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Date: Tue, 4 Jul 2017 05:31:00 +0000 (UTC)
From: "Santosh Math (JIRA)" <jira@apache.org>
To: dev@fineract.incubator.apache.org
Message-ID: <JIRA.13084109.1499053792000.163621.1499146260192@Atlassian.JIRA>
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Subject: [jira] [Updated] (FINERACT-491) Savings annual compound doesn't
 respect Fiscal month (in April)
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archived-at: Tue, 04 Jul 2017 05:31:05 -0000


     [ https://issues.apache.org/jira/browse/FINERACT-491?page=3Dcom.atlass=
ian.jira.plugin.system.issuetabpanels:all-tabpanel ]

Santosh Math updated FINERACT-491:
----------------------------------
    Labels: p1  (was: )

> 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
>              Labels: p1
>         Attachments: sample.jpg
>
>
> We are observing that Mifos doesn=E2=80=99t respect the fiscal month in c=
alculating interest for savings.
> =20
> 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 an=
nual 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). =20
> There are a total of 282 days with daily interest rate of 0.0004109589 (1=
/365*0.15).=20
> =20
> In Mifos, we are getting $118.81 instead. What we learned is that there i=
s a compounding happening on Dec 31, 2016 even though it=E2=80=99s not a fi=
scal year end.=20
> From June 23 to Dec 31, there are 192 days and it=E2=80=99s getting a new=
 available balance on Jan 1. It=E2=80=99s compounding from Jan 1, 2017.
> https://demo.openmf.org/#/viewsavingaccount/887 (see screenshot)
> =20
> =20
> When digging through the code, even though Fiscal month is passed around =
in the interest calculation, it wasn=E2=80=99t used when determining compou=
nding periods.=20
>   =20
> File: PostingPeriod.java
> Method: determineInterestPeriodEndDateFrom
> case ANNUAL:
>                 periodEndDate =3D periodStartDate.monthOfYear().withMaxim=
umValue(); //This is causing to default the compound period to Dec as perio=
d start year is 2016.
>                 periodEndDate =3D periodEndDate.dayOfMonth().withMaximumV=
alue();
>  We are still trying to go through the logic and we=E2=80=99d greatly app=
reciate your help.
> This will become an issue in Jan 2018 as it's compounding when it's not s=
upposed to be.
> =20
> Thank you.


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