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  1. Apache Fineract
  2. FINERACT-608

Share Dividends wrongly calculated

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    Details

    • Type: Bug
    • Status: Open
    • Priority: Critical
    • Resolution: Unresolved
    • Affects Version/s: 1.0.0
    • Fix Version/s: 1.5.0
    • Component/s: Shares
    • Labels:
      None

      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.

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            • Assignee:
              Unassigned
              Reporter:
              Ippez Ippez Roberts
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              Dates

              • Created:
                Updated: