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  1. Apache Fineract
  2. FINERACT-282

Backdate before Interest Waiver corrupts loan balances

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    Details

    • Type: Bug
    • Status: Closed
    • Priority: Major
    • Resolution: Fixed
    • Affects Version/s: None
    • Fix Version/s: None
    • Component/s: Loan
    • Labels:

      Description

      Reported by Sander at https://mifosforge.jira.com/browse/MIFOSX-1498
      Original Description:
      When waiving interest on a loan the outstanding interest and balance is reduced by clearing outstanding interest on past instalments and if applicable future instalments (as expected). However when a payment is now backdated to a date before the interest waiver, interest is that was waived on those instalments is 'activated' again and the payment is allocated to it.
      In the attached screenshot #1 is the 'clean' schedule of the loan with 4.11 in interest due. The total due on the loan is 254.11. In the screenshot #2 the interest has been waived per the 1st of June, leaving a loan balance of 235.32 (screenshot #3).
      Now when a new transaction is entered, for the 15th of May (so before waiver), of 15$ , the expected loan balance would be 220.32, however the payment 'reopens' the interest for the instalments it is covering (see screenshot #4) and repays them. As a result the total outstanding is 220.48 (one instalment interest has been paid, but was not part of the balance before). And also when the sum of all transactions is made manually it no longer adds up (screenshot #5) to the system generated balances.
      Because of the way MifosX handles the loanschedules and transactions, the waiver has automatically been reversed when processing the backdated payment (which is chronologically before the later payment) and then applies the waiver again later, at which point the interest due is fewer than the waiver is for. This results in an adjustment of the overall loan, and also brings up a situation whereby the loan summary data is no longer aligned with the transactions. And the accounting data is also out of sync, as the accrued interest no longer adds up to the waived + paid interest on the loan.
      As the waiving of interest normally is a process that can work both backwards (open installments from before) and forwards (future installments), we would expect that the interest for the prior installments would remain waived.

        Attachments

        1. Screenshot #2.png
          64 kB
          Santosh Math
        2. Screenshot #3.png
          31 kB
          Santosh Math
        3. Screenshot #4.png
          173 kB
          Santosh Math
        4. Screenshot 1.png
          174 kB
          Santosh Math

          Activity

            People

            • Assignee:
              mgeiss Markus Geiss
              Reporter:
              santoshmath Santosh Math
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              Dates

              • Created:
                Updated:
                Resolved: