Hi Adi, Thanks for your feedback, makes sense on the early payments and I agree the duplicate instalments is a bug. Looks like the holiday/workingdays config is ignored for that bit. However I think we'll indeed need to introduce this in the payment schedules as well. In addition I found another strange scenario which is: https://demo.openmf.org/#/viewloanaccount/321
Can you explain to me how the calculation for the interest for the 2nd instalment is made, so the first instalment which was due 8 days ago is now overdue by 8 days and interest (should have) compounded as well. However I cannot work out the formula used to get to that amount of interest, when running the same example for a loan just 1 day overdue, I was able to work out the amount, but only as long as I calculated 2 extra days. Is there any docs on this on the wiki (I could not spot them). Thanks, Sander Sander van der Heyden CTO Musoni Services Mobile (NL): +31 (0)6 14239505 Skype: s.vdheyden Website: musonisystem.com Follow us on Twitter! <https://twitter.com/musonimfi> Postal address: Hillegomstraat 12-14, office 0.09, 1058 LS, Amsterdam, The Netherlands On 8 December 2016 at 06:23, Adi Raju <adi.r...@confluxtechnologies.com> wrote: > Hi Sander > > PSB > > Regards, > Adi Raju > > Principal Architect, Conflux Technologies Pvt Ltd > Address: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block, Bengaluru, > Karnataka, 560043 INDIA > > > Disclaimer: The information contained in this e-mail message and any > files/attachment transmitted with it is confidential and for the sole use > of the intended recipient(s) or entity identified. If you are not the > intended recipient, please email: supp...@confluxtechnologies.com and > destroy/delete all copies and attachment thereto along with the original > message. Any unauthorised review, use, disclosure, dissemination, > forwarding, printing or copying of this email or any action taken in > reliance on this e-mail is strictly prohibited and is unlawful. The > recipient acknowledges that Conflux Technologies Private Limited or its > subsidiaries and associated companies are unable to exercise control or > ensure or guarantee the integrity of/over the contents of the information > contained in e-mail transmissions. Before opening any attachments, please > check. > > > > > -----Original Message----- > From: Sander van der Heyden [mailto:sandervanderhey...@musonisystem.com] > Sent: 07 December 2016 22:24 > To: dev@fineract.incubator.apache.org > Cc: A good place to start for users or folks new to Mifos. > Subject: Re: Issues in interest recalculation > > Hi Adi, > > Thanks for your feedback. I already left some test cases on the demo (but > have updated the same product in between so you'll need to check the > derived data for these). I'll work on some more cases that we've seen > locally tomorrow, but these are the ones that were already there. > > > *Incorrect interest in Loan Schedule for first instalment when making an > early payment* See https://demo.openmf.org/#/viewloanaccount/302, where > you see 3.85 of interest paid on the summary and loan transactions, yet the > 3.85 is still due on the instalment and if you look at the schedule via the > API is reported as outstanding interest (which the transaction has already > paid). > > [Adi] In case of interest recalculation enabled loans, there is no way to > realise a complete EMI components whose due date is in the future. Any > early payments gets adjusted to the principal, and hence there will be some > interest component which will remain due as of the future due date. From > calculations or schedule point of view the early paid amount is completely > getting adjusted to Principal and interest is pending. > Repayment strategy decides the splitting of components in a transaction. > Looks like the repayment strategy needs a correction not to consider the > interest component in case of early payment. > > *Interest recalculation causes incorrect schedule with duplicate > instalments* For the daily loans with duplicate instalments see: > https://demo.openmf.org/#/viewloanaccount/304, where you can see that 2 > payments fall due on the same day. If you undo disburse the loan and > preview the schedule before disbursement you'll not see duplicate payments > on the same day. > [Adi] As I see original schedule is fine, but during repayments some > duplicates are seen. This is definitely a bug. > > Thanks, > Sander > > > > > Sander van der Heyden > > CTO Musoni Services > > > > > Mobile (NL): +31 (0)6 14239505 > Skype: s.vdheyden > Website: musonisystem.com > Follow us on Twitter! <https://twitter.com/musonimfi> Postal address: > Hillegomstraat 12-14, office 0.09, 1058 LS, Amsterdam, The Netherlands > > On 7 December 2016 at 11:20, Adi Raju <adi.r...@confluxtechnologies.com> > wrote: > > > Hi Sander, > > > > Interest recalculation is allowed only when "Calculate interest for > > exact days in partial period" is enabled in product definition. > > Consider the scenario: holidays calendar is empty, all days are > > considered working days and payments are always on time, you will see > > the interest applied equally with interest rate 1% considering 12%pa > > interest with monthly payment period. > > > > In case there is any date difference due to holidays/working days > > consideration or early payments etc, the calculation happens as follows: > > Assume installment is falling on 1st Feb, but due to holiday the > > installment is postponed to 2nd Feb and consider 12%pa interest rate. > > Interest for the whole month of Jan is calculated at 1% and interest > > for the 1 additional day in Feb is calculated as 1%*(1/28). > > For the installment on 1st Mar, interest is calculated as 1%*(27/28) > > would be used. > > This is how the current interest recalculation happens to make sure > > the interest is collected for each and every day. > > And partial interest for any day is calculated based on the number of > > days in the loan installment period. > > > > I am unable to reproduce other issues that you have mentioned. Looks > > like they are linked to some other factors as well. If you can > > reproduce them on demo.openmf.org and provide with loan ids or > > relevant details, we can get back with clarifications or verify if it is > really a bug. > > > > Regards, > > Adi Raju > > > > Principal Architect, Conflux Technologies Pvt Ltd > > Address: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block, > > Bengaluru, Karnataka, 560043 INDIA > > > > > > Disclaimer: The information contained in this e-mail message and any > > files/attachment transmitted with it is confidential and for the sole > > use of the intended recipient(s) or entity identified. If you are not > > the intended recipient, please email: supp...@confluxtechnologies.com > > and destroy/delete all copies and attachment thereto along with the > > original message. Any unauthorised review, use, disclosure, > > dissemination, forwarding, printing or copying of this email or any > > action taken in reliance on this e-mail is strictly prohibited and is > > unlawful. The recipient acknowledges that Conflux Technologies Private > > Limited or its subsidiaries and associated companies are unable to > > exercise control or ensure or guarantee the integrity of/over the > > contents of the information contained in e-mail transmissions. Before > > opening any attachments, please check. > > > > > > > > > > -----Original Message----- > > From: Sander van der Heyden > > [mailto:sandervanderhey...@musonisystem.com] > > Sent: 05 December 2016 17:06 > > To: dev@fineract.incubator.apache.org; A good place to start for users > > or folks new to Mifos. > > Subject: Issues in interest recalculation > > > > Hi All, > > > > We've been doing a relatively extensive round of testing on interest > > recalculation loans and found the following issues (on demo.openmf.org). > > All of the cases below have: > > - Interest recalculation on > > - Interest calculation = same as repayment period > > - Amortization set to Equal instalments > > - Advance payments set to Reduce EMI Amount > > - No grace periods > > - No sliding interest rates, or multi-disbursements > > - No fixed EMI amounts > > > > I've not yet created JIRA items on it, because I was wondering whether > > other people had seen these and there was a work-around by specifying > > the right params? Also when trying to debug some of this I think the > > calculations have now been made so incredibly complex that it is very > > hard to fix some of these without creating other bugs in exchange. > > > > *Daily interest on Same as Repayment period* On monthly loans, even > > though same as repayment period is selected, the interest calculation > > seems to happen on a daily basis. We see jumps up and down in the > > schedule, which should not happen especially before any payments are > > made, as in that case the interest calculation should be identical for > > each month (we are using same as repayment period) and therefore the > > interest amount should always drop month over month, with principal > going up. > > > > *Incorrect interest in Loan Schedule for first instalment when making > > an early payment* When setting up any interest recalculation loan, and > > making an early payment on the first instalment, this updates the > > schedule with all of it going to principal, leaving the interest > > outstanding. However the actual transaction does split part of it to > > interest and so does the loan summary. > > In subsequent instalments this no longer happens. > > > > *Interest recalculation causes incorrect schedule with duplicate > > instalments* > > On a daily loan, when an installment was originally due on a weekend > > day, it get's pushed forward, skipping that day correctly. However in > > recalculation this is no longer happening therefore introducing 2 > > installments on the same date one with a 0 length. So what happens is > > pre-correction you have an instalment on the 3rd of December, then one > > on the 5th (skipping sunday). After the payment and recalculation it > > has 2 instalments due on the 5th, one with 0 days and no interest. > > > > *Single instalment loans do not recalculate* When a loan with 1 > > instalment is created and the client prepays on that one instalment, > > interest is not recalculated. > > > > *Early payment of all principal throws an EMI error* When repaying the > > full principal due on the loan in an early instalment it throws an EMI > > error, which should not happen, there is still a bit of interest to > > pay, but no more principal. This means the schedule should just show > > that interest remaining (or close the loan as there is no interest). > > > > > > Thanks, > > Sander > > > > > >
