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https://issues.apache.org/jira/browse/FINERACT-1307?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17281161#comment-17281161
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eitan frailich commented on FINERACT-1307:
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[~bgowda] Hi
Check out the [PR|https://github.com/apache/fineract/pull/1562] I have attached 
images to it.

I understand your workaround but still, this seems like a bug to me. 
Because if you dont set the configuration as you said you will have a 
wrong-buggy interest calculation.

> Loan Ideal disbursement to calculation cause to wrong interest rate 
> --------------------------------------------------------------------
>
>                 Key: FINERACT-1307
>                 URL: https://issues.apache.org/jira/browse/FINERACT-1307
>             Project: Apache Fineract
>          Issue Type: Bug
>          Components: Loan
>            Reporter: eitan frailich
>            Assignee: eitan frailich
>            Priority: Minor
>             Fix For: 1.5.0
>
>         Attachments: image-2021-02-02-16-43-07-381.png
>
>
> *ISSUE*
> My issue/bug happens when I am setting "First repayment on" field I get a 
> repayment schedule with a wrong interest rate for the first installment.
> Example: When I set "First repayment on" to 01/02/21 and expected 
> disbursement is 27/1/21(Frist image) then I get the wrong interest.The first 
> installment interest is 21,232.88$ (second Image) - calculated for the entire 
> month (31 days) instead of 5 days (the time from the disbursement to the 
> first repayment), the right interest should be 3424.75$.
> *After debugging:*
> In AbstractLoanScheduleGenerator there is a function 
> {{calculateInterestStartDateForPeriod}} - it uses the {{idealDisbursment}} 
> for setting the interest start date for the first installment, The 
> {{idealDisbursment}} is calculated by 
> {{idealDisbursementDateBasedOnFirstRepaymentDate}} which does 
> [{{firstRepaymentDate}} - 1 repayment Period Frequency] aka, for 01/02/21 
> with months as repyment frequency it will return 01/01/21.
> So when we dont set the "First repayment on" the {{idealDisbursment}} will be 
> the expected disbursement date because the first repayment is always 
> {{expectedDisbursment}}+1. But if we set the  "First repayment on" we get the 
> wrong value for the {{idealDisbursment}} - in my example we got 01/0/21 and 
> this is why the first installment interest was calculated for an entire month 
> instead of  5 days.
> *Is it a bug or not?*
> I am not sure why {{idealDisbursementDateBasedOnFirstRepaymentDate}} exists, 
> the simple solution is to do  idealDisbursment=expectedDisbursmentDate.I 
> tried it locally and looks like it works, I will be happy to make a PR, but 
> want to make sure indeed that the 
> {{idealDisbursementDateBasedOnFirstRepaymentDate}} is redundant.



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