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Posted to dev@fineract.apache.org by Ed Cable <ed...@mifos.org> on 2018/06/28 17:30:25 UTC
Fwd: Mifos Interest Calculation Requirement
Forwarding this queries from Mani of Habile Technologies about interest
rate calculations in Mifos to the mailing lists.
Ed
---------- Forwarded message ---------
From: Dhruv Shrivastava <dh...@gmail.com>
Date: Thu, Jun 28, 2018 at 10:12 AM
Subject: Fwd: Mifos Interest Calculation Requirement
To: Edward Cable <ed...@mifos.org>
Hi Ed,
Mani is from Habile technologies and is a client of Mifos, he needs some
clarification regarding Mifos X Interest posting calculation, could you
please help him regarding that?
Thank you so much
---------- Forwarded message ----------
From: Mani Parthasarathy <ma...@habile.in>
Date: Thu, Jun 28, 2018 at 10:04 PM
Subject: Mifos Interest Calculation Requirement
To: Dhruv Shrivastava <dh...@gmail.com>
Cc: Hari Haran <ha...@habile.in>
Hi Dhruv,
Hope you are doing good!
We need a small clarification on Mifos X interest posting calculation. My
requirement is as follows:
1) Daily interest accruals have to be accounted at the back end.
2) The Interest calculation method is Monthly Diminishing method.
3) Monthly interest has to be added to loan outstanding balance on last day
of the month and it has to be credited to interest earned GL account.
4) EMI has to be apportioned to interest outstanding and balance to
principal.
For example,
EMI having 2 instalments as follows:
*Instalment 1:*
Due date: 05 February 2018
Principal: $900
Interest: $300
Total: $1200
*Instalment 2:*
Due date: 05 March 2018
Principal: $1000
Interest: $200
Total: $1200
Interest income posted on 31 January 2018 - $250 (Interest)
If the customer pays $1200 as repayment after 31st January 2018, EMI to be
apportioned $250 to interest and $950 to the principal. (It should not be
apportioned $300 to interest, It has to consider only the interest income
posted before the repayment date)
If the customer pays $1200 as repayment on or before 31st January 2018, EMI
to be apportioned $1200 to the principal. (It should not be apportioned
$300 to interest, It has to consider only the interest income posted before
the repayment date)
I hope you can help us to resolve this requirement. If you haven’t worked
in this area, I will be happy if you can connect with the right person. We
are ready to offer any complimentary offers if required!
Looking forward to hearing from you.
--
Regards,
Mani Parthasarathy
Business & IT Consultant | Habile Technologies
www.habiletechnologies.com | (O): +91 44 4202 0550 | (M): + 91 90030 39994
Skype: mani.mitteam | https://www.facebook.com/HabileTechnologies
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22:03:42
--
*Ed Cable*
President/CEO, Mifos Initiative
edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
*Collectively Creating a World of 3 Billion Maries | *http://mifos.org
<http://facebook.com/mifos> <http://www.twitter.com/mifos>
Re: Mifos Interest Calculation Requirement
Posted by Santosh Math <sa...@confluxtechnologies.com>.
HI Dhruv,
>
Please find my inline responses:
>
>
> Hi Dhruv,
>
> Hope you are doing good!
>
> We need a small clarification on Mifos X interest posting calculation. My
> requirement is as follows:
>
> 1) Daily interest accruals have to be accounted at the back end.
>
Set 'Interest Calculation Period' as Daily in loan product level and 'Add
Periodic Accrual Transactions' job has to be run daily(Generally, it's
automatically run or you can run it manually too )
>
>
> 2) The Interest calculation method is Monthly Diminishing method.
>
Set Interest Method as 'Declining Balance' in loan product
level.
>
>
> 3) Monthly interest has to be added to
>
>
> loan outstanding balance on last day of the month and it has to be
> credited to interest earned G
>
> L account.
>
>
>
>
> '
> loan outstanding balance' , do you mean principal due? All interest
> accrued are credited to asset account 'Interest Receivables'
>
https://staging.openmf.org/#/viewloanaccount/98 (under
Transactions tab, click on 6310 transaction)
>
>
> 4) EMI has to be apportioned to interest outstanding and balance to
> principal.
>
- As I understood from your example, any advance payments before due date
are highlighted under 'Advance' in repayment schedule, but it won't be
apportioned whole to principal. It will be apportioned to both Principal
and Interest.
https://staging.openmf.org/#/viewloanaccount/98 (under Transactions
tab, check trasaction 6312, which is early repayment )
Thanks
>
Santosh
>
>
>
> For example,
>
> EMI having 2 instalments as follows:
>
> *Instalment 1:*
>
> Due date: 05 February 2018
>
> Principal: $900
>
> Interest: $300
>
> Total: $1200
>
> *Instalment 2:*
>
> Due date: 05 March 2018
>
> Principal: $1000
>
> Interest: $200
>
> Total: $1200
>
> Interest income posted on 31 January 2018 - $250 (Interest)
>
> If the customer pays $1200 as repayment after 31st January 2018, EMI to be
> apportioned $250 to interest and $950 to the principal. (It should not be
> apportioned $300 to interest, It has to consider only the interest income
> posted before the repayment date)
>
> If the customer pays $1200 as repayment on or before 31st January 2018,
> EMI to be apportioned $1200 to the principal. (It should not be apportioned
> $300 to interest, It has to consider only the interest income posted before
> the repayment date)
>
> I hope you can help us to resolve this requirement. If you haven’t worked
> in this area, I will be happy if you can connect with the right person. We
> are ready to offer any complimentary offers if required!
>
> Looking forward to hearing from you.
>
> --
> Regards,
> Mani Parthasarathy
> Business & IT Consultant | Habile Technologies
> www.habiletechnologies.com | (O): +91 44 4202 0550 | (M): + 91 90030
> 39994
> Skype: mani.mitteam | https://www.facebook.com/HabileTechnologies
> ------------------------------------------------------------
> ------------------------------------------------------------
> -----------------
>
> DISCLAIMER:
> All emails and any files transmitted with them are confidential and
> intended solely for the use of the individual or entity to whom they are
> addressed. If you have received an email in error please notify your system
> manager. The message in the email you have received contains confidential
> information and is intended only for the individual named. If you are not
> the named addressee you should not disseminate, distribute or copy the
> email. Please notify the sender immediately by email if you have received
> an email by mistake and delete the email from your system. If you are not
> the intended recipient you are notified that disclosing, copying,
> distributing or taking any action in reliance on the contents of the
> information is strictly prohibited.
> [image: Mailtrack]
> <https://mailtrack.io?utm_source=gmail&utm_medium=signature&utm_campaign=signaturevirality5&> Sender
> notified by
> Mailtrack
> <https://mailtrack.io?utm_source=gmail&utm_medium=signature&utm_campaign=signaturevirality5&> 28/06/18,
> 22:03:42
>
>
>
> --
> *Ed Cable*
> President/CEO, Mifos Initiative
> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
>
> *Collectively Creating a World of 3 Billion Maries | *http://mifos.org
> <http://facebook.com/mifos> <http://www.twitter.com/mifos>
>
>
--
Thanks & Regards
Santosh Math
*QA Engineer*
*Conflux Technologies Pvt Ltd <http://www.confluxtechnologies.com/>*
| *Office*: +91-080-41208662 |
*Address*: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block,
Bengaluru, Karnataka, 560043 INDIA