Many people think it's calculated on profit. That's incorrect. Corporate Zakat is calculated on the Zakat base (net trade assets), not on profit. Odyssey uses a recognized Sharia-based rule, and the system calculates it based on your actual business activity and data.
The Gregorian-adjusted rate Odyssey uses by default — not a flat 2.5%. You can still override it manually if your own fiqh reference differs.
Odyssey relies on a default classification based on AAOIFI Standard No. 35, with manual adjustment available and a full audit trail — because whether an item is subject to Zakat is a composite fiqh-and-accounting decision that is not left to an algorithm alone.
Zakat isn't computed in isolation. The correct sequence is: finalize and approve the financial statements first, then approve the supplementary Zakat disclosures/notes, and only then compute and finalize the Zakat statement — the same order Odyssey's workflow follows.
Odyssey pulls every asset and liability account from your books at fiscal year-end and pre-classifies each one using the trade-assets method (net current assets) — the recognized approach for calculating corporate Zakat.
The system suggests a default per account, but every single classification can be changed manually. Your choices are remembered and carried forward automatically to next year, so you're not reclassifying the same accounts every fiscal year-end.
Need to value a doubtful receivable below its book value? You can — but the system requires a written note explaining the adjustment, so the statement stays defensible later.
Trade goods are valued at market value at the Zakat date, not at cost. Stagnant goods carry no Zakat until they are sold. That is why every amount in the worksheet can be adjusted manually, with a written reason.
Zakat is due only when the Zakat base reaches the Nisab — the value of 85 grams of 24-karat gold. Below it, the Zakat due is zero whatever the base. Odyssey checks this using the gold price you enter.
Zakat you already paid during the year is deducted from the amount due, at face value — the Zakat base itself is not adjusted. If you paid more than is due, the excess is treated as voluntary charity (sadaqah), not as a balance owed to the company.
Every classification, valuation, and computation is logged with who did it and when. Once you finalize the statement, it's locked permanently — the same discipline as any official financial statement.
The Zakat base calculation Odyssey uses is grounded in recognized Sharia references, not an internal guess.