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https://issues.apache.org/jira/browse/FINERACT-2123?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Steve Broughton updated FINERACT-2123:
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Description:
The refund for active loan transaction is incorrectly accounted for on a cash
basis when the product is configured for accrual accounting.
Fault is in:
AccrualBasedAccountingProcessorForLoan.createJournalEntriesForRefundForActiveLoan
method
When the credit entries are created they use income accounts instead of
receivable accounts. This would be correct only for cash basis accounting only.
Accrual accounting requires that these amounts come from the receivable
accounts.
*Steps to reproduce*
1. Overpay a loan
2. Perform a refund
3. Examine the GL entries
was:
The refund for active loan transaction is incorrectly accounted for on a cash
basis when the product is configured for accrual accounting.
Fault is in:
AccrualBasedAccountingProcessorForLoan.createJournalEntriesForRefundForActiveLoan
method
When the credit entries are created they use income accounts instead of
receivable accounts. This would be correct only for cash basis accounting only.
Accrual accounting requires that these amounts come from the receivable
accounts.
> Incorrect Accural Accounting for Refund For Active Loan
> -------------------------------------------------------
>
> Key: FINERACT-2123
> URL: https://issues.apache.org/jira/browse/FINERACT-2123
> Project: Apache Fineract
> Issue Type: Bug
> Components: Accounting
> Affects Versions: 1.10.0
> Reporter: Steve Broughton
> Priority: Major
> Attachments:
> Fix_incorrect_GL_entries_which_were_being_generated_on_refund_of_active_loan.patch
>
> Original Estimate: 1h
> Remaining Estimate: 1h
>
> The refund for active loan transaction is incorrectly accounted for on a cash
> basis when the product is configured for accrual accounting.
>
> Fault is in:
> AccrualBasedAccountingProcessorForLoan.createJournalEntriesForRefundForActiveLoan
> method
>
> When the credit entries are created they use income accounts instead of
> receivable accounts. This would be correct only for cash basis accounting
> only. Accrual accounting requires that these amounts come from the receivable
> accounts.
>
> *Steps to reproduce*
> 1. Overpay a loan
> 2. Perform a refund
> 3. Examine the GL entries
>
>
>
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