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https://issues.apache.org/jira/browse/FINERACT-2232?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
]
Bharath Gowda updated FINERACT-2232:
------------------------------------
Description:
Capitalized Income is a Feature required to support loan products like Merchant
Term Loan (MTL) and Working Capital (WC).
This feature would allow for posting a defined Income debit to a loan account,
and amortizing a portion of that amount daily to income based on a defined
effective interest rate (EIR) calculation.
h3. Requirement Details
# Capitalized income to be Introduced and configurable at the loan product
level
# Capitalized income can be FLAT (default)
#
## % of Disbursement amount ( FLAT )
# Amortization strategy
#
## DEFAULT: Equal amortization
# It is added to the loan account at Disbursement level and on disbursement
date only through API
#
## New API to add Capitalized income
#
## Validation match with disbursement date
# Once Disbursed, New Transaction Type to added separately for Capitalized
income amount
#
## New transaction type
#
##
### Normal, monetary transactions
#
## Accounting for this transaction type
# Capitalized income amount is considered as a principal portion,hence
-Schedule calculation will be based on (disbursement amount+Capitalized income)
-Interest calculation will be based on (disbursement amount+Capitalized income)
-No changes in allocation or working for other monetary transactions
# No changes in any other monetary transactions and its accounting entries
# Validation of Disbursement amount <= approved amount should be changed to
(Disbursement amount+Capitalized income) <= approved amount
# Add Amortization on Daily basic to recognize the portion of Deferred Income
to income
#
## Amortization to be done on daily basis for origination fees at COB
#
## *System should maintain the fees balance during Amortization*
*balance-§ Capitalized income - fee credits/adjustments - fee income recognized*
#
## Charge-off will also charge-off the Capitalized income and no amortization
will be done after charge-off date
#
## Final Amortization will be done for balance amount if the loan gets
Preclosed on the same day
# We need an API where Capitalized income amortization information can be
fetched
#
## Basic balance information
#
## Transaction list?
# New type of Capitalized income adjustment/credit - to be introduced
#
## Capitalized income Adjustment works as a Credit Transaction that reduces
the Capitalized income balance
#
## Works similar like any other Credit Transaction In Fineract and reduces the
loan balances as per the allocation set
#
## Capitalized income Adjustment Transaction can have its own Allocation
Strategy set
#
## Capitalized income Adjustment Accounting entries works like a Mirror of
Capitalized income entries
TO DO
Add usecases
was:
Capitalized Income is a Feature required to support loan products like Merchant
Term Loan (MTL) and Working Capital (WC).
This feature would allow for posting a defined Income debit to a loan account,
and amortizing a portion of that amount daily to income based on a defined
effective interest rate (EIR) calculation.
h3. Requirement Details
# Capitalized income to be Introduced and configurable at the loan product
level
# Capitalized income can be FLAT (default)
## % of Disbursement amount (PP needs only FLAT -( we can discuss and remove %
if not required) → Separate story
# Amortization strategy
## DEFAULT: Equal amortization
# It is added to the loan account at Disbursement level and on disbursement
date only through API
## New API to add Capitalized income
## Validation match with disbursement date
# Once Disbursed, New Transaction Type to added separately for Capitalized
income amount
## New transaction type
### Normal, monetary transactions
## Accounting for this transaction type
# Capitalized income amount is considered as a principal portion,hence
-Schedule calculation will be based on (disbursement amount+Capitalized income)
-Interest calculation will be based on (disbursement amount+Capitalized income)
-No changes in allocation or working for other monetary transactions
# No changes in any other monetary transactions and its accounting entries
# Validation of Disbursement amount <= approved amount should be changed to
(Disbursement amount+Capitalized income) <= approved amount
# Add Amortization on Daily basic to recognize the portion of Deferred Income
to income
## Amortization to be done on daily basis for origination fees at COB
## *System should maintain the fees balance during Amortization*
*balance-§ Capitalized income - fee credits/adjustments - fee income recognized*
## Charge-off will also charge-off the Capitalized income and no amortization
will be done after charge-off date
## Final Amortization will be done for balance amount if the loan gets
Preclosed on the same day
# We need an API where Capitalized income amortization information can be
fetched
## Basic balance information
## Transaction list?
# New type of Capitalized income adjustment/credit - to be introduced
## Capitalized income Adjustment works as a Credit Transaction that reduces
the Capitalized income balance
## Works similar like any other Credit Transaction In Fineract and reduces the
loan balances as per the allocation set
## Capitalized income Adjustment Transaction can have its own Allocation
Strategy set
## Capitalized income Adjustment Accounting entries works like a Mirror of
Capitalized income entries
TO DO
Add usecases
> Capitalized Income
> -------------------
>
> Key: FINERACT-2232
> URL: https://issues.apache.org/jira/browse/FINERACT-2232
> Project: Apache Fineract
> Issue Type: New Feature
> Affects Versions: 1.11.0
> Reporter: Bharath Gowda
> Priority: Major
>
> Capitalized Income is a Feature required to support loan products like
> Merchant Term Loan (MTL) and Working Capital (WC).
> This feature would allow for posting a defined Income debit to a loan
> account, and amortizing a portion of that amount daily to income based on a
> defined effective interest rate (EIR) calculation.
>
> h3. Requirement Details
> # Capitalized income to be Introduced and configurable at the loan product
> level
> # Capitalized income can be FLAT (default)
> #
> ## % of Disbursement amount ( FLAT )
> # Amortization strategy
> #
> ## DEFAULT: Equal amortization
> # It is added to the loan account at Disbursement level and on disbursement
> date only through API
> #
> ## New API to add Capitalized income
> #
> ## Validation match with disbursement date
> # Once Disbursed, New Transaction Type to added separately for Capitalized
> income amount
> #
> ## New transaction type
> #
> ##
> ### Normal, monetary transactions
> #
> ## Accounting for this transaction type
> # Capitalized income amount is considered as a principal portion,hence
> -Schedule calculation will be based on (disbursement amount+Capitalized
> income)
> -Interest calculation will be based on (disbursement amount+Capitalized
> income)
> -No changes in allocation or working for other monetary transactions
> # No changes in any other monetary transactions and its accounting entries
> # Validation of Disbursement amount <= approved amount should be changed to
> (Disbursement amount+Capitalized income) <= approved amount
> # Add Amortization on Daily basic to recognize the portion of Deferred
> Income to income
> #
> ## Amortization to be done on daily basis for origination fees at COB
> #
> ## *System should maintain the fees balance during Amortization*
> *balance-§ Capitalized income - fee credits/adjustments - fee income
> recognized*
> #
> ## Charge-off will also charge-off the Capitalized income and no
> amortization will be done after charge-off date
> #
> ## Final Amortization will be done for balance amount if the loan gets
> Preclosed on the same day
> # We need an API where Capitalized income amortization information can be
> fetched
> #
> ## Basic balance information
> #
> ## Transaction list?
> # New type of Capitalized income adjustment/credit - to be introduced
> #
> ## Capitalized income Adjustment works as a Credit Transaction that reduces
> the Capitalized income balance
> #
> ## Works similar like any other Credit Transaction In Fineract and reduces
> the loan balances as per the allocation set
> #
> ## Capitalized income Adjustment Transaction can have its own Allocation
> Strategy set
> #
> ## Capitalized income Adjustment Accounting entries works like a Mirror of
> Capitalized income entries
> TO DO
> Add usecases
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