Hi Luis, First, thank you for a detailed explanation of your problem, it was very helpful in understanding your requirement.
There are two problems with the approach you are taking First problem, the EMI amount is always Principal + Interest, for which the system will add the charges and penalties to calculate the total installment due amount P+I = *EMI*, EMI+C = Due Explaining with your example loan: Installment number DueDate Principal Balance Interest EMI Charge Penalties Due 1 31-Mar-20 379.95 9,620.05 100 (P+I)479.95 16 0 495.95 2 30-Apr-20 383.75 9,236.30 96.2 479.95 15.39 0 495.34 3 30-Jun-20 387.59 8,848.71 92.36 479.95 14.78 0 494.73 4 30-Jun-20 391.46 8,457.25 88.49 479.95 14.16 0 494.11 5 31-Jul-20 395.38 8,061.87 84.57 479.95 13.53 0 493.48 6 31-Aug-20 399.33 7,662.54 80.62 479.95 12.9 0 492.85 7 30-Sep-20 403.32 7,259.22 76.63 479.95 12.26 0 492.21 The installment amount of 479.95 which was defined while creating the loan will only be split between principal and interest, but since you have added the charge of 16% on Interest, your total due will always vary. Hence you cannot achieve equal installments with adding charge to the system Second problem, The EMI (PMT formula) as you know is always calculated on interest amount so when you calculate the PMT for 13.92% your EMI will be ₹ 479.75 But when you calculate PMT for 12% your EMI we be around ₹ 470.73 But when you manually define the EMI amount as 479.75 for 12% interest rate, the total interest amount of the loan will come down as the user will be paying more Principal from 1st installment itself Principal = EMI - interest ( ₹9 more in first installment in this example) Hence, you will end up collecting less interest and less vat with this approach. refer following loans for example Loan id interest rate (% per annum) vat(% per annum) manual EMI amount mentioned total interest amount interest amount vat *3654* *12* *16* *479.75* *1270.83* *203.32* 3656 12 16 System calculated EMI(471) 1296.86 207.49 Possible solution to achieve Equal installment and proper interest and vat collection is to create the loan with the interest rate as 13.92% only(I +VAT), in this approach only problem will be, you will not get to see the split between interest and VAT on the screen, however, we could create the custom reports with splits for required reports. Please let me know if you need any clarification on the explanation Regards, Bharath Lead Implementation Analyst | Mifos Initiative Skype: live:cbharath4| Mobile: +91.7019636073 http://mifos.org <http://facebook.com/mifos> <http://www.twitter.com/mifos> On Wed, Apr 1, 2020 at 9:51 AM Luis Alberto Alegría de los Santos <luis.aleg...@innovar.app> wrote: > Hi Alberto, thank you for reply. > > I create a tax ( IVA VAT 16% > <https://demo.mifos.io/#/viewtaxcomponent/96> ) and a group tax ( IVA > VAT GROUP 16% <https://demo.mifos.io/#/viewtaxgroup/56>). > > But when try to set group tax to a loan product ( > https://demo.mifos.io/#/viewloanproduct/1352), i don't see an option to > do that. > On savings products there is a option to assign tax group (i saw that in > this link > <https://mifosforge.jira.com/wiki/spaces/docs/pages/129957925/Manage+Tax+configuration> > ) > > Could you please explain me how do it?, thank you a lot. > > Best regards > > > El mar., 31 mar. 2020 a las 19:28, Jose Alberto Hernandez Maldonado (< > jose.hernan...@fintecheando.mx>) escribió: > >> Hello! >> >> Have you tried the Tax Group assigned in the charge? Usually the taxes >> are not applied as Charge in Mifos. >> >> Admin --> Products --> Taxes components management >> >> Thanks and best regards >> Alberto >> >> El 31 de marzo de 2020 a las 07:14 PM Luis Alberto Alegría de los Santos >> <luis.aleg...@innovar.app> escribió: >> >> Hi all >> >> Please, someone can help me. >> >> We require payments including VAT with equal installments, because this >> is easier for clients. >> >> Example: >> >> - Amount: 10,000 >> - Interest Rate: 12% >> - Term: 24 months monthly payments >> - VAT: 16% of interest >> >> >> Normally what we do is increase the VAT percentage to the interest rate, >> that is, 12% * 1.16 = 13.92%. >> For later when calculating the EMI amount, break down the VAT of the >> interest, this on repayment schedule. >> >> In this escenario, we calculated EMI amount: Excel Formula : = pmt >> (13.92% / 12, 24, -10000) = $ 479.75 >> >> Taking period 1 as a reference within the normal payment schedule would >> be as follows: >> * Interest: $ 116.00 - calculation: (10000 * 13.92% / 12) >> * Principal: $ 363.75 - Calculation: EMI Amount - Interest ( 479.75 -116) >> * EMI amount: $ 479.75 >> >> What we do in the final payment schedule is break down VAT dividing the >> interest by 1.16. In period 1, divide = 116/1.16 = 100 for interest and 16 >> for VAT >> And it is as follows: >> Repayment schedule for period 1: >> # Principal Interest VAT Installment amount >> 1 $ 363.75 $ 100.00 $ 16.00 $479.75 >> 2 $367.97 $ 96.36 $ 15.42 $479.75 >> >> In this scenario, there are equal installments amounts. >> >> I created a loan here https://demo.mifos.io/#/viewloanaccount/3648, and >> added a 16% interest charge( https://demo.mifos.io/#/viewcharge/552), >> however the repayments are different in each period. >> [image: image.png] >> Is there some option to achieve this? >> >> Thank you a lot! >> -- >> LSC. Luis Alegría >> INNOVARAPP >> >> >> *La información contenida en este correo electrónico y anexos es >> confidencial. Ésta dirigida únicamente para el uso del individuo o entidad >> a la que fue dirigida y puede contener información propietaria que no es >> del dominio público. Si has recibido este correo por error o no eres el >> destinatario, por favor notificar al remitente de inmediato y borra este >> mensaje de la computadora o dispositivo. Cualquier uso, distribución o >> reproducción de este correo que no sea por el destinatario de intención >> queda prohibido.* >> _______________________________________________ >> Mifos-users mailing list >> Mifos-users@lists.sourceforge.net >> https://lists.sourceforge.net/lists/listinfo/mifos-users >> >> >> >> > > > -- > LSC. Luis Alegría > INNOVARAPP > 2225548732 > > *La información contenida en este correo electrónico y anexos es > confidencial. Ésta dirigida únicamente para el uso del individuo o entidad > a la que fue dirigida y puede contener información propietaria que no es > del dominio público. Si has recibido este correo por error o no eres el > destinatario, por favor notificar al remitente de inmediato y borra este > mensaje de la computadora o dispositivo. Cualquier uso, distribución o > reproducción de este correo que no sea por el destinatario de intención > queda prohibido.* > _______________________________________________ > Mifos-users mailing list > Mifos-users@lists.sourceforge.net > https://lists.sourceforge.net/lists/listinfo/mifos-users >
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