Abhishek Chaudhary created FINERACT-2909:
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Summary: ost Interest For Savings job credits the overdraft
portion of an interest posting to Savings Control
Key: FINERACT-2909
URL: https://issues.apache.org/jira/browse/FINERACT-2909
Project: Apache Fineract
Issue Type: Improvement
Reporter: Abhishek Chaudhary
When the *Post Interest For Savings* job posts interest on a savings account
that is overdrawn at the posting date, part of the interest pays down the
overdraft. The job already calculates that part (stored as
{{overdraft_amount_derived}}) but ignores it when booking, and credits the
whole amount to Savings Control. The manual path splits it.
*Manual path* ({{CashBasedAccountingProcessorForSavings}},
{{AccrualBasedAccountingProcessorForSavings}}):
* overdraft part: debit Interest on Savings, credit Overdraft Portfolio Control
* rest: debit Interest on Savings, credit Savings Control
*Job* ({{SavingsSchedularInterestPoster.batchUpdateJournalEntries}}): one
debit/credit pair for the full amount, crediting Savings Control.
*Impact*
Overdraft Portfolio Control is not reduced by the interest that paid down the
overdraft, and Savings Control is overstated by the same amount, so the GL no
longer matches the savings balances. Affects cash-based and accrual products.
*Steps to reproduce*
# Savings product with overdraft allowed, a positive interest rate and
accounting enabled.
# Deposit, let interest accrue, then withdraw into overdraft before the posting
date.
# Run the Post Interest For Savings job and compare the interest posting's
journal entries with a manual posting.
*Open point*
For accrual products, the processor's split debits Interest on Savings, while a
normal accrual interest posting debits Interest Payable. The expected accrual
debit should be confirmed before fixing.
Found while reviewing FINERACT-2705 (PR #6174).
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