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https://issues.apache.org/jira/browse/FINERACT-69?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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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 (screenshot attaches)
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$ 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 (screenshot attaches)
> which is a 0.7$ or 1$ less than expected
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