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https://issues.apache.org/jira/browse/FINERACT-3017?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Abhishek Chaudhary reassigned FINERACT-3017:
--------------------------------------------
Assignee: Abhishek Chaudhary
> Overdraft-enabled savings with an interest receivable mapping earn interest
> for overdrawn days
> ----------------------------------------------------------------------------------------------
>
> Key: FINERACT-3017
> URL: https://issues.apache.org/jira/browse/FINERACT-3017
> Project: Apache Fineract
> Issue Type: Bug
> Components: Savings
> Affects Versions: 1.16.1
> Reporter: Abhishek Chaudhary
> Assignee: Abhishek Chaudhary
> Priority: Major
>
> When a savings product allows overdraft and has an Interest Receivable GL
> account mapped,
> {{SavingsAccountInterestPostingServiceImpl.calculateInterestUsing}} builds
> two posting periods for each posting interval: one for the days the account
> is in credit and one for the days it is overdrawn.
> {{CompoundInterestHelper.calculateInterestForAllPostingPeriods}} then treats
> them as consecutive periods and carries the interest of the days in credit
> into the overdrawn days of the same interval, although that interest is only
> posted at the end of the interval.
> So for the month an account goes from credit into overdraft, it earns savings
> interest on a balance it never had, and the overdraft interest it owes is not
> charged. Without the Interest Receivable mapping the same account gets the
> correct amount, so the interest depends on a GL mapping.
> *Example*
> Monthly posting and compounding, daily balance, 365 days, 10% nominal rate,
> 21% overdraft rate, overdraft limit 10,000.
> # Activate on 02 August 2021 and deposit 10,000.
> # Withdraw 10,010 on 09 August 2021 (overdrawn by 10 from 9 to 31 August).
> # Run *Post Interest For Savings* on 02 September 2021.
> * Without an Interest Receivable mapping, August is posted as 19.05: 19.18
> for the 7 days in credit, less 0.13 overdraft interest on -10 for 23 days.
> * With the mapping, August is posted as 19.18 plus a second interest posting
> of 0.06. The 19.18 is carried into the overdrawn days, so they are calculated
> on +9.18 instead of -10. No overdraft interest is posted.
> With a 0% overdraft rate the overdrawn days still produce that second
> interest posting (0.0578 with 4 decimals). It showed up in the accrual
> integration test of FINERACT-2909 (PR #6761).
> *Expected*
> The two periods of one interval should not compound into each other. August
> should be posted as 19.18 interest for the days in credit and 0.13 overdraft
> interest, the same 19.05 in total as without the mapping.
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