FINERACT-1981: interest recalculation fix for overdue cases

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/common/BusinessStepStepDef.java

@@ -22,8 +22,12 @@ import io.cucumber.java.en.Given;
 import io.cucumber.java.en.Then;
 import java.io.IOException;
 import java.util.ArrayList;
+import java.util.Comparator;
 import java.util.List;
+import java.util.stream.Collectors;
+import lombok.extern.slf4j.Slf4j;
 import org.apache.fineract.client.models.BusinessStep;
+import org.apache.fineract.client.models.GetBusinessStepConfigResponse;
 import org.apache.fineract.client.models.UpdateBusinessStepConfigRequest;
 import org.apache.fineract.client.services.BusinessStepConfigurationApi;
 import org.apache.fineract.test.helper.ErrorHelper;
@@ -31,6 +35,7 @@ import org.apache.fineract.test.stepdef.AbstractStepDef;
 import org.springframework.beans.factory.annotation.Autowired;
 import retrofit2.Response;
 
+@Slf4j
 public class BusinessStepStepDef extends AbstractStepDef {
 
     private static final String WORKFLOW_NAME_LOAN_CLOSE_OF_BUSINESS = "LOAN_CLOSE_OF_BUSINESS";
@@ -149,4 +154,56 @@ public class BusinessStepStepDef extends AbstractStepDef {
                 .execute();
         ErrorHelper.checkSuccessfulApiCall(response);
     }
+
+    @Given("Admin puts {string} business step into LOAN_CLOSE_OF_BUSINESS workflow")
+    public void putGivenJobInCOB(String businessStepName) throws IOException {
+        List<BusinessStep> businessSteps = retrieveLoanCOBJobSteps();
+        if (businessSteps.stream().anyMatch(businessStep -> businessStep.getStepName().equals(businessStepName))) {
+            return;
+        }
+
+        businessSteps.add(new BusinessStep().stepName(businessStepName).order((long) (1 + businessSteps.size())));
+
+        UpdateBusinessStepConfigRequest request = new UpdateBusinessStepConfigRequest().businessSteps(businessSteps);
+        Response<Void> response = businessStepConfigurationApi.updateJobBusinessStepConfig(WORKFLOW_NAME_LOAN_CLOSE_OF_BUSINESS, request)
+                .execute();
+        ErrorHelper.checkSuccessfulApiCall(response);
+
+        logChanges();
+    }
+
+    @Then("Admin removes {string} business step into LOAN_CLOSE_OF_BUSINESS workflow")
+    public void removeGivenJobInCOB(String businessStepName) throws IOException {
+        List<BusinessStep> businessSteps = retrieveLoanCOBJobSteps();
+        businessSteps.removeIf(businessStep -> businessStep.getStepName().equals(businessStepName));
+
+        UpdateBusinessStepConfigRequest request = new UpdateBusinessStepConfigRequest().businessSteps(businessSteps);
+        Response<Void> response = businessStepConfigurationApi.updateJobBusinessStepConfig(WORKFLOW_NAME_LOAN_CLOSE_OF_BUSINESS, request)
+                .execute();
+        ErrorHelper.checkSuccessfulApiCall(response);
+
+        logChanges();
+    }
+
+    private List<BusinessStep> retrieveLoanCOBJobSteps() throws IOException {
+        Response<GetBusinessStepConfigResponse> businessStepConfigResponse = businessStepConfigurationApi
+                .retrieveAllConfiguredBusinessStep(WORKFLOW_NAME_LOAN_CLOSE_OF_BUSINESS).execute();
+        ErrorHelper.checkSuccessfulApiCall(businessStepConfigResponse);
+        return businessStepConfigResponse.body().getBusinessSteps();
+    }
+
+    private void logChanges() throws IOException {
+        // --- log changes ---
+        Response<GetBusinessStepConfigResponse> changesResponse = businessStepConfigurationApi
+                .retrieveAllConfiguredBusinessStep(WORKFLOW_NAME_LOAN_CLOSE_OF_BUSINESS).execute();
+        List<BusinessStep> businessStepsChanged = changesResponse.body().getBusinessSteps();
+        List<String> changes = businessStepsChanged//
+                .stream()//
+                .sorted(Comparator.comparingLong(BusinessStep::getOrder))//
+                .map(BusinessStep::getStepName)//
+                .collect(Collectors.toList());//
+
+        log.info("Business steps has been CHANGED to the following:");
+        changes.forEach(e -> log.info(e));
+    }
 }

fineract-e2e-tests-runner/src/test/resources/features/Loan.feature

@@ -5657,3 +5657,74 @@ Feature: Loan
       | 15 February 2024 | Repayment        | 84.06  | 83.57     | 0.49     | 0.0  | 0.0       | 0.0          | false    |
     Then Loan's all installments have obligations met
     When Admin set "LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_REST_FREQUENCY" loan product "DEFAULT" transaction type to "LAST_INSTALLMENT" future installment allocation rule
+
+  Scenario: Interest recalculation - S1 daily for overdue loan
+    Given Global configuration "enable_business_date" is enabled
+    When Admin sets the business date to "1 January 2024"
+    When Admin creates a client with random data
+    When 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_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE | 01 January 2024   | 100            | 7.0                    | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 6                 | MONTHS                | 1              | MONTHS                 | 6                 | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "1 January 2024" with "100" amount and expected disbursement date on "1 January 2024"
+    When Admin successfully disburse the loan on "1 January 2024" with "100" EUR transaction amount
+    When Admin sets the business date to "15 July 2024"
+    When Admin puts "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow
+    When Admin runs inline COB job for Loan
+    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 |
+      |    |      | 01 January 2024  |           | 100.0           |               |          | 0.0  |           | 0.0   | 0.0  |            |      |             |
+      | 1  | 31   | 01 February 2024 |           | 83.57           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 2  | 29   | 01 March 2024    |           | 67.14           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 3  | 31   | 01 April 2024    |           | 50.71           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 4  | 30   | 01 May 2024      |           | 34.28           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 5  | 31   | 01 June 2024     |           | 17.85           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 6  | 30   | 01 July 2024     |           | 0.0             | 17.85         | 0.58     | 0.0  | 0.0       | 18.43 | 0.0  | 0.0        | 0.0  | 18.43       |
+    When Admin removes "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow
+
+  Scenario: Interest recalculation - S2 2 overdue
+    Given Global configuration "enable_business_date" is enabled
+    When Admin sets the business date to "1 January 2024"
+    When Admin creates a client with random data
+    When 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_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE | 01 January 2024   | 100            | 7.0                    | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 6                 | MONTHS                | 1              | MONTHS                 | 6                 | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "1 January 2024" with "100" amount and expected disbursement date on "1 January 2024"
+    When Admin successfully disburse the loan on "1 January 2024" with "100" EUR transaction amount
+    When Admin sets the business date to "10 March 2024"
+    When Admin puts "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow
+    When Admin runs inline COB job for Loan
+    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 |
+      |    |      | 01 January 2024  |           | 100.0           |               |          | 0.0  |           | 0.0   | 0.0  |            |      |             |
+      | 1  | 31   | 01 February 2024 |           | 83.57           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 2  | 29   | 01 March 2024    |           | 67.14           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 3  | 31   | 01 April 2024    |           | 50.58           | 16.56         | 0.45     | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 4  | 30   | 01 May 2024      |           | 33.87           | 16.71         | 0.3      | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 5  | 31   | 01 June 2024     |           | 17.06           | 16.81         | 0.2      | 0.0  | 0.0       | 17.01 | 0.0  | 0.0        | 0.0  | 17.01       |
+      | 6  | 30   | 01 July 2024     |           | 0.0             | 17.06         | 0.1      | 0.0  | 0.0       | 17.16 | 0.0  | 0.0        | 0.0  | 17.16       |
+    When Admin removes "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow
+
+  Scenario: Interest recalculation - S3 1 paid, 1 overdue
+    Given Global configuration "enable_business_date" is enabled
+    When Admin sets the business date to "1 January 2024"
+    When Admin creates a client with random data
+    When 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_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE | 01 January 2024   | 100            | 7.0                    | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 6                 | MONTHS                | 1              | MONTHS                 | 6                 | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "1 January 2024" with "100" amount and expected disbursement date on "1 January 2024"
+    When Admin successfully disburse the loan on "1 January 2024" with "100" EUR transaction amount
+    When Admin sets the business date to "1 February 2024"
+    And Customer makes "AUTOPAY" repayment on "01 February 2024" with 17.01 EUR transaction amount
+    When Admin sets the business date to "10 March 2024"
+    When Admin puts "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow
+    When Admin runs inline COB job for Loan
+    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 |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |      |             |
+      | 1  | 31   | 01 February 2024 | 01 February 2024 | 83.57           | 16.43         | 0.58     | 0.0  | 0.0       | 17.01 | 17.01 | 0.0        | 0.0  | 0.0         |
+      | 2  | 29   | 01 March 2024    |                  | 67.05           | 16.52         | 0.49     | 0.0  | 0.0       | 17.01 | 0.0   | 0.0        | 0.0  | 17.01       |
+      | 3  | 31   | 01 April 2024    |                  | 50.46           | 16.59         | 0.42     | 0.0  | 0.0       | 17.01 | 0.0   | 0.0        | 0.0  | 17.01       |
+      | 4  | 30   | 01 May 2024      |                  | 33.74           | 16.72         | 0.29     | 0.0  | 0.0       | 17.01 | 0.0   | 0.0        | 0.0  | 17.01       |
+      | 5  | 31   | 01 June 2024     |                  | 16.93           | 16.81         | 0.2      | 0.0  | 0.0       | 17.01 | 0.0   | 0.0        | 0.0  | 17.01       |
+      | 6  | 30   | 01 July 2024     |                  | 0.0             | 16.93         | 0.1      | 0.0  | 0.0       | 17.03 | 0.0   | 0.0        | 0.0  | 17.03       |
+    When Admin removes "LOAN_INTEREST_RECALCULATION" business step into LOAN_CLOSE_OF_BUSINESS workflow

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java

@@ -871,9 +871,8 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
 
     private List<LoanRepaymentScheduleInstallment> findOverdueInstallmentsBeforeDateSortedByInstallmentNumber(LocalDate currentDate,
             ProgressiveTransactionCtx transactionCtx) {
-        final LocalDate fromDate = transactionCtx.getInstallments().get(0).getLoan().getApprovedOnDate();
+        return transactionCtx.getInstallments().stream() //
-        return transactionCtx.getInstallments().stream().filter(installment -> !installment.getFromDate().isBefore(fromDate))
+                .filter(installment -> !installment.isDownPayment() && !installment.isAdditional())
-                .filter(installment -> installment.getDueDate().isBefore(currentDate))
                 .filter(installment -> installment.isOverdueOn(currentDate))
                 .sorted(Comparator.comparing(LoanRepaymentScheduleInstallment::getInstallmentNumber)).toList();
     }
@@ -885,27 +884,33 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
             List<LoanRepaymentScheduleInstallment> overdueInstallmentsSortedByInstallmentNumber = findOverdueInstallmentsBeforeDateSortedByInstallmentNumber(
                     currentDate, ctx);
             if (!overdueInstallmentsSortedByInstallmentNumber.isEmpty()) {
-                List<LoanRepaymentScheduleInstallment> possibleCurrentInstallment = ctx.getInstallments().stream().filter(
+                List<LoanRepaymentScheduleInstallment> normalInstallments = ctx.getInstallments().stream() //
+                        .filter(installment -> !installment.isAdditional() && !installment.isDownPayment()).toList();
+
+                Optional<LoanRepaymentScheduleInstallment> currentInstallmentOptional = normalInstallments.stream().filter(
                         installment -> installment.getFromDate().isBefore(currentDate) && !installment.getDueDate().isBefore(currentDate))
-                        .toList();
+                        .findAny();
 
                 // get DUE installment or last installment
-                LoanRepaymentScheduleInstallment currentInstallment = !possibleCurrentInstallment.isEmpty()
+                LoanRepaymentScheduleInstallment lastInstallment = normalInstallments.stream()
-                        ? possibleCurrentInstallment.get(0)
+                        .max(Comparator.comparing(LoanRepaymentScheduleInstallment::getInstallmentNumber)).get();
-                        : ctx.getInstallments().stream().max(Comparator.comparing(LoanRepaymentScheduleInstallment::getInstallmentNumber))
+                LoanRepaymentScheduleInstallment currentInstallment = currentInstallmentOptional.orElse(lastInstallment);
-                                .orElseThrow();
 
                 Money overDuePrincipal = Money.zero(ctx.getCurrency());
                 for (LoanRepaymentScheduleInstallment processingInstallment : overdueInstallmentsSortedByInstallmentNumber) {
                     // add and subtract outstanding principal
-                    if (overDuePrincipal.compareTo(Money.zero(ctx.getCurrency())) != 0) {
+                    if (!overDuePrincipal.isZero()) {
                         adjustOverduePrincipalForInstallment(currentDate, isLastRecalculation, processingInstallment, overDuePrincipal,
                                 ctx);
                     }
 
                     overDuePrincipal = overDuePrincipal.add(processingInstallment.getPrincipalOutstanding(ctx.getCurrency()).getAmount());
                 }
-                adjustOverduePrincipalForInstallment(currentDate, isLastRecalculation, currentInstallment, overDuePrincipal, ctx);
+
+                boolean adjustNeeded = !currentInstallment.equals(lastInstallment) || !lastInstallment.isOverdueOn(currentDate);
+                if (adjustNeeded) {
+                    adjustOverduePrincipalForInstallment(currentDate, isLastRecalculation, currentInstallment, overDuePrincipal, ctx);
+                }
             }
         }
     }
@@ -916,7 +921,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
         boolean hasUpdate = false;
 
         if (currentInstallment.getLoan().getLoanInterestRecalculationDetails().getRestFrequencyType().isSameAsRepayment()) {
-            // if we have same date for fromDate & last overdue balance change then it meas we have the up-to-date
+            // if we have same date for fromDate & last overdue balance change then it means we have the up-to-date
             // model.
             if (ctx.getLastOverdueBalanceChange() == null || fromDate.isAfter(ctx.getLastOverdueBalanceChange())) {
                 emiCalculator.addBalanceCorrection(ctx.getModel(), fromDate, overduePrincipal);
@@ -954,12 +959,13 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
     }
 
     private void updateInstallmentsPrincipalAndInterestByModel(ProgressiveTransactionCtx ctx) {
-        ctx.getModel().repayments().forEach(rm -> {
+        ctx.getModel().repayments().forEach(repayment -> {
             LoanRepaymentScheduleInstallment installment = ctx.getInstallments().stream()
-                    .filter(ri -> !ri.isDownPayment() && Objects.equals(ri.getFromDate(), rm.getFromDate())).findFirst().orElse(null);
+                    .filter(ri -> !ri.isDownPayment() && Objects.equals(ri.getFromDate(), repayment.getFromDate())) //
+                    .findFirst().orElse(null);
             if (installment != null) {
-                installment.updatePrincipal(rm.getPrincipalDue().getAmount());
+                installment.updatePrincipal(repayment.getPrincipalDue().getAmount());
-                installment.updateInterestCharged(rm.getInterestDue().getAmount());
+                installment.updateInterestCharged(repayment.getInterestDue().getAmount());
                 installment.setRecalculatedInterestComponent(true);
             }
         });

integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanInterestRecalculationCOBTest.java

@@ -168,6 +168,20 @@ public class LoanInterestRecalculationCOBTest extends BaseLoanIntegrationTest {
             validateFullyUnpaidRepaymentPeriod(loanDetails, 3, "01 April 2023", 2008.09, 0.0, 0.0, 33.75);
             validateFullyUnpaidRepaymentPeriod(loanDetails, 4, "01 May 2023", 2041.57, 0.0, 0.0, 17.01);
 
+        });
+        runAt("20 April 2023", () -> {
+            Long loanId = loanIdRef.get();
+
+            inlineLoanCOBHelper.executeInlineCOB(List.of(loanId));
+
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            logLoanDetails(loanDetails);
+
+            validateFullyUnpaidRepaymentPeriod(loanDetails, 1, "01 February 2023", 1975.17, 0.0, 0.0, 66.67);
+            validateFullyUnpaidRepaymentPeriod(loanDetails, 2, "01 March 2023", 1975.17, 0.0, 0.0, 66.67);
+            validateFullyUnpaidRepaymentPeriod(loanDetails, 3, "01 April 2023", 1975.17, 0.0, 0.0, 66.67);
+            validateFullyUnpaidRepaymentPeriod(loanDetails, 4, "01 May 2023", 2074.49, 0.0, 0.0, 48.56);
+
         });
         payoffOnDateAndVerifyStatus("1 February 2023", loanIdRef.get());
     }