fineract-dev mailing list archives

Site index · List index
Message view « Date » · « Thread »
Top « Date » · « Thread »
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 09:12:33 GMT

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

George Lteif updated FINERACT-69:
---------------------------------
    Description: 
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$  less than expected





  was:
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






> 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$  less than expected



--
This message was sent by Atlassian JIRA
(v6.3.4#6332)

Mime
View raw message