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https://issues.apache.org/jira/browse/FINERACT-2909?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=18133955#comment-18133955
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Abhishek Chaudhary commented on FINERACT-2909:
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Decision on the open point (accrual products): the job debits Interest Payable
for both parts of the posting, the part that pays down the overdraft and the
rest.
On an accrual product the interest expense is booked when it accrues (debit
Interest on Savings, credit Interest Payable). Posting the interest only moves
it from Interest Payable to the account, so the debit is Interest Payable
whether or not the account is overdrawn at the posting date. This is what the
job already did before the fix, and what
{{AccrualBasedAccountingProcessorForSavings}} does for a posting to an account
in credit.
The processor's overdraft branch debits Interest on Savings instead, so for an
overdrawn account the manual path books the expense a second time and leaves
the accrued amount in Interest Payable. PR #6761 doesn't change the manual
path; once this is confirmed I'll open a separate ticket to make it debit
Interest Payable too.
Cash-based products are unchanged: both parts debit Interest on Savings.
> Post Interest For Savings job credits the overdraft portion of an interest
> posting to Savings Control
> -----------------------------------------------------------------------------------------------------
>
> Key: FINERACT-2909
> URL: https://issues.apache.org/jira/browse/FINERACT-2909
> Project: Apache Fineract
> Issue Type: Bug
> Components: Accounting, Savings
> Affects Versions: 1.13.0
> Reporter: Abhishek Chaudhary
> Assignee: Abhishek Chaudhary
> Priority: Major
> Fix For: 1.17.0
>
>
> When the *Post Interest For Savings* job posts interest on a savings account
> that is overdrawn at the posting date, part of the interest pays down the
> overdraft. The job already calculates that part (stored as
> {{overdraft_amount_derived}}) but ignores it when booking, and credits the
> whole amount to Savings Control. The manual path splits it.
> *Manual path* ({{CashBasedAccountingProcessorForSavings}},
> {{AccrualBasedAccountingProcessorForSavings}}):
> * overdraft part: debit Interest on Savings, credit Overdraft Portfolio
> Control
> * rest: debit Interest on Savings, credit Savings Control
> *Job* ({{SavingsSchedularInterestPoster.batchUpdateJournalEntries}}): one
> debit/credit pair for the full amount, crediting Savings Control.
> *Impact*
> Overdraft Portfolio Control is not reduced by the interest that paid down the
> overdraft, and Savings Control is overstated by the same amount, so the GL no
> longer matches the savings balances. Affects cash-based and accrual products.
> *Steps to reproduce*
> # Savings product with overdraft allowed, a positive interest rate and
> accounting enabled.
> # Deposit, let interest accrue, then withdraw into overdraft before the
> posting date.
> # Run the Post Interest For Savings job and compare the interest posting's
> journal entries with a manual posting.
> *Open point*
> For accrual products, the processor's split debits Interest on Savings, while
> a normal accrual interest posting debits Interest Payable. The expected
> accrual debit should be confirmed before fixing.
> Found while reviewing FINERACT-2705 (PR #6174).
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