Naman Rathi created FINERACT-2881:
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Summary: 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
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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