[FINERACT-608] Share Dividends wrongly calculated

• Type: Bug
• Status: Open
• Priority: Critical
• Resolution: Unresolved
• Affects Version/s: 1.8.0
• Fix Version/s: 3.0.0
• Component/s: Shares
• Assignee: Unassigned
• Reporter: Ippez Roberts
• Created: 27/Mar/18 06:35
• Updated: 07/Nov/23 00:44

Description

I have seen some behavior with Share Account and Dividend.

I initiated a dividend payout of 100,000 to 4 clients with shares as below

 

Product>>Share Product>>Share Account (product name)>>Dividends

Name	Dividend Period Start Date	Dividend Period End Date	Dividend Amount	Status
Share Account	01 January 2017	31 December 2017	100,000	Dividend Approved

 

Client Name	No. of Shares
Asienzo	38 (approved)               1 pending approval
Mureo	40 (approved)
Drani	6 (approved)
Amatura	0
TOTAL SHARES	84 (approved)               1 pending approval

 

The distribution of dividend is as follow which to me is wrong.

 

Client Name	Share Account	Dividend Amount	Status
Asienzo Clara	21-00001-0	29,260.01	Dividend Initiated
Mureo Stella	21-00002-3	61,078.95	Dividend Initiated
Drani Joseph	21-00003-1	8,192.8	Dividend Initiated
Amatura Women's Group	21-00004-0	1,468.24	Dividend Initiated

Justification

1. ‌Dividend per share = 100,000/84 = 1,190.48 ==> This is because there are 84 approved shares, the 1 pending approval doesn't get dividend.
2. Amatura Women's Group doesn't qualify for dividend because there is no share purchased though they have opened a share account.
3. To me the share distribution table should be as below:-

Client Name	Share Account	Dividend Amount	Status
Asienzo Clara	21-00001-0	45,238.24	Dividend Initiated
Mureo Stella	21-00002-3	47,619.2	Dividend Initiated
Drani Joseph	21-00003-1	7,142.88	Dividend Initiated
Amatura Women's Group	21-00004-0	0	Dividend Initiated

 
Example, If we are calculating dividend for 2017, we get the total shares at the organisation since inception of the organisation e.g if the organisation started in 2003, we shall get total shares from 2003 upto 31st Dec 2017. Say its 360 shares.
 
Then if the approved dividend to be given to members is 720,000, we then get how much each share will get i.e 720,000/360 = 2,000
Now that we know each share gets 2,000, this will be the multiplying factor for each members total share.
 
Eg.
Client Name               Total Shares                  Dividend
Client 1                                 1                                 2,000
Client 2                                 5                                10,000
Client 3                                10                               20,000
Client 4                                 0                                 0
....... etc
 
TOTAL                               360                              720,000
 
Total amount given to clients should be equal to approved dividend.

Issue Links

• Blocked: FINERACT-1305 Release Apache Fineract v1.5.0