for a loan product with daily interest calculation, when an advance/late/partial repayments are made, interest calculation is going wrong, which is resulting in 3 major issues
- repayment schedule payment allocation is going wrong
- The next prepayment interest calculation is wrong
- The interest of all the subsequent installments is calculating wrong because of the wrong principal balance.
To reproduce, create a loan product with interest calculation set to daily(check attachment for complete product configuration)
create->disburse a loan with the loan product
do a early repayment to the loan and check the calculation
refer attachment for the sample