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https://issues.apache.org/jira/browse/FINERACT-307?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Ed Cable updated FINERACT-307:
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Labels: Triage p2 (was: p2)
> Accruals accounting does not accrue income on loans closed prematurely
> ----------------------------------------------------------------------
>
> Key: FINERACT-307
> URL: https://issues.apache.org/jira/browse/FINERACT-307
> Project: Apache Fineract
> Issue Type: Bug
> Components: Loan
> Affects Versions: 1.8.0
> Reporter: Santosh Math
> Priority: Major
> Labels: Triage, p2
> Fix For: 1.9.0
>
>
> Reported by Sander at https://mifosforge.jira.com/browse/MIFOSX-2093
> Original Description:
> If a customer makes the final payment before the end of the loan schedule the
> loan status changes to closed, and the balance reports 0, which is correct.
> These loans are non-recalculating and accrue interest in line with their
> schedules (periodic). As such all interest portions are booked into the
> Interest Receivable account.
> However because of the closed status the accruals batch job no longer
> generates the periodic accruals for this loan (query excludes any status
> which is not active). As a result a part of this income will remain in the
> Interest receivable account indefinitely, which is not the expected
> behaviour. We would either expect the accruals to continue in line with the
> schedule, or for the accrual to be generated alongside the final (closing)
> transaction of the loan.
> The quick-fix for this is to adjust the batch job to look not just look at
> loan status but also at any loan where the interest accrual date is smaller
> than the expected maturity date.
> As a permanent fix we should investigate whether new accounting types/rules
> need to be defined for this scenario to also book this prepaid income as a
> liability instead of an asset account, such as Prepaid Interest received.
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