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From "Adi Raju" <adi.r...@confluxtechnologies.com>
Subject RE: Loan Fees Bug
Date Fri, 06 May 2016 07:54:50 GMT
Hi Zayyad,

 

Usability Part:

How the payment amount is adjusted towards installment components(principal/interest/fee/penalties)
are decided by the Repayment strategy chosen while defining the loan product.

Currently we have 7 different strategies which specify how paid amount should be adjusted
in case of early/on-time/late payments. 

 

U1. You can try the different strategies available for different scenarios and use one of
them if it satisfies your complete requirement. You can see the documentation for Repayment
Strategy field at https://mifosforge.jira.com/wiki/display/docs/Loan+Product+Fields

U2. If none of them satisfies, we will have to develop a new repayment strategy. 

 

Technical Part:

I do not see correcting code of current repayment strategies as they are in use for a long
time now and that may be what is expected by the MFI’s who are already using them.

 

If U2 above is what is required, we have 2 options:

T1. Short term solution: A new custom implementation of AbstractLoanRepaymentScheduleTransactionProcessor
class can be written to address your specific requirement.

T2. Long term solution: We come up with APIs to define custom repayment strategy. This way
we can let FIs to define their own strategy and use them as appropriate for their scenario.

 

I would recommend long term option(T2) though it would take bigger effort than shortcut.

 

Regards,

Adi

 

From: Zayyad A. Said [mailto:zayyad@intrasofttechnologies.com] 
Sent: 06 May 2016 00:46
To: dev@fineract.incubator.apache.org
Cc: 'Sangamesh N' <sangamesh@confluxtechnologies.com>; subramanya@confluxtechnologies.com;
Ed Cable <edcable@mifos.org>
Subject: RE: Loan Fees Bug

 

Hi Devs,

 

Anyone who was able to look into this? 


Kindly advise way forward.

 

Regards;

 

 

*******

Zayyad A. Said | Chairman & C.E.O

 

Cell No.: +254 716 615274 | Skype: zsaid2011

Email: zayyad@intrasofttechnologies.com <mailto:zayyad@intrasofttechnologies.com>  

 



 

From: Zayyad A. Said [mailto:zayyad@intrasofttechnologies.com] 
Sent: 04 May 2016 19:15
To: 'Sander van der Heyden'; 'dev@fineract.incubator.apache.org'
Cc: 'Sangamesh N'
Subject: RE: Loan Fees Bug

 

Sander,

 

If this is how it’s been functioning for the last two years, then I must say we have all
been in darkness for quite some time. The system should not function like this.

 

If I charge a client in June for example, that income needs to be reported in June which is
the month  the fee was charged and not before. It beats the logic to report that income in
the month when there was last payment (say April) in the account.

 

<< If the fee is applied after the payment and no backdates are made, this won't cause
any weird bookings, but as soon as you start backdating or adjusting older payments the reprocessing
of the schedule will re-allocate the payments like this.>>

Please note in the sample I gave in my email, the charge was actually applied on 1st May 2016
and paid same day after the payment of 15th April 2016 had already been made.

 

I strongly recommend someone to carefully analyze this situation and propose right solution
otherwise the system would not be giving right financial reports which are key to the Financial
Institutions.

 

Regards;

 

 

*******

Zayyad A. Said | Chairman & C.E.O

 

Cell No.: +254 716 615274 | Skype: zsaid2011

Email: zayyad@intrasofttechnologies.com <mailto:zayyad@intrasofttechnologies.com>  

 



 

From: Sander van der Heyden [mailto:sandervanderheyden@musoni.eu] 
Sent: 03 May 2016 22:55
To: dev@fineract.incubator.apache.org <mailto:dev@fineract.incubator.apache.org> 
Cc: Zayyad A. Said; Sangamesh N
Subject: Re: Loan Fees Bug

 

Hi Zayyad,

 

This is not a bug, but actually existing functionality that has worked like this at least
for the last year or so. We've been educating our users on this for  quite some time. 

 

The logic behind this is very much tied to the structure in the system. Because loan payments
and charges are all linked to schedule instalments, any loan fee that is set up as "Specified
due date" is actually tied to the loan instalment it falls into, and therefore (depending
on the payment order picked), it will be paid off as soon as the first payment 'hits' that
instalment, which in your case is that payment from earlier on.

 

If the fee is applied after the payment and no backdates are made, this won't cause any weird
bookings, but as soon as you start backdating or adjusting older payments the reprocessing
of the schedule will re-allocate the payments like this.

 

I completely understand that this is seen as 'undesirable' behaviour, but this is also quite
a core bit of code around the charges, that would need to be redesigned to change this. If
this is therefore core-team development effort, I propose to treat this as a known error /
improvement and not rush into revamping part of the charges code without also considering
other improvements (or creating bugs while solving others). But keen to hear other thoughts
on this from the other devs? 

 

Thanks,

Sander





Sander van der Heyden

CTO Musoni Services

  <http://musonisystem.com/logo.png> 

Mobile (NL): +31 (0)6 14239505
Skype: s.vdheyden
Website:  <http://musonisystem.com/> musonisystem.com
 <https://twitter.com/musonimfi> Follow us on Twitter! 
Postal address: Hillegomstraat 12-14, office 0.09, 1058 LS, Amsterdam, The Netherlands

 

On Tue, May 3, 2016 at 6:50 PM, Ed Cable <edcable@mifos.org <mailto:edcable@mifos.org>
> wrote:

Zayyad,

 

Since this is potentially a bug in the core Fineract platform, i'm directly the conversation
to that mailing list - we'll continue the conversation there. 

  <https://web.chilipiper.com/track/mifos.org/5728d69ae4b02bbec5bc525d.png> 

 

On Tue, May 3, 2016 at 9:43 AM, Zayyad A. Said <zayyad@intrasofttechnologies.com <mailto:zayyad@intrasofttechnologies.com>
> wrote:

Hi Devs,

 

We seem to be having a bug on fees applied after a loan payment is done. The fee income seem
to be reported in the previous schedule when the last payment was done.

 

To reproduce this check out this account https://demo3.openmf.org/#/viewloanaccount/42 (mifos/password)
for client Allen E.

 

Two different charges were applied on 1st May 2016 i.e. Loan Extension of 600/= and Penalty
of 1000/= and were also paid same day (You can verify from the charges tab).

 

If you view them on Transactions tab, these fees shows to have been collected on 15th April
2016 which was the date  partial payment was done to this loan account.

 

This poses a very serious challenge in proper accounting of income as this income is now reported
in a different month and not the actual month when it was charged and paid.

 

Please look into this urgently and would appreciate if it can be a given a top priority to
have it fixed.

 

Your feedback will be appreciated.

 

Regards;

 

 

*******

Zayyad A. Said | Chairman & C.E.O

 

Cell No.: +254 716 615274 <tel:%2B254%20716%20615274>  | Skype: zsaid2011

Email: zayyad@intrasofttechnologies.com <mailto:zayyad@intrasofttechnologies.com>  

 

 

 





 

-- 

Ed Cable

Director of Community Programs, Mifos Initiative

edcable@mifos.org <mailto:edcable@mifos.org>  | Skype: edcable | Mobile: +1.484.477.8649
<tel:%2B1.484.477.8649> 

 

Collectively Creating a World of 3 Billion Maries | http://mifos.org  <http://facebook.com/mifos>
  <http://www.twitter.com/mifos> 

 

 


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