Hi Adi,
Thanks for your feedback, makes sense on the early payments and I agree the
duplicate instalments is a bug. Looks like the holiday/workingdays config
is ignored for that bit. However I think we'll indeed need to introduce
this in the payment schedules as well. In addition I found another strange
scenario which is: https://demo.openmf.org/#/viewloanaccount/321
Can you explain to me how the calculation for the interest for the 2nd
instalment is made, so the first instalment which was due 8 days ago is now
overdue by 8 days and interest (should have) compounded as well. However I
cannot work out the formula used to get to that amount of interest, when
running the same example for a loan just 1 day overdue, I was able to work
out the amount, but only as long as I calculated 2 extra days. Is there any
docs on this on the wiki (I could not spot them).
Thanks,
Sander
Sander van der Heyden
CTO Musoni Services
Mobile (NL): +31 (0)6 14239505
Skype: s.vdheyden
Website: musonisystem.com
Follow us on Twitter! <https://twitter.com/musonimfi>
Postal address: Hillegomstraat 12-14, office 0.09, 1058 LS, Amsterdam,
The Netherlands
On 8 December 2016 at 06:23, Adi Raju <adi.r...@confluxtechnologies.com>
wrote:
> Hi Sander
>
> PSB
>
> Regards,
> Adi Raju
>
> Principal Architect, Conflux Technologies Pvt Ltd
> Address: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block, Bengaluru,
> Karnataka, 560043 INDIA
>
>
> Disclaimer: The information contained in this e-mail message and any
> files/attachment transmitted with it is confidential and for the sole use
> of the intended recipient(s) or entity identified. If you are not the
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> destroy/delete all copies and attachment thereto along with the original
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> reliance on this e-mail is strictly prohibited and is unlawful. The
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> subsidiaries and associated companies are unable to exercise control or
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> check.
>
>
>
>
> -----Original Message-----
> From: Sander van der Heyden [mailto:sandervanderhey...@musonisystem.com]
> Sent: 07 December 2016 22:24
> To: d...@fineract.incubator.apache.org
> Cc: A good place to start for users or folks new to Mifos.
> Subject: Re: Issues in interest recalculation
>
> Hi Adi,
>
> Thanks for your feedback. I already left some test cases on the demo (but
> have updated the same product in between so you'll need to check the
> derived data for these). I'll work on some more cases that we've seen
> locally tomorrow, but these are the ones that were already there.
>
>
> *Incorrect interest in Loan Schedule for first instalment when making an
> early payment* See https://demo.openmf.org/#/viewloanaccount/302, where
> you see 3.85 of interest paid on the summary and loan transactions, yet the
> 3.85 is still due on the instalment and if you look at the schedule via the
> API is reported as outstanding interest (which the transaction has already
> paid).
>
> [Adi] In case of interest recalculation enabled loans, there is no way to
> realise a complete EMI components whose due date is in the future. Any
> early payments gets adjusted to the principal, and hence there will be some
> interest component which will remain due as of the future due date. From
> calculations or schedule point of view the early paid amount is completely
> getting adjusted to Principal and interest is pending.
> Repayment strategy decides the splitting of components in a transaction.
> Looks like the repayment strategy needs a correction not to consider the
> interest component in case of early payment.
>
> *Interest recalculation causes incorrect schedule with duplicate
> instalments* For the daily loans with duplicate instalments see:
> https://demo.openmf.org/#/viewloanaccount/304, where you can see that 2
> payments fall due on the same day. If you undo disburse the loan and
> preview the schedule before disbursement you'll not see duplicate payments
> on the same day.
> [Adi] As I see original schedule is fine, but during repayments some
> duplicates are seen. This is definitely a bug.
>
> Thanks,
> Sander
>
>
>
>
> Sander van der Heyden
>
> CTO Musoni Services
>
>
>
>
> Mobile (NL): +31 (0)6 14239505
> Skype: s.vdheyden
> Website: musonisystem.com
> Follow us on Twitter! <https://twitter.com/musonimfi> Postal address:
> Hillegomstraat 12-14, office 0.09, 1058 LS, Amsterdam, The Netherlands
>
> On 7 December 2016 at 11:20, Adi Raju <adi.r...@confluxtechnologies.com>
> wrote:
>
> > Hi Sander,
> >
> > Interest recalculation is allowed only when "Calculate interest for
> > exact days in partial period" is enabled in product definition.
> > Consider the scenario: holidays calendar is empty, all days are
> > considered working days and payments are always on time, you will see
> > the interest applied equally with interest rate 1% considering 12%pa
> > interest with monthly payment period.
> >
> > In case there is any date difference due to holidays/working days
> > consideration or early payments etc, the calculation happens as follows:
> > Assume installment is falling on 1st Feb, but due to holiday the
> > installment is postponed to 2nd Feb and consider 12%pa interest rate.
> > Interest for the whole month of Jan is calculated at 1% and interest
> > for the 1 additional day in Feb is calculated as 1%*(1/28).
> > For the installment on 1st Mar, interest is calculated as 1%*(27/28)
> > would be used.
> > This is how the current interest recalculation happens to make sure
> > the interest is collected for each and every day.
> > And partial interest for any day is calculated based on the number of
> > days in the loan installment period.
> >
> > I am unable to reproduce other issues that you have mentioned. Looks
> > like they are linked to some other factors as well. If you can
> > reproduce them on demo.openmf.org and provide with loan ids or
> > relevant details, we can get back with clarifications or verify if it is
> really a bug.
> >
> > Regards,
> > Adi Raju
> >
> > Principal Architect, Conflux Technologies Pvt Ltd
> > Address: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block,
> > Bengaluru, Karnataka, 560043 INDIA
> >
> >
> > Disclaimer: The information contained in this e-mail message and any
> > files/attachment transmitted with it is confidential and for the sole
> > use of the intended recipient(s) or entity identified. If you are not
> > the intended recipient, please email: supp...@confluxtechnologies.com
> > and destroy/delete all copies and attachment thereto along with the
> > original message. Any unauthorised review, use, disclosure,
> > dissemination, forwarding, printing or copying of this email or any
> > action taken in reliance on this e-mail is strictly prohibited and is
> > unlawful. The recipient acknowledges that Conflux Technologies Private
> > Limited or its subsidiaries and associated companies are unable to
> > exercise control or ensure or guarantee the integrity of/over the
> > contents of the information contained in e-mail transmissions. Before
> > opening any attachments, please check.
> >
> >
> >
> >
> > -----Original Message-----
> > From: Sander van der Heyden
> > [mailto:sandervanderhey...@musonisystem.com]
> > Sent: 05 December 2016 17:06
> > To: d...@fineract.incubator.apache.org; A good place to start for users
> > or folks new to Mifos.
> > Subject: Issues in interest recalculation
> >
> > Hi All,
> >
> > We've been doing a relatively extensive round of testing on interest
> > recalculation loans and found the following issues (on demo.openmf.org).
> > All of the cases below have:
> > - Interest recalculation on
> > - Interest calculation = same as repayment period
> > - Amortization set to Equal instalments
> > - Advance payments set to Reduce EMI Amount
> > - No grace periods
> > - No sliding interest rates, or multi-disbursements
> > - No fixed EMI amounts
> >
> > I've not yet created JIRA items on it, because I was wondering whether
> > other people had seen these and there was a work-around by specifying
> > the right params? Also when trying to debug some of this I think the
> > calculations have now been made so incredibly complex that it is very
> > hard to fix some of these without creating other bugs in exchange.
> >
> > *Daily interest on Same as Repayment period* On monthly loans, even
> > though same as repayment period is selected, the interest calculation
> > seems to happen on a daily basis. We see jumps up and down in the
> > schedule, which should not happen especially before any payments are
> > made, as in that case the interest calculation should be identical for
> > each month (we are using same as repayment period) and therefore the
> > interest amount should always drop month over month, with principal
> going up.
> >
> > *Incorrect interest in Loan Schedule for first instalment when making
> > an early payment* When setting up any interest recalculation loan, and
> > making an early payment on the first instalment, this updates the
> > schedule with all of it going to principal, leaving the interest
> > outstanding. However the actual transaction does split part of it to
> > interest and so does the loan summary.
> > In subsequent instalments this no longer happens.
> >
> > *Interest recalculation causes incorrect schedule with duplicate
> > instalments*
> > On a daily loan, when an installment was originally due on a weekend
> > day, it get's pushed forward, skipping that day correctly. However in
> > recalculation this is no longer happening therefore introducing 2
> > installments on the same date one with a 0 length. So what happens is
> > pre-correction you have an instalment on the 3rd of December, then one
> > on the 5th (skipping sunday). After the payment and recalculation it
> > has 2 instalments due on the 5th, one with 0 days and no interest.
> >
> > *Single instalment loans do not recalculate* When a loan with 1
> > instalment is created and the client prepays on that one instalment,
> > interest is not recalculated.
> >
> > *Early payment of all principal throws an EMI error* When repaying the
> > full principal due on the loan in an early instalment it throws an EMI
> > error, which should not happen, there is still a bit of interest to
> > pay, but no more principal. This means the schedule should just show
> > that interest remaining (or close the loan as there is no interest).
> >
> >
> > Thanks,
> > Sander
> >
> >
>
>
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