[GitHub] [fineract] francisguchie commented on pull request #1536: block-loan-overpayment (FINERACT-1052)

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francisguchie commented on pull request #1536:
URL: https://github.com/apache/fineract/pull/1536#issuecomment-778845697


   @avikganguly01  - I hope i understand your comments well please see my comments below for every bullet 
   
   •	A written off status loan should have an outstanding balance. Leads to state inconsistencies compared to ledger.
   **_**o	When a loan is written-off, on the face value (loan summary you have no balance seen, however, the loan still maintains a balance (in the background) that is why one can still make a payment against it which payment is sent to incomes for that particular period. As-is, Over-payment is allowed, thus fineract does not consider the loan balance (written-off amount) to restrict the user. So for fineract to restrict over-payment, we need to supply the written-off amount to it. So that it can alert user when they hit that value. 
   o	What we are doing here does not in any-way affect the Ledger balances or how the payments are treated**_** 
   
   •	If you are changing the loan status, you have to reverse any write-off journal entries, post accruals till date, etc. - not sure if this is the route you want to go to.
   **_o	We are not in anyway changing the loan status- please make me understand this better – what I know is we are only keeping in mind what was written-off_**
   
   •	If you want to continue doing recovery payments without going into overpayment, is this the right place in code to handle recovery repayments? 
   **_o	This is the same place loan repayment transactions are being addressed, I think putting a condition in the same area of code would be nice. Nevertheless, help me with some options (please note am a beginner)_**
   
   •	In either case, you have to enhance the test to handle the impact of any change in this code snippet like explicitly state write-off balance, verify if it's recovery repayment or write-off reversal.
   **_o	At the moment, we do not have an option to reverse a write-off so we shall only have to look at recovery repayment._**
   
   •	Mayble also include the logic in test for the dry run you are doing. Ex:- Write-off balance 1000, Total Recovery Repaid - 800, Repayment - 100. This IF condition is satisfied. But why should outstanding Balance become 1000 and not 100? Please correct me if I am wrong regarding assuming recovery repayments don't reduce write-off balance.
   **_o	Once a loan is written-off, the write-off amount (accounting standards) never changes it remains as such and during the period which this write-off is done, it is recorded as a loss. (never changes)
   o	So as we recover, we look at how much has been recovered as against what was written-off so in your example Write-off balance 1,000, Total Recovery Repaid - 800, Repayment – 100, we simply keep use the approach 
   Write-off balance 1,000
   Total recovery so far 800
   new recovery repayment 100 
   so we test 100+800 vs write-off balance (1,000)_** 
   


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