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Pradeep at Adhikar has a similar request to configure order of applying partial payments.
Per RBI regulations, all interest must be paid (both current and overdue) before principal is paid.
For example on a loan with two installments due (one current and one overdue) of 220 each (200 principal + 20 interest):
By default in Mifos, the payment will be applied to the past due interest and then the remaining 20 to the principal overdue.
Desired
Partial Payment of 40
20 Payment to interest on Installment #1 (200 principal remaining)
20 Payment to interest on Installment #2 (200 principal remaining)
Actual
Partial Payment of 40
20 Payment to interest and 20 Payment to principal on Installment #1 (180 principal remaining)
0 Payment to Installment #2 (200 principal + 20 interest remaining).