Hello,
If accounting is on accrual basis if any account goes in write-off all
booked interest income must be reversed.
Logic: because when you did not receive your principle amount, booking of
interest is not a good idea.
In this case Mifos is correct.
Thanks and Regards
AMIT
On Tue, Apr 16, 2013 at 10:20 PM, Vishwas Babu <[email protected]>wrote:
> Ramya,
>
> Mifos uses "cash" based accounting. Since the expected interest is never
> accounted for, interest waivers/writeoffs would not affect accounting
> (reference
> http://en.wikipedia.org/wiki/Comparison_of_cash_and_accrual_methods_of_accounting
> ).
>
> Regards,
> Vishwas
>
>
> On 16 April 2013 17:39, Ramya Baskar <[email protected]> wrote:
>
>> **
>> Hi all,
>>
>> Am in need of clarification of write-off in Loan operations of mifos.
>>
>> Write-off:
>> While doing Write-off, in accounting principal only coming but in
>> the loan operations both principal,interest and arrears are coming.
>> For example,
>> For a group, loan disbursal amount is 50000. The group needs
>> to pay with interest is 60000. The group didn't pay anything and write-off
>> has been done for the group. After write-off while checking
>> the accounting, it shown the write-off amount as 50000 only but in the loan
>> operations it shown as 60000 with interest.
>>
>> Can anyone clarify the above.
>>
>> Thanks in advance!!!!!
>>
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--
AMIT JAIN | E.D | Digamber Finance (Chota Loan Bade Sapne) | +919414041821
|
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Precog is a next-generation analytics platform capable of advanced
analytics on semi-structured data. The platform includes APIs for building
apps and a phenomenal toolset for data science. Developers can use
our toolset for easy data analysis & visualization. Get a free account!
http://www2.precog.com/precogplatform/slashdotnewsletter
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