Aman-Mittal commented on issue #779:
URL:
https://github.com/apache/fineract-backoffice-ui/issues/779#issuecomment-6211183846
## Business process flow
```mermaid
flowchart TD
A["Loan product enables buy-down fee or capitalized income"] -->
B["Active loan"]
B --> C{"Which transaction?"}
C -- "Buy-down fee" --> D{"BUYDOWNFEE_LOAN?"}
C -- "Capitalized income" --> E{"CAPITALIZEDINCOME_LOAN?"}
D -- Yes --> D1["POST /loans/:id/transactions?command=buyDownFee"]
E -- Yes --> E1["POST /loans/:id/transactions?command=capitalizedIncome"]
D1 & E1 --> F["Fineract amortizes over the loan term<br/>tab lists
amortization entries"]
F --> G{"Correction needed?"}
G -- "Buy-down fee" --> H{"BUYDOWNFEEADJUSTMENT_LOAN?"}
G -- "Capitalized income" --> I{"CAPITALIZEDINCOMEADJUSTMENT_LOAN?"}
H -- Yes --> H1["command=buyDownFeeAdjustment"]
I -- Yes --> I1["command=capitalizedIncomeAdjustment"]
D & E & H & I -- No --> N["Hidden or disabled"]
```
Example: a dealer pays a buy-down fee so the borrower gets a lower rate. The
fee is posted on the loan and recognised as income over the term. If the
dealer's payment is later corrected, the adjustment reduces the remaining
amortization.
## UI mockup
```text
┌ Loan #000456 · Buy-down fees ──────────────────── [+ Post buy-down fee] ─┐
← BUYDOWNFEE_LOAN
│ Date Amount Amortized Unrecognized External id │
│ 2026-09-01 1,200.00 200.00 1,000.00 DLR-5521 [Adjust] │
← BUYDOWNFEEADJUSTMENT_LOAN
├ Amortization entries ────────────────────────────────────────────────────┤
│ 2026-09-30 Buy-down fee amortization 100.00 │
│ 2026-10-31 Buy-down fee amortization 100.00 │
└──────────────────────────────────────────────────────────────────────────┘
(The Capitalized income tab mirrors this with CAPITALIZEDINCOME_LOAN and
CAPITALIZEDINCOMEADJUSTMENT_LOAN.)
```
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