[jira] [Created] (FINERACT-1307) Loan Ideal disbursement to calculation cause to wrong interest rate

["eitan frailich (Jira)" <ji...@apache.org>]

eitan frailich created FINERACT-1307:
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             Summary: Loan Ideal disbursement to calculation cause to wrong interest rate 
                 Key: FINERACT-1307
                 URL: https://issues.apache.org/jira/browse/FINERACT-1307
             Project: Apache Fineract
          Issue Type: Bug
          Components: Loan
            Reporter: eitan frailich


*ISSUE*
My issue/bug happens when I am setting "First repayment on" field I get a repayment schedule with a wrong interest rate for the first installment.
Example: When I set "First repayment on" to 01/02/21 and expected disbursement is 27/1/21(Frist image) then I get the wrong interest.The first installment interest is 21,232.88$ (second Image) - calculated for the entire month (31 days) instead of 5 days (the time from the disbursement to the first repayment), the right interest should be 3424.75$.

*After debugging:*
In AbstractLoanScheduleGenerator there is a function {{calculateInterestStartDateForPeriod}} - it uses the {{idealDisbursment}} for setting the interest start date for the first installment, The {{idealDisbursment}} is calculated by {{idealDisbursementDateBasedOnFirstRepaymentDate}} which does [{{firstRepaymentDate}} - 1 repayment Period Frequency] aka, for 01/02/21 with months as repyment frequency it will return 01/01/21.

So when we dont set the "First repayment on" the {{idealDisbursment}} will be the expected disbursement date because the first repayment is always {{expectedDisbursment}}+1. But if we set the  "First repayment on" we get the wrong value for the {{idealDisbursment}} - in my example we got 01/0/21 and this is why the first installment interest was calculated for an entire month instead of  5 days.

*Is it a bug or not?*
I am not sure why {{idealDisbursementDateBasedOnFirstRepaymentDate}} exists, the simple solution is to do  idealDisbursment=expectedDisbursmentDate.I tried it locally and looks like it works, I will be happy to make a PR, but want to make sure indeed that the {{idealDisbursementDateBasedOnFirstRepaymentDate}} is redundant.



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