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FINERACT-2421: Fix interest period balance correction amount #5479

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3d7d8c8
FINERACT-2421: Fix interest period balance correction amount
oleksii-novikov-onix Feb 11, 2026
84d2e67
FINERACT-2421: Introduce overdueBalanceCorrectionAmount
oleksii-novikov-onix Feb 12, 2026
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109 changes: 109 additions & 0 deletions fineract-e2e-tests-runner/src/test/resources/features/LoanInterestRateChange.feature
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Expand Up @@ -1697,3 +1697,112 @@ Feature: Loan interest rate change on repayment schedule
Then Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 1000.0 | 3.68 | 0.0 | 0.0 | 1003.68 | 0.0 | 0.0 | 0.0 | 1003.68 |

@TestRailId:C4625
Scenario: Verify loan closure after MIR, backdated interest rate change and repayment reversal
When Admin sets the business date to "03 October 2025"
And Admin creates a client with random data
And Admin set "LP2_ADV_CUSTOM_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL" loan product "DEFAULT" transaction type to "NEXT_INSTALLMENT" future installment allocation rule
And Admin creates a fully customized loan with the following data:
| LoanProduct | submitted on date | with Principal | ANNUAL interest rate % | interest type | interest calculation period | amortization type | loanTermFrequency | loanTermFrequencyType | repaymentEvery | repaymentFrequencyType | numberOfRepayments | graceOnPrincipalPayment | graceOnInterestPayment | interest free period | Payment strategy |
| LP2_ADV_CUSTOM_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL | 03 October 2025 | 231.59 | 35.99 | DECLINING_BALANCE | DAILY | EQUAL_INSTALLMENTS | 6 | MONTHS | 1 | MONTHS | 6 | 0 | 0 | 0 | ADVANCED_PAYMENT_ALLOCATION |
And Admin successfully approves the loan on "03 October 2025" with "231.59" amount and expected disbursement date on "03 October 2025"
And Admin successfully disburse the loan on "03 October 2025" with "231.59" EUR transaction amount
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | | 195.79 | 35.8 | 6.95 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
| 2 | 30 | 03 December 2025 | | 158.91 | 36.88 | 5.87 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
| 3 | 31 | 03 January 2026 | | 120.93 | 37.98 | 4.77 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
| 4 | 31 | 03 February 2026 | | 81.81 | 39.12 | 3.63 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
| 5 | 28 | 03 March 2026 | | 41.51 | 40.3 | 2.45 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
| 6 | 31 | 03 April 2026 | | 0.0 | 41.51 | 1.24 | 0.0 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.59 | 24.91 | 0.0 | 0.0 | 256.5 | 0.0 | 0.0 | 0.0 | 256.5 |
When Admin sets the business date to "15 October 2025"
And Customer makes "MERCHANT_ISSUED_REFUND" transaction with "AUTOPAY" payment type on "15 October 2025" with 220.83 EUR transaction amount and system-generated Idempotency key
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | | 213.75 | 17.84 | 2.89 | 0.0 | 0.0 | 20.73 | 9.65 | 9.65 | 0.0 | 11.08 |
| 2 | 30 | 03 December 2025 | 15 October 2025 | 171.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 128.25 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 85.5 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 42.75 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.59 | 2.89 | 0.0 | 0.0 | 234.48 | 223.4 | 223.4 | 0.0 | 11.08 |
When Admin sets the business date to "30 October 2025"
And Customer makes "AUTOPAY" repayment on "30 October 2025" with 11.04 EUR transaction amount
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | 30 October 2025 | 213.75 | 17.84 | 2.84 | 0.0 | 0.0 | 20.68 | 20.68 | 20.68 | 0.0 | 0.0 |
| 2 | 30 | 03 December 2025 | 15 October 2025 | 171.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 128.25 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 85.5 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 42.75 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 42.75 | 0.0 | 0.0 | 0.0 | 42.75 | 42.75 | 42.75 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.59 | 2.84 | 0.0 | 0.0 | 234.43 | 234.43 | 234.43 | 0.0 | 0.0 |
When Admin creates and approves Loan reschedule with the following data:
| rescheduleFromDate | submittedOnDate | adjustedDueDate | graceOnPrincipal | graceOnInterest | extraTerms | newInterestRate |
| 04 October 2025 | 30 October 2025 | | | | | 25.99 |
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | 30 October 2025 | 207.9 | 23.69 | 2.05 | 0.0 | 0.0 | 25.74 | 25.74 | 25.74 | 0.0 | 0.0 |
| 2 | 30 | 03 December 2025 | 15 October 2025 | 166.32 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 124.74 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 83.16 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 41.58 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.59 | 2.05 | 0.0 | 0.0 | 233.64 | 233.64 | 233.64 | 0.0 | 0.0 |
And Admin sets the business date to "06 November 2025"
And Admin makes Credit Balance Refund transaction on "06 November 2025" with 0.04 EUR transaction amount
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | 30 October 2025 | 207.9 | 23.69 | 2.05 | 0.0 | 0.0 | 25.74 | 25.74 | 25.74 | 0.0 | 0.0 |
| 2 | 30 | 03 December 2025 | 15 October 2025 | 166.32 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 124.74 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 83.16 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 41.58 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.59 | 2.05 | 0.0 | 0.0 | 233.64 | 233.64 | 233.64 | 0.0 | 0.0 |
When Admin sets the business date to "07 November 2025"
And Customer undo "1"th "Repayment" transaction made on "30 October 2025"
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | | 207.9 | 23.69 | 2.1 | 0.0 | 0.0 | 25.79 | 14.78 | 14.78 | 0.0 | 11.01 |
| 2 | 30 | 03 December 2025 | | 166.32 | 41.62 | 0.03 | 0.0 | 0.0 | 41.65 | 41.58 | 41.58 | 0.0 | 0.07 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 124.74 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 83.16 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 41.58 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.63 | 2.13 | 0.0 | 0.0 | 233.76 | 222.68 | 222.68 | 0.0 | 11.08 |
When Admin sets the business date to "10 November 2025"
And Customer makes "AUTOPAY" repayment on "10 November 2025" with 11.05 EUR transaction amount
Then Loan Repayment schedule has 6 periods, with the following data for periods:
| Nr | Days | Date | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| | | 03 October 2025 | | 231.59 | | | 0.0 | | 0.0 | 0.0 | | | |
| 1 | 31 | 03 November 2025 | 10 November 2025 | 207.9 | 23.69 | 2.1 | 0.0 | 0.0 | 25.79 | 25.79 | 14.78 | 11.01 | 0.0 |
| 2 | 30 | 03 December 2025 | 10 November 2025 | 166.32 | 41.62 | 0.0 | 0.0 | 0.0 | 41.62 | 41.62 | 41.62 | 0.0 | 0.0 |
| 3 | 31 | 03 January 2026 | 15 October 2025 | 124.74 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 4 | 31 | 03 February 2026 | 15 October 2025 | 83.16 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 5 | 28 | 03 March 2026 | 15 October 2025 | 41.58 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
| 6 | 31 | 03 April 2026 | 15 October 2025 | 0.0 | 41.58 | 0.0 | 0.0 | 0.0 | 41.58 | 41.58 | 41.58 | 0.0 | 0.0 |
And Loan Repayment schedule has the following data in Total row:
| Principal due | Interest | Fees | Penalties | Due | Paid | In advance | Late | Outstanding |
| 231.63 | 2.1 | 0.0 | 0.0 | 233.73 | 233.73 | 222.72 | 11.01 | 0.0 |
And Loan is closed with zero outstanding balance and it's all installments have obligations met
27 changes: 24 additions & 3 deletions ...rc/main/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculator.java
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Expand Up @@ -368,6 +368,15 @@ public void addBalanceCorrection(ProgressiveLoanInterestScheduleModel scheduleMo
});
}

public void addOverdueBalanceCorrection(ProgressiveLoanInterestScheduleModel scheduleModel, LocalDate correctionDate,
Money overdueAmount) {
scheduleModel.changeOutstandingBalanceAndUpdateOverdueInterestPeriods(correctionDate, overdueAmount).ifPresent(repaymentPeriod -> {
calculateRateFactorForRepaymentPeriod(repaymentPeriod, scheduleModel);
calculateOutstandingBalance(scheduleModel);
calculateLastUnpaidRepaymentPeriodEMI(scheduleModel, correctionDate);
});
}

@Override
public void payInterest(ProgressiveLoanInterestScheduleModel scheduleModel, LocalDate repaymentPeriodFromDate,
LocalDate repaymentPeriodDueDate, LocalDate transactionDate, Money interestAmount) {
Expand Down Expand Up @@ -837,6 +846,9 @@ public void updateModelRepaymentPeriodsDuringReAmortizationWithEqualInterestSpli
if (!ip.getBalanceCorrectionAmount().isZero()) {
ip.addBalanceCorrectionAmount(ip.getBalanceCorrectionAmount().negated());
}
if (!ip.getOverdueBalanceCorrectionAmount().isZero()) {
ip.addOverdueBalanceCorrectionAmount(ip.getOverdueBalanceCorrectionAmount().negated());
}
}));

final List<RepaymentPeriod> allPeriods = model.repaymentPeriods();
Expand Down Expand Up @@ -876,6 +888,9 @@ private void moveOutstandingAmountsFromPeriodsBeforeTransactionDateForEqualInter
if (!ip.getBalanceCorrectionAmount().isZero()) {
ip.addBalanceCorrectionAmount(ip.getBalanceCorrectionAmount().negated());
}
if (!ip.getOverdueBalanceCorrectionAmount().isZero()) {
ip.addOverdueBalanceCorrectionAmount(ip.getOverdueBalanceCorrectionAmount().negated());
}
});
final InterestPeriod lastInterestPeriod = rp.getInterestPeriods().getLast();
Money paidPrincipal = rp.getPaidPrincipal();
Expand Down Expand Up @@ -919,9 +934,9 @@ private boolean adjustOverduePrincipal(final LocalDate currentDate, final Repaym

if (!currentDate.equals(model.lastOverdueBalanceChange())) {
if (model.lastOverdueBalanceChange() == null || currentInstallment.getFromDate().isAfter(model.lastOverdueBalanceChange())) {
addBalanceCorrection(model, fromDate, overduePrincipal);
addOverdueBalanceCorrection(model, fromDate, overduePrincipal);
} else {
addBalanceCorrection(model, model.lastOverdueBalanceChange(), overduePrincipal);
addOverdueBalanceCorrection(model, model.lastOverdueBalanceChange(), overduePrincipal);
}

if (currentDate.isAfter(fromDate) && !currentDate.isAfter(toDate)) {
Expand All @@ -931,7 +946,7 @@ private boolean adjustOverduePrincipal(final LocalDate currentDate, final Repaym
} else {
lastOverdueBalanceChange = currentDate;
}
addBalanceCorrection(model, lastOverdueBalanceChange, aggregatedOverDuePrincipal.negated());
addOverdueBalanceCorrection(model, lastOverdueBalanceChange, aggregatedOverDuePrincipal.negated());
model.lastOverdueBalanceChange(lastOverdueBalanceChange);
}
return true;
Expand Down Expand Up @@ -1054,11 +1069,17 @@ private static void moveOutstandingAmountsFromPeriodsBeforeTransactionDate(final
if (!ip.getBalanceCorrectionAmount().isZero()) {
ip.addBalanceCorrectionAmount(ip.getBalanceCorrectionAmount().negated());
}
if (!ip.getOverdueBalanceCorrectionAmount().isZero()) {
ip.addOverdueBalanceCorrectionAmount(ip.getOverdueBalanceCorrectionAmount().negated());
}
});
final InterestPeriod lastInterestPeriod = rp.getInterestPeriods().getLast();
if (!lastInterestPeriod.getBalanceCorrectionAmount().isZero()) {
lastInterestPeriod.addBalanceCorrectionAmount(rp.getOutstandingPrincipal().negated());
}
if (!lastInterestPeriod.getOverdueBalanceCorrectionAmount().isZero()) {
lastInterestPeriod.addOverdueBalanceCorrectionAmount(lastInterestPeriod.getOverdueBalanceCorrectionAmount().negated());
}
rp.setEmi(rp.getTotalPaidAmount());
rp.moveOutstandingDueToReAging();
});
Expand Down
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