Bharath Gowda created FINERACT-2092:
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Summary: New transaction type - Payment Waiver
Key: FINERACT-2092
URL: https://issues.apache.org/jira/browse/FINERACT-2092
Project: Apache Fineract
Issue Type: Improvement
Reporter: Bharath Gowda
h3. Background and Details
Payment Waiver is a transaction type regularly used by entities who offer BNPL
products to waiver payments amount of their customers who meet their internal
regulations and policies
h3. Configuration
# User should be able to configure payment allocations for the Payment waiver
transaction type at loan product level
## both at loan product creation and modify level
h3. Transaction requirements
# User should be able to pass a new transaction on a Active/Closed loan
account through API
# User should be able to undo/modify the transaction posted
# Transaction amount should obey the payment allocation order set at the
“advance allocation strategy”
# Reverse replay will work the same as of any other transaction type
# Charge-back can be done on payment waiver transaction type
This transaction type working is same as of “goodwill credit transaction” and
“refund transaction”
h3. Schedule Requirements
# Repayment schedule allocation for Payment Waiver will happen as per the
advance repayment strategy set. same as goodwill credit,refund transaction
allocations
# Reverse replay allocation will work the same
h3. UI changes
# User should be configure “Payment Waiver” transaction in Advance Payment
Strategy at Loan product level (both at product creation/modify level)
# User should be able to post “payment Waiver” transaction on the
active/closed loan account
## “payment waiver” transaction should be visible on the transaction tab
## User should be able to undo/modify the transaction on the UI
## User should be able to do charge-back from the UI
# UI actions similar to goodwill credit transaction
h3. Accounting Entries
Journal entries to be passed for 'Payment Waiver' transaction for loan account
*For non charge-off loan accounts*
||Entry Type
||Accounting Type in Loan Product
||GL-Code
||GL-Name in Loan Product
||Type of CoA
||Logic for calculating the Amount for passing the entries
||
|Debit|Income from Interest
(Income section)|404000|Interest Income|Income|Total Amount entered for
'Payment Waiver' transaction|
|Credit|Loan portfolio (Asset secion)|112601|Loans Receivable|Asset|total
Principal portion which got allocated|
|Credit|Interest Receivable(Asset Portion)|112603|fees/Interest
Receivable|Asset|total interest portion which got allocated|
|Credit|Fees Receivable (fees portion|112603|fees/Interest
Receivable|Asset|total fees portion which got allocated|
*Reversal entry for Non charge-off loan account*
||Entry Type
||Accounting Type in Loan Product
||GL-Code
||GL-Name in Loan Product
||Type of CoA
||Logic for calculating the Amount for passing the entries
||
|Credit|Income from Interest (Income section)|404000|Interest
Income|Income|Total Amount entered for 'Payment Waiver' transaction|
|Debit|Loan portfolio (Asset secion)|112601|Loans Receivable|Asset|total
Principal portion which got allocated|
|Debit|Interest Receivable(Asset Portion)|112603|fees/Interest
Receivable|Asset|total interest portion which got allocated|
|Debit|Fees Receivable (fees portion|112603|fees/Interest
Receivable|Asset|total fees portion which got allocated|
*For charge-off loan accounts*
||Entry Type
||Accounting Type in Loan Product
||GL-Code
||GL-Name in Loan Product
||Type of CoA
||Logic for calculating the Amount for passing the entries
||
|Debit|Income from Interest
(Income section)|404000|Interest Income|Income|Total Amount entered for
'Payment Waiver' transaction|
|Credit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total Principal portion which got allocated|
|Credit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total interest portion which got allocated|
|Credit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total fees portion which got allocated|
*Reversal entry for charge-off loan account*
||Entry Type
||Accounting Type in Loan Product
||GL-Code
||GL-Name in Loan Product
||Type of CoA
||Logic for calculating the Amount for passing the entries
||
||Entry Type
||Accounting Type in Loan Product
||GL-Code
||GL-Name in Loan Product
||Type of CoA
||Logic for calculating the Amount for passing the entries
||
|Credit|Income from Interest
(Income section)|404000|Interest Income|Income|Total Amount entered for
'Payment Waiver' transaction|
|Debit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total Principal portion which got allocated|
|Debit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total interest portion which got allocated|
|Debit|Income from charge-off Interest (Income secion)|404001|Interest income
charge off|Asset|total fees portion which got allocated|
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