[jira] [Comment Edited] (FINERACT-2123) Incorrect Accural Accounting for Refund For Active Loan

["Steve Broughton (Jira)" <ji...@apache.org>]

    [ https://issues.apache.org/jira/browse/FINERACT-2123?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17883689#comment-17883689 ] 

Steve Broughton edited comment on FINERACT-2123 at 9/23/24 5:56 AM:
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This is a refund for an active loan which is in advance:

performed by API call to fineract-provider/api/v1/loans/8/transactions?command=refundByCash

{   "dateFormat": "dd MMMM yyyy",   "locale": "en",   "transactionDate": "23 September 2024",   "transactionAmount": "10.91",   "paymentTypeId": "31" }


was (Author: JIRAUSER307084):
This is a credit balance refund:

performed by API call to fineract-provider/api/v1/loans/8/transactions?command=refundByCash

{
  "dateFormat": "dd MMMM yyyy",
  "locale": "en",
  "transactionDate": "23 September 2024",
  "transactionAmount": "10.91",
  "paymentTypeId": "31"
}

> Incorrect Accural Accounting for Refund For Active Loan
> -------------------------------------------------------
>
>                 Key: FINERACT-2123
>                 URL: https://issues.apache.org/jira/browse/FINERACT-2123
>             Project: Apache Fineract
>          Issue Type: Bug
>          Components: Accounting
>    Affects Versions: 1.10.0
>            Reporter: Steve Broughton
>            Priority: Major
>         Attachments: Fix_incorrect_GL_entries_which_were_being_generated_on_refund_of_active_loan.patch, image-2024-09-23-15-51-39-624.png
>
>   Original Estimate: 1h
>  Remaining Estimate: 1h
>
> The refund for active loan transaction is incorrectly accounted for on a cash basis when the product is configured for accrual accounting.
>  
> Fault is in:
> AccrualBasedAccountingProcessorForLoan.createJournalEntriesForRefundForActiveLoan method
>  
> When the credit entries are created they use income accounts instead of receivable accounts. This would be correct only for cash basis accounting only. Accrual accounting requires that these amounts come from the receivable accounts.
>  
> *Steps to reproduce*
> 1. Overpay a loan
> 2. Perform a refund
> 3. Examine the GL entries
>  
>  
>  



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