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ISLAMIC FINANCING & TREASURY

Six financing structures. Each one is genuine.

Not a loan with a renamed field. Each product type — Murabaha, Mudarabah, Musharakah, Ijara — has its own GL logic, profit-sharing mechanics, ACE approval workflow, and Shariah validation flow. Built from the accounting standard up.

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MURABAHA

Cost-plus sale — the most common Islamic financing structure

Bank purchases an asset and sells it to the customer at cost plus a disclosed markup, on deferred payment terms. MizanCore implements Murabaha per AAOIFI FAS 2: markup is posted to Deferred Murabaha Income on contract date and recognised over the tenor — never upfront to a revenue account.

Deferred income recognition (FAS 2) Repayment schedule generation Early settlement with optional Ibra' Overdue tracking & PAR computation Fatwa-linked product catalogue
MUDARABAH

Profit-sharing investment — deposits and financing

Used for both investment deposits (customers as Rabb al-mal) and financing (bank as Rabb al-mal). The profit pool engine calculates distribution from actual investment returns at period-end — not a predetermined rate applied to balances. Mudarib (bank) and Rabb al-mal shares are tracked separately in the GL.

Pooled Mudarabah profit calculation Weighted average balance computation PSR disclosure per account agreement Period-end profit distribution journal Indicative return reporting
MUSHARAKAH

Partnership — joint ownership and profit/loss sharing

Bank and customer contribute capital to a joint venture or asset purchase. Both share profits and losses in proportion to their capital contribution (or an agreed ratio). Diminishing Musharakah is supported for progressive equity transfer — common in property and asset financing.

Capital contribution tracking (bank + customer) Diminishing Musharakah equity reduction Profit/loss allocation per agreement Partner equity GL accounts Group Musharakah (multiple partners)
IJARA

Leasing — use without ownership transfer

Bank owns an asset and leases it to the customer for a rental payment. Ijara wa Iqtina (lease to own) is also supported, where the customer gradually acquires the asset through a separate purchase agreement. Rental income is recognised over the lease period.

Asset ownership tracking Rental income schedule Ijara wa Iqtina (lease-to-own) Asset depreciation tracking Early termination handling
SUKUK & TAKAFUL

Islamic capital market and mutual insurance structures

For institutions that issue or invest in Sukuk (Islamic bonds) or operate a Takaful window. Sukuk investment accounting, coupon (profit) receipt, and Takaful contribution and claims handling are supported with appropriate GL separation.

Sukuk investment portfolio Sukuk profit receipt accounting Takaful contribution pool Claims processing and GL posting Surplus distribution to participants
QARD HASAN

Benevolent loan — no markup, no profit

An interest-free loan where the customer repays only the principal. Often used for staff loans, emergency relief, or as a social finance product. Administrative fees (if ACE-approved) are posted separately and not described as profit. Full repayment tracking.

Zero-profit receivable accounting ACE-approved admin fee (separate GL) Repayment schedule and tracking Eligibility rules Portfolio reporting

See the Murabaha calculator in a live demo.

We'll walk through origination, GL posting, and the ACE approval workflow for the financing structures most relevant to your institution.

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