Bharath Gowda created FINERACT-2162:
---------------------------------------
Summary: Chargeback enhancement to support Interest bearing loans
Key: FINERACT-2162
URL: https://issues.apache.org/jira/browse/FINERACT-2162
Project: Apache Fineract
Issue Type: Improvement
Reporter: Bharath Gowda
Fix For: 1.11.0
*Recap about Chargeback*
* Chargeback transaction is always belong to a target transaction. We can
chargeback fully or partially an existing transaction.
* Chargeback transaction is always the actual, current date
* Chargeback amount can be equal or lower than the target transaction, but
cannot be more!
** *For non-progressive loans, it is always increasing the due principal only!*
*** Example: Repayment transaction was paying {*}$50{*}, and allocation wise
{*}$45 went to principal and $5 went to fee{*}! If we chargeback $50 dollar of
this Repayment transaction, *the principal due on the current period will be
credited (increased) with $50!*
*Acceptance criteria*
# Chargeback should include the interest portion if the payment it is being
charged-back has any interest.
# Chargeback amount allocation priority should be configurable.
# Charged back interest has a to be paid as fix amount as part of the period
it belongs to.
# Chargeback interest will not go through interest recalculation again.
# Chargeback Interest will not have new accrual transactions (no income
recognision).
# Charged back principal if happens before maturity date it does increase the
outstanding principal and interest to be calculated on this increased amount
(original outstanding principal + credited back principal), if it is after
maturity date then no interest.
# If the original transaction portions got changed, we might need to
recalculate and reallocate the Chargeback as well.
# No Extra Interest will be calculated after maturity date - this scenario
comes for chargebacks after maturity date.
# Chargeback amount will be added to the next unpaid installment in the
repayment schedule - same as for non-interest bearing.
# Linkage of chargeback and the repayment will be retained- same as for
non-interest bearing.
--
This message was sent by Atlassian Jira
(v8.20.10#820010)
