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https://issues.apache.org/jira/browse/FINERACT-2881?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Adam Saghy reassigned FINERACT-2881:
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Assignee: (was: Adam Saghy)
> Savings overdraft interest split ignores transactions after the first month
> of a quarterly, bi-annual or annual posting period
> --------------------------------------------------------------------------------------------------------------------------------
>
> Key: FINERACT-2881
> URL: https://issues.apache.org/jira/browse/FINERACT-2881
> Project: Apache Fineract
> Issue Type: Bug
> Components: Savings
> Affects Versions: 1.16.0
> Reporter: Naman Rathi
> Priority: Major
>
> h3. Environment / configuration
> * Savings product with *Allow overdraft* enabled (overdraft limit and
> overdraft interest rate set)
> * Accounting: *Accrual (periodic)*, with an *interest receivable* GL
> account mapped
> * Nominal annual interest rate: 10%
> * Interest compounding period: Daily
> * Interest posting period: *Quarterly*
> * Interest calculated using: Daily balance
> * Days in year: 365
> * Global configuration \{{enable-business-date}} enabled
> * Global configuration
> \{{allow-backdated-transaction-before-interest-posting}}: default (enabled)
> h3. Steps to reproduce
> # Create a client and a savings account on the product above.
> # Approve and activate the account on 2025-01-01.
> # Deposit 10,000 on 2025-01-01.
> # Deposit 10,000 on 2025-02-15.
> # Set the business date to 2025-04-02.
> # Run the *Post Interest For Savings* job.
> # Check the interest posted for the Q1 period (2025-01-01 to 2025-03-31).
> h3. Expected result
> Q1 interest covers both balances:
> * 10,000 from 2025-01-01 to 2025-02-14 (45 days)
> * 20,000 from 2025-02-15 to 2025-03-31 (45 days)
> Q1 interest: *373.64*
> h3. Actual result
> Q1 interest: *124.03*
> This is the interest on the first 10,000 for 2025-01-01 to 2025-02-14 only.
> The 2025-02-15 deposit and the
> balance
> from 2025-02-15 to 2025-03-31 are not included. Shortfall: *249.61* (about
> two-thirds of the expected
> interest).
> h3. Differential
> The overdraft/interest-receivable split applies only when the account
> allows overdraft *and* has an
> interest
> receivable GL account. With the same inputs but without overdraft/interest
> receivable (non-split branch of
> \{{SavingsAccountInterestPostingServiceImpl#calculateInterestUsing}}), Q1
> interest is *373.64*, the
> expected value.
> Both figures were reproduced with a unit test calling
> \{{SavingsAccountInterestPostingServiceImpl#calculateInterestUsing}}
> with the configuration above (up-to date 2025-04-02, MathContext precision
> 10, HALF_EVEN).
> h3. Root cause
>
> {{fineract-savings/src/main/java/org/apache/fineract/portfolio/savings/service/SavingsAccountInterestPosti
> ngServiceImpl.java}},
> lines 362-406, introduced in FINERACT-2312 (commit a6fa1adc99).
> \{{listForOverdraft}}, \{{listForInterestPosting}} and
> \{{isOverdraftAccount}} select transactions for a
> posting
> period by comparing only the calendar month:
> \{code:java}
> periodInterval.startDate().getMonth() == tx.getDate().getMonth()
> \{code}
> This ignores the year and the posting period's actual start and end dates.
> For a quarterly period starting
> in
> January, only January transactions are selected. Transactions dated in
> February or March are excluded, and
> because each transaction's balance ends the day before the next
> transaction, the days after the last
> selected
> transaction carry no balance in the posting period.
> The same applies to bi-annual and annual posting periods.
> h3. Second symptom (same root cause, NOT reproduced)
> The same month-equality comparison also ignores the year. When account
> history spans multiple years
> (e.g. with \{{allow-backdated-transaction-before-interest-posting}}
> enabled, where the full transaction
> history is
> loaded), transactions from the same calendar month of an earlier year are
> included in the current period's
> lists and in the overdraft/non-overdraft classification made by
> \{{isOverdraftAccount}}. This can
> misclassify a
> period as overdraft or non-overdraft; a possible consequence is interest
> being posted with the wrong type
> or
> counted twice for the same interval. This has not been reproduced.
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