Hi all,

After investigation of issue 
https://mifosforge.jira.com/browse/MIFOS-5731 we encountered that 
overpayments in Declining Balance are not handled properly.

Currently, if you apply overpayment of installment then additional 
amount is first used to repay future installment and then to repay 
future principal.

We will fix Declining Balance interest rate type in this way:

1. When overpayment is made then additional amount is used only to repay 
future principal. Future interest won't be repaid from overpaid amount.

2. Once future principal is repaid from overpaid amount, interest will 
be recalculated since principal balance has been reduced.

Let me know if you have any comments / remarks.

Best regards,
Lukasz

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