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https://issues.apache.org/jira/browse/FINERACT-2162?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Mihaly Dallos updated FINERACT-2162:
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Labels: PepperSoup (was: )
> 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
> Assignee: Mihaly Dallos
> Priority: Major
> Labels: PepperSoup
> 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.
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