user can specify one of the following values: Accounts Type or Profit Calculation Group. - If he selects the Accounts Type value, upon population of the accounts, the system will modify the rates as specified at the level of the Accounts Type maintenance Factor Details button. - If he selects the Profit Calculation Group value, upon population of the accounts, the system will modify the rates as specified at the level of the Control Record maintenance G/L Details button. Select Required Accounts Type Accounts Type This field represents the account type. The user chooses the Account type from the Drop down list box. The available options are: All Account Types, Fixed Maturity Account Types, General Account Types and Internal Account Types. Profit Calculation Group Profit Calculation Group This field represents the profit calculation group. The user specifies the profit calculation group either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Change This section represents the rates of the GL accounts that will be affected. The user can change the values of the Modarib Rate, Risk Provision Rate and/or Profit Calculation Group for the General Ledgers. He checks the related flag. Range of Currencies This section represents whether the new values are to be applied on All the currencies or only on a Range of currency Codes. - If the user selects the All value, the change will affect all currencies. - If he selects the Range of CY Codes value, the change will only affect a range of currencies. He specifies the range of currency codes either by inputting them manually or by retrieving them from the Lookup/Query window. Range of G/L Codes This section represents whether the new values are to be applied on All the GL codes or only on a Range of G/L Code. - If the user selects the All value, the change will affect all G/L codes. UMG OP5F4 DP: V1.3 DR: FID: Page 163 of 181

164 - If he selects the Range of CIF code value, the change will only affect a range of G/L codes. He specifies the range of G/L codes either by inputting them manually or by retrieving them from the Lookup/Query window. Range of CIF Codes This section represents whether the new values are to be applied on All CIFs or only on a Range of CIF Code. - If the user selects the All value, the change will affect all CIFs. - If he selects the Range of CIF Code value, the change will only affect a range of CIFs. He specifies the range of CIF codes either by inputting them manually or by retrieving them from the Lookup/Query window. OK The user invokes this button to launch the process. Upon completion of the population, the system displays a message that the process is successfully completed. Cancel The user invokes this button to cancel the operation. 11. Set Account Pools The user invokes this option to change the pool to which each account is allocated. He will be able to exclude or include accounts in a specific Profit Calculation Group. He retrieves the accounts based on a Range of Branches, G/Ls, Currencies and Profit Calculation Group. The Reference of the Set Account Pools screen is POSP. UMG OP5F4 DP: V1.3 DR: FID: Page 164 of 181

165 The following fields are available: From Branch/ To Branch These fields represent the range of branches for the accounts that the user wants to change. The user specifies the codes of the branches either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the codes. From G/L - To G/L These fields represent the range of G/L for the accounts that the user wants to change. The user specifies the G/L codes either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the codes. Currency This field represents the currency for the accounts that the user wants to retrieve and set the pools. The user specifies the currency from the Drop down list box. UMG OP5F4 DP: V1.3 DR: FID: Page 165 of 181

166 Profit Group This field represents the profit calculation group for which the user wants to include or exclude the retrieved accounts. The user specifies the code either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code. Retrieve The user invokes this button to retrieve the respective accounts as per the criteria specified. Check All The user invokes this button to include all the accounts related to a specific G/L in the specified pool. Uncheck All The user invokes this button to exclude all the accounts related to a specific G/L from the specified pool. The user can at the level of each account, check or uncheck the related checkbox, to exclude or include the account in the pool. If the checkbox of a specific accounts shows as half-checked, this indicates that the account is allocated to a different pool than the one specified. This option is used only if the Source of Funds Basis field is set to Currency at the level of Parameters - Control Record Maintenance screen. UMG OP5F4 DP: V1.3 DR: FID: Page 166 of 181

167 12. URIA Accumulated Profit by CIF The user invokes this option to retrieve any Unrestricted Interaction Account for any CIF and check the accumulated profit for this account. The Reference of the URIA Accumulated Profit by CIF screen is POURIA. The following fields are available: From Branch/ To Branch These fields represent the range of branches. The user specifies the codes of the branches either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the codes. From CIF/ To CIF These fields represent the range of CIF The user specifies the CIF codes either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the codes UMG OP5F4 DP: V1.3 DR: FID: Page 167 of 181

168 From G/L / To G/L These fields represent the range of G/L. The user specifies the G/L codes either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the codes From Month / To Month These fields represent the range of Months. The user defines the Month. From Year / To Year These fields represent the range of Years. The user defines the Year. Account Status This field represents the status of the CIF to be retrieved. The user specifies the status from the Drop down list box. Print The user invokes this button to print the list. Retrieve The user invokes this button to display the accumulated profit for this account. 13. Outstanding Profit If a customer closes his point bearing account before the point calculation process is run, he is still entitled to an amount of the profit corresponding to the number of days his funds where utilized. This screen shows the status of this profit that has not been allocated to the customer account, because the client had in fact closed his account. The user can inquire about the outstanding profit of a single CIF from the last profit calculation period. The Reference of the Outstanding profit screen is POPAC. UMG OP5F4 DP: V1.3 DR: FID: Page 168 of 181

169 The following fields are available: CIF This field represents the CIF code. The user specifies the CIF code either by inputting them manually or by retrieving them from the Lookup/Query window. A brief description is displayed next to the code in the Customer name field The user invokes the Retrieve button in order to see if the specified CIF has any outstanding profit belonging to him. Civil ID This field represents the Civil ID related to the CIF. The user defines the Civil ID. He can input up to a maximum of 14 numeric characters. This is a non-mandatory field. The user invokes the Retrieve button in order to check if the specified Civil ID related to the CIF has any outstanding profit. UMG OP5F4 DP: V1.3 DR: FID: Page 169 of 181

170 Retrieve The user invokes this button to display the outstanding profit for this CIF. 14. Profit Write-off The user might choose to write off certain profit after a certain amount of time. The Reference of the Profit Write off screen is POPWF. The following fields are available: Select Criteria Profit Group This field represents the profit calculation group to which the accounts to be retrieved belong. The user specifies the profit group from the Drop down list box. The available options are the pools created at the level of the Control Record screen. Currency This field represents the currency of the amount to be written off. UMG OP5F4 DP: V1.3 DR: FID: Page 170 of 181

171 The user specifies the currency either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code Type This field represents the account type. The user specifies the type from the Drop down list box. He can limit his inquiry to either fixed maturity accounts or to general accounts. Closed Period (From Date / To Date) This field represents the period that the system should search for uncollected profit. The user defines the period in the From Date and the To Date fields Credit Account This field represents the account to which the profit will be transferred. The user specifies the account number either by inputting it manually or by retrieving it from the Lookup/Query window. A brief description is displayed next to the code Retrieve Upon invoking this button, the system will display all the accounts that fit the above criteria. Select All The user invokes this button to select all the retrieved closes accounts. Cancel All The user invokes this button to cancel the selection. Proceed The user invokes this button to proceed with the transaction. UMG OP5F4 DP: V1.3 DR: FID: Page 171 of 181

172 15. Zakat Process The user invokes this option to process the zakat on the FMA and the general accounts. When the user invokes the Process button, the system will deduct Zakat amount from all FMA having the Apply Zakat flag checked and post it to Zakat account, except for FMAs having post profit at Maturity. In the latter case, the system will deduct Zakat on Maturity day. The system will take into consideration the ending balance of FMA and saving account on the last day of shaabaan while processing the Zakat. Apply Zakat flag should be checked at the level of Parameters - Account Type Maintenance for the FMA and general accounts. When the user invokes the Close button, the window will be closed. UMG OP5F4 DP: V1.3 DR: FID: Page 172 of 181

173 16. Reports This option enables the user to extract information concerning all profit calculation processing executed within the system Detailed Profit Calculation The user specifies the Period Range of the profit calculations to be printed, the CIF Range of Accounts and, if he wants, the Trial and/or the Final runs to be shown in the report. Upon invoking the OK button, the system displays the report s contents. The Reference of the Detailed Profit Calculation screen is R001. UMG OP5F4 DP: V1.3 DR: FID: Page 173 of 181

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175 16.2. Participation Total for Accounts by CIF The user specifies the Profit Calculation Log Number and CIF Range. In the report, a new line is displayed to the user containing the transaction amounts of Foreign Currency accounts i.e. for each transaction on a Foreign Currency account, a new line is displayed containing the value of the Debit, Credit and Balance columns in the account s currency. The Reference of the Participation Total for Accounts By CIF screen is R002. UMG OP5F4 DP: V1.3 DR: FID: Page 175 of 181

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177 16.3. Average Balance Report The user checks in this report the average balance figure, as well as, the opening and closing balance of any account or a set of accounts for a specific period. He specifies the Range of Dates and Accounts for which the report is going to be generated. The Reference of the Average Balance Report screen is R003. UMG OP5F4 DP: V1.3 DR: FID: Page 177 of 181

178 UMG OP5F4 DP: V1.3 DR: FID: Page 178 of 181

179 16.4. Rate of Return Report This report shows the Rate of Return Promised ROR by account type, the Participation Factor, the Risk Provision, the Modarib Rate and the Other Provision. The data in this report is retrieved from the last processed Profit Calculation. The Reference of the Rate of Return Report screen is R004. UMG OP5F4 DP: V1.3 DR: FID: Page 179 of 181

180 16.5. Participation Factor History This report views all the participation factor of each Account type by the range of the balance, along with its modarib, provision and other provision rate. The Reference of the Participation Factor History screen is R006. The user selects from the Drop down list box the Profit Calculation Group and its period. In case the parameterization is done at the level of AC Type instead of the Control Record the user chooses <NONE>. UMG OP5F4 DP: V1.3 DR: FID: Page 180 of 181

181 16.6. Profit Accruals Details History This report views all the profit accruals by Profit Calculation Group, within a certain date period. The Reference of the Profit Accruals Details History screen is R007. The user selects from the Drop down list box the Profit Calculation Group and its period. In case the parameterization is done at the level of AC Type instead of the Control Record the user chooses <NONE>. UMG OP5F4 DP: V1.3 DR: FID: Page 181 of 181