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From "George Lteif (JIRA)" <j...@apache.org>
Subject [jira] [Updated] (FINERACT-69) Wrong interest amount when using Rounding Mode - Down/Floor for Flat Loans
Date Mon, 14 Mar 2016 09:05:33 GMT

     [ https://issues.apache.org/jira/browse/FINERACT-69?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
]

George Lteif updated FINERACT-69:
---------------------------------
    Attachment: screenshot-1.png

> Wrong interest amount when using Rounding Mode - Down/Floor for Flat Loans
> --------------------------------------------------------------------------
>
>                 Key: FINERACT-69
>                 URL: https://issues.apache.org/jira/browse/FINERACT-69
>             Project: Apache Fineract
>          Issue Type: Bug
>          Components: Loan
>            Reporter: George Lteif
>            Assignee: Markus Geiss
>         Attachments: screenshot-1.png
>
>
> For organizations using the Floor rounding Mode, the expected behavior is to have the
rounding rules done for the loan schedules and not the total interest amount
> what is currently done in Mifos X is applying the rounding rule on the total interest
amount calculated first which is leading to a loss of profit for the organization
> Scenario:
> create a FLAT interest loan product with a monthly 1.3% interest rate
> rounding mode is set to Floor
> create a loan for the amount of 2900$ over a period of 21 months repayments (one repayment
per month)
> expected result would be
> 2900*1.3%*21 repayments = 791.7 
> it should always be rounded up here regardless of the rounding mode being set to not
lead to any loss of profit
> interest calculated in MifosX is 791
> which is a 0.7$ or 1$ if rounding less than expected



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