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https://issues.apache.org/jira/browse/FINERACT-1706?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Adam Saghy reassigned FINERACT-1706:
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Assignee: Adam Saghy
> Chargeback transaction
> ----------------------
>
> Key: FINERACT-1706
> URL: https://issues.apache.org/jira/browse/FINERACT-1706
> Project: Apache Fineract
> Issue Type: New Feature
> Reporter: Adam Saghy
> Assignee: Adam Saghy
> Priority: Major
> Fix For: 1.9.0
>
> Attachments: chargeback repayment schedule scenarios.xlsx
>
>
> *As a* user with 'NEW'“ permission
> *I want to* _add a charge-back transaction on the loan account_
> *in order to* post the debit to the loan account (increase the loan balance
> of the account)
> *User Cases/Background and details:*
> When an old transaction needs to be reversed, currently the system reverses
> all the latest repayments first in order to reverse the old transaction
> this might result in interest, and principal recalculation, and affect the
> accounting ledger closing entries.
> If we introduce the new transaction named chargeback it will increase the
> loan balance and the amount would be collected in the upcoming repayments
>
> This approach is also helpful in covering the refund scenarios for
> organizations that refund back the amount for the customers who were excess
> collected or disputes raised.
> We can have two types and can be managed at the payment_type level
> • REPAYMENT_ADJUSTMENT_CHARGEBACK
> • REPAYMENT_ADJUSTMENT_REFUND
>
> *Acceptance criteria*
> # Functionally both types behave the same with respect to loan treatment,
> hence a single transaction type with different 'payment types' will work to
> meet 2 use-cases.
> # Chargeback Transactions should have linkage to the original transaction
> which was raised as a dispute transaction
> # A chargeback transaction will increase the current loan balance and adds
> to the next installment and collects back by the next repayment.
> # A Chargeback Transaction when posted a bill will be due to be collected as
> on the current date
> # The overdue calculation, Delinquency calculation will begin from the
> chargeback addition date
> # When there are 2 chargebacks the Delinquency calculation will happen from
> the last not fully paid chargeback date.
> # Chargeback transactions should have the ability to post full or partial
> amounts as per the user’s request
> # A Chargeback Transaction can be posted in multiple types on the same loan
> account
> # A chargeback transaction can be posted on the closed loan account. when
> posted on the closed loan account, the loan should be reopened with the
> principal balance to pay
> # Extra installments created after maturity should have a flag that it’s not
> a real installment.
> Validations for now
> # A Chargeback Transaction should be allowed only for zero interest bearing
> loan accounts and
> # No Changes on Penalities calculations for post-maturity chargeback
> installments
> # Chargeback transactions once posted cannot be reversed
> The attached excel document will explain the different use cases of schedule
> behavior based on charge-back transactions
>
> And the following will be the accounting treatment for the chargeback
> transaction(for both cash-based and accrual cases)
> Journal entries to be passed for chargeback transaction
> ||Entry Type||Accounting Type in Loan Product||GL-Code||GL-Name in Loan
> Product||Type of CoA||The logic for calculating the Amount for passing the
> entries||
> |Debit|Loan portfolio(Asset section)|112601|Loans Receivable|Asset|Sum of
> Principal components of the chargeback transaction|
> |Credit|Fund source(Asset section)|145023|Suspense/Clearing
> account|Liability|Sum of Principal components of the chargeback transaction|
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