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From "thynn win (JIRA)" <j...@apache.org>
Subject [jira] [Updated] (FINERACT-491) Savings annual compound doesn't respect Fiscal month (in April)
Date Mon, 03 Jul 2017 03:53:02 GMT

     [ https://issues.apache.org/jira/browse/FINERACT-491?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
]

thynn win updated FINERACT-491:
-------------------------------
     Attachment: sample.jpg
    Description: 
We are observing that Mifos doesn’t respect the fiscal month in calculating interest for
savings.
 
For instance: we configured the fiscal year to start in April. The saving product is annual
interest with 15% and 365 days. Compounding is set to annual with daily balance.

If we make a saving deposit of $1000 on June 23, 2016 and trying to post on April 1 2017,
our expectation is that the interest will be $115.89 (1000*282*0.0004109589).  
There are a total of 282 days with daily interest rate of 0.0004109589 (1/365*0.15). 
 
In Mifos, we are getting $118.81 instead. What we learned is that there is a compounding happening
on Dec 31, 2016 even though it’s not a fiscal year end. 
>From June 23 to Dec 31, there are 192 days and it’s getting a new available balance
on Jan 1. It’s compounding from Jan 1, 2017.
https://demo.openmf.org/#/viewsavingaccount/887 (see screenshot)
 
 
When digging through the code, even though Fiscal month is passed around in the interest calculation,
it wasn’t used when determining compounding periods. 
   
File: PostingPeriod.java
Method: determineInterestPeriodEndDateFrom

case ANNUAL:
                periodEndDate = periodStartDate.monthOfYear().withMaximumValue(); //This is
causing to default the compound period to Dec as period start year is 2016.
                periodEndDate = periodEndDate.dayOfMonth().withMaximumValue();

 We are still trying to go through the logic and we’d greatly appreciate your help.
This will become an issue in Jan 2018 as it's compounding when it's not supposed to be.


 
Thank you.


  was:
We are observing that Mifos doesn’t respect the fiscal month in calculating interest for
savings.
 
For instance: we configured the fiscal year to start in April. The saving product is annual
interest with 15% and 365 days. Compounding is set to annual with daily balance.

If we make a saving deposit of $1000 on June 23, 2016 and trying to post interests on April
1 2017, our expectation is that the interest will be $115.89 (1000*282*0.0004109589).  
There are a total of 282 days with daily interest rate of 0.0004109589 (1/365*0.15). 
 
In Mifos, we are getting $118.81 instead. What we learned is that there is a compounding happening
on Dec 31, 2016 even though it’s not a fiscal year end. 
>From June 23 to Dec 31, there are 192 days and it’s getting a new available balance
on Jan 1. It’s compounding from Jan 1, 2017.
https://demo.openmf.org/#/viewsavingaccount/887 (see screenshot)
 
 
When digging through the code, even though Fiscal month is passed around in the interest calculation,
it wasn’t used when determining compounding periods. 
   
File: PostingPeriod.java
Method: determineInterestPeriodEndDateFrom

case ANNUAL:
                periodEndDate = periodStartDate.monthOfYear().withMaximumValue(); //This is
causing to default the compound period to Dec as period start year is 2016.
                periodEndDate = periodEndDate.dayOfMonth().withMaximumValue();

 We are still trying to go through the logic and we’d greatly appreciate your help.
This will become an issue in Jan 2018 as it's compounding when it's not supposed to be.


 
Thank you.



> Savings annual compound doesn't respect Fiscal month (in April)
> ---------------------------------------------------------------
>
>                 Key: FINERACT-491
>                 URL: https://issues.apache.org/jira/browse/FINERACT-491
>             Project: Apache Fineract
>          Issue Type: Bug
>          Components: Savings
>    Affects Versions: 1.0.0
>         Environment: Windows
>            Reporter: thynn win
>            Assignee: Markus Geiss
>            Priority: Critical
>         Attachments: sample.jpg
>
>
> We are observing that Mifos doesn’t respect the fiscal month in calculating interest
for savings.
>  
> For instance: we configured the fiscal year to start in April. The saving product is
annual interest with 15% and 365 days. Compounding is set to annual with daily balance.
> If we make a saving deposit of $1000 on June 23, 2016 and trying to post on April 1 2017,
our expectation is that the interest will be $115.89 (1000*282*0.0004109589).  
> There are a total of 282 days with daily interest rate of 0.0004109589 (1/365*0.15).

>  
> In Mifos, we are getting $118.81 instead. What we learned is that there is a compounding
happening on Dec 31, 2016 even though it’s not a fiscal year end. 
> From June 23 to Dec 31, there are 192 days and it’s getting a new available balance
on Jan 1. It’s compounding from Jan 1, 2017.
> https://demo.openmf.org/#/viewsavingaccount/887 (see screenshot)
>  
>  
> When digging through the code, even though Fiscal month is passed around in the interest
calculation, it wasn’t used when determining compounding periods. 
>    
> File: PostingPeriod.java
> Method: determineInterestPeriodEndDateFrom
> case ANNUAL:
>                 periodEndDate = periodStartDate.monthOfYear().withMaximumValue(); //This
is causing to default the compound period to Dec as period start year is 2016.
>                 periodEndDate = periodEndDate.dayOfMonth().withMaximumValue();
>  We are still trying to go through the logic and we’d greatly appreciate your help.
> This will become an issue in Jan 2018 as it's compounding when it's not supposed to be.
>  
> Thank you.



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