[FINERACT-2123] Incorrect Accural Accounting for Refund For Active Loan

• Type: Bug
• Status: Open
• Priority: Major
• Resolution: Unresolved
• Affects Version/s: 1.10.0
• Component/s: Accounting
• Flags: Patch
• Assignee: Unassigned
• Reporter: Steve Broughton
• Created: 22/Sep/24 23:45
• Updated: 23/Sep/24 15:56

Description

The refund for active loan transaction is incorrectly accounted for on a cash basis when the product is configured for accrual accounting.

 

Fault is in:
AccrualBasedAccountingProcessorForLoan.createJournalEntriesForRefundForActiveLoan method
 
When the credit entries are created they use income accounts instead of receivable accounts. This would be correct only for cash basis accounting only. Accrual accounting requires that these amounts come from the receivable accounts.

 

Steps to reproduce

1. Overpay a loan

2. Perform a refund

3. Examine the GL entries