[ https://issues.apache.org/jira/browse/FINERACT-307?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Santosh Math updated FINERACT-307: ---------------------------------- Labels: p2 (was: p1) > Accruals accounting does not accrue income on loans closed prematurely > ---------------------------------------------------------------------- > > Key: FINERACT-307 > URL: https://issues.apache.org/jira/browse/FINERACT-307 > Project: Apache Fineract > Issue Type: Bug > Components: Loan > Reporter: Santosh Math > Assignee: Shaik Nazeer Hussain > Priority: Major > Labels: p2 > Fix For: 1.4.0 > > > Reported by Sander at https://mifosforge.jira.com/browse/MIFOSX-2093 > Original Description: > If a customer makes the final payment before the end of the loan schedule the > loan status changes to closed, and the balance reports 0, which is correct. > These loans are non-recalculating and accrue interest in line with their > schedules (periodic). As such all interest portions are booked into the > Interest Receivable account. > However because of the closed status the accruals batch job no longer > generates the periodic accruals for this loan (query excludes any status > which is not active). As a result a part of this income will remain in the > Interest receivable account indefinitely, which is not the expected > behaviour. We would either expect the accruals to continue in line with the > schedule, or for the accrual to be generated alongside the final (closing) > transaction of the loan. > The quick-fix for this is to adjust the batch job to look not just look at > loan status but also at any loan where the interest accrual date is smaller > than the expected maturity date. > As a permanent fix we should investigate whether new accounting types/rules > need to be defined for this scenario to also book this prepaid income as a > liability instead of an asset account, such as Prepaid Interest received. -- This message was sent by Atlassian JIRA (v7.6.3#76005)