Santosh Math created FINERACT-348:
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Summary: Issues when doing a "Close-As-Rescheduled" on a loan
Key: FINERACT-348
URL: https://issues.apache.org/jira/browse/FINERACT-348
Project: Apache Fineract
Issue Type: Bug
Components: Loan
Reporter: Santosh Math
Assignee: Markus Geiss
Priority: Critical
Reported by Binny at https://mifosforge.jira.com/browse/MIFOSX-1205
Original Description:
When closing a loan using the "Close (as Rescheduled)" button, the loan account
is closed, but there are no transactions or accounting entries made for this
closure. This not correct.
The following should be done:
1) A new transaction should be visible to user under transactions to show that
the loan was closed as rescheduled rather than leaving the loan as is without
any changes. This means that Mifos X should mkae a new entry m_loan_transaction
table - with transaction_type_enum = 7 and amount as the total outstanding
amount (principal + interest + fees).
2) Ensure that the right accounting entries are made when closing the loan as
"closed (as rescheduled)". This involves:
For loan products: capturing another General Ledger account head under
“Rescheduled in Suspense” – for example: “Rescheduled Loans Suspense Account”
When closing as loan as rescheduled, passing the following entries:
a) For Cash Accounting:
Debit: Rescheduled Loan Suspense Account (with only principal outstanding
amount)
Credit: Loan portfolio
b) For Accrual (upfront):
Debit: Rescheduled Loan Suspense Account (sum of outstanding principal +
interest + fees + penalties)
Credit: Loan portfolio (with principal outstanding amount)
Credit: Interest Receivable (with interest outstanding amount)
Credit: Fees Receivable (with fees outstanding amount)
Credit: Penalties Receivable (with penalties outstanding amount)
c) For Accrual (periodic):
Debit: Rescheduled Loan Suspense Account (sum of outstanding principal +
interest receivable accounted + fees receivable accounted + penalties
receivable accounted)
Credit: Loan portfolio (with principal outstanding amount)
Credit: Interest Receivable (with interest receivable accounted)
Credit: Fees Receivable (with fees receivable accounted)
Credit: Penalties Receivable (with penalties receivable accounted)
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