FINERACT-2232: Capitalized income - transaction reversal

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java

@@ -150,6 +150,10 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             if (transactionType.isCapitalizedIncomeAdjustment()) {
                 createJournalEntriesForCapitalizedIncomeAdjustment(loanDTO, loanTransactionDTO, office);
             }
+            // Capitalized Income Amortization Adjustment
+            if (transactionType.isCapitalizedIncomeAmortizationAdjustment()) {
+                createJournalEntriesForCapitalizedIncomeAmortizationAdjustment(loanDTO, loanTransactionDTO, office);
+            }
         }
     }
 
@@ -426,6 +430,33 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
     }
 
+    private void createJournalEntriesForCapitalizedIncomeAmortizationAdjustment(final LoanDTO loanDTO,
+            final LoanTransactionDTO loanTransactionDTO, final Office office) {
+        GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
+        if (MathUtil.isGreaterThanZero(loanTransactionDTO.getAmount())) {
+            populateCreditDebitMaps(loanDTO.getLoanProductId(), loanTransactionDTO.getAmount(), loanTransactionDTO.getPaymentTypeId(),
+                    AccrualAccountsForLoan.DEFERRED_INCOME_LIABILITY.getValue(),
+                    AccrualAccountsForLoan.INCOME_FROM_CAPITALIZATION.getValue(), glAccountBalanceHolder);
+        }
+
+        // create credit entries
+        for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
+            if (MathUtil.isGreaterThanZero(creditEntry.getValue())) {
+                GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
+                this.helper.createCreditJournalEntryForLoan(office, loanDTO.getCurrencyCode(), loanDTO.getLoanId(),
+                        loanTransactionDTO.getTransactionId(), loanTransactionDTO.getTransactionDate(), creditEntry.getValue(), glAccount);
+            }
+        }
+        // create debit entries
+        for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
+            if (MathUtil.isGreaterThanZero(debitEntry.getValue())) {
+                GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
+                this.helper.createDebitJournalEntryForLoan(office, loanDTO.getCurrencyCode(), loanDTO.getLoanId(),
+                        loanTransactionDTO.getTransactionId(), loanTransactionDTO.getTransactionDate(), debitEntry.getValue(), glAccount);
+            }
+        }
+    }
+
     private void createJournalEntriesForInterestPaymentWaiverOrInterestRefund(LoanDTO loanDTO, LoanTransactionDTO loanTransactionDTO,
             Office office) {
         final Long loanProductId = loanDTO.getLoanProductId();

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoanTransactionsApiResource.java

@@ -536,6 +536,7 @@ public class LoanTransactionsApiResource {
             case capitalizedIncomeAmortization -> LoanTransactionType.CAPITALIZED_INCOME_AMORTIZATION;
             case capitalizedIncomeAdjustment -> LoanTransactionType.CAPITALIZED_INCOME_ADJUSTMENT;
             case contractTermination -> LoanTransactionType.CONTRACT_TERMINATION;
+            case capitalizedIncomeAmortizationAdjustment -> LoanTransactionType.CAPITALIZED_INCOME_AMORTIZATION_ADJUSTMENT;
             default ->
                 throw new InvalidLoanTransactionTypeException("transaction", transactionTypeParam.name(), "Unknown transaction type");
         };

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/adjustment/LoanAdjustmentServiceImpl.java

@@ -33,8 +33,11 @@ import org.apache.fineract.infrastructure.core.data.DataValidatorBuilder;
 import org.apache.fineract.infrastructure.core.domain.ExternalId;
 import org.apache.fineract.infrastructure.core.exception.PlatformApiDataValidationException;
 import org.apache.fineract.infrastructure.core.service.DateUtils;
+import org.apache.fineract.infrastructure.core.service.ExternalIdFactory;
+import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.infrastructure.event.business.domain.loan.LoanAdjustTransactionBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.LoanBalanceChangedBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanCapitalizedIncomeAmortizationAdjustmentTransactionCreatedBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.service.BusinessEventNotifierService;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
 import org.apache.fineract.organisation.monetary.domain.Money;
@@ -45,6 +48,7 @@ import org.apache.fineract.portfolio.loanaccount.data.HolidayDetailDTO;
 import org.apache.fineract.portfolio.loanaccount.data.ScheduleGeneratorDTO;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanAccountDomainService;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeBalance;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanEvent;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanLifecycleStateMachine;
@@ -56,6 +60,7 @@ import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepositor
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionType;
 import org.apache.fineract.portfolio.loanaccount.exception.InvalidLoanTransactionTypeException;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
+import org.apache.fineract.portfolio.loanaccount.repository.LoanCapitalizedIncomeBalanceRepository;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanTransactionValidator;
 import org.apache.fineract.portfolio.loanaccount.service.LoanAccrualTransactionBusinessEventService;
@@ -95,6 +100,8 @@ public class LoanAdjustmentServiceImpl implements LoanAdjustmentService {
     private final LoanJournalEntryPoster journalEntryPoster;
     private final LoanBalanceService loanBalanceService;
     private final ReprocessLoanTransactionsService reprocessLoanTransactionsService;
+    private final LoanCapitalizedIncomeBalanceRepository loanCapitalizedIncomeBalanceRepository;
+    private final ExternalIdFactory externalIdFactory;
 
     @Override
     public CommandProcessingResult adjustLoanTransaction(Loan loan, LoanTransaction transactionToAdjust, LoanAdjustmentParameter parameter,
@@ -136,6 +143,39 @@ public class LoanAdjustmentServiceImpl implements LoanAdjustmentService {
             });
         }
 
+        LoanTransaction capitalizedIncomeAmortizationAdjustmentTransaction = null;
+        if (transactionToAdjust.isCapitalizedIncome()) {
+            if (newTransactionDetail.isNotZero()) {
+                throw new InvalidLoanTransactionTypeException("transaction", "capitalizedIncome.cannot.be.adjusted",
+                        "Capitalized income transaction cannot be adjusted");
+            }
+
+            LoanCapitalizedIncomeBalance capitalizedIncomeBalance = loanCapitalizedIncomeBalanceRepository
+                    .findByLoanIdAndLoanTransactionId(loan.getId(), transactionToAdjust.getId());
+            if (MathUtil.isGreaterThanZero(capitalizedIncomeBalance.getAmountAdjustment())) {
+                throw new InvalidLoanTransactionTypeException("transaction", "capitalizedIncome.cannot.be.reversed.when.adjusted",
+                        "Capitalized income transaction cannot be reversed when non-reversed adjustment exists for it.");
+            }
+            BigDecimal recognizedAmount = capitalizedIncomeBalance.getAmount().subtract(capitalizedIncomeBalance.getUnrecognizedAmount());
+            capitalizedIncomeAmortizationAdjustmentTransaction = LoanTransaction.capitalizedIncomeAmortizationAdjustment(loan,
+                    Money.of(loan.getCurrency(), recognizedAmount), DateUtils.getBusinessLocalDate(), externalIdFactory.create());
+            loanCapitalizedIncomeBalanceRepository.delete(capitalizedIncomeBalance);
+        }
+        if (transactionToAdjust.isCapitalizedIncomeAdjustment()) {
+            if (newTransactionDetail.isNotZero()) {
+                throw new InvalidLoanTransactionTypeException("transaction", "capitalizedIncomeAdjustment.cannot.be.adjusted",
+                        "Capitalized income adjustment transaction cannot be adjusted");
+            }
+
+            LoanCapitalizedIncomeBalance capitalizedIncomeBalance = loanCapitalizedIncomeBalanceRepository
+                    .findBalanceForAdjustment(transactionToAdjust.getId());
+
+            capitalizedIncomeBalance
+                    .setAmountAdjustment(capitalizedIncomeBalance.getAmountAdjustment().subtract(transactionToAdjust.getAmount()));
+            capitalizedIncomeBalance
+                    .setUnrecognizedAmount(capitalizedIncomeBalance.getUnrecognizedAmount().add(transactionToAdjust.getAmount()));
+        }
+
         LocalDate recalculateFrom = null;
 
         if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
@@ -173,6 +213,15 @@ public class LoanAdjustmentServiceImpl implements LoanAdjustmentService {
             this.loanTransactionRepository.saveAndFlush(newTransactionDetail);
         }
 
+        if (capitalizedIncomeAmortizationAdjustmentTransaction != null && capitalizedIncomeAmortizationAdjustmentTransaction.isNotZero()) {
+            LoanTransaction savedCapitalizedIncomeAmortizationAdjustmentTransaction = loanTransactionRepository
+                    .saveAndFlush(capitalizedIncomeAmortizationAdjustmentTransaction);
+            loan.addLoanTransaction(savedCapitalizedIncomeAmortizationAdjustmentTransaction);
+            businessEventNotifierService
+                    .notifyPostBusinessEvent(new LoanCapitalizedIncomeAmortizationAdjustmentTransactionCreatedBusinessEvent(
+                            capitalizedIncomeAmortizationAdjustmentTransaction));
+        }
+
         loan = saveAndFlushLoanWithDataIntegrityViolationChecks(loan);
 
         if (StringUtils.isNotBlank(noteText)) {
@@ -248,10 +297,11 @@ public class LoanAdjustmentServiceImpl implements LoanAdjustmentService {
 
         if (!transactionForAdjustment.isAccrualRelated() && transactionForAdjustment.isNotRepaymentLikeType()
                 && transactionForAdjustment.isNotWaiver() && transactionForAdjustment.isNotCreditBalanceRefund()
-                && !transactionForAdjustment.isCapitalizedIncome()) {
-            final String errorMessage = "Only (non-reversed) transactions of type repayment, waiver, capitalized income, accrual or credit balance refund can be adjusted.";
+                && !transactionForAdjustment.isCapitalizedIncome() && !transactionForAdjustment.isCapitalizedIncomeAdjustment()) {
+            final String errorMessage = "Only (non-reversed) transactions of type repayment, waiver, accrual, credit balance refund, capitalized income or capitalized income adjustment can be adjusted.";
             throw new InvalidLoanTransactionTypeException("transaction",
-                    "adjustment.is.only.allowed.to.repayment.or.waiver.or.creditbalancerefund.transactions", errorMessage);
+                    "adjustment.is.only.allowed.to.repayment.or.waiver.or.creditbalancerefund.or.capitalizedIncome.or.capitalizedIncomeAdjustment.transactions",
+                    errorMessage);
         }
 
         loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(transactionForAdjustment.getLoan(),

fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml

@@ -199,4 +199,5 @@
     <include file="parts/0178_add_principal_from_capitalized_income_to_loan_summary.xml" relativeToChangelogFile="true" />
     <include file="parts/0179_add_capitalized_income_adjustment_transaction.xml" relativeToChangelogFile="true" />
     <include file="parts/0180_add_version_field_to_loan_transaction.xml" relativeToChangelogFile="true" />
+    <include file="parts/0181_add_capitalized_income_amortization_adjustment_transaction.xml" relativeToChangelogFile="true" />
 </databaseChangeLog>

fineract-provider/src/main/resources/db/changelog/tenant/parts/0181_add_capitalized_income_amortization_adjustment_transaction.xml

@@ -0,0 +1,38 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.1.xsd">
+    <changeSet id="1" author="fineract">
+        <insert tableName="m_external_event_configuration">
+            <column name="type" value="LoanCapitalizedIncomeAmortizationAdjustmentTransactionCreatedBusinessEvent"/>
+            <column name="enabled" valueBoolean="false"/>
+        </insert>
+        <insert tableName="r_enum_value">
+            <column name="enum_name" value="transaction_type_enum"/>
+            <column name="enum_id" valueNumeric="39"/>
+            <column name="enum_message_property" value="Capitalized Income Amortization Adjustment"/>
+            <column name="enum_value" value="Capitalized Income Amortization Adjustment"/>
+            <column name="enum_type" valueBoolean="false"/>
+        </insert>
+    </changeSet>
+</databaseChangeLog>

fineract-provider/src/test/java/org/apache/fineract/infrastructure/event/external/service/ExternalEventConfigurationValidationServiceTest.java

@@ -107,7 +107,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
                 "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
                 "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent",
-                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent");
+                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent",
+                "LoanCapitalizedIncomeAmortizationAdjustmentTransactionCreatedBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));
@@ -195,7 +196,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
                 "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
                 "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent",
-                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent");
+                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent",
+                "LoanCapitalizedIncomeAmortizationAdjustmentTransactionCreatedBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));