[jira] [Created] (FINERACT-69) Wrong interest amount when using Rounding Mode - Down/Floor for Flat Loans

["George Lteif (JIRA)" <ji...@apache.org>]

George Lteif created FINERACT-69:
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             Summary: Wrong interest amount when using Rounding Mode - Down/Floor for Flat Loans
                 Key: FINERACT-69
                 URL: https://issues.apache.org/jira/browse/FINERACT-69
             Project: Apache Fineract
          Issue Type: Bug
          Components: Loan
            Reporter: George Lteif
            Assignee: Markus Geiss


For organizations using the Floor rounding Mode, the expected behavior is to have the rounding rules done for the loan schedules and not the total interest amount

what is currently done in Mifos X is applying the rounding rule on the total interest amount calculated first which is leading to a loss of profit for the organization

Scenario:
create a FLAT interest loan product with a monthly 1.3% interest rate
rounding mode is set to Floor
create a loan for the amount of 2900$ over a period of 21 months repayments (one repayment per month)

expected result would be
2900*1.3%*21 repayments = 791.7 
it should always be rounded up here regardless of the rounding mode being set to not lead to any loss of profit

interest calculated in MifosX is 791
which is a 0.7$ or 1$ if rounding less than expected







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