Critical Description
We are observing that Mifos doesn’t respect the fiscal month in calculating interest for savings.
For instance: we configured the fiscal year to start in April. The saving product is annual interest with 15% and 365 days. Compounding is set to annual with daily balance.
If we make a saving deposit of $1000 on June 23, 2016 and trying to post on April 1 2017, our expectation is that the interest will be $115.89 (1000*282*0.0004109589).
There are a total of 282 days with daily interest rate of 0.0004109589 (1/365*0.15).
In Mifos, we are getting $118.81 instead. What we learned is that there is a compounding happening on Dec 31, 2016 even though it’s not a fiscal year end.
From June 23 to Dec 31, there are 192 days and it’s getting a new available balance on Jan 1. It’s compounding from Jan 1, 2017.
https://demo.openmf.org/#/viewsavingaccount/887 (see screenshot)
When digging through the code, even though Fiscal month is passed around in the interest calculation, it wasn’t used when determining compounding periods.
File: PostingPeriod.java
Method: determineInterestPeriodEndDateFrom
case ANNUAL:
periodEndDate = periodStartDate.monthOfYear().withMaximumValue(); //This is causing to default the compound period to Dec as period start year is 2016.
periodEndDate = periodEndDate.dayOfMonth().withMaximumValue();
We are still trying to go through the logic and we’d greatly appreciate your help.
This will become an issue in Jan 2018 as it's compounding when it's not supposed to be.
Thank you.
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