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)_** ---------------------------------------------------------------- This is an automated message from the Apache Git Service. To respond to the message, please log on to GitHub and use the URL above to go to the specific comment. For queries about this service, please contact Infrastructure at: [email protected]
