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https://issues.apache.org/jira/browse/FINERACT-1307?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17281723#comment-17281723
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bharath gowda commented on FINERACT-1307:
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Hi [~eitan-fr]
Appreciate your effort in the contribution,
Please test these scenarios first with your code change
Scenario 1
when "*interest calculation period*" is set to "*daily*" then interest has to
calculate from the *Disbursement date*
Scenario 2
when "*interest calculation period*" is set to "*same as repayment*" and
"Calculate interest for exact days in partial period" checkbox is *selected*
then interest has to calculate from the *Disbursement date*
Scenario 3
when "*interest calculation period*" is set to "*same as repayment*" and
"Calculate interest for exact days in partial period" checkbox is *not
selected* then interest has to calculate for that month.
As long as this fix doesn't break these 3 scenarios, it should be fine.
Also, I would suggest a thorough test with different configurations before
making any changes to the interest calculation functionality.
> 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
> Assignee: eitan frailich
> Priority: Minor
> Fix For: 1.5.0
>
> Attachments: image-2021-02-02-16-43-07-381.png
>
>
> *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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