Hi Thomas and Lukasz,
I believe the way Mifos calculates the repayment accounting is correct.
Refer
http://en.wikipedia.org/wiki/Amortization_schedule
"A portion of each payment is for interest while the remaining amount is
applied towards the principal balance" even though it does not explicitly
say the order!
The reason is Fees, Penalties and Interest will not used to *recalculate *the
next interest amount, it makes very much sense to deduct these thing before
reduce the Principle installment.
And as per my understanding order of the deduction plays role only
when interest is recalculate based on outstanding Principle amount
otherwise order does not have any role.
Thanks
Nayan Ambali
http://www.confluxtechnologies.com/
On Tue, Jun 12, 2012 at 12:44 PM, Lukasz Chudy <[email protected]> wrote:
> Hi Thomas,
>
> Currently it is not possible to change the order of payment but I
> created improvement Jira issue for this functionality:
> http://mifosforge.jira.com/browse/MIFOS-5636.
>
> Regards,
> Lukasz
>
> On 06/06/2012 01:24 PM, Thomas (Uganda) wrote:
> > Hi Team
> >
> > I understand when a person makes a loan payment in mifos, Penalty is
> > deducted first, then Fees, Then Interest and Lastly Principle..
> >
> > However 2 MFIs I have talked to say it is actually supposed to be the
> > other way round Principle paid off first, then Interest, then Fees,
> > and Lastly Penalties
> >
> > My Question is could we possibly have this as a configuration setting
> > as per the MFIs order of deductions.
> >
> >
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--
Regards
Nayan G. A.
9901154134
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