How do I install the Salam skill?

Run npx skillmds@latest add panaversity/salam in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Salam safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Salam?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Salam free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

panaversity (@panaversity) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Salam by panaversity — Agent Skill

Name: Salam
Author: panaversity

File contents

THE STRUCTURE

Salam: The bank pays in FULL and IN ADVANCE for a commodity to be delivered at a specified future date, location, and of specified quality and quantity.

Shariah requirements (all must be met — if any fails, contract is void):

Full payment at contract date (not deferred)
Commodity is fungible and standardised (gold, wheat, oil — not unique items)
Delivery date, location, and quantity all specified precisely
Commodity need not exist at contract date (unlike conventional spot contracts)

AAOIFI FAS 7 — SALAM RECEIVABLE

At contract execution (payment of advance): Dr: Salam Receivable [Full payment amount] Cr: Cash [Full payment amount]

The salam receivable represents the bank's right to receive the commodity. Carry at cost (the advance price paid), not at fair value of the commodity.

At delivery: Dr: Salam Commodity / Inventory [Cost = original salam payment] Cr: Salam Receivable [Cost — derecognise the receivable]

On sale of commodity (bank sells to market): Dr: Cash / Receivable from buyer [Sale price] Cr: Salam Commodity / Inventory [Cost] Cr/Dr: Gain / Loss on Salam [Difference]

Commodity price risk: The bank bears price risk between advance payment and delivery. If market price falls below advance price → loss. If it rises → gain. This risk is inherent in salam. It is NOT a Shariah compliance issue.

PARALLEL SALAM

To hedge or resell: Bank enters a SECOND salam (parallel salam) selling the same commodity to another party at a higher price for delivery on the same date.

IMPORTANT: The two salam contracts must be INDEPENDENT. The bank bears delivery risk in both. Cannot use customer's delivery to satisfy the parallel salam (linking the two contracts may violate Shariah).

Parallel salam accounting: recognise as a separate salam liability. Do not net the two contracts.

MANDATORY DISCLOSURES

AAOIFI FAS 7:

Accounting policy for salam transactions
Salam receivables movement table (opening, new contracts, deliveries, closing)
Commodity price risk exposure
Parallel salam liabilities outstanding
Shariah compliance: confirmation of full advance payment at contract date

---name: salamdescription: Activate for: salam, forward purchase Islamic, advance payment commodity, FAS 7, agricultural finance Islamic, salam receivable, parallel salam, commodity forward Islamic, advance purchase contract.---## THE STRUCTURESalam: The bank pays in FULL and IN ADVANCE for a commodity to be deliveredat a specified future date, location, and of specified quality and quantity.Shariah requirements (all must be met — if any fails, contract is void):1. Full payment at contract date (not deferred)2. Commodity is fungible and standardised (gold, wheat, oil — not unique items)3. Delivery date, location, and quantity all specified precisely4. Commodity need not exist at contract date (unlike conventional spot contracts)## AAOIFI FAS 7 — SALAM RECEIVABLE**At contract execution (payment of advance):**Dr: Salam Receivable [Full payment amount]Cr: Cash [Full payment amount]The salam receivable represents the bank's right to receive the commodity.Carry at cost (the advance price paid), not at fair value of the commodity.**At delivery:**Dr: Salam Commodity / Inventory [Cost = original salam payment]Cr: Salam Receivable [Cost — derecognise the receivable]**On sale of commodity (bank sells to market):**Dr: Cash / Receivable from buyer [Sale price]Cr: Salam Commodity / Inventory [Cost]Cr/Dr: Gain / Loss on Salam [Difference]Commodity price risk: The bank bears price risk between advance payment and delivery.If market price falls below advance price → loss. If it rises → gain.This risk is inherent in salam. It is NOT a Shariah compliance issue.## PARALLEL SALAMTo hedge or resell: Bank enters a SECOND salam (parallel salam) selling thesame commodity to another party at a higher price for delivery on the same date.IMPORTANT: The two salam contracts must be INDEPENDENT.The bank bears delivery risk in both. Cannot use customer's delivery to satisfythe parallel salam (linking the two contracts may violate Shariah).Parallel salam accounting: recognise as a separate salam liability.Do not net the two contracts.---## MANDATORY DISCLOSURES**AAOIFI FAS 7:**1. Accounting policy for salam transactions2. Salam receivables movement table (opening, new contracts, deliveries, closing)3. Commodity price risk exposure4. Parallel salam liabilities outstanding5. Shariah compliance: confirmation of full advance payment at contract date

Frequently asked questions

Salam