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https://issues.apache.org/jira/browse/FINERACT-282?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Santosh Math updated FINERACT-282:
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Attachment: Screenshot 1.png
Screenshot #4.png
Screenshot #3.png
Screenshot #2.png
> 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
> Attachments: Screenshot #2.png, Screenshot #3.png, Screenshot #4.png,
> Screenshot 1.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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