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https://issues.apache.org/jira/browse/FINERACT-2455?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=18104344#comment-18104344
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Piotr Wargulak commented on FINERACT-2455:
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[~bgowda] thanks, we do not have specification yet. We do have a shape that we
imagine.
*Context.* Polish lender, B2B. Fee income is VAT-bearing at 23%, and the
business requirement is that the same product exists in a taxed and an untaxed
variant (per-product switch).
Their books and reporting stay in their own systems; they need Fineract to
correctly split and have correct GL postings.
For anything that is a charge, we would expect WCP to behave like core loans
do: the configured charge amount is gross, {{{}tax = amount x pct/100{}}},
income = amount - tax, persisted as {{tax_amount}} plus a per-component
breakdown, with the tax split into a separate liability account under both
accrual and cash accounting. No new semantics, the same ones, on
{{{}m_wc_loan_charge{}}}.
{*}But{*}, core's implementation is charge-based and a WCP loan's cost of
borrowing is not a charge, it is the discount (FSIP-10 Pillar 1, the single
upfront fixed fee), EIR-amortized.
Charge-only parity would tax WCP fees and penalties and leave the fixed fee,
the element that user would assume being taxable, untaxed.
So I wonder:
# Which cost elements are in scope: WCP charges and penalties only, or the
discount as well?
# If the discount: is the tax carved out once at origination, or does it
follow the EIR / deferred-revenue amortization period by period?
# Where would a tax group attach for the discount? For charges,
{{m_charge.tax_group_id}} already exists; the discount lives on the
loan/product.
# Tax-inclusive only, as core does it, or is a tax-exclusive mode wanted?
({{{}chargeIncludesTax{}}} exists in {{TaxApiConstants}} but is referenced
nowhere.)
# What is expected on charge-off, write-off, charge adjustment and CBR, is the
tax portion reversed proportionally?
> New Loan product - Working Capital
> ----------------------------------
>
> Key: FINERACT-2455
> URL: https://issues.apache.org/jira/browse/FINERACT-2455
> Project: Apache Fineract
> Issue Type: New Feature
> Affects Versions: 1.14.0, 1.15.0
> Reporter: Adam Saghy
> Assignee: Adam Saghy
> Priority: Major
>
> *New Loan product - Working Capital*
> *FSIP-10:*
> [https://cwiki.apache.org/confluence/display/FINERACT/FSIP-10%3A+%28Revenue-based%29+Working+Capital+Loan+product]
> *Documentation:*
> [https://fineract.apache.org/docs/1.15.0-WIP/#_working_capital_loan_projected_amortization_schedule]
>
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