[ https://issues.apache.org/jira/browse/FINERACT-1706?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Adam Saghy reassigned FINERACT-1706: ------------------------------------ Assignee: (was: Adam Saghy) > Chargeback transaction > ---------------------- > > Key: FINERACT-1706 > URL: https://issues.apache.org/jira/browse/FINERACT-1706 > Project: Apache Fineract > Issue Type: New Feature > Reporter: Adam Saghy > Priority: Major > Labels: PepperSoup > Fix For: 1.9.0 > > Attachments: chargeback repayment schedule scenarios.xlsx > > > *As a* user with 'NEW'“ permission > *I want to* _add a charge-back transaction on the loan account_ > *in order to* post the debit to the loan account (increase the loan balance > of the account) > *User Cases/Background and details:* > When an old transaction needs to be reversed, currently the system reverses > all the latest repayments first in order to reverse the old transaction > this might result in interest, and principal recalculation, and affect the > accounting ledger closing entries. > If we introduce the new transaction named chargeback it will increase the > loan balance and the amount would be collected in the upcoming repayments > > This approach is also helpful in covering the refund scenarios for > organizations that refund back the amount for the customers who were excess > collected or disputes raised. > We can have two types and can be managed at the payment_type level > • REPAYMENT_ADJUSTMENT_CHARGEBACK > • REPAYMENT_ADJUSTMENT_REFUND > > *Acceptance criteria* > # Functionally both types behave the same with respect to loan treatment, > hence a single transaction type with different 'payment types' will work to > meet 2 use-cases. > # Chargeback Transactions should have linkage to the original transaction > which was raised as a dispute transaction > # A chargeback transaction will increase the current loan balance and adds > to the next installment and collects back by the next repayment. > # A Chargeback Transaction when posted a bill will be due to be collected as > on the current date > # The overdue calculation, Delinquency calculation will begin from the > chargeback addition date > # When there are 2 chargebacks the Delinquency calculation will happen from > the last not fully paid chargeback date. > # Chargeback transactions should have the ability to post full or partial > amounts as per the user’s request > # A Chargeback Transaction can be posted in multiple types on the same loan > account > # A chargeback transaction can be posted on the closed loan account. when > posted on the closed loan account, the loan should be reopened with the > principal balance to pay > # Extra installments created after maturity should have a flag that it’s not > a real installment. > Validations for now > # A Chargeback Transaction should be allowed only for zero interest bearing > loan accounts and > # No Changes on Penalities calculations for post-maturity chargeback > installments > # Chargeback transactions once posted cannot be reversed > The attached excel document will explain the different use cases of schedule > behavior based on charge-back transactions > > And the following will be the accounting treatment for the chargeback > transaction(for both cash-based and accrual cases) > Journal entries to be passed for chargeback transaction > ||Entry Type||Accounting Type in Loan Product||GL-Code||GL-Name in Loan > Product||Type of CoA||The logic for calculating the Amount for passing the > entries|| > |Debit|Loan portfolio(Asset section)|112601|Loans Receivable|Asset|Sum of > Principal components of the chargeback transaction| > |Credit|Fund source(Asset section)|145023|Suspense/Clearing > account|Liability|Sum of Principal components of the chargeback transaction| -- This message was sent by Atlassian Jira (v8.20.10#820010)