[jira] [Updated] (FINERACT-1706) Chargeback transaction

["Adam Saghy (Jira)" <ji...@apache.org>]

     [ https://issues.apache.org/jira/browse/FINERACT-1706?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]

Adam Saghy updated FINERACT-1706:
---------------------------------
    Labels: PepperSoup  (was: )

> Chargeback transaction
> ----------------------
>
>                 Key: FINERACT-1706
>                 URL: https://issues.apache.org/jira/browse/FINERACT-1706
>             Project: Apache Fineract
>          Issue Type: New Feature
>            Reporter: Adam Saghy
>            Assignee: Adam Saghy
>            Priority: Major
>              Labels: PepperSoup
>             Fix For: 1.9.0
>
>         Attachments: chargeback repayment schedule scenarios.xlsx
>
>
> *As a* user with 'NEW'“ permission
> *I want to* _add a charge-back transaction on the loan account_
> *in order to* post the debit to the loan account (increase the loan balance of the account)
> *User Cases/Background and details:*
> When an old transaction needs to be reversed, currently the system reverses all the latest repayments first in order to reverse the old transaction
> this might result in interest, and principal recalculation, and affect the accounting ledger closing entries.
> If we introduce the new transaction named chargeback it will increase the loan balance and the amount would be collected in the upcoming repayments
>  
> This approach is also helpful in covering the refund scenarios for organizations that refund back the amount for the customers who were excess collected or disputes raised.
> We can have two types and can be managed at the payment_type level
> • REPAYMENT_ADJUSTMENT_CHARGEBACK
> • REPAYMENT_ADJUSTMENT_REFUND
>  
> *Acceptance criteria*
>  # Functionally both types behave the same with respect to loan treatment, hence a single transaction type with different 'payment types' will work to meet 2 use-cases.
>  # Chargeback Transactions should have linkage to the original transaction which was raised as a dispute transaction
>  # A chargeback transaction will increase the current loan balance and adds to the next installment and collects back by the next repayment.
>  # A Chargeback Transaction when posted a bill will be due to be collected as on the current date
>  # The overdue calculation, Delinquency calculation will begin from the chargeback addition date
>  # When there are 2 chargebacks the Delinquency calculation will happen from the last not fully paid chargeback date.
>  # Chargeback transactions should have the ability to post full or partial amounts as per the user’s request
>  # A Chargeback Transaction can be posted in multiple types on the same loan account
>  # A chargeback transaction can be posted on the closed loan account. when posted on the closed loan account, the loan should be reopened with the principal balance to pay 
>  # Extra installments created after maturity should have a flag that it’s not a real installment.
> Validations for now
>  # A Chargeback Transaction should be allowed only for zero interest bearing loan accounts and
>  # No Changes on Penalities calculations for post-maturity chargeback installments
>  # Chargeback transactions once posted cannot be reversed
> The attached excel document will explain the different use cases of schedule behavior based on charge-back transactions
>  
> And the following will be the accounting treatment for the chargeback transaction(for both cash-based and accrual cases)
> Journal entries to be passed for chargeback transaction
> ||Entry Type||Accounting Type in Loan Product||GL-Code||GL-Name in Loan Product||Type of CoA||The logic for calculating the Amount for passing the entries||
> |Debit|Loan portfolio(Asset section)|112601|Loans Receivable|Asset|Sum of Principal components of the chargeback transaction|
> |Credit|Fund source(Asset section)|145023|Suspense/Clearing account|Liability|Sum of Principal components of the chargeback transaction|



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