FINERACT-2208: Penalties are not recalculated after backdated transactions

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

@@ -79,6 +79,7 @@ public class LoanChargesApiResource {
     public static final String COMMAND_PAY = "pay";
     public static final String COMMAND_WAIVE = "waive";
     public static final String COMMAND_ADJUSTMENT = "adjustment";
+    public static final String COMMAND_DEACTIVATE_OVERDUE = "deactivateOverdue";
     private static final Set<String> RESPONSE_DATA_PARAMETERS = new HashSet<>(
             Arrays.asList("id", "chargeId", "name", "penalty", "chargeTimeType", "dueAsOfDate", "chargeCalculationType", "percentage",
                     "amountPercentageAppliedTo", "currency", "amountWaived", "amountWrittenOff", "amountOutstanding", "amountOrPercentage",
@@ -463,6 +464,10 @@ public class LoanChargesApiResource {
             final CommandWrapper commandRequest = new CommandWrapperBuilder().payLoanCharge(resolvedLoanId, null)
                     .withJson(apiRequestBodyAsJson).build();
             result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
+        } else if (CommandParameterUtil.is(commandParam, COMMAND_DEACTIVATE_OVERDUE)) {
+            final CommandWrapper commandRequest = new CommandWrapperBuilder().deactivateOverdueLoanCharges(resolvedLoanId, null)
+                    .withJson(apiRequestBodyAsJson).build();
+            result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
         } else {
             final CommandWrapper commandRequest = new CommandWrapperBuilder().createLoanCharge(resolvedLoanId)
                     .withJson(apiRequestBodyAsJson).build();

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

@@ -294,6 +294,7 @@ public class LoanAccrualsProcessingServiceImpl implements LoanAccrualsProcessing
                 || !loan.isPeriodicAccrualAccountingEnabledOnLoanProduct()) {
             return;
         }
+
         LoanInterestRecalculationDetails recalculationDetails = loan.getLoanInterestRecalculationDetails();
         if (recalculationDetails != null && recalculationDetails.isCompoundingToBePostedAsTransaction()) {
             return;
@@ -523,7 +524,9 @@ public class LoanAccrualsProcessingServiceImpl implements LoanAccrualsProcessing
         loanCharges = loan.getLoanCharges(lc -> !lc.isDueAtDisbursement() && (lc.isInstalmentFee() ? !DateUtils.isBefore(tillDate, dueDate)
                 : isChargeDue(lc, tillDate, chargeOnDueDate, installment, period.isFirstPeriod())));
         for (LoanCharge loanCharge : loanCharges) {
-            addChargeAccrual(loanCharge, tillDate, chargeOnDueDate, installment, accrualPeriods);
+            if (loanCharge.isActive()) {
+                addChargeAccrual(loanCharge, tillDate, chargeOnDueDate, installment, accrualPeriods);
+            }
         }
     }
 

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

@@ -121,6 +121,7 @@ import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.imp
 import org.apache.fineract.portfolio.loanaccount.exception.InstallmentNotFoundException;
 import org.apache.fineract.portfolio.loanaccount.exception.InvalidLoanTransactionTypeException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanChargeAdjustmentException;
+import org.apache.fineract.portfolio.loanaccount.exception.LoanChargeDeactivationException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanChargeRefundException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanTransactionNotFoundException;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.data.OverdueLoanScheduleData;
@@ -130,6 +131,8 @@ import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.ScheduledDa
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeApiJsonValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanDownPaymentTransactionValidator;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentParameter;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentService;
 import org.apache.fineract.portfolio.loanproduct.data.LoanOverdueDTO;
 import org.apache.fineract.portfolio.loanproduct.exception.LinkedAccountRequiredException;
 import org.apache.fineract.portfolio.note.domain.Note;
@@ -174,6 +177,7 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
     private final LoanScheduleService loanScheduleService;
     private final ReprocessLoanTransactionsService reprocessLoanTransactionsService;
     private final LoanAccountService loanAccountService;
+    private final LoanAdjustmentService loanAdjustmentService;
 
     private static boolean isPartOfThisInstallment(LoanCharge loanCharge, LoanRepaymentScheduleInstallment e) {
         return DateUtils.isAfter(loanCharge.getDueDate(), e.getFromDate()) && !DateUtils.isAfter(loanCharge.getDueDate(), e.getDueDate());
@@ -776,6 +780,49 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
                 .build();
     }
 
+    @Transactional
+    @Override
+    public CommandProcessingResult deactivateOverdueLoanCharge(Long loanId, JsonCommand command) {
+        LocalDate fromDueDate = command.dateValueOfParameterNamed("dueDate");
+
+        List<LoanCharge> loanCharges = loanChargeRepository.findByLoanIdAndFromDueDate(loanId, fromDueDate);
+        loanCharges.forEach(this::inactivateOverdueLoanCharge);
+
+        Loan loan = loanAssembler.assembleFrom(loanId);
+        List<LoanRepaymentScheduleInstallment> repaymentScheduleInstallments = loan
+                .getRepaymentScheduleInstallments(si -> DateUtils.isDateInRangeInclusive(fromDueDate, si.getFromDate(), si.getDueDate())
+                        || DateUtils.isAfter(si.getFromDate(), fromDueDate));
+        repaymentScheduleInstallments.forEach(si -> si.setPenaltyAccrued(null));
+        List<LoanTransaction> accrualsToReverse = loan.getLoanTransactions(
+                tx -> tx.isNotReversed() && DateUtils.isAfterInclusive(tx.getTransactionDate(), fromDueDate) && tx.isAccrualRelated());
+        accrualsToReverse.forEach(tx -> loanAdjustmentService.adjustLoanTransaction(loan, tx,
+                LoanAdjustmentParameter.builder().transactionDate(tx.getTransactionDate()).build(), null, new HashMap<>()));
+
+        loanRepositoryWrapper.saveAndFlush(loan);
+
+        final CommandProcessingResultBuilder commandProcessingResultBuilder = new CommandProcessingResultBuilder();
+        return commandProcessingResultBuilder.withLoanId(loanId) //
+                .withEntityId(loanId) //
+                .withEntityExternalId(loan.getExternalId()) //
+                .build();
+    }
+
+    private void inactivateOverdueLoanCharge(LoanCharge loanCharge) {
+        if (!loanCharge.getChargeTimeType().isOverdueInstallment()) {
+            throw new LoanChargeDeactivationException("loan.charge.deactivate.invalid.charge.type",
+                    "Loan charge is not an overdue installment charge");
+        }
+
+        if (!loanCharge.isActive()) {
+            throw new LoanChargeDeactivationException("loan.charge.deactivate.invalid.status", "Loan charge is not active");
+        }
+
+        loanCharge.setActive(false);
+        loanChargeRepository.saveAndFlush(loanCharge);
+
+        businessEventNotifierService.notifyPostBusinessEvent(new LoanUpdateChargeBusinessEvent(loanCharge));
+    }
+
     @Transactional
     @Override
     public void applyOverdueChargesForLoan(final Long loanId, Collection<OverdueLoanScheduleData> overdueLoanScheduleDataList) {
@@ -802,8 +849,10 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
             final JsonElement parsedCommand = this.fromApiJsonHelper.parse(overdueInstallment.toString());
             final JsonCommand command = JsonCommand.from(overdueInstallment.toString(), parsedCommand, this.fromApiJsonHelper, null, null,
                     null, null, null, loanId, null, null, null, null, null, null, null, null);
+
             LoanOverdueDTO overdueDTO = applyChargeToOverdueLoanInstallment(loan, overdueInstallment.getChargeId(),
                     overdueInstallment.getPeriodNumber(), command);
+
             loan = overdueDTO.getLoan();
             runInterestRecalculation = runInterestRecalculation || overdueDTO.isRunInterestRecalculation();
             if (DateUtils.isAfter(recalculateFrom, overdueDTO.getRecalculateFrom())) {

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

@@ -0,0 +1,54 @@
+/**
+ * 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.
+ */
+package org.apache.fineract.portfolio.loanaccount.service;
+
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Map;
+import lombok.RequiredArgsConstructor;
+import org.apache.fineract.accounting.journalentry.service.JournalEntryWritePlatformService;
+import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.springframework.stereotype.Component;
+
+@Component
+@RequiredArgsConstructor
+public class LoanJournalEntryPoster {
+
+    private final JournalEntryWritePlatformService journalEntryWritePlatformService;
+
+    public void postJournalEntries(final Loan loan, final List<Long> existingTransactionIds,
+            final List<Long> existingReversedTransactionIds) {
+
+        final MonetaryCurrency currency = loan.getCurrency();
+        boolean isAccountTransfer = false;
+        List<Map<String, Object>> accountingBridgeData = new ArrayList<>();
+        if (loan.isChargedOff()) {
+            accountingBridgeData = loan.deriveAccountingBridgeDataForChargeOff(currency.getCode(), existingTransactionIds,
+                    existingReversedTransactionIds, isAccountTransfer);
+        } else {
+            accountingBridgeData.add(loan.deriveAccountingBridgeData(currency.getCode(), existingTransactionIds,
+                    existingReversedTransactionIds, isAccountTransfer));
+        }
+        for (Map<String, Object> accountingData : accountingBridgeData) {
+            this.journalEntryWritePlatformService.createJournalEntriesForLoan(accountingData);
+        }
+
+    }
+}

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

@@ -195,7 +195,6 @@ import org.apache.fineract.portfolio.loanaccount.exception.UndoLastTrancheDisbur
 import org.apache.fineract.portfolio.loanaccount.guarantor.service.GuarantorDomainService;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModel;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModelPeriod;
-import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.service.LoanScheduleHistoryWritePlatformService;
 import org.apache.fineract.portfolio.loanaccount.rescheduleloan.domain.LoanRescheduleRequest;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanApplicationValidator;
@@ -204,6 +203,8 @@ import org.apache.fineract.portfolio.loanaccount.serialization.LoanDownPaymentTr
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanOfficerValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanTransactionValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanUpdateCommandFromApiJsonDeserializer;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentParameter;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentService;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProduct;
 import org.apache.fineract.portfolio.loanproduct.exception.LinkedAccountRequiredException;
 import org.apache.fineract.portfolio.loanproduct.service.LoanEnumerations;
@@ -278,6 +279,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
     private final LoanOfficerService loanOfficerService;
     private final ReprocessLoanTransactionsService reprocessLoanTransactionsService;
     private final LoanAccountService loanAccountService;
+    private final LoanJournalEntryPoster journalEntryPoster;
+    private final LoanAdjustmentService loanAdjustmentService;
 
     @Transactional
     @Override
@@ -534,7 +537,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             businessEventNotifierService.notifyPostBusinessEvent(new LoanDisbursalTransactionBusinessEvent(disbursalTransaction));
         }
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         return new CommandProcessingResultBuilder() //
@@ -816,7 +819,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             if (!changes.isEmpty()) {
                 createNote(loan, command, changes);
                 loan = saveAndFlushLoanWithDataIntegrityViolationChecks(loan);
-                postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+                journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
                 loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
             }
             final Set<LoanCharge> loanCharges = loan.getActiveCharges();
@@ -1165,7 +1168,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
         businessEventNotifierService.notifyPostBusinessEvent(transactionRepaymentEvent);
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         return new CommandProcessingResultBuilder().withCommandId(command.commandId()) //
@@ -1332,6 +1335,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                     "Interest refund transaction: " + transactionId + " cannot be reversed or adjusted directly", transactionId);
         }
 
+        Long commandId = command.commandId();
+        final String noteText = command.stringValueOfParameterNamed("note");
         final LocalDate transactionDate = command.localDateValueOfParameterNamed("transactionDate");
         final BigDecimal transactionAmount = command.bigDecimalValueOfParameterNamed("transactionAmount");
         final ExternalId txnExternalId = externalIdFactory.createFromCommand(command, LoanApiConstants.externalIdParameterName);
@@ -1354,181 +1359,13 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         changes.put("dateFormat", command.dateFormat());
         changes.put("paymentTypeId", command.longValueOfParameterNamed("paymentTypeId"));
 
-        final List<Long> existingTransactionIds = new ArrayList<>();
-        final List<Long> existingReversedTransactionIds = new ArrayList<>();
-
-        final Money transactionAmountAsMoney = Money.of(loan.getCurrency(), transactionAmount);
         final PaymentDetail paymentDetail = this.paymentDetailWritePlatformService.createPaymentDetail(command, changes);
-        LoanTransaction newTransactionDetail = LoanTransaction.repaymentType(transactionToAdjust.getTypeOf(), loan.getOffice(),
-                transactionAmountAsMoney, paymentDetail, transactionDate, txnExternalId, transactionToAdjust.getChargeRefundChargeType());
-        if (transactionToAdjust.isInterestWaiver()) {
-            Money unrecognizedIncome = transactionAmountAsMoney.zero();
-            Money interestComponent = transactionAmountAsMoney;
-            if (loan.isPeriodicAccrualAccountingEnabledOnLoanProduct()) {
-                Money receivableInterest = loan.getReceivableInterest(transactionDate);
-                if (transactionAmountAsMoney.isGreaterThan(receivableInterest)) {
-                    interestComponent = receivableInterest;
-                    unrecognizedIncome = transactionAmountAsMoney.minus(receivableInterest);
-                }
-            }
-            newTransactionDetail = LoanTransaction.waiver(loan.getOffice(), loan, transactionAmountAsMoney, transactionDate,
-                    interestComponent, unrecognizedIncome, txnExternalId);
-        }
 
-        LocalDate recalculateFrom = null;
+        LoanAdjustmentParameter parameter = LoanAdjustmentParameter.builder().transactionAmount(transactionAmount)
+                .paymentDetail(paymentDetail).transactionDate(transactionDate).txnExternalId(txnExternalId)
+                .reversalTxnExternalId(reversalTxnExternalId).noteText(noteText).build();
 
-        if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
-            recalculateFrom = DateUtils.isAfter(transactionToAdjust.getTransactionDate(), transactionDate) ? transactionDate
-                    : transactionToAdjust.getTransactionDate();
-        }
-
-        ScheduleGeneratorDTO scheduleGeneratorDTO = this.loanUtilService.buildScheduleGeneratorDTO(loan, recalculateFrom);
-
-        HolidayDetailDTO holidayDetailDTO = scheduleGeneratorDTO.getHolidayDetailDTO();
-        if (loan.getLoanRepaymentScheduleDetail().getLoanScheduleType().equals(LoanScheduleType.CUMULATIVE)) {
-            // validate cumulative
-            loanTransactionValidator.validateActivityNotBeforeLastTransactionDate(loan, transactionToAdjust.getTransactionDate(),
-                    LoanEvent.LOAN_REPAYMENT_OR_WAIVER);
-        }
-        // common validations
-        loanTransactionValidator.validateRepaymentDateIsOnHoliday(newTransactionDetail.getTransactionDate(),
-                holidayDetailDTO.isAllowTransactionsOnHoliday(), holidayDetailDTO.getHolidays());
-        loanTransactionValidator.validateRepaymentDateIsOnNonWorkingDay(newTransactionDetail.getTransactionDate(),
-                holidayDetailDTO.getWorkingDays(), holidayDetailDTO.isAllowTransactionsOnNonWorkingDay());
-
-        adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionToAdjust, existingTransactionIds,
-                existingReversedTransactionIds, scheduleGeneratorDTO, reversalTxnExternalId);
-
-        loanAccrualsProcessingService.reprocessExistingAccruals(loan);
-        if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
-            loanAccrualsProcessingService.processIncomePostingAndAccruals(loan);
-        }
-
-        boolean thereIsNewTransaction = newTransactionDetail.isGreaterThanZero();
-        if (thereIsNewTransaction) {
-            if (paymentDetail != null) {
-                this.paymentDetailWritePlatformService.persistPaymentDetail(paymentDetail);
-            }
-            this.loanTransactionRepository.saveAndFlush(newTransactionDetail);
-        }
-
-        loan = saveAndFlushLoanWithDataIntegrityViolationChecks(loan);
-
-        final String noteText = command.stringValueOfParameterNamed("note");
-        if (StringUtils.isNotBlank(noteText)) {
-            changes.put("note", noteText);
-            Note note;
-            /**
-             * If a new transaction is not created, associate note with the transaction to be adjusted
-             **/
-            if (thereIsNewTransaction) {
-                note = Note.loanTransactionNote(loan, newTransactionDetail, noteText);
-            } else {
-                note = Note.loanTransactionNote(loan, transactionToAdjust, noteText);
-            }
-            this.noteRepository.save(note);
-        }
-
-        Collection<Long> transactionIds = new ArrayList<>();
-        List<LoanTransaction> transactions = loan.getLoanTransactions();
-        for (LoanTransaction transaction : transactions) {
-            if (transaction.isRefund() && transaction.isNotReversed()) {
-                transactionIds.add(transaction.getId());
-            }
-        }
-
-        if (!transactionIds.isEmpty()) {
-            this.accountTransfersWritePlatformService.reverseTransfersWithFromAccountTransactions(transactionIds,
-                    PortfolioAccountType.LOAN);
-            loan.updateLoanSummaryAndStatus();
-        }
-
-        loanAccrualsProcessingService.processAccrualsOnInterestRecalculation(loan, loan.isInterestBearingAndInterestRecalculationEnabled(),
-                false);
-
-        this.loanAccountDomainService.setLoanDelinquencyTag(loan, DateUtils.getBusinessLocalDate());
-
-        LoanAdjustTransactionBusinessEvent.Data eventData = new LoanAdjustTransactionBusinessEvent.Data(transactionToAdjust);
-        if (newTransactionDetail.isRepaymentLikeType() && thereIsNewTransaction) {
-            eventData.setNewTransactionDetail(newTransactionDetail);
-        }
-        Long entityId = transactionToAdjust.getId();
-        ExternalId entityExternalId = transactionToAdjust.getExternalId();
-
-        if (thereIsNewTransaction) {
-            entityId = newTransactionDetail.getId();
-            entityExternalId = newTransactionDetail.getExternalId();
-        }
-        businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
-        businessEventNotifierService.notifyPostBusinessEvent(new LoanAdjustTransactionBusinessEvent(eventData));
-
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
-        loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
-
-        return new CommandProcessingResultBuilder() //
-                .withCommandId(command.commandId()) //
-                .withEntityId(entityId) //
-                .withEntityExternalId(entityExternalId) //
-                .withOfficeId(loan.getOfficeId()) //
-                .withClientId(loan.getClientId()) //
-                .withGroupId(loan.getGroupId()) //
-                .withLoanId(loanId) //
-                .with(changes).build();
-    }
-
-    public void adjustExistingTransaction(final Loan loan, final LoanTransaction newTransactionDetail,
-            final LoanLifecycleStateMachine loanLifecycleStateMachine, final LoanTransaction transactionForAdjustment,
-            final List<Long> existingTransactionIds, final List<Long> existingReversedTransactionIds,
-            final ScheduleGeneratorDTO scheduleGeneratorDTO, final ExternalId reversalExternalId) {
-        existingTransactionIds.addAll(loan.findExistingTransactionIds());
-        existingReversedTransactionIds.addAll(loan.findExistingReversedTransactionIds());
-
-        loanTransactionValidator.validateActivityNotBeforeClientOrGroupTransferDate(loan, LoanEvent.LOAN_REPAYMENT_OR_WAIVER,
-                transactionForAdjustment.getTransactionDate());
-
-        if (transactionForAdjustment.isNotRepaymentLikeType() && transactionForAdjustment.isNotWaiver()
-                && transactionForAdjustment.isNotCreditBalanceRefund()) {
-            final String errorMessage = "Only (non-reversed) transactions of type repayment, waiver or credit balance refund can be adjusted.";
-            throw new InvalidLoanTransactionTypeException("transaction",
-                    "adjustment.is.only.allowed.to.repayment.or.waiver.or.creditbalancerefund.transactions", errorMessage);
-        }
-
-        loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(transactionForAdjustment.getLoan(),
-                transactionForAdjustment, "reversed");
-        transactionForAdjustment.reverse(reversalExternalId);
-        transactionForAdjustment.manuallyAdjustedOrReversed();
-
-        if (transactionForAdjustment.getTypeOf().equals(LoanTransactionType.MERCHANT_ISSUED_REFUND)
-                || transactionForAdjustment.getTypeOf().equals(LoanTransactionType.PAYOUT_REFUND)) {
-            loan.getLoanTransactions().stream() //
-                    .filter(LoanTransaction::isNotReversed)
-                    .filter(loanTransaction -> loanTransaction.getLoanTransactionRelations().stream()
-                            .anyMatch(relation -> relation.getRelationType().equals(LoanTransactionRelationTypeEnum.RELATED)
-                                    && relation.getToTransaction().getId().equals(transactionForAdjustment.getId())))
-                    .forEach(loanTransaction -> {
-                        loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(loanTransaction.getLoan(),
-                                loanTransaction, "reversed");
-                        loanTransaction.reverse();
-                        loanTransaction.manuallyAdjustedOrReversed();
-                        LoanAdjustTransactionBusinessEvent.Data eventData = new LoanAdjustTransactionBusinessEvent.Data(loanTransaction);
-                        businessEventNotifierService.notifyPostBusinessEvent(new LoanAdjustTransactionBusinessEvent(eventData));
-                    });
-        }
-
-        if (loan.isClosedWrittenOff()) {
-            // find write off transaction and reverse it
-            final LoanTransaction writeOffTransaction = loan.findWriteOffTransaction();
-            loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(writeOffTransaction.getLoan(), writeOffTransaction,
-                    "reversed");
-            writeOffTransaction.reverse();
-        }
-
-        loan.updateLoanSummaryAndStatus();
-
-        if (newTransactionDetail.isRepaymentLikeType() || newTransactionDetail.isInterestWaiver()) {
-            loanDownPaymentHandlerService.handleRepaymentOrRecoveryOrWaiverTransaction(loan, newTransactionDetail,
-                    loanLifecycleStateMachine, transactionForAdjustment, scheduleGeneratorDTO);
-        }
+        return loanAdjustmentService.adjustLoanTransaction(loan, transactionToAdjust, parameter, commandId, changes);
     }
 
     @Transactional
@@ -1611,7 +1448,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             this.noteRepository.save(note);
         }
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         this.loanAccountDomainService.setLoanDelinquencyTag(loan, transactionDate);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanChargebackTransactionBusinessEvent(newTransaction));
@@ -1714,7 +1551,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
         businessEventNotifierService.notifyPostBusinessEvent(new LoanWaiveInterestBusinessEvent(waiveInterestTransaction));
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
         return new CommandProcessingResultBuilder() //
                 .withCommandId(command.commandId()) //
@@ -1808,7 +1645,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
             businessEventNotifierService.notifyPostBusinessEvent(new LoanWrittenOffPostBusinessEvent(loanTransaction));
 
-            postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+            journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
             loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
             builder.withEntityId(loanTransaction.getId()).withEntityExternalId(loanTransaction.getExternalId());
@@ -1885,7 +1722,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         // disable all active standing instructions linked to the loan
         this.loanAccountDomainService.disableStandingInstructionsLinkedToClosedLoan(loan);
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         CommandProcessingResult result;
@@ -2021,7 +1858,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         this.loanTransactionRepository.saveAndFlush(newTransferTransaction);
         saveLoanWithDataIntegrityViolationChecks(loan);
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanInitiateTransferBusinessEvent(loan));
         return newTransferTransaction;
     }
@@ -2051,7 +1888,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         this.loanTransactionRepository.saveAndFlush(newTransferAcceptanceTransaction);
         saveLoanWithDataIntegrityViolationChecks(loan);
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanAcceptTransferBusinessEvent(loan));
 
         return newTransferAcceptanceTransaction;
@@ -2077,7 +1914,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         this.loanTransactionRepository.saveAndFlush(newTransferAcceptanceTransaction);
         saveLoanWithDataIntegrityViolationChecks(loan);
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanWithdrawTransferBusinessEvent(loan));
 
         return newTransferAcceptanceTransaction;
@@ -2209,25 +2046,6 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                 .build();
     }
 
-    private void postJournalEntries(final Loan loan, final List<Long> existingTransactionIds,
-            final List<Long> existingReversedTransactionIds) {
-
-        final MonetaryCurrency currency = loan.getCurrency();
-        boolean isAccountTransfer = false;
-        List<Map<String, Object>> accountingBridgeData = new ArrayList<>();
-        if (loan.isChargedOff()) {
-            accountingBridgeData = loan.deriveAccountingBridgeDataForChargeOff(currency.getCode(), existingTransactionIds,
-                    existingReversedTransactionIds, isAccountTransfer);
-        } else {
-            accountingBridgeData.add(loan.deriveAccountingBridgeData(currency.getCode(), existingTransactionIds,
-                    existingReversedTransactionIds, isAccountTransfer));
-        }
-        for (Map<String, Object> accountingData : accountingBridgeData) {
-            this.journalEntryWritePlatformService.createJournalEntriesForLoan(accountingData);
-        }
-
-    }
-
     @Transactional
     @Override
     public void applyMeetingDateChanges(final Calendar calendar, final Collection<CalendarInstance> loanCalendarInstances) {
@@ -2503,7 +2321,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
         this.loanAccountDomainService.setLoanDelinquencyTag(loan, DateUtils.getBusinessLocalDate());
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         return new CommandProcessingResultBuilder() //
@@ -2647,7 +2465,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                 false);
         this.loanAccountDomainService.setLoanDelinquencyTag(loan, DateUtils.getBusinessLocalDate());
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         return new CommandProcessingResultBuilder() //
@@ -2709,7 +2527,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                 false);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanInterestRecalculationBusinessEvent(loan));
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
         return loan;
     }
@@ -3129,7 +2947,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                     businessEventNotifierService.notifyPostBusinessEvent(new LoanAdjustTransactionBusinessEvent(data));
                 });
 
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanChargeOffPostBusinessEvent(chargeOffTransaction));
         return new CommandProcessingResultBuilder() //
                 .withCommandId(command.commandId()) //
@@ -3192,7 +3010,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         reprocessLoanTransactionsService.reprocessTransactions(loan);
 
         saveLoanWithDataIntegrityViolationChecks(loan);
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         businessEventNotifierService.notifyPostBusinessEvent(new LoanUndoChargeOffBusinessEvent(chargedOffTransaction));
 
         return new CommandProcessingResultBuilder() //
@@ -3267,7 +3085,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
 
         // Create journal entries for the new transaction(s)
-        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
         loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
 
         Long entityId = refundTransaction.getId();

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

@@ -0,0 +1,38 @@
+/**
+ * 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.
+ */
+package org.apache.fineract.portfolio.loanaccount.service.adjustment;
+
+import java.math.BigDecimal;
+import java.time.LocalDate;
+import lombok.Builder;
+import lombok.Data;
+import org.apache.fineract.infrastructure.core.domain.ExternalId;
+import org.apache.fineract.portfolio.paymentdetail.domain.PaymentDetail;
+
+@Data
+@Builder
+public class LoanAdjustmentParameter {
+
+    private BigDecimal transactionAmount;
+    private PaymentDetail paymentDetail;
+    private LocalDate transactionDate;
+    private ExternalId txnExternalId;
+    private ExternalId reversalTxnExternalId;
+    private String noteText;
+}

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

@@ -0,0 +1,30 @@
+/**
+ * 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.
+ */
+package org.apache.fineract.portfolio.loanaccount.service.adjustment;
+
+import java.util.Map;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+
+public interface LoanAdjustmentService {
+
+    CommandProcessingResult adjustLoanTransaction(Loan loan, LoanTransaction transactionToAdjust, LoanAdjustmentParameter parameter,
+            Long commandId, Map<String, Object> changes);
+}

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

@@ -0,0 +1,303 @@
+/**
+ * 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.
+ */
+package org.apache.fineract.portfolio.loanaccount.service.adjustment;
+
+import java.math.BigDecimal;
+import java.time.LocalDate;
+import java.util.ArrayList;
+import java.util.Collection;
+import java.util.List;
+import java.util.Map;
+import lombok.RequiredArgsConstructor;
+import org.apache.commons.lang3.StringUtils;
+import org.apache.fineract.infrastructure.core.data.ApiParameterError;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResultBuilder;
+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.event.business.domain.loan.LoanAdjustTransactionBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.LoanBalanceChangedBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.service.BusinessEventNotifierService;
+import org.apache.fineract.organisation.monetary.domain.Money;
+import org.apache.fineract.portfolio.account.PortfolioAccountType;
+import org.apache.fineract.portfolio.account.service.AccountTransfersWritePlatformService;
+import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+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.LoanEvent;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanLifecycleStateMachine;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleInstallmentRepository;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanRepositoryWrapper;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRelationTypeEnum;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
+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.serialization.LoanChargeValidator;
+import org.apache.fineract.portfolio.loanaccount.serialization.LoanTransactionValidator;
+import org.apache.fineract.portfolio.loanaccount.service.LoanAccrualTransactionBusinessEventService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanAccrualsProcessingService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanDownPaymentHandlerService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanJournalEntryPoster;
+import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
+import org.apache.fineract.portfolio.note.domain.Note;
+import org.apache.fineract.portfolio.note.domain.NoteRepository;
+import org.apache.fineract.portfolio.paymentdetail.domain.PaymentDetail;
+import org.apache.fineract.portfolio.paymentdetail.service.PaymentDetailWritePlatformService;
+import org.springframework.dao.DataIntegrityViolationException;
+import org.springframework.orm.jpa.JpaSystemException;
+import org.springframework.stereotype.Component;
+
+@RequiredArgsConstructor
+@Component
+public class LoanAdjustmentServiceImpl implements LoanAdjustmentService {
+
+    private final LoanTransactionValidator loanTransactionValidator;
+    private final LoanRepositoryWrapper loanRepositoryWrapper;
+    private final LoanAccountDomainService loanAccountDomainService;
+    private final NoteRepository noteRepository;
+    private final LoanTransactionRepository loanTransactionRepository;
+    private final PaymentDetailWritePlatformService paymentDetailWritePlatformService;
+    private final AccountTransfersWritePlatformService accountTransfersWritePlatformService;
+    private final BusinessEventNotifierService businessEventNotifierService;
+    private final LoanUtilService loanUtilService;
+    private final LoanRepaymentScheduleInstallmentRepository loanRepaymentScheduleInstallmentRepository;
+    private final LoanLifecycleStateMachine loanLifecycleStateMachine;
+    private final LoanAccrualTransactionBusinessEventService loanAccrualTransactionBusinessEventService;
+    private final LoanDownPaymentHandlerService loanDownPaymentHandlerService;
+    private final LoanAccrualsProcessingService loanAccrualsProcessingService;
+    private final LoanChargeValidator loanChargeValidator;
+    private final LoanJournalEntryPoster journalEntryPoster;
+
+    @Override
+    public CommandProcessingResult adjustLoanTransaction(Loan loan, LoanTransaction transactionToAdjust, LoanAdjustmentParameter parameter,
+            Long commandId, Map<String, Object> changes) {
+        LocalDate transactionDate = parameter.getTransactionDate();
+        BigDecimal transactionAmount = parameter.getTransactionAmount();
+        PaymentDetail paymentDetail = parameter.getPaymentDetail();
+        ExternalId txnExternalId = parameter.getTxnExternalId();
+        ExternalId reversalTxnExternalId = parameter.getReversalTxnExternalId();
+        String noteText = parameter.getNoteText();
+
+        final List<Long> existingTransactionIds = new ArrayList<>();
+        final List<Long> existingReversedTransactionIds = new ArrayList<>();
+
+        final Money transactionAmountAsMoney = Money.of(loan.getCurrency(), transactionAmount);
+        LoanTransaction newTransactionDetail = LoanTransaction.repaymentType(transactionToAdjust.getTypeOf(), loan.getOffice(),
+                transactionAmountAsMoney, paymentDetail, transactionDate, txnExternalId, transactionToAdjust.getChargeRefundChargeType());
+        if (transactionToAdjust.isInterestWaiver()) {
+            Money unrecognizedIncome = transactionAmountAsMoney.zero();
+            Money interestComponent = transactionAmountAsMoney;
+            if (loan.isPeriodicAccrualAccountingEnabledOnLoanProduct()) {
+                Money receivableInterest = loan.getReceivableInterest(transactionDate);
+                if (transactionAmountAsMoney.isGreaterThan(receivableInterest)) {
+                    interestComponent = receivableInterest;
+                    unrecognizedIncome = transactionAmountAsMoney.minus(receivableInterest);
+                }
+            }
+            newTransactionDetail = LoanTransaction.waiver(loan.getOffice(), loan, transactionAmountAsMoney, transactionDate,
+                    interestComponent, unrecognizedIncome, txnExternalId);
+        }
+
+        LocalDate recalculateFrom = null;
+
+        if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
+            recalculateFrom = DateUtils.isAfter(transactionToAdjust.getTransactionDate(), transactionDate) ? transactionDate
+                    : transactionToAdjust.getTransactionDate();
+        }
+
+        ScheduleGeneratorDTO scheduleGeneratorDTO = this.loanUtilService.buildScheduleGeneratorDTO(loan, recalculateFrom);
+
+        HolidayDetailDTO holidayDetailDTO = scheduleGeneratorDTO.getHolidayDetailDTO();
+        if (loan.getLoanRepaymentScheduleDetail().getLoanScheduleType().equals(LoanScheduleType.CUMULATIVE)) {
+            // validate cumulative
+            loanTransactionValidator.validateActivityNotBeforeLastTransactionDate(loan, transactionToAdjust.getTransactionDate(),
+                    LoanEvent.LOAN_REPAYMENT_OR_WAIVER);
+        }
+        // common validations
+        loanTransactionValidator.validateRepaymentDateIsOnHoliday(newTransactionDetail.getTransactionDate(),
+                holidayDetailDTO.isAllowTransactionsOnHoliday(), holidayDetailDTO.getHolidays());
+        loanTransactionValidator.validateRepaymentDateIsOnNonWorkingDay(newTransactionDetail.getTransactionDate(),
+                holidayDetailDTO.getWorkingDays(), holidayDetailDTO.isAllowTransactionsOnNonWorkingDay());
+
+        adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionToAdjust, existingTransactionIds,
+                existingReversedTransactionIds, scheduleGeneratorDTO, reversalTxnExternalId);
+
+        loanAccrualsProcessingService.reprocessExistingAccruals(loan);
+        if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
+            loanAccrualsProcessingService.processIncomePostingAndAccruals(loan);
+        }
+
+        boolean thereIsNewTransaction = newTransactionDetail.isGreaterThanZero();
+        if (thereIsNewTransaction) {
+            if (paymentDetail != null) {
+                this.paymentDetailWritePlatformService.persistPaymentDetail(paymentDetail);
+            }
+            this.loanTransactionRepository.saveAndFlush(newTransactionDetail);
+        }
+
+        loan = saveAndFlushLoanWithDataIntegrityViolationChecks(loan);
+
+        if (StringUtils.isNotBlank(noteText)) {
+            changes.put("note", noteText);
+            Note note;
+            /**
+             * If a new transaction is not created, associate note with the transaction to be adjusted
+             **/
+            if (thereIsNewTransaction) {
+                note = Note.loanTransactionNote(loan, newTransactionDetail, noteText);
+            } else {
+                note = Note.loanTransactionNote(loan, transactionToAdjust, noteText);
+            }
+            this.noteRepository.save(note);
+        }
+
+        Collection<Long> transactionIds = new ArrayList<>();
+        List<LoanTransaction> transactions = loan.getLoanTransactions();
+        for (LoanTransaction transaction : transactions) {
+            if (transaction.isRefund() && transaction.isNotReversed()) {
+                transactionIds.add(transaction.getId());
+            }
+        }
+
+        if (!transactionIds.isEmpty()) {
+            this.accountTransfersWritePlatformService.reverseTransfersWithFromAccountTransactions(transactionIds,
+                    PortfolioAccountType.LOAN);
+            loan.updateLoanSummaryAndStatus();
+        }
+
+        loanAccrualsProcessingService.processAccrualsOnInterestRecalculation(loan, loan.isInterestBearingAndInterestRecalculationEnabled(),
+                false);
+
+        this.loanAccountDomainService.setLoanDelinquencyTag(loan, DateUtils.getBusinessLocalDate());
+
+        LoanAdjustTransactionBusinessEvent.Data eventData = new LoanAdjustTransactionBusinessEvent.Data(transactionToAdjust);
+        if (newTransactionDetail.isRepaymentLikeType() && thereIsNewTransaction) {
+            eventData.setNewTransactionDetail(newTransactionDetail);
+        }
+        Long entityId = transactionToAdjust.getId();
+        ExternalId entityExternalId = transactionToAdjust.getExternalId();
+
+        if (thereIsNewTransaction) {
+            entityId = newTransactionDetail.getId();
+            entityExternalId = newTransactionDetail.getExternalId();
+        }
+        businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
+        businessEventNotifierService.notifyPostBusinessEvent(new LoanAdjustTransactionBusinessEvent(eventData));
+
+        journalEntryPoster.postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
+        loanAccrualTransactionBusinessEventService.raiseBusinessEventForAccrualTransactions(loan, existingTransactionIds);
+
+        return new CommandProcessingResultBuilder() //
+                .withCommandId(commandId) //
+                .withEntityId(entityId) //
+                .withEntityExternalId(entityExternalId) //
+                .withOfficeId(loan.getOfficeId()) //
+                .withClientId(loan.getClientId()) //
+                .withGroupId(loan.getGroupId()) //
+                .withLoanId(loan.getId()) //
+                .with(changes).build();
+    }
+
+    public void adjustExistingTransaction(final Loan loan, final LoanTransaction newTransactionDetail,
+            final LoanLifecycleStateMachine loanLifecycleStateMachine, final LoanTransaction transactionForAdjustment,
+            final List<Long> existingTransactionIds, final List<Long> existingReversedTransactionIds,
+            final ScheduleGeneratorDTO scheduleGeneratorDTO, final ExternalId reversalExternalId) {
+        existingTransactionIds.addAll(loan.findExistingTransactionIds());
+        existingReversedTransactionIds.addAll(loan.findExistingReversedTransactionIds());
+
+        loanTransactionValidator.validateActivityNotBeforeClientOrGroupTransferDate(loan, LoanEvent.LOAN_REPAYMENT_OR_WAIVER,
+                transactionForAdjustment.getTransactionDate());
+
+        if (!transactionForAdjustment.isAccrualRelated() && transactionForAdjustment.isNotRepaymentLikeType()
+                && transactionForAdjustment.isNotWaiver() && transactionForAdjustment.isNotCreditBalanceRefund()) {
+            final String errorMessage = "Only (non-reversed) transactions of type repayment, waiver, accrual or credit balance refund can be adjusted.";
+            throw new InvalidLoanTransactionTypeException("transaction",
+                    "adjustment.is.only.allowed.to.repayment.or.waiver.or.creditbalancerefund.transactions", errorMessage);
+        }
+
+        loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(transactionForAdjustment.getLoan(),
+                transactionForAdjustment, "reversed");
+        transactionForAdjustment.reverse(reversalExternalId);
+        transactionForAdjustment.manuallyAdjustedOrReversed();
+
+        if (transactionForAdjustment.getTypeOf().equals(LoanTransactionType.MERCHANT_ISSUED_REFUND)
+                || transactionForAdjustment.getTypeOf().equals(LoanTransactionType.PAYOUT_REFUND)) {
+            loan.getLoanTransactions().stream() //
+                    .filter(LoanTransaction::isNotReversed)
+                    .filter(loanTransaction -> loanTransaction.getLoanTransactionRelations().stream()
+                            .anyMatch(relation -> relation.getRelationType().equals(LoanTransactionRelationTypeEnum.RELATED)
+                                    && relation.getToTransaction().getId().equals(transactionForAdjustment.getId())))
+                    .forEach(loanTransaction -> {
+                        loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(loanTransaction.getLoan(),
+                                loanTransaction, "reversed");
+                        loanTransaction.reverse();
+                        loanTransaction.manuallyAdjustedOrReversed();
+                        LoanAdjustTransactionBusinessEvent.Data eventData = new LoanAdjustTransactionBusinessEvent.Data(loanTransaction);
+                        businessEventNotifierService.notifyPostBusinessEvent(new LoanAdjustTransactionBusinessEvent(eventData));
+                    });
+        }
+
+        if (loan.isClosedWrittenOff()) {
+            // find write off transaction and reverse it
+            final LoanTransaction writeOffTransaction = loan.findWriteOffTransaction();
+            loanChargeValidator.validateRepaymentTypeTransactionNotBeforeAChargeRefund(writeOffTransaction.getLoan(), writeOffTransaction,
+                    "reversed");
+            writeOffTransaction.reverse();
+        }
+
+        loan.updateLoanSummaryAndStatus();
+
+        if (newTransactionDetail.isRepaymentLikeType() || newTransactionDetail.isInterestWaiver()) {
+            loanDownPaymentHandlerService.handleRepaymentOrRecoveryOrWaiverTransaction(loan, newTransactionDetail,
+                    loanLifecycleStateMachine, transactionForAdjustment, scheduleGeneratorDTO);
+        }
+    }
+
+    private Loan saveAndFlushLoanWithDataIntegrityViolationChecks(final Loan loan) {
+        /*
+         * Due to the "saveAndFlushLoanWithDataIntegrityViolationChecks" method the loan is saved and flushed in the
+         * middle of the transaction. EclipseLink is in some situations are saving inconsistently the newly created
+         * associations, like the newly created repayment schedule installments. The save and flush cannot be removed
+         * safely till any native queries are used as part of this transaction either. See:
+         * this.loanAccountDomainService.recalculateAccruals(loan);
+         */
+        try {
+            loanRepaymentScheduleInstallmentRepository.saveAll(loan.getRepaymentScheduleInstallments());
+            return this.loanRepositoryWrapper.saveAndFlush(loan);
+        } catch (final JpaSystemException | DataIntegrityViolationException e) {
+            final Throwable realCause = e.getCause();
+            final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
+            final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("loan.transaction");
+            if (realCause.getMessage().toLowerCase().contains("external_id_unique")) {
+                baseDataValidator.reset().parameter(LoanApiConstants.externalIdParameterName).failWithCode("value.must.be.unique");
+            }
+            if (!dataValidationErrors.isEmpty()) {
+                throw new PlatformApiDataValidationException("validation.msg.validation.errors.exist", "Validation errors exist.",
+                        dataValidationErrors, e);
+            }
+            throw e;
+        }
+    }
+}

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/starter/LoanAccountConfiguration.java

@@ -127,6 +127,7 @@ import org.apache.fineract.portfolio.loanaccount.service.LoanDisbursementDetails
 import org.apache.fineract.portfolio.loanaccount.service.LoanDisbursementService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanDownPaymentHandlerService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanDownPaymentHandlerServiceImpl;
+import org.apache.fineract.portfolio.loanaccount.service.LoanJournalEntryPoster;
 import org.apache.fineract.portfolio.loanaccount.service.LoanOfficerService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanReadPlatformService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanReadPlatformServiceImpl;
@@ -142,6 +143,7 @@ import org.apache.fineract.portfolio.loanaccount.service.LoanWritePlatformServic
 import org.apache.fineract.portfolio.loanaccount.service.ReplayedTransactionBusinessEventService;
 import org.apache.fineract.portfolio.loanaccount.service.ReplayedTransactionBusinessEventServiceImpl;
 import org.apache.fineract.portfolio.loanaccount.service.ReprocessLoanTransactionsService;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentService;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRepository;
 import org.apache.fineract.portfolio.loanproduct.service.LoanDropdownReadPlatformService;
 import org.apache.fineract.portfolio.loanproduct.service.LoanProductReadPlatformService;
@@ -296,7 +298,7 @@ public class LoanAccountConfiguration {
             LoanAccrualsProcessingService loanAccrualsProcessingService,
             LoanDownPaymentTransactionValidator loanDownPaymentTransactionValidator, LoanChargeValidator loanChargeValidator,
             LoanScheduleService loanScheduleService, ReprocessLoanTransactionsService reprocessLoanTransactionsService,
-            LoanAccountService loanAccountService) {
+            LoanAccountService loanAccountService, LoanAdjustmentService loanAdjustmentService) {
         return new LoanChargeWritePlatformServiceImpl(loanChargeApiJsonValidator, loanAssembler, chargeRepository,
                 businessEventNotifierService, loanTransactionRepository, accountTransfersWritePlatformService, loanRepositoryWrapper,
                 journalEntryWritePlatformService, loanAccountDomainService, loanChargeRepository, loanWritePlatformService, loanUtilService,
@@ -304,7 +306,7 @@ public class LoanAccountConfiguration {
                 configurationDomainService, loanRepaymentScheduleTransactionProcessorFactory, externalIdFactory,
                 accountTransferDetailRepository, loanChargeAssembler, paymentDetailWritePlatformService, noteRepository,
                 loanAccrualTransactionBusinessEventService, loanAccrualsProcessingService, loanDownPaymentTransactionValidator,
-                loanChargeValidator, loanScheduleService, reprocessLoanTransactionsService, loanAccountService);
+                loanChargeValidator, loanScheduleService, reprocessLoanTransactionsService, loanAccountService, loanAdjustmentService);
     }
 
     @Bean
@@ -392,7 +394,8 @@ public class LoanAccountConfiguration {
             LoanOfficerValidator loanOfficerValidator, LoanDownPaymentTransactionValidator loanDownPaymentTransactionValidator,
             LoanDisbursementService loanDisbursementService, LoanScheduleService loanScheduleService,
             LoanChargeValidator loanChargeValidator, LoanOfficerService loanOfficerService,
-            ReprocessLoanTransactionsService reprocessLoanTransactionsService, LoanAccountService loanAccountService) {
+            ReprocessLoanTransactionsService reprocessLoanTransactionsService, LoanAccountService loanAccountService,
+            LoanJournalEntryPoster journalEntryPoster, LoanAdjustmentService loanAdjustmentService) {
         return new LoanWritePlatformServiceJpaRepositoryImpl(context, loanTransactionValidator, loanUpdateCommandFromApiJsonDeserializer,
                 loanRepositoryWrapper, loanAccountDomainService, noteRepository, loanTransactionRepository,
                 loanTransactionRelationRepository, loanAssembler, journalEntryWritePlatformService, calendarInstanceRepository,
@@ -406,7 +409,7 @@ public class LoanAccountConfiguration {
                 loanAccountLockService, externalIdFactory, loanAccrualTransactionBusinessEventService, errorHandler,
                 loanDownPaymentHandlerService, loanTransactionAssembler, loanAccrualsProcessingService, loanOfficerValidator,
                 loanDownPaymentTransactionValidator, loanDisbursementService, loanScheduleService, loanChargeValidator, loanOfficerService,
-                reprocessLoanTransactionsService, loanAccountService);
+                reprocessLoanTransactionsService, loanAccountService, journalEntryPoster, loanAdjustmentService);
     }
 
     @Bean

fineract-provider/src/test/java/org/apache/fineract/portfolio/loanaccount/service/LoanAdjustmentServiceImplTest.java

@@ -78,6 +78,7 @@ import org.apache.fineract.portfolio.loanaccount.serialization.LoanApplicationVa
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanChargeValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanTransactionValidator;
 import org.apache.fineract.portfolio.loanaccount.serialization.LoanUpdateCommandFromApiJsonDeserializer;
+import org.apache.fineract.portfolio.loanaccount.service.adjustment.LoanAdjustmentServiceImpl;
 import org.apache.fineract.portfolio.note.domain.NoteRepository;
 import org.apache.fineract.portfolio.paymentdetail.service.PaymentDetailWritePlatformService;
 import org.apache.fineract.portfolio.repaymentwithpostdatedchecks.domain.PostDatedChecksRepository;
@@ -90,10 +91,10 @@ import org.mockito.Mock;
 import org.mockito.junit.jupiter.MockitoExtension;
 
 @ExtendWith(MockitoExtension.class)
-class LoanWritePlatformServiceJpaRepositoryImplTest {
+class LoanAdjustmentServiceImplTest {
 
     @InjectMocks
-    private LoanWritePlatformServiceJpaRepositoryImpl loanWritePlatformService;
+    private LoanAdjustmentServiceImpl underTest;
 
     @Mock
     private LoanRepaymentScheduleTransactionProcessorFactory transactionProcessorFactory;
@@ -240,7 +241,7 @@ class LoanWritePlatformServiceJpaRepositoryImplTest {
         when(newTransactionDetail.isRepaymentLikeType()).thenReturn(true);
 
         // Act
-        loanWritePlatformService.adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionForAdjustment,
+        underTest.adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionForAdjustment,
                 existingTransactionIds, existingReversedTransactionIds, scheduleGeneratorDTO, reversalExternalId);
 
         // Assert
@@ -285,7 +286,7 @@ class LoanWritePlatformServiceJpaRepositoryImplTest {
         when(newTransactionDetail.isRepaymentLikeType()).thenReturn(true);
 
         // Act
-        loanWritePlatformService.adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionForAdjustment,
+        underTest.adjustExistingTransaction(loan, newTransactionDetail, loanLifecycleStateMachine, transactionForAdjustment,
                 existingTransactionIds, existingReversedTransactionIds, scheduleGeneratorDTO, reversalExternalId);
 
         // Assert