eitan frailich created FINERACT-1307:
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Summary: Loan Ideal disbursement to calculation cause to wrong
interest rate
Key: FINERACT-1307
URL: https://issues.apache.org/jira/browse/FINERACT-1307
Project: Apache Fineract
Issue Type: Bug
Components: Loan
Reporter: eitan frailich
*ISSUE*
My issue/bug happens when I am setting "First repayment on" field I get a
repayment schedule with a wrong interest rate for the first installment.
Example: When I set "First repayment on" to 01/02/21 and expected disbursement
is 27/1/21(Frist image) then I get the wrong interest.The first installment
interest is 21,232.88$ (second Image) - calculated for the entire month (31
days) instead of 5 days (the time from the disbursement to the first
repayment), the right interest should be 3424.75$.
*After debugging:*
In AbstractLoanScheduleGenerator there is a function
{{calculateInterestStartDateForPeriod}} - it uses the {{idealDisbursment}} for
setting the interest start date for the first installment, The
{{idealDisbursment}} is calculated by
{{idealDisbursementDateBasedOnFirstRepaymentDate}} which does
[{{firstRepaymentDate}} - 1 repayment Period Frequency] aka, for 01/02/21 with
months as repyment frequency it will return 01/01/21.
So when we dont set the "First repayment on" the {{idealDisbursment}} will be
the expected disbursement date because the first repayment is always
{{expectedDisbursment}}+1. But if we set the "First repayment on" we get the
wrong value for the {{idealDisbursment}} - in my example we got 01/0/21 and
this is why the first installment interest was calculated for an entire month
instead of 5 days.
*Is it a bug or not?*
I am not sure why {{idealDisbursementDateBasedOnFirstRepaymentDate}} exists,
the simple solution is to do idealDisbursment=expectedDisbursmentDate.I tried
it locally and looks like it works, I will be happy to make a PR, but want to
make sure indeed that the {{idealDisbursementDateBasedOnFirstRepaymentDate}} is
redundant.
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