Piotr Wargulak created FINERACT-2523:
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Summary: Inconsistent Interest Recalculation between exact
repayment and over-payment for Cumulative Loan with Floating Rates
Key: FINERACT-2523
URL: https://issues.apache.org/jira/browse/FINERACT-2523
Project: Apache Fineract
Issue Type: Bug
Affects Versions: 1.14.0
Reporter: Piotr Wargulak
Attachments: floating-rate-after-min-overpayment.pdf,
floating-rate-after-repayment.pdf, floating-rate-before-repayment-1.pdf,
loan-product-summary-1.pdf
h2. Summary
The Interest Recalculation logic will modify all following installments when
over-payment is made, but for the same loan the Interest Recalculation will
only modify the last installment when Floating Rate changes.
h2. Details
A Loan with:
* Cumulative schedule;
* Equal installments;
* Declining Balance;
* Partial Interest Calculation allowed;
* Interest recalculation enabled;
* Interest recalculation - Advance payments adjustment type: {*}Reduce EMI
amount{*}.
_See attached loan-product-summary.pdf for complete summary._
h3. Before repayment
* EMI of most installments: 217.35
* Last installment: 217.32
* Floating Interest Rate changes at 1st April, by 1.5%.
_See attached floating-rate-before-repayment.pdf_
h3. After repayment
* The exact *217.35* is repaid, before due.
* EMI of most installments {*}stays the same{*}: 217.35
* Last installment changes: 206.98
_See attached floating-rate-after-repayment.pdf_
h3. After over-payment
* The exact *217.36* (0.01 more) is repaid, before due.
* EMI of the due installments changes: 216.11 (this change is bigger then 0.01
over-payment, it must include new Interest Rate)
* Last installment: 216.16
_See attached floating-rate-after-min-overpayment.pdf_
h2. Bug
The behavior in both cases should be the same. Both payments should result in a
change of following installments.
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