Mexina - The system - by which I assume you mean the backend since we're talking about fineract here - is flexible enough to support these types of accounting rules via the API calls. There might be built in functionality in the Community App, in which case you should also air your question on Mifos-developer. (Front end system)
What you are asking, however is a little confusing to me. When you "Provision", you are setting aside funds in case you have to later expense them. You expense a non-performing asset via a "write off" or "write down". That has impacts on the amount Provisioned (set aside amt is reduced) so that changes the Balance sheet, and on the income sheet, this is recognized as an expense. Generally speaking, provisioning logic is often tied to a Percentage of the Total amount of the Portfolio that is in Arrears (i.e. considered to be at risk). It can be done automatically. Now, if you then receive funds from an already written down loan, then you have to have an accounting policy, consistent with the banking laws of your country and generally accepted accounting principles. Those funds could be recognized as "exceptional income" or it could be done as a reversal of a write off. It will depend I suppose on the period of time in question and the rules that are accepted where you are. All of these types of transactions can be done in Fineract. Automating them may be something else. ( note: I am a bit rusty on my banking provisioning rules so someone can correct me if I've misstated something or not been clear. ) Thanks, @jdailey67 On Tue, Feb 26, 2019 at 4:30 AM Mexina Daniel <mexina@singo.africa> wrote: > Dear devs > > I have the question like > http://mifos.cloud.answerhub.com/questions/794/what-is-the-consequence-of-npa-schedule-job.html > which was never answered. > > Also if the loan has been in NPA for a long time and it has already been > provisioned as expense, shouldn't its repayment being considered as income? > does the system support that? > > Thanks in advance. > > Best Regards > > --------------------- > > Mexina Daniel > > Singo Africa Limited > Block G, Mbezi Beach B | 7 Nakawale Road | P.O BOX 78908 | 14121 Dar es > salaam > > +255 71 211 0791 | +255 22 261 8511 > > amala.co.tz | singo.africa > > >
