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Posted to issues@fineract.apache.org by "Michael Vorburger (Jira)" <ji...@apache.org> on 2021/02/07 13:52:00 UTC
[jira] [Assigned] (FINERACT-1307) Loan Ideal disbursement to
calculation cause to wrong interest rate
[ https://issues.apache.org/jira/browse/FINERACT-1307?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Michael Vorburger reassigned FINERACT-1307:
-------------------------------------------
Assignee: eitan frailich
> 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
> Assignee: eitan frailich
> Priority: Minor
> Attachments: image-2021-02-02-16-43-07-381.png
>
>
> *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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