2. Islamic Fixed Assets - An Overview

2.1 Introduction

The Islamic Fixed Assets module is a complete front-end module of Oracle FLEXCUBE that captures and tracks the characteristics of the Islamic fixed asset of your bank. Using this module you can clearly identify the various applicable events and manage all the activities during the assets’ useful lifecycle.

The product definition function, the mainstay of Oracle FLEXCUBE’s design, enables you to create products for specific Islamic fixed asset that you set up. The module gives you the flexibility to define components (charge), restrictions (branch), preferences, events and accounting entries into ‘Classes’. When defining a product, you merely need to associate it with the different classes that you have built.

This chapter contains the following sections:

• Section 2.2, "Features of the Module"

2.2 Features of the Module

Definition of Classes

In Oracle FLEXCUBE, a ‘Class’ embodies a generic set of attributes. A class could represent any one of the following:

• a set of restrictions (branch, locations, asset category)
• a set of events and the corresponding accounting roles and heads
• a component (charge)

As part of your one-time set up, you can define several sets of classes of a particular type. In Oracle FLEXCUBE, therefore, you do not have to specify restrictions, preferences, and components every time you create a product. You only need to associate the different set of classes that you have already maintained.

This feature eliminates redundancy, and saves processing time.

The process to create a class is discussed in the Procedures User Manual of Oracle FLEXCUBE.

Creating Islamic Fixed Asset Products

When setting up the module, you can define the various parameters for the assets. For each product, you can also define ‘attributes’, or in other words, the terms and conditions. When a user at the bank actually processes a fixed asset, it can be associated with a product. The asset acquires the terms defined for the product that it involves. (However, you can allow a user to change the inherited attributes of an asset for specific transactions.)

Processing Depreciation

The depreciation charge processing will be done as part of the End of Day and Beginning of Day processing. This will process all the assets for depreciation depending on frequency of the depreciation that you specify in the Asset Category - Rule mapping maintenance screen.