[jira] [Updated] (FINERACT-14) Improper Repayment Strategy in Overdue/Fee/Int/Principal Strategy

["Edward Cable (JIRA)" <ji...@apache.org>]

     [ https://issues.apache.org/jira/browse/FINERACT-14?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]

Edward Cable updated FINERACT-14:
---------------------------------
    Priority: Minor  (was: Critical)

> Improper Repayment Strategy in Overdue/Fee/Int/Principal Strategy
> -----------------------------------------------------------------
>
>                 Key: FINERACT-14
>                 URL: https://issues.apache.org/jira/browse/FINERACT-14
>             Project: Apache Fineract
>          Issue Type: Bug
>            Reporter: Dayna Harp
>            Assignee: Markus Geiss
>            Priority: Minor
>              Labels: p3
>
> https://mifosforge.jira.com/browse/MIFOSX-2397 - See for attachments
> In "Overdue/Due Fee/Int,Principal" repayment strategy for loans with interest recalculation enabled, early repayment interest computation is not proper if interest calculation period is Daily and rest frequency as Daily
> 1. Create loan product with following datasets,
> Repayment Strategy:Overdue/Due Fee/Int Principal,
> Repayments:12 every 1 Months,
> Amortization:Equal installments
> Interest:12 per annum (1% Per month), 
> Interest Calculation Period as Daily,
> Interest Type:Declining Balance
> Recalculate Interest:Yes
> Days in year:Actual
> Days in month:Actual
> Interest recalculation compounding on:None
> Advance payments adjustment type:Reduce number of installments
> Frequency for recalculate Outstanding Principal:Daily, every 1 day from 01 September 2015.
> 2. Create a client and submit new loan application on 01 September 2015, approve and disburse on same date.
> 3. Make early repayment on 15 September 2015.
> >Interest calculated for 01 October 2015 is not proper,
> > Since repayment is done on 15 September interest should get computed for 14 days for 10000, and for 01 October interest should get computed for 16 days for principal balance only.
> ie Interest for 15 September 2015 > 10000*(12%/365)*14 = 46.03,
> Principal due > 887.72-46.03 = 841.69,
> Balance of Loan > 10000 - 841.69 = 9158.31.
> Interest for 16 days should get calculated for 9158.31 only.



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