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From "Santosh Math (JIRA)" <j...@apache.org>
Subject [jira] [Closed] (FINERACT-282) Backdate before Interest Waiver corrupts loan balances
Date Thu, 23 Feb 2017 05:45:44 GMT

     [ https://issues.apache.org/jira/browse/FINERACT-282?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
]

Santosh Math closed FINERACT-282.
---------------------------------
    Resolution: Fixed

> Backdate before Interest Waiver corrupts loan balances
> ------------------------------------------------------
>
>                 Key: FINERACT-282
>                 URL: https://issues.apache.org/jira/browse/FINERACT-282
>             Project: Apache Fineract
>          Issue Type: Bug
>          Components: Loan
>            Reporter: Santosh Math
>            Assignee: Markus Geiss
>              Labels: confirm, p1
>         Attachments: Screenshot 1.png, Screenshot #2.png, Screenshot #3.png, Screenshot
#4.png
>
>
> Reported by Sander at https://mifosforge.jira.com/browse/MIFOSX-1498
> Original Description:
> When waiving interest on a loan the outstanding interest and balance is reduced by clearing
outstanding interest on past instalments and if applicable future instalments (as expected).
However when a payment is now backdated to a date before the interest waiver, interest is
that was waived on those instalments is 'activated' again and the payment is allocated to
it.
> In the attached screenshot #1 is the 'clean' schedule of the loan with 4.11 in interest
due. The total due on the loan is 254.11. In the screenshot #2 the interest has been waived
per the 1st of June, leaving a loan balance of 235.32 (screenshot #3).
> Now when a new transaction is entered, for the 15th of May (so before waiver), of 15$
, the expected loan balance would be 220.32, however the payment 'reopens' the interest for
the instalments it is covering (see screenshot #4) and repays them. As a result the total
outstanding is 220.48 (one instalment interest has been paid, but was not part of the balance
before). And also when the sum of all transactions is made manually it no longer adds up (screenshot
#5) to the system generated balances.
> Because of the way MifosX handles the loanschedules and transactions, the waiver has
automatically been reversed when processing the backdated payment (which is chronologically
before the later payment) and then applies the waiver again later, at which point the interest
due is fewer than the waiver is for. This results in an adjustment of the overall loan, and
also brings up a situation whereby the loan summary data is no longer aligned with the transactions.
And the accounting data is also out of sync, as the accrued interest no longer adds up to
the waived + paid interest on the loan.
> As the waiving of interest normally is a process that can work both backwards (open installments
from before) and forwards (future installments), we would expect that the interest for the
prior installments would remain waived.



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