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https://issues.apache.org/jira/browse/FINERACT-2909?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=18134830#comment-18134830
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Abhishek Chaudhary commented on FINERACT-2909:
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[~bgowda] Here's an example I thought of for an accrual-based product with
overdraft allowed:
Scenario:
1. Deposit 10,000.
2. Accrual job runs: Dr Interest on Savings 20 / Cr Interest Payable 20.
3. Withdraw 10,010, leaving the account overdrawn by 10.
4. The interest posting job posts the accrued interest of 20. The first 10
covers the overdraft, and the remaining 10 becomes a positive savings balance.
Before the fix:
Dr Interest Payable 20 / Cr Savings Control 20.
The entire interest amount is credited to Savings Control, which leaves Savings
Control overstated by 10 while Overdraft Portfolio Control still carries the
outstanding 10.
With the fix, the posting is split into two parts:
Dr Interest Payable 10 / Cr Overdraft Portfolio Control 10.
Dr Interest Payable 10 / Cr Savings Control 10.
This will clear the overdraft portion and credits only the remaining 10 to
Savings Control.
The debit remains Interest Payable in both entries because the interest expense
was already recognised during the accrual process.
> Post 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: Bug
> Components: Accounting, Savings
> Affects Versions: 1.13.0
> Reporter: Abhishek Chaudhary
> Assignee: Abhishek Chaudhary
> Priority: Major
> Fix For: 1.17.0
>
>
> 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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