FINERACT-2081: Payments after loan charge - payment allocation

2024-09-25 10:31:08 +02:00
parent 2d0c8db993
commit 31c9079ad9
17 changed files with 746 additions and 228 deletions
@@ -120,6 +120,10 @@ public enum ChargeCalculationType {
                || isPercentageOfDisbursementAmount();
    }

+    public boolean hasInterest() {
+        return isPercentageOfInterest() || isPercentageOfAmountAndInterest();
+    }
+
    public boolean isPercentageOfDisbursementAmount() {
        return this.value.equals(ChargeCalculationType.PERCENT_OF_DISBURSEMENT_AMOUNT.getValue());
    }
@@ -338,6 +338,10 @@ public final class MathUtil {

    // ----------------- Money -----------------

+    public static BigDecimal toBigDecimal(Money value) {
+        return value == null ? null : value.getAmount();
+    }
+
    public static Money nullToZero(Money value, @NotNull MonetaryCurrency currency) {
        return nullToDefault(value, Money.zero(currency));
    }
@@ -20,7 +20,36 @@ package org.apache.fineract.test.data.loanproduct;

 public enum DefaultLoanProduct implements LoanProduct {

-    LP1, LP1_DUE_DATE, LP1_INTEREST_FLAT, LP1_INTEREST_DECLINING_BALANCE_PERIOD_SAME_AS_PAYMENT, LP1_INTEREST_DECLINING_BALANCE_PERIOD_DAILY, LP1_1MONTH_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_MONTHLY, LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE, LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE_RESCHEDULE_REDUCE_NR_INST, LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE_RESCHEDULE_RESCH_NEXT_REP, LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE, LP1_INTEREST_DECLINING_BALANCE_SAR_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE_MULTIDISB, LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE, LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_INTEREST_FLAT, LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_PENALTY_INTEREST_PRINCIPAL_FEE, LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_PENALTY_INTEREST_PRINCIPAL_FEE_INTEREST_FLAT, LP1_INTEREST_FLAT_OVERDUE_FROM_AMOUNT, LP1_INTEREST_FLAT_OVERDUE_FROM_AMOUNT_INTEREST, LP2_DOWNPAYMENT, LP2_DOWNPAYMENT_AUTO, LP2_DOWNPAYMENT_AUTO_ADVANCED_PAYMENT_ALLOCATION, LP2_DOWNPAYMENT_ADVANCED_PAYMENT_ALLOCATION, LP2_DOWNPAYMENT_INTEREST, LP2_DOWNPAYMENT_INTEREST_AUTO, LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL, LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_VERTICAL, LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL_INSTALLMENT_LEVEL_DELINQUENCY, LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROG_SCHEDULE_HOR_INST_LVL_DELINQUENCY_CREDIT_ALLOCATION, LP2_DOWNPAYMENT_ADV_PMT_ALLOC_FIXED_LENGTH, LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE, LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_REST_FREQUENCY;
+    LP1, //
+    LP1_DUE_DATE, //
+    LP1_INTEREST_FLAT, //
+    LP1_INTEREST_DECLINING_BALANCE_PERIOD_SAME_AS_PAYMENT, //
+    LP1_INTEREST_DECLINING_BALANCE_PERIOD_DAILY, //
+    LP1_1MONTH_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_MONTHLY, //
+    LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE, //
+    LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE_RESCHEDULE_REDUCE_NR_INST, //
+    LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE_RESCHEDULE_RESCH_NEXT_REP, //
+    LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE, //
+    LP1_INTEREST_DECLINING_BALANCE_SAR_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE_MULTIDISB, //
+    LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE, //
+    LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_INTEREST_FLAT, //
+    LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_PENALTY_INTEREST_PRINCIPAL_FEE, //
+    LP1_PAYMENT_STRATEGY_DUE_IN_ADVANCE_PENALTY_INTEREST_PRINCIPAL_FEE_INTEREST_FLAT, //
+    LP1_INTEREST_FLAT_OVERDUE_FROM_AMOUNT, //
+    LP1_INTEREST_FLAT_OVERDUE_FROM_AMOUNT_INTEREST, //
+    LP2_DOWNPAYMENT, LP2_DOWNPAYMENT_AUTO, //
+    LP2_DOWNPAYMENT_AUTO_ADVANCED_PAYMENT_ALLOCATION, //
+    LP2_DOWNPAYMENT_ADVANCED_PAYMENT_ALLOCATION, //
+    LP2_DOWNPAYMENT_INTEREST, LP2_DOWNPAYMENT_INTEREST_AUTO, //
+    LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL, //
+    LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_VERTICAL, //
+    LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL_INSTALLMENT_LEVEL_DELINQUENCY, //
+    LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROG_SCHEDULE_HOR_INST_LVL_DELINQUENCY_CREDIT_ALLOCATION, //
+    LP2_DOWNPAYMENT_ADV_PMT_ALLOC_FIXED_LENGTH, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_REST_FREQUENCY, //
+    LP2_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL, //
+    ;

    @Override
    public String getName() {
@@ -770,6 +770,116 @@ public class LoanProductsRequestFactory {
                .incomeFromChargeOffPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF));//
    }

+    public PostLoanProductsRequest defaultLoanProductsRequestLP2NoDown() {
+        String name = Utils.randomNameGenerator(NAME_PREFIX, 4);
+        String shortName = Utils.randomNameGenerator(SHORT_NAME_PREFIX, 3);
+
+        List<Integer> principalVariationsForBorrowerCycle = new ArrayList<>();
+        List<Integer> numberOfRepaymentVariationsForBorrowerCycle = new ArrayList<>();
+        List<Integer> interestRateVariationsForBorrowerCycle = new ArrayList<>();
+        List<ChargeData> charges = new ArrayList<>();
+        List<ChargeToGLAccountMapper> penaltyToIncomeAccountMappings = new ArrayList<>();
+        List<GetLoanFeeToIncomeAccountMappings> feeToIncomeAccountMappings = new ArrayList<>();
+
+        List<GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings = new ArrayList<>();
+        GetLoanPaymentChannelToFundSourceMappings loanPaymentChannelToFundSourceMappings = new GetLoanPaymentChannelToFundSourceMappings();
+        loanPaymentChannelToFundSourceMappings.fundSourceAccountId(accountTypeResolver.resolve(DefaultAccountType.FUND_RECEIVABLES));
+        loanPaymentChannelToFundSourceMappings.paymentTypeId(paymentTypeResolver.resolve(DefaultPaymentType.MONEY_TRANSFER));
+        paymentChannelToFundSourceMappings.add(loanPaymentChannelToFundSourceMappings);
+
+        return new PostLoanProductsRequest()//
+                .name(name)//
+                .shortName(shortName)//
+                .description(DESCRIPTION_LP2)//
+                .fundId(FUND_ID)//
+                .startDate(null)//
+                .closeDate(null)//
+                .includeInBorrowerCycle(false)//
+                .currencyCode(CURRENCY_CODE)//
+                .digitsAfterDecimal(2)//
+                .inMultiplesOf(0)//
+                .installmentAmountInMultiplesOf(1)//
+                .useBorrowerCycle(false)//
+                .minPrincipal(100.0)//
+                .principal(1000.0)//
+                .maxPrincipal(10000.0)//
+                .minNumberOfRepayments(1)//
+                .numberOfRepayments(1)//
+                .maxNumberOfRepayments(30)//
+                .isLinkedToFloatingInterestRates(false)//
+                .minInterestRatePerPeriod((double) 0)//
+                .interestRatePerPeriod((double) 0)//
+                .maxInterestRatePerPeriod((double) 0)//
+                .interestRateFrequencyType(INTEREST_RATE_FREQUENCY_TYPE_MONTH)//
+                .repaymentEvery(30)//
+                .repaymentFrequencyType(REPAYMENT_FREQUENCY_TYPE_DAYS)//
+                .principalVariationsForBorrowerCycle(principalVariationsForBorrowerCycle)//
+                .numberOfRepaymentVariationsForBorrowerCycle(numberOfRepaymentVariationsForBorrowerCycle)//
+                .interestRateVariationsForBorrowerCycle(interestRateVariationsForBorrowerCycle)//
+                .amortizationType(AMORTIZATION_TYPE)//
+                .interestType(INTEREST_TYPE_DECLINING_BALANCE)//
+                .isEqualAmortization(false)//
+                .interestCalculationPeriodType(INTEREST_CALCULATION_PERIOD_TYPE_SAME_AS_REPAYMENT)//
+                .transactionProcessingStrategyCode(TRANSACTION_PROCESSING_STRATEGY_CODE)//
+                .daysInYearType(DAYS_IN_YEAR_TYPE)//
+                .daysInMonthType(DAYS_IN_MONTH_TYPE)//
+                .canDefineInstallmentAmount(true)//
+                .graceOnArrearsAgeing(3)//
+                .overdueDaysForNPA(179)//
+                .accountMovesOutOfNPAOnlyOnArrearsCompletion(false)//
+                .principalThresholdForLastInstallment(50)//
+                .allowVariableInstallments(false)//
+                .canUseForTopup(false)//
+                .isInterestRecalculationEnabled(false)//
+                .holdGuaranteeFunds(false)//
+                .multiDisburseLoan(true)//
+                .allowAttributeOverrides(new AllowAttributeOverrides()//
+                        .amortizationType(true)//
+                        .interestType(true)//
+                        .transactionProcessingStrategyCode(true)//
+                        .interestCalculationPeriodType(true)//
+                        .inArrearsTolerance(true)//
+                        .repaymentEvery(true)//
+                        .graceOnPrincipalAndInterestPayment(true)//
+                        .graceOnArrearsAgeing(true))//
+                .allowPartialPeriodInterestCalcualtion(true)//
+                .maxTrancheCount(10)//
+                .outstandingLoanBalance(10000.0)//
+                .charges(charges)//
+                .accountingRule(LOAN_ACCOUNTING_RULE)//
+                .fundSourceAccountId(accountTypeResolver.resolve(DefaultAccountType.SUSPENSE_CLEARING_ACCOUNT))//
+                .loanPortfolioAccountId(accountTypeResolver.resolve(DefaultAccountType.LOANS_RECEIVABLE))//
+                .transfersInSuspenseAccountId(accountTypeResolver.resolve(DefaultAccountType.TRANSFER_IN_SUSPENSE_ACCOUNT))//
+                .interestOnLoanAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME))//
+                .incomeFromFeeAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_INCOME))//
+                .incomeFromPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_INCOME))//
+                .incomeFromRecoveryAccountId(accountTypeResolver.resolve(DefaultAccountType.RECOVERIES))//
+                .writeOffAccountId(accountTypeResolver.resolve(DefaultAccountType.WRITTEN_OFF))//
+                .overpaymentLiabilityAccountId(accountTypeResolver.resolve(DefaultAccountType.OVERPAYMENT_ACCOUNT))//
+                .receivableInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .receivableFeeAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .receivablePenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .dateFormat(DATE_FORMAT)//
+                .locale(LOCALE_EN)//
+                .disallowExpectedDisbursements(true)//
+                .allowApprovedDisbursedAmountsOverApplied(true)//
+                .overAppliedCalculationType(OVER_APPLIED_CALCULATION_TYPE)//
+                .overAppliedNumber(OVER_APPLIED_NUMBER)//
+                .delinquencyBucketId(DELINQUENCY_BUCKET_ID.longValue())//
+                .goodwillCreditAccountId(accountTypeResolver.resolve(DefaultAccountType.GOODWILL_EXPENSE_ACCOUNT))//
+                .incomeFromGoodwillCreditInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME_CHARGE_OFF))//
+                .incomeFromGoodwillCreditFeesAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .incomeFromGoodwillCreditPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .paymentChannelToFundSourceMappings(paymentChannelToFundSourceMappings)//
+                .penaltyToIncomeAccountMappings(penaltyToIncomeAccountMappings)//
+                .feeToIncomeAccountMappings(feeToIncomeAccountMappings)//
+                .incomeFromChargeOffInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME_CHARGE_OFF))//
+                .incomeFromChargeOffFeesAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .chargeOffExpenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT))//
+                .chargeOffFraudExpenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT_FRAUD))//
+                .incomeFromChargeOffPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF));//
+    }
+
    public PostLoanProductsRequest defaultLoanProductsRequestLP2InterestFlat() {
        String name = Utils.randomNameGenerator(NAME_PREFIX_INTEREST_FLAT_LP2, 4);
        String shortName = Utils.randomNameGenerator(SHORT_NAME_PREFIX_INTEREST, 3);
@@ -534,6 +534,23 @@ public class LoanProductGlobalInitializerStep implements FineractGlobalInitializ
        TestContext.INSTANCE.set(
                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_REST_FREQUENCY,
                responseLoanProductsRequestLP2AdvancedpaymentInterest36030InterestRecalcTillRestFrequency);
+
+        String name40 = DefaultLoanProduct.LP2_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL.getName();
+        PostLoanProductsRequest loanProductsRequestLP2AdvPmtAllocProgressiveLoanScheduleHorizontal = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2NoDown()//
+                .name(name40)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        Response<PostLoanProductsResponse> responseLP2AdvPmtAllocProgressiveLoanScheduleHorizontal = loanProductsApi
+                .createLoanProduct(loanProductsRequestLP2AdvPmtAllocProgressiveLoanScheduleHorizontal).execute();
+        TestContext.INSTANCE.set(TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL,
+                responseLP2AdvPmtAllocProgressiveLoanScheduleHorizontal);
    }

    public static AdvancedPaymentData createPaymentAllocation(String transactionType, String futureInstallmentAllocationRule,
@@ -79,6 +79,7 @@ public abstract class TestContextKey {
    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_DOWNPAYMENT_ADV_PMT_ALLOC_FIXED_LENGTH = "loanProductCreateResponseLP2DownPaymentProgressiveLoanScheduleFixedLength";
    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_PRECLOSE = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030InterestRecalculationTillPreClose";
    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_TILL_REST_FREQUENCY = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030InterestRecalculationTillRestFrequency";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL = "loanProductCreateResponseLP2ProgressiveLoanScheduleHorizontal";
    public static final String CHARGE_FOR_LOAN_PERCENT_LATE_CREATE_RESPONSE = "ChargeForLoanPercentLateCreateResponse";
    public static final String CHARGE_FOR_LOAN_PERCENT_LATE_AMOUNT_PLUS_INTEREST_CREATE_RESPONSE = "ChargeForLoanPercentLateAmountPlusInterestCreateResponse";
    public static final String CHARGE_FOR_LOAN_PERCENT_PROCESSING_CREATE_RESPONSE = "ChargeForLoanPercentProcessingCreateResponse";
@@ -3241,4 +3241,139 @@ Feature: LoanRepayment
    And Customer makes "AUTOPAY" repayment on "01 September 2023" with 250 EUR transaction amount
    When Admin sets the business date to "04 September 2023"
    #Run COB to check there is no accounting meltdown and accrual is handled properly
-    When Admin runs inline COB job for Loan
+    When Admin runs inline COB job for Loan
+
+  @AdvancedPaymentAllocation @ProgressiveLoanSchedule
+  Scenario: Verify that payment allocation is correct in case of fee charged and payment is backdated
+#    --- 7/23 - Loan Created & Approved ---
+    When Admin sets the business date to "23 July 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_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL  | 23 July 2024      | 150            | 0                      | FLAT          | SAME_AS_REPAYMENT_PERIOD    | EQUAL_INSTALLMENTS | 1                 | MONTHS                | 1              | MONTHS                 | 1                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+#   --- 7/23 - Disbursement for 111.92 EUR ---
+    And Admin successfully approves the loan on "23 July 2024" with "111.92" amount and expected disbursement date on "23 July 2024"
+    When Admin successfully disburse the loan on "23 July 2024" with "111.92" EUR transaction amount
+#    --- 8/8 - Partial merchant issued refund - 76.48 Eur ---
+    When Admin sets the business date to "08 August 2024"
+    When Customer makes "MERCHANT_ISSUED_REFUND" transaction with "AUTOPAY" payment type on "08 August 2024" with 76.48 EUR transaction amount and system-generated Idempotency key
+#    --- 8/13 - Manual Repayment - 35.44 Eur (Account closed) ---
+    When Admin sets the business date to "13 August 2024"
+    And Customer makes "MONEY_TRANSFER" repayment on "13 August 2024" with 35.44 EUR transaction amount
+    Then Loan status will be "CLOSED_OBLIGATIONS_MET"
+    Then Loan has 0 outstanding amount
+#    --- 8/15 - Repayment reversed (Account reopened) ---
+    When Admin sets the business date to "15 August 2024"
+    When Customer undo "1"th "Repayment" transaction made on "13 August 2024"
+    Then Loan status will be "ACTIVE"
+    Then Loan has 35.44 outstanding amount
+#    --- 8/22 - Autopay posted for 35.44 Eur ---
+    When Admin sets the business date to "22 August 2024"
+    And Customer makes "AUTOPAY" repayment on "22 August 2024" with 35.44 EUR transaction amount
+    Then Loan status will be "CLOSED_OBLIGATIONS_MET"
+    Then Loan has 0 outstanding amount
+#    --- 8/24 - Autopay reversed ---
+    When Admin sets the business date to "24 August 2024"
+    When Customer undo "1"th "Repayment" transaction made on "22 August 2024"
+    Then Loan status will be "ACTIVE"
+    Then Loan has 35.44 outstanding amount
+#    --- 8/24 - Loan Charge created for 2.80 Eur ---
+    When Admin adds "LOAN_NSF_FEE" due date charge with "24 August 2024" due date and 2.80 EUR transaction amount
+    Then Loan status will be "ACTIVE"
+    Then Loan has 38.24 outstanding amount
+#    --- 8/24 (after COB) - Accrual created ---
+    When Admin sets the business date to "25 August 2024"
+    When Admin runs inline COB job for Loan
+    Then Loan Repayment schedule has 2 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 |
+      |    |      | 23 July 2024   |           | 111.92          |               |          | 0.0  |           | 0.0    | 0.0   |            |      |             |
+      | 1  | 31   | 23 August 2024 |           | 0.0             | 111.92        | 0.0      | 0.0  | 0.0       | 111.92 | 76.48 | 76.48      | 0.0  | 35.44       |
+      | 2  | 1    | 24 August 2024 |           | 0.0             | 0.0           | 0.0      | 0.0  | 2.8       | 2.8    | 0.0   | 0.0        | 0.0  | 2.8         |
+    Then Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due    | Paid  | In advance | Late | Outstanding |
+      | 111.92        | 0.0      | 0.0  | 2.8       | 114.72 | 76.48 | 76.48      | 0.0  | 38.24       |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type       | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted |
+      | 23 July 2024     | Disbursement           | 111.92 | 0.0       | 0.0      | 0.0  | 0.0       | 111.92       | false    |
+      | 08 August 2024   | Merchant Issued Refund | 76.48  | 76.48     | 0.0      | 0.0  | 0.0       | 35.44        | false    |
+      | 13 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 24 August 2024   | Accrual                | 2.8    | 0.0       | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+#    --- 8/28 - Backdated Autopay posted for 38.24 Eur (35.44 principal + 2.80 penalty) with transactionDate 8/22 ---
+    When Admin sets the business date to "28 August 2024"
+    And Customer makes "AUTOPAY" repayment on "22 August 2024" with 38.24 EUR transaction amount
+    Then Loan status will be "CLOSED_OBLIGATIONS_MET"
+    Then Loan has 0 outstanding amount
+#    TODO check data
+    Then Loan Repayment schedule has 2 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 |
+      |    |      | 23 July 2024   |                | 111.92          |               |          | 0.0  |           | 0.0    | 0.0    |            |      |             |
+      | 1  | 31   | 23 August 2024 | 22 August 2024 | 0.0             | 111.92        | 0.0      | 0.0  | 0.0       | 111.92 | 111.92 | 111.92     | 0.0  | 0.0         |
+      | 2  | 1    | 24 August 2024 | 22 August 2024 | 0.0             | 0.0           | 0.0      | 0.0  | 2.8       | 2.8    | 2.8    | 2.8        | 0.0  | 0.0         |
+    Then Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due    | Paid   | In advance | Late | Outstanding |
+      | 111.92        | 0.0      | 0.0  | 2.8       | 114.72 | 114.72 | 114.72     | 0.0  | 0.0         |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type       | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted |
+      | 23 July 2024     | Disbursement           | 111.92 | 0.0       | 0.0      | 0.0  | 0.0       | 111.92       | false    |
+      | 08 August 2024   | Merchant Issued Refund | 76.48  | 76.48     | 0.0      | 0.0  | 0.0       | 35.44        | false    |
+      | 13 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 38.24  | 35.44     | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+      | 24 August 2024   | Accrual                | 2.8    | 0.0       | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+    When Customer makes "AUTOPAY" repayment on "23 August 2024" with 10 EUR transaction amount
+    Then Loan status will be "OVERPAID"
+    Then Loan has 0 outstanding amount
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type       | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted |
+      | 23 July 2024     | Disbursement           | 111.92 | 0.0       | 0.0      | 0.0  | 0.0       | 111.92       | false    |
+      | 08 August 2024   | Merchant Issued Refund | 76.48  | 76.48     | 0.0      | 0.0  | 0.0       | 35.44        | false    |
+      | 13 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 38.24  | 35.44     | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+      | 23 August 2024   | Repayment              | 10.0   | 0.0       | 0.0      | 0.0  | 0.0       | 0.0          | false    |
+      | 24 August 2024   | Accrual                | 2.8    | 0.0       | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+    Then Loan Repayment schedule has 2 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 |
+      |    |      | 23 July 2024   |                | 111.92          |               |          | 0.0  |           | 0.0    | 0.0    |            |      |             |
+      | 1  | 31   | 23 August 2024 | 22 August 2024 | 0.0             | 111.92        | 0.0      | 0.0  | 0.0       | 111.92 | 111.92 | 111.92     | 0.0  | 0.0         |
+      | 2  | 1    | 24 August 2024 | 22 August 2024 | 0.0             | 0.0           | 0.0      | 0.0  | 2.8       | 2.8    | 2.8    | 2.8        | 0.0  | 0.0         |
+    When Admin sets the business date to "29 August 2024"
+    When Admin runs inline COB job for Loan
+    When Admin adds "LOAN_NSF_FEE" due date charge with "22 August 2024" due date and 5 EUR transaction amount
+    Then Loan status will be "OVERPAID"
+    Then Loan has 0 outstanding amount
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type       | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted |
+      | 23 July 2024     | Disbursement           | 111.92 | 0.0       | 0.0      | 0.0  | 0.0       | 111.92       | false    |
+      | 08 August 2024   | Merchant Issued Refund | 76.48  | 76.48     | 0.0      | 0.0  | 0.0       | 35.44        | false    |
+      | 13 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 38.24  | 35.44     | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+      | 23 August 2024   | Repayment              | 10.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | false    |
+      | 24 August 2024   | Accrual                | 2.8    | 0.0       | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+    Then Loan Repayment schedule has 2 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 |
+      |    |      | 23 July 2024   |                | 111.92          |               |          | 0.0  |           | 0.0    | 0.0    |            |      |             |
+      | 1  | 31   | 23 August 2024 | 23 August 2024 | 0.0             | 111.92        | 0.0      | 0.0  | 5.0       | 116.92 | 116.92 | 114.72     | 0.0  | 0.0         |
+      | 2  | 1    | 24 August 2024 | 23 August 2024 | 0.0             | 0.0           | 0.0      | 0.0  | 2.8       | 2.8    | 2.8    | 2.8        | 0.0  | 0.0         |
+    When Admin adds "LOAN_NSF_FEE" due date charge with "25 August 2024" due date and 5 EUR transaction amount
+    When Admin sets the business date to "30 August 2024"
+    When Admin runs inline COB job for Loan
+    Then Loan status will be "CLOSED_OBLIGATIONS_MET"
+    Then Loan has 0 outstanding amount
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type       | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted |
+      | 23 July 2024     | Disbursement           | 111.92 | 0.0       | 0.0      | 0.0  | 0.0       | 111.92       | false    |
+      | 08 August 2024   | Merchant Issued Refund | 76.48  | 76.48     | 0.0      | 0.0  | 0.0       | 35.44        | false    |
+      | 13 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 35.44  | 35.44     | 0.0      | 0.0  | 0.0       | 0.0          | true     |
+      | 22 August 2024   | Repayment              | 38.24  | 35.44     | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+      | 23 August 2024   | Repayment              | 10.0   | 0.0       | 0.0      | 0.0  | 10.0      | 0.0          | false    |
+      | 24 August 2024   | Accrual                | 2.8    | 0.0       | 0.0      | 0.0  | 2.8       | 0.0          | false    |
+      | 25 August 2024   | Accrual                | 10.0   | 0.0       | 0.0      | 0.0  | 10.0      | 0.0          | false    |
+    Then Loan Repayment schedule has 2 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 |
+      |    |      | 23 July 2024   |                | 111.92          |               |          | 0.0  |           | 0.0    | 0.0    |            |      |             |
+      | 1  | 31   | 23 August 2024 | 23 August 2024 | 0.0             | 111.92        | 0.0      | 0.0  | 5.0       | 116.92 | 116.92 | 114.72     | 0.0  | 0.0         |
+      | 2  | 2    | 25 August 2024 | 23 August 2024 | 0.0             | 0.0           | 0.0      | 0.0  | 7.8       | 7.8    | 7.8    | 7.8        | 0.0  | 0.0         |
@@ -704,8 +704,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        this.charges.add(loanCharge);
        this.summary = updateSummaryWithTotalFeeChargesDueAtDisbursement(deriveSumTotalOfChargesDueAtDisbursement());

-        // store Id's of existing loan transactions and existing reversed loan
-        // transactions
+        // store Id's of existing loan transactions and existing reversed loan transactions
        final SingleLoanChargeRepaymentScheduleProcessingWrapper wrapper = new SingleLoanChargeRepaymentScheduleProcessingWrapper();
        wrapper.reprocess(getCurrency(), getDisbursementDate(), getRepaymentScheduleInstallments(), loanCharge);
        updateLoanSummaryDerivedFields();
@@ -721,7 +720,6 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
        for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
-
            mapEntry.getValue().updateLoan(this);
        }
        this.loanTransactions.addAll(changedTransactionDetail.getNewTransactionMappings().values());
@@ -729,6 +727,12 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        return changedTransactionDetail;
    }

+    public ChangedTransactionDetail reprocessTransactionsWithPostTransactionChecks(LocalDate transactionDate) {
+        ChangedTransactionDetail changedDetail = reprocessTransactions();
+        doPostLoanTransactionChecks(transactionDate, loanLifecycleStateMachine);
+        return changedDetail;
+    }
+
    /**
     * Creates a loanTransaction for "Apply Charge Event" with transaction date set to "suppliedTransactionDate". The
     * newly created transaction is also added to the Loan on which this method is called.
@@ -2499,7 +2503,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
    private boolean doPostLoanTransactionChecks(final LocalDate transactionDate,
            final LoanLifecycleStateMachine loanLifecycleStateMachine) {
        boolean statusChanged = false;
-        boolean isOverpaid = getTotalOverpaid() != null && getTotalOverpaid().compareTo(BigDecimal.ZERO) > 0;
+        boolean isOverpaid = MathUtil.isGreaterThanZero(totalOverpaid);
        if (isOverpaid) {
            // FIXME - kw - update account balance to negative amount.
            handleLoanOverpayment(transactionDate, loanLifecycleStateMachine);
@@ -2510,7 +2514,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        } else {
            loanLifecycleStateMachine.transition(LoanEvent.LOAN_REPAYMENT_OR_WAIVER, this);
        }
-        if (this.totalOverpaid == null || BigDecimal.ZERO.compareTo(this.totalOverpaid) == 0) {
+        if (MathUtil.isEmpty(totalOverpaid)) {
            this.overpaidOnDate = null;
        }
        return statusChanged;
@@ -2526,8 +2530,8 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
            this.actualMaturityDate = transactionDate;
            loanLifecycleStateMachine.transition(LoanEvent.REPAID_IN_FULL, this);

-        } else if (LoanStatus.fromInt(this.loanStatus).isOverpaid()) {
-            if (this.totalOverpaid == null || BigDecimal.ZERO.compareTo(this.totalOverpaid) == 0) {
+        } else if (getStatus().isOverpaid()) {
+            if (MathUtil.isEmpty(totalOverpaid)) {
                this.overpaidOnDate = null;
            }
            loanLifecycleStateMachine.transition(LoanEvent.LOAN_REPAYMENT_OR_WAIVER, this);
@@ -4498,7 +4502,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
                loanTransaction.updateOutstandingLoanBalance(MathUtil.negativeToZero(outstanding.getAmount()));
            } else if (loanTransaction.isChargeback() || loanTransaction.isCreditBalanceRefund()) {
                Money transactionOutstanding = loanTransaction.getPrincipalPortion(getCurrency());
-                if (!loanTransaction.getOverPaymentPortion(getCurrency()).isZero()) {
+                if (loanTransaction.isOverPaid()) {
                    // in case of advanced payment strategy and creditAllocations the full amount is recognized first
                    if (this.getCreditAllocationRules() != null && this.getCreditAllocationRules().size() > 0) {
                        Money payedPrincipal = loanTransaction.getLoanTransactionToRepaymentScheduleMappings().stream() //
@@ -4792,7 +4796,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {

        updateLoanSummaryDerivedFields();

-        if (this.totalOverpaid == null || BigDecimal.ZERO.compareTo(this.totalOverpaid) == 0) {
+        if (MathUtil.isEmpty(totalOverpaid)) {
            this.overpaidOnDate = null;
            this.closedOnDate = newCreditBalanceRefundTransaction.getTransactionDate();
            defaultLoanLifecycleStateMachine.transition(LoanEvent.LOAN_CREDIT_BALANCE_REFUND, this);
@@ -5497,12 +5501,12 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
        return getLoanTransactions().stream().filter(predicate).toList();
    }

+    public LoanTransaction getLoanTransaction(Predicate<LoanTransaction> predicate) {
+        return getLoanTransactions().stream().filter(predicate).findFirst().orElse(null);
+    }
+
    public LoanTransaction findChargedOffTransaction() {
-        return getLoanTransactions().stream() //
-                .filter(LoanTransaction::isNotReversed) //
-                .filter(LoanTransaction::isChargeOff) //
-                .findFirst() //
-                .orElse(null);
+        return getLoanTransaction(e -> e.isNotReversed() && e.isChargeOff());
    }

    public void handleMaturityDateActivate() {
@@ -38,9 +38,11 @@ import java.util.List;
 import java.util.Map;
 import java.util.Optional;
 import java.util.Set;
+import java.util.function.Predicate;
 import org.apache.fineract.infrastructure.core.domain.AbstractAuditableWithUTCDateTimeCustom;
 import org.apache.fineract.infrastructure.core.domain.ExternalId;
 import org.apache.fineract.infrastructure.core.service.DateUtils;
+import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.organisation.monetary.data.CurrencyData;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
 import org.apache.fineract.organisation.monetary.domain.Money;
@@ -303,6 +305,13 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom<Long
        return newTransaction;
    }

+    public LoanTransaction copyTransactionPropertiesAndMappings() {
+        LoanTransaction newTransaction = copyTransactionProperties(this);
+        newTransaction.updateLoanTransactionToRepaymentScheduleMappings(loanTransactionToRepaymentScheduleMappings);
+        newTransaction.updateLoanChargePaidMappings(loanChargesPaid);
+        return newTransaction;
+    }
+
    public static LoanTransaction accrueLoanCharge(final Loan loan, final Office office, final Money amount, final LocalDate applyDate,
            final Money feeCharges, final Money penaltyCharges, final ExternalId externalId) {
        final LoanTransaction applyCharge = new LoanTransaction(loan, office, LoanTransactionType.ACCRUAL, amount.getAmount(), applyDate,
@@ -920,37 +929,84 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom<Long

    public void updateLoanTransactionToRepaymentScheduleMappings(final Collection<LoanTransactionToRepaymentScheduleMapping> mappings) {
        Collection<LoanTransactionToRepaymentScheduleMapping> retainMappings = new ArrayList<>();
-        for (LoanTransactionToRepaymentScheduleMapping updatedrepaymentScheduleMapping : mappings) {
-            updateMapingDetail(retainMappings, updatedrepaymentScheduleMapping);
+        for (LoanTransactionToRepaymentScheduleMapping updatedMapping : mappings) {
+            updateMappingDetail(retainMappings, updatedMapping, true);
        }
        this.loanTransactionToRepaymentScheduleMappings.retainAll(retainMappings);
    }

-    private boolean updateMapingDetail(final Collection<LoanTransactionToRepaymentScheduleMapping> retainMappings,
-            final LoanTransactionToRepaymentScheduleMapping updatedrepaymentScheduleMapping) {
+    public void addLoanTransactionToRepaymentScheduleMappings(final Collection<LoanTransactionToRepaymentScheduleMapping> updatedMappings) {
+        for (LoanTransactionToRepaymentScheduleMapping updatedMapping : updatedMappings) {
+            updateMappingDetail(null, updatedMapping, false);
+        }
+    }
+
+    private boolean updateMappingDetail(final Collection<LoanTransactionToRepaymentScheduleMapping> retainMappings,
+            final LoanTransactionToRepaymentScheduleMapping updatedMapping, boolean overwrite) {
        boolean isMappingUpdated = false;
-        for (LoanTransactionToRepaymentScheduleMapping repaymentScheduleMapping : this.loanTransactionToRepaymentScheduleMappings) {
-            if (updatedrepaymentScheduleMapping.getLoanRepaymentScheduleInstallment().getId() != null
-                    && repaymentScheduleMapping.getLoanRepaymentScheduleInstallment().getDueDate()
-                            .equals(updatedrepaymentScheduleMapping.getLoanRepaymentScheduleInstallment().getDueDate())
-                    && updatedrepaymentScheduleMapping.getLoanRepaymentScheduleInstallment().getId()
-                            .equals(repaymentScheduleMapping.getLoanRepaymentScheduleInstallment().getId())) {
-                repaymentScheduleMapping.setComponents(updatedrepaymentScheduleMapping.getPrincipalPortion(),
-                        updatedrepaymentScheduleMapping.getInterestPortion(), updatedrepaymentScheduleMapping.getFeeChargesPortion(),
-                        updatedrepaymentScheduleMapping.getPenaltyChargesPortion());
+        LoanRepaymentScheduleInstallment updatedInstallment = updatedMapping.getLoanRepaymentScheduleInstallment();
+        for (LoanTransactionToRepaymentScheduleMapping existingMapping : this.loanTransactionToRepaymentScheduleMappings) {
+            LoanRepaymentScheduleInstallment existingInstallment = existingMapping.getLoanRepaymentScheduleInstallment();
+            if (DateUtils.isEqual(existingInstallment.getDueDate(), updatedInstallment.getDueDate()) && updatedInstallment.getId() != null
+                    && updatedInstallment.getId().equals(existingInstallment.getId())) {
+                if (overwrite) {
+                    existingMapping.setComponents(updatedMapping.getPrincipalPortion(), updatedMapping.getInterestPortion(),
+                            updatedMapping.getFeeChargesPortion(), updatedMapping.getPenaltyChargesPortion());
+                } else {
+                    existingMapping.updateComponents(updatedMapping.getPrincipalPortion(), updatedMapping.getInterestPortion(),
+                            updatedMapping.getFeeChargesPortion(), updatedMapping.getPenaltyChargesPortion());
+                }
                isMappingUpdated = true;
-                retainMappings.add(repaymentScheduleMapping);
+                if (retainMappings != null) {
+                    retainMappings.add(existingMapping);
+                }
                break;
            }
        }
        if (!isMappingUpdated) {
-            updatedrepaymentScheduleMapping.setLoanTransaction(this);
-            this.loanTransactionToRepaymentScheduleMappings.add(updatedrepaymentScheduleMapping);
-            retainMappings.add(updatedrepaymentScheduleMapping);
+            LoanTransactionToRepaymentScheduleMapping newMapping = LoanTransactionToRepaymentScheduleMapping.createFrom(this,
+                    updatedInstallment, null, null, null, null);
+            newMapping.setComponents(updatedMapping.getPrincipalPortion(), updatedMapping.getInterestPortion(),
+                    updatedMapping.getFeeChargesPortion(), updatedMapping.getPenaltyChargesPortion());
+            this.loanTransactionToRepaymentScheduleMappings.add(newMapping);
+            if (retainMappings != null) {
+                retainMappings.add(newMapping);
+            }
        }
        return isMappingUpdated;
    }

+    public void updateLoanChargePaidMappings(final Collection<LoanChargePaidBy> updatedMappings) {
+        Collection<LoanChargePaidBy> retainMappings = new ArrayList<>();
+        for (LoanChargePaidBy updatedMapping : updatedMappings) {
+            updateLoanChargePaid(retainMappings, updatedMapping);
+        }
+        this.loanChargesPaid.retainAll(retainMappings);
+    }
+
+    private boolean updateLoanChargePaid(final Collection<LoanChargePaidBy> retainMappings, final LoanChargePaidBy updatedMapping) {
+        boolean updated = false;
+        LoanCharge updatedCharge = updatedMapping.getLoanCharge();
+        Integer updatedInstallment = updatedMapping.getInstallmentNumber();
+        for (LoanChargePaidBy existingMapping : loanChargesPaid) {
+            LoanCharge existingCharge = existingMapping.getLoanCharge();
+            Integer existingInstallment = existingMapping.getInstallmentNumber();
+            if (existingCharge.equals(updatedCharge)
+                    && (existingInstallment == null ? updatedInstallment == null : existingInstallment.equals(updatedInstallment))) {
+                existingMapping.setAmount(updatedMapping.getAmount());
+                updated = true;
+                retainMappings.add(existingMapping);
+                break;
+            }
+        }
+        if (!updated) {
+            LoanChargePaidBy newMapping = new LoanChargePaidBy(this, updatedCharge, updatedMapping.getAmount(), updatedInstallment);
+            this.loanChargesPaid.add(newMapping);
+            retainMappings.add(newMapping);
+        }
+        return updated;
+    }
+
    public Set<LoanTransactionToRepaymentScheduleMapping> getLoanTransactionToRepaymentScheduleMappings() {
        return this.loanTransactionToRepaymentScheduleMappings;
    }
@@ -989,18 +1045,21 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom<Long
    }

    public boolean hasLoanTransactionRelations() {
-        return (loanTransactionRelations != null && loanTransactionRelations.size() > 0);
-    }
-
-    public boolean hasChargebackLoanTransactionRelations() {
-        return (loanTransactionRelations != null
-                && loanTransactionRelations.stream().anyMatch(e -> LoanTransactionRelationTypeEnum.CHARGEBACK.equals(e.getRelationType())));
+        return !loanTransactionRelations.isEmpty();
    }

    public Set<LoanTransactionRelation> getLoanTransactionRelations() {
        return loanTransactionRelations;
    }

+    public List<LoanTransactionRelation> getLoanTransactionRelations(Predicate<LoanTransactionRelation> predicate) {
+        return loanTransactionRelations.stream().filter(predicate).toList();
+    }
+
+    public boolean hasChargebackLoanTransactionRelations() {
+        return !getLoanTransactionRelations(e -> LoanTransactionRelationTypeEnum.CHARGEBACK.equals(e.getRelationType())).isEmpty();
+    }
+
    public void copyLoanTransactionRelations(Set<LoanTransactionRelation> sourceLoanTransactionRelations) {
        for (LoanTransactionRelation existingLoanTransactionRelation : sourceLoanTransactionRelations) {
            loanTransactionRelations.add(new LoanTransactionRelation(this, existingLoanTransactionRelation.getToTransaction(),
@@ -1055,6 +1114,10 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom<Long
        return chargeRefundChargeType;
    }

+    public boolean isOverPaid() {
+        return MathUtil.isGreaterThanZero(overPaymentPortion);
+    }
+
    // TODO missing hashCode(), equals(Object obj), but probably OK as long as
    // this is never stored in a Collection.
 }
@@ -24,8 +24,10 @@ import jakarta.persistence.Entity;
 import jakarta.persistence.JoinColumn;
 import jakarta.persistence.ManyToOne;
 import jakarta.persistence.Table;
+import jakarta.validation.constraints.NotNull;
 import java.math.BigDecimal;
 import org.apache.fineract.infrastructure.core.domain.AbstractPersistableCustom;
+import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
 import org.apache.fineract.organisation.monetary.domain.Money;

@@ -77,15 +79,11 @@ public class LoanTransactionToRepaymentScheduleMapping extends AbstractPersistab
            final Money feeChargesPortion, final Money penaltyChargesPortion) {
        return new LoanTransactionToRepaymentScheduleMapping(loanTransaction, installment, defaultToNullIfZero(principalPortion),
                defaultToNullIfZero(interestPortion), defaultToNullIfZero(feeChargesPortion), defaultToNullIfZero(penaltyChargesPortion),
-                defaultToNullIfZero(principalPortion.plus(interestPortion).plus(feeChargesPortion).plus(penaltyChargesPortion)));
+                defaultToNullIfZero(MathUtil.plus(principalPortion, interestPortion, feeChargesPortion, penaltyChargesPortion)));
    }

    private static BigDecimal defaultToNullIfZero(final Money value) {
-        BigDecimal result = value.getAmount();
-        if (value.isZero()) {
-            result = null;
-        }
-        return result;
+        return (value == null || value.isZero()) ? null : value.getAmount();
    }

    private BigDecimal defaultToZeroIfNull(final BigDecimal value) {
@@ -100,10 +98,15 @@ public class LoanTransactionToRepaymentScheduleMapping extends AbstractPersistab
        return this.installment;
    }

-    public void updateComponents(final Money principal, final Money interest, final Money feeCharges, final Money penaltyCharges) {
-        final MonetaryCurrency currency = principal.getCurrency();
-        this.principalPortion = defaultToNullIfZero(getPrincipalPortion(currency).plus(principal));
-        this.interestPortion = defaultToNullIfZero(getInterestPortion(currency).plus(interest));
+    public void updateComponents(@NotNull Money principal, @NotNull Money interest, @NotNull Money feeCharges,
+            @NotNull Money penaltyCharges) {
+        updateComponents(principal.getAmount(), interest.getAmount(), feeCharges.getAmount(), penaltyCharges.getAmount());
+    }
+
+    void updateComponents(final BigDecimal principal, final BigDecimal interest, final BigDecimal feeCharges,
+            final BigDecimal penaltyCharges) {
+        this.principalPortion = MathUtil.zeroToNull(MathUtil.add(getPrincipalPortion(), principal));
+        this.interestPortion = MathUtil.zeroToNull(MathUtil.add(getInterestPortion(), interest));
        updateChargesComponents(feeCharges, penaltyCharges);
        updateAmount();
    }
@@ -122,10 +125,9 @@ public class LoanTransactionToRepaymentScheduleMapping extends AbstractPersistab
        updateAmount();
    }

-    private void updateChargesComponents(final Money feeCharges, final Money penaltyCharges) {
-        final MonetaryCurrency currency = feeCharges.getCurrency();
-        this.feeChargesPortion = defaultToNullIfZero(getFeeChargesPortion(currency).plus(feeCharges));
-        this.penaltyChargesPortion = defaultToNullIfZero(getPenaltyChargesPortion(currency).plus(penaltyCharges));
+    private void updateChargesComponents(final BigDecimal feeCharges, final BigDecimal penaltyCharges) {
+        this.feeChargesPortion = MathUtil.zeroToNull(MathUtil.add(getFeeChargesPortion(), feeCharges));
+        this.penaltyChargesPortion = MathUtil.zeroToNull(MathUtil.add(getPenaltyChargesPortion(), penaltyCharges));
    }

    public Money getPrincipalPortion(final MonetaryCurrency currency) {
@@ -28,7 +28,9 @@ import org.apache.fineract.infrastructure.core.data.EnumOptionData;
@RequiredArgsConstructor
 public enum LoanScheduleProcessingType {

-    HORIZONTAL("Horizontal"), VERTICAL("Vertical");
+    HORIZONTAL("Horizontal"), //
+    VERTICAL("Vertical"), //
+    ;

    private final String humanReadableName;

@@ -39,4 +41,12 @@ public enum LoanScheduleProcessingType {
    public EnumOptionData asEnumOptionData() {
        return new EnumOptionData((long) this.ordinal(), this.name(), this.humanReadableName);
    }
+
+    public boolean isHorizontal() {
+        return this == HORIZONTAL;
+    }
+
+    public boolean isVertical() {
+        return this == VERTICAL;
+    }
 }
@@ -50,4 +50,8 @@ public enum PaymentAllocationTransactionType {
    public static List<EnumOptionData> getValuesAsEnumOptionDataList() {
        return Arrays.stream(values()).map(v -> new EnumOptionData((long) (v.ordinal() + 1), v.name(), v.getHumanReadableName())).toList();
    }
+
+    public boolean isDefault() {
+        return this == DEFAULT;
+    }
 }
@@ -26,10 +26,9 @@ import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.FE
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.INTEREST;
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PENALTY;
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PRINCIPAL;
-import static org.apache.fineract.portfolio.loanproduct.domain.LoanPreClosureInterestCalculationStrategy.TILL_PRE_CLOSURE_DATE;
-import static org.apache.fineract.portfolio.loanproduct.domain.LoanPreClosureInterestCalculationStrategy.TILL_REST_FREQUENCY_DATE;
-import static org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationTransactionType.DEFAULT;

+import jakarta.annotation.Nullable;
+import jakarta.validation.constraints.NotNull;
 import java.math.BigDecimal;
 import java.math.MathContext;
 import java.time.LocalDate;
@@ -91,8 +90,6 @@ import org.apache.fineract.portfolio.loanproduct.domain.FutureInstallmentAllocat
 import org.apache.fineract.portfolio.loanproduct.domain.LoanPreClosureInterestCalculationStrategy;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRelatedDetail;
 import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationType;
-import org.jetbrains.annotations.NotNull;
-import org.jetbrains.annotations.Nullable;

@Slf4j
@RequiredArgsConstructor
@@ -180,20 +177,37 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
        final LoanProductRelatedDetail loanProductRelatedDetail = loan.getLoanRepaymentScheduleDetail();
        ProgressiveLoanInterestScheduleModel scheduleModel = emiCalculator.generateModel(loanProductRelatedDetail,
                installmentAmountInMultiplesOf, installments, mc);
-
        ProgressiveTransactionCtx ctx = new ProgressiveTransactionCtx(currency, installments, charges, overpaymentHolder,
                changedTransactionDetail, scheduleModel);

+        List<LoanTransaction> overpaidTransactions = new ArrayList<>();
        for (final ChargeOrTransaction chargeOrTransaction : chargeOrTransactions) {
-            chargeOrTransaction.getLoanTransaction().ifPresent(loanTransaction -> processSingleTransaction(loanTransaction, ctx));
-            chargeOrTransaction.getLoanCharge()
-                    .ifPresent(loanCharge -> processSingleCharge(loanCharge, currency, installments, disbursementDate));
+            if (chargeOrTransaction.isTransaction()) {
+                LoanTransaction transaction = chargeOrTransaction.getLoanTransaction().get();
+                processSingleTransaction(transaction, ctx);
+                transaction = getProcessedTransaction(changedTransactionDetail, transaction);
+                if (transaction.isOverPaid() && transaction.isRepaymentLikeType()) { // TODO CREDIT, DEBIT
+                    overpaidTransactions.add(transaction);
+                }
+            } else {
+                LoanCharge loanCharge = chargeOrTransaction.getLoanCharge().get();
+                processSingleCharge(loanCharge, currency, installments, disbursementDate);
+                if (!loanCharge.isFullyPaid() && !overpaidTransactions.isEmpty()) {
+                    overpaidTransactions = processOverpaidTransactions(overpaidTransactions, currency, installments, charges,
+                            changedTransactionDetail, overpaymentHolder, scheduleModel);
+                }
+            }
+        }
+        Map<Long, LoanTransaction> newTransactionMappings = changedTransactionDetail.getNewTransactionMappings();
+        for (Long oldTransactionId : newTransactionMappings.keySet()) {
+            LoanTransaction oldTransaction = loanTransactions.stream().filter(e -> oldTransactionId.equals(e.getId())).findFirst().get();
+            LoanTransaction newTransaction = newTransactionMappings.get(oldTransactionId);
+            createNewTransaction(oldTransaction, newTransaction, ctx);
        }
-        List<LoanTransaction> txs = chargeOrTransactions.stream() //
-                .map(ChargeOrTransaction::getLoanTransaction) //
-                .filter(Optional::isPresent) //
-                .map(Optional::get).toList();
        recalculateInterestForDate(ThreadLocalContextUtil.getBusinessDate(), ctx, true);
+        List<LoanTransaction> txs = chargeOrTransactions.stream() //
+                .filter(ChargeOrTransaction::isTransaction) //
+                .map(e -> e.getLoanTransaction().get()).toList();
        reprocessInstallments(disbursementDate, txs, installments, currency);
        return Pair.of(changedTransactionDetail, scheduleModel);
    }
@@ -204,6 +218,12 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
        return reprocessProgressiveLoanTransactions(disbursementDate, loanTransactions, currency, installments, charges).getLeft();
    }

+    @NotNull
+    private static LoanTransaction getProcessedTransaction(ChangedTransactionDetail changedTransactionDetail, LoanTransaction transaction) {
+        LoanTransaction newTransaction = changedTransactionDetail.getNewTransactionMappings().get(transaction.getId());
+        return newTransaction == null ? transaction : newTransaction;
+    }
+
    @Override
    public void processLatestTransaction(LoanTransaction loanTransaction, TransactionCtx ctx) {
        switch (loanTransaction.getTypeOf()) {
@@ -283,36 +303,33 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                .stream().anyMatch(e -> e.getTransactionType().getLoanTransactionType().equals(loanTransaction.getTypeOf())));
    }

-    protected LoanTransaction findOriginalTransaction(LoanTransaction loanTransaction, TransactionCtx ctx) {
-        if (loanTransaction.getId() != null) { // this the normal case without reverse-replay
-            Optional<LoanTransaction> originalTransaction = loanTransaction.getLoan().getLoanTransactions().stream()
-                    .filter(tr -> tr.getLoanTransactionRelations().stream()
-                            .anyMatch(this.hasMatchingToLoanTransaction(loanTransaction.getId(), CHARGEBACK)))
-                    .findFirst();
-            if (originalTransaction.isEmpty()) {
-                throw new RuntimeException("Chargeback transaction must have an original transaction");
+    protected LoanTransaction findChargebackOriginalTransaction(LoanTransaction chargebackTransaction, TransactionCtx ctx) {
+        ChangedTransactionDetail changedTransactionDetail = ctx.getChangedTransactionDetail();
+        Long chargebackId = chargebackTransaction.getId(); // this the normal case without reverse-replay
+        if (changedTransactionDetail != null) {
+            if (chargebackId == null) {
+                // the chargeback transaction was changed, so we need to look it up from the ctx.
+                chargebackId = changedTransactionDetail.getCurrentTransactionToOldId().get(chargebackTransaction);
            }
-            return originalTransaction.get();
-        } else { // when there is no id, then it might be that the original transaction is changed, so we need to look
-            // it up from the Ctx.
-            Long originalChargebackTransactionId = ctx.getChangedTransactionDetail().getCurrentTransactionToOldId().get(loanTransaction);
-            Collection<LoanTransaction> updatedTransactions = ctx.getChangedTransactionDetail().getNewTransactionMappings().values();
-            Optional<LoanTransaction> updatedTransaction = updatedTransactions.stream().filter(tr -> tr.getLoanTransactionRelations()
-                    .stream().anyMatch(this.hasMatchingToLoanTransaction(originalChargebackTransactionId, CHARGEBACK))).findFirst();

-            if (updatedTransaction.isPresent()) {
-                return updatedTransaction.get();
-            } else { // if it is not there, then it simply means that this has not changed during reverse replay
-                Optional<LoanTransaction> originalTransaction = loanTransaction.getLoan().getLoanTransactions().stream()
-                        .filter(tr -> tr.getLoanTransactionRelations().stream()
-                                .anyMatch(this.hasMatchingToLoanTransaction(originalChargebackTransactionId, CHARGEBACK)))
-                        .findFirst();
-                if (originalTransaction.isEmpty()) {
-                    throw new RuntimeException("Chargeback transaction must have an original transaction");
-                }
-                return originalTransaction.get();
+            Long toId = chargebackId;
+            Collection<LoanTransaction> updatedTransactions = changedTransactionDetail.getNewTransactionMappings().values();
+            Optional<LoanTransaction> fromTransaction = updatedTransactions.stream()
+                    .filter(tr -> tr.getLoanTransactionRelations().stream().anyMatch(hasMatchingToLoanTransaction(toId, CHARGEBACK)))
+                    .findFirst();
+            if (fromTransaction.isPresent()) {
+                return fromTransaction.get();
            }
        }
+        Long toId = chargebackId;
+        // if the original transaction is not in the ctx, then it means that it has not changed during reverse replay
+        Optional<LoanTransaction> fromTransaction = chargebackTransaction.getLoan().getLoanTransactions().stream()
+                .filter(tr -> tr.getLoanTransactionRelations().stream().anyMatch(this.hasMatchingToLoanTransaction(toId, CHARGEBACK)))
+                .findFirst();
+        if (fromTransaction.isEmpty()) {
+            throw new RuntimeException("Chargeback transaction must have an original transaction");
+        }
+        return fromTransaction.get();
    }

    protected void processCreditTransaction(LoanTransaction loanTransaction, TransactionCtx ctx) {
@@ -331,7 +348,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep

            if (transactionAmount.isGreaterThanZero()) {
                if (loanTransaction.isChargeback()) {
-                    LoanTransaction originalTransaction = findOriginalTransaction(loanTransaction, ctx);
+                    LoanTransaction originalTransaction = findChargebackOriginalTransaction(loanTransaction, ctx);
                    // get the original allocation from the opriginal transaction
                    Map<AllocationType, Money> originalAllocationNotAdjusted = getOriginalAllocation(originalTransaction,
                            ctx.getCurrency());
@@ -420,8 +437,11 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
        List<LoanTransaction> chargebacks = allTransactions.stream().filter(LoanTransaction::isChargeback).toList();

        // let's figure out the original transaction for these chargebacks, and order them by ascending order
+        Comparator<LoanTransaction> comparator = loanTransactionDateComparator();
        List<LoanTransaction> chargebacksForTheSameOriginal = chargebacks.stream()
-                .filter(tr -> findOriginalTransaction(tr, ctx) == originalTransaction).sorted(loanTransactionDateComparator()).toList();
+                .filter(tr -> findChargebackOriginalTransaction(tr, ctx) == originalTransaction
+                        && comparator.compare(tr, chargeBackTransaction) < 0)
+                .sorted(comparator).toList();

        Map<AllocationType, Money> allocation = new HashMap<>(originalAllocation);
        for (LoanTransaction loanTransaction : chargebacksForTheSameOriginal) {
@@ -518,16 +538,11 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
        List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
        Money transactionAmountUnprocessed = loanTransaction.getAmount(currency);

-        List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
-        LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
-        LoanPaymentAllocationRule paymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> loanTransaction.getTypeOf().equals(e.getTransactionType().getLoanTransactionType())).findFirst()
-                .orElse(defaultPaymentAllocationRule);
+        LoanPaymentAllocationRule paymentAllocationRule = getAllocationRule(loanTransaction);
        Balances balances = new Balances(zero, zero, zero, zero);
        List<PaymentAllocationType> paymentAllocationTypes;
        FutureInstallmentAllocationRule futureInstallmentAllocationRule;
-        if (DEFAULT.equals(paymentAllocationRule.getTransactionType())) {
+        if (paymentAllocationRule.getTransactionType().isDefault()) {
            // if the allocation rule is not defined then the reverse order of the default allocation rule will be used
            paymentAllocationTypes = new ArrayList<>(paymentAllocationRule.getAllocationTypes());
            Collections.reverse(paymentAllocationTypes);
@@ -536,8 +551,9 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
            paymentAllocationTypes = paymentAllocationRule.getAllocationTypes();
            futureInstallmentAllocationRule = paymentAllocationRule.getFutureInstallmentAllocationRule();
        }
-        if (LoanScheduleProcessingType.HORIZONTAL
-                .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
+        Loan loan = loanTransaction.getLoan();
+        LoanScheduleProcessingType scheduleProcessingType = loan.getLoanProductRelatedDetail().getLoanScheduleProcessingType();
+        if (scheduleProcessingType.isHorizontal()) {
            LinkedHashMap<DueType, List<PaymentAllocationType>> paymentAllocationsMap = paymentAllocationTypes.stream().collect(
                    Collectors.groupingBy(PaymentAllocationType::getDueType, LinkedHashMap::new, mapping(Function.identity(), toList())));

@@ -549,8 +565,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                    break;
                }
            }
-        } else if (LoanScheduleProcessingType.VERTICAL
-                .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
+        } else if (scheduleProcessingType.isVertical()) {
            for (PaymentAllocationType paymentAllocationType : paymentAllocationTypes) {
                transactionAmountUnprocessed = refundTransactionVertically(loanTransaction, currency, installments, zero,
                        transactionMappings, transactionAmountUnprocessed, futureInstallmentAllocationRule, charges, balances,
@@ -567,55 +582,152 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
    }

    private void processSingleTransaction(LoanTransaction loanTransaction, final ProgressiveTransactionCtx ctx) {
-        final MonetaryCurrency currency = ctx.getCurrency();
-        final ChangedTransactionDetail changedTransactionDetail = ctx.getChangedTransactionDetail();
-
-        if (loanTransaction.getId() == null) {
-            processLatestTransaction(loanTransaction, ctx);
-            if (loanTransaction.isInterestWaiver()) {
-                loanTransaction.adjustInterestComponent(currency);
-            }
+        boolean isNew = loanTransaction.getId() == null;
+        LoanTransaction processTransaction = loanTransaction;
+        if (!isNew) {
+            // For existing transactions, check if the re-payment breakup (principal, interest, fees, penalties) has
+            // changed.
+            processTransaction = LoanTransaction.copyTransactionProperties(loanTransaction);
+            ctx.getChangedTransactionDetail().getCurrentTransactionToOldId().put(processTransaction, loanTransaction.getId());
+        }
+        // Reset derived component of new loan transaction and re-process transaction
+        processLatestTransaction(processTransaction, ctx);
+        if (loanTransaction.isInterestWaiver()) {
+            processTransaction.adjustInterestComponent(ctx.getCurrency());
+        }
+        if (isNew) {
+            checkRegisteredNewTransaction(loanTransaction, ctx);
        } else {
-            /*
-             * For existing transactions, check if the re-payment breakup (principal, interest, fees, penalties) has
-             * changed.<br>
-             */
-            final LoanTransaction newLoanTransaction = LoanTransaction.copyTransactionProperties(loanTransaction);
-            ctx.getChangedTransactionDetail().getCurrentTransactionToOldId().put(newLoanTransaction, loanTransaction.getId());
-
-            // Reset derived component of new loan transaction and
-            // re-process transaction
-            processLatestTransaction(newLoanTransaction, ctx);
-            if (loanTransaction.isInterestWaiver()) {
-                newLoanTransaction.adjustInterestComponent(currency);
-            }
-            /*
-             * Check if the transaction amounts have changed or was there any transaction for the same date which was
-             * reverse-replayed. If so, reverse the original transaction and update changedTransactionDetail accordingly
-             */
-            boolean aTransactionWasAlreadyReplayedForTheSameDate = changedTransactionDetail.getNewTransactionMappings().values().stream()
-                    .anyMatch(lt -> lt.getTransactionDate().equals(loanTransaction.getTransactionDate()));
-            if (LoanTransaction.transactionAmountsMatch(currency, loanTransaction, newLoanTransaction)
-                    && !aTransactionWasAlreadyReplayedForTheSameDate) {
-                loanTransaction.updateLoanTransactionToRepaymentScheduleMappings(
-                        newLoanTransaction.getLoanTransactionToRepaymentScheduleMappings());
-            } else {
-                createNewTransaction(loanTransaction, newLoanTransaction, changedTransactionDetail);
-                checkAndUpdateReplayedChargebackRelationWithReplayedTransaction(loanTransaction, newLoanTransaction, ctx);
-            }
+            updateOrRegisterNewTransaction(loanTransaction, processTransaction, ctx);
        }
    }

-    private void checkAndUpdateReplayedChargebackRelationWithReplayedTransaction(LoanTransaction loanTransaction,
-            LoanTransaction newLoanTransaction, TransactionCtx ctx) {
-        // if chargeback is getting reverse-replayed
-        // find replayed transaction with CHARGEBACK relation with reversed chargeback transaction
-        // for replayed transaction, add relation to point to new Chargeback transaction
-        if (loanTransaction.getTypeOf().isChargeback()) {
-            LoanTransaction originalTransaction = findOriginalTransaction(newLoanTransaction, ctx);
-            originalTransaction.getLoanTransactionRelations()
-                    .add(LoanTransactionRelation.linkToTransaction(originalTransaction, newLoanTransaction, CHARGEBACK));
+    private List<LoanTransaction> processOverpaidTransactions(List<LoanTransaction> overpaidTransactions, MonetaryCurrency currency,
+            List<LoanRepaymentScheduleInstallment> installments, Set<LoanCharge> charges, ChangedTransactionDetail changedTransactionDetail,
+            MoneyHolder overpaymentHolder, ProgressiveLoanInterestScheduleModel scheduleModel) {
+        List<LoanTransaction> remainingTransactions = new ArrayList<>(overpaidTransactions);
+        TransactionCtx ctx = new ProgressiveTransactionCtx(currency, installments, charges, overpaymentHolder, changedTransactionDetail,
+                scheduleModel);
+        Money zero = Money.zero(currency);
+        for (LoanTransaction transaction : overpaidTransactions) {
+            Money overpayment = transaction.getOverPaymentPortion(currency);
+            Money ctxOverpayment = overpaymentHolder.getMoneyObject();
+            Money processAmount = MathUtil.min(ctxOverpayment, overpayment, false);
+            if (MathUtil.isEmpty(processAmount)) {
+                continue;
+            }
+
+            LoanTransaction processTransaction = transaction;
+            boolean isNew = transaction.getId() == null;
+            if (!isNew) {
+                processTransaction = transaction.copyTransactionPropertiesAndMappings();
+                ctx.getChangedTransactionDetail().getCurrentTransactionToOldId().put(processTransaction, transaction.getId());
+            }
+            processTransaction.setOverPayments(overpayment = MathUtil.minus(overpayment, processAmount));
+            overpaymentHolder.setMoneyObject(ctxOverpayment = MathUtil.minus(ctxOverpayment, processAmount));
+
+            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
+            Balances balances = new Balances(zero, zero, zero, zero);
+
+            Money unprocessed = processPeriods(processTransaction, processAmount, charges, transactionMappings, balances, ctx);
+
+            processTransaction.setOverPayments(MathUtil.plus(overpayment, unprocessed));
+            overpaymentHolder.setMoneyObject(MathUtil.plus(ctxOverpayment, unprocessed));
+
+            processTransaction.updateComponents(balances.getAggregatedPrincipalPortion(), balances.getAggregatedInterestPortion(),
+                    balances.getAggregatedFeeChargesPortion(), balances.getAggregatedPenaltyChargesPortion());
+            processTransaction.addLoanTransactionToRepaymentScheduleMappings(transactionMappings);
+
+            if (processTransaction.isInterestWaiver()) {
+                processTransaction.adjustInterestComponent(currency);
+            }
+            if (isNew) {
+                processTransaction = checkRegisteredNewTransaction(transaction, ctx);
+            } else {
+                processTransaction = updateOrRegisterNewTransaction(transaction, processTransaction, ctx);
+            }
+            remainingTransactions.remove(transaction);
+            if (processTransaction.isOverPaid()) {
+                remainingTransactions.add(processTransaction);
+                break;
+            }
        }
+        return remainingTransactions;
+    }
+
+    private LoanTransaction checkRegisteredNewTransaction(LoanTransaction newTransaction, TransactionCtx ctx) {
+        ChangedTransactionDetail changedTransactionDetail = ctx.getChangedTransactionDetail();
+        Long oldTransactionId = changedTransactionDetail.getCurrentTransactionToOldId().get(newTransaction);
+        if (oldTransactionId != null) {
+            LoanTransaction oldTransaction = newTransaction.getLoan().getLoanTransaction(e -> oldTransactionId.equals(e.getId()));
+            LoanTransaction applicableTransaction = useOldTransactionIfApplicable(oldTransaction, newTransaction, ctx);
+            if (applicableTransaction != null) {
+                return applicableTransaction;
+            }
+        }
+        return newTransaction;
+    }
+
+    private LoanTransaction updateOrRegisterNewTransaction(LoanTransaction oldTransaction, LoanTransaction newTransaction,
+            TransactionCtx ctx) {
+        LoanTransaction applicableTransaction = useOldTransactionIfApplicable(oldTransaction, newTransaction, ctx);
+        if (applicableTransaction != null) {
+            return applicableTransaction;
+        }
+
+        newTransaction.copyLoanTransactionRelations(oldTransaction.getLoanTransactionRelations());
+
+        ChangedTransactionDetail changedTransactionDetail = ctx.getChangedTransactionDetail();
+        changedTransactionDetail.getNewTransactionMappings().put(oldTransaction.getId(), newTransaction);
+        changedTransactionDetail.getCurrentTransactionToOldId().put(newTransaction, oldTransaction.getId());
+        return newTransaction;
+    }
+
+    @Nullable
+    private static LoanTransaction useOldTransactionIfApplicable(LoanTransaction oldTransaction, LoanTransaction newTransaction,
+            TransactionCtx ctx) {
+        MonetaryCurrency currency = ctx.getCurrency();
+        ChangedTransactionDetail changedTransactionDetail = ctx.getChangedTransactionDetail();
+        Map<Long, LoanTransaction> newTransactionMappings = changedTransactionDetail.getNewTransactionMappings();
+        /*
+         * Check if the transaction amounts have changed or was there any transaction for the same date which was
+         * reverse-replayed. If so, reverse the original transaction and update changedTransactionDetail accordingly to
+         * keep the original order of the transactions.
+         */
+        boolean alreadyProcessed = newTransactionMappings.values().stream()
+                .anyMatch(lt -> !lt.equals(newTransaction) && lt.getTransactionDate().equals(oldTransaction.getTransactionDate()));
+        boolean amountMatch = LoanTransaction.transactionAmountsMatch(currency, oldTransaction, newTransaction);
+        if (!alreadyProcessed && amountMatch) {
+            if (!oldTransaction.getTypeOf().isWaiveCharges()) { // WAIVE_CHARGES is not reprocessed
+                oldTransaction
+                        .updateLoanTransactionToRepaymentScheduleMappings(newTransaction.getLoanTransactionToRepaymentScheduleMappings());
+                oldTransaction.updateLoanChargePaidMappings(newTransaction.getLoanChargesPaid());
+            }
+            changedTransactionDetail.getCurrentTransactionToOldId().remove(newTransaction);
+            newTransactionMappings.remove(oldTransaction.getId());
+            return oldTransaction;
+        }
+        return null;
+    }
+
+    protected void createNewTransaction(LoanTransaction oldTransaction, LoanTransaction newTransaction, TransactionCtx ctx) {
+        oldTransaction.updateExternalId(null);
+        oldTransaction.getLoanChargesPaid().clear();
+        // Adding Replayed relation from newly created transaction to reversed transaction
+        oldTransaction.getLoanTransactionRelations()
+                .add(LoanTransactionRelation.linkToTransaction(newTransaction, oldTransaction, LoanTransactionRelationTypeEnum.REPLAYED));
+
+        // if chargeback is getting reverse-replayed, find the original transaction with CHARGEBACK relation and point
+        // the relation to the new chargeback transaction
+        if (oldTransaction.getTypeOf().isChargeback()) {
+            LoanTransaction originalTransaction = findChargebackOriginalTransaction(newTransaction, ctx);
+            Set<LoanTransactionRelation> relations = originalTransaction.getLoanTransactionRelations();
+            List<LoanTransactionRelation> oldChargebackRelations = originalTransaction.getLoanTransactionRelations(
+                    e -> CHARGEBACK.equals(e.getRelationType()) && e.getToTransaction().equals(oldTransaction));
+            oldChargebackRelations.forEach(relations::remove);
+            relations.add(LoanTransactionRelation.linkToTransaction(originalTransaction, newTransaction, CHARGEBACK));
+        }
+        oldTransaction.reverse();
    }

    private void processSingleCharge(LoanCharge loanCharge, MonetaryCurrency currency, List<LoanRepaymentScheduleInstallment> installments,
@@ -738,32 +850,21 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
    }

    private void allocateOverpayment(LoanTransaction loanTransaction, TransactionCtx transactionCtx) {
-        if (transactionCtx.getOverpaymentHolder().getMoneyObject().isGreaterThanZero()) {
-            if (transactionCtx.getOverpaymentHolder().getMoneyObject()
-                    .isGreaterThan(loanTransaction.getAmount(transactionCtx.getCurrency()))) {
-                loanTransaction.setOverPayments(loanTransaction.getAmount(transactionCtx.getCurrency()));
-            } else {
-                loanTransaction.setOverPayments(transactionCtx.getOverpaymentHolder().getMoneyObject());
-            }
-            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
-            List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
-            LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                    .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
+        MoneyHolder overpaymentHolder = transactionCtx.getOverpaymentHolder();
+        Money overpayment = overpaymentHolder.getMoneyObject();
+        if (overpayment.isGreaterThanZero()) {
+            MonetaryCurrency currency = transactionCtx.getCurrency();
+            Money transactionAmount = loanTransaction.getAmount(currency);
+            loanTransaction.setOverPayments(MathUtil.min(transactionAmount, overpayment, false));

-            Money transactionAmountUnprocessed = transactionCtx.getOverpaymentHolder().getMoneyObject();
-            Money zero = Money.zero(transactionCtx.getCurrency());
+            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
+            Money zero = Money.zero(currency);
            Balances balances = new Balances(zero, zero, zero, zero);
-            if (LoanScheduleProcessingType.HORIZONTAL
-                    .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
-                transactionAmountUnprocessed = processPeriodsHorizontally(loanTransaction, transactionCtx, transactionAmountUnprocessed,
-                        defaultPaymentAllocationRule, transactionMappings, Set.of(), balances);
-            } else if (LoanScheduleProcessingType.VERTICAL
-                    .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
-                transactionAmountUnprocessed = processPeriodsVertically(loanTransaction, transactionCtx.getCurrency(),
-                        transactionCtx.getInstallments(), transactionAmountUnprocessed, defaultPaymentAllocationRule, transactionMappings,
-                        Set.of(), balances);
-            }
-            transactionCtx.getOverpaymentHolder().setMoneyObject(transactionAmountUnprocessed);
+            LoanPaymentAllocationRule defaultAllocationRule = getDefaultAllocationRule(loanTransaction.getLoan());
+            Money transactionAmountUnprocessed = processPeriods(loanTransaction, overpayment, defaultAllocationRule, Set.of(),
+                    transactionMappings, balances, transactionCtx);
+
+            overpaymentHolder.setMoneyObject(transactionAmountUnprocessed);
            loanTransaction.updateLoanTransactionToRepaymentScheduleMappings(transactionMappings);
        }
    }
@@ -811,7 +912,6 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep

    private void adjustOverduePrincipalForInstallment(LocalDate currentDate, boolean isLastRecalculation,
            LoanRepaymentScheduleInstallment currentInstallment, Money overduePrincipal, ProgressiveTransactionCtx ctx) {
-
        LocalDate fromDate = currentInstallment.getFromDate();
        boolean hasUpdate = false;

@@ -1209,27 +1309,12 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
    }

    private void processTransaction(LoanTransaction loanTransaction, TransactionCtx transactionCtx, Money transactionAmountUnprocessed) {
-        Money zero = Money.zero(transactionCtx.getCurrency());
        List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
-
-        List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
-        LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
-        LoanPaymentAllocationRule paymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> loanTransaction.getTypeOf().equals(e.getTransactionType().getLoanTransactionType())).findFirst()
-                .orElse(defaultPaymentAllocationRule);
+        Money zero = Money.zero(transactionCtx.getCurrency());
        Balances balances = new Balances(zero, zero, zero, zero);
+        transactionAmountUnprocessed = processPeriods(loanTransaction, transactionAmountUnprocessed, transactionCtx.getCharges(),
+                transactionMappings, balances, transactionCtx);

-        if (LoanScheduleProcessingType.HORIZONTAL
-                .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
-            transactionAmountUnprocessed = processPeriodsHorizontally(loanTransaction, transactionCtx, transactionAmountUnprocessed,
-                    paymentAllocationRule, transactionMappings, transactionCtx.getCharges(), balances);
-        } else if (LoanScheduleProcessingType.VERTICAL
-                .equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getLoanScheduleProcessingType())) {
-            transactionAmountUnprocessed = processPeriodsVertically(loanTransaction, transactionCtx.getCurrency(),
-                    transactionCtx.getInstallments(), transactionAmountUnprocessed, paymentAllocationRule, transactionMappings,
-                    transactionCtx.getCharges(), balances);
-        }
        loanTransaction.updateComponents(balances.getAggregatedPrincipalPortion(), balances.getAggregatedInterestPortion(),
                balances.getAggregatedFeeChargesPortion(), balances.getAggregatedPenaltyChargesPortion());
        loanTransaction.updateLoanTransactionToRepaymentScheduleMappings(transactionMappings);
@@ -1237,6 +1322,29 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
        handleOverpayment(transactionAmountUnprocessed, loanTransaction, transactionCtx.getOverpaymentHolder());
    }

+    private Money processPeriods(LoanTransaction transaction, Money processAmount, Set<LoanCharge> charges,
+            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings, Balances balances, TransactionCtx transactionCtx) {
+        LoanPaymentAllocationRule allocationRule = getAllocationRule(transaction);
+        return processPeriods(transaction, processAmount, allocationRule, charges, transactionMappings, balances, transactionCtx);
+    }
+
+    private Money processPeriods(LoanTransaction transaction, Money processAmount, LoanPaymentAllocationRule allocationRule,
+            Set<LoanCharge> charges, List<LoanTransactionToRepaymentScheduleMapping> transactionMappings, Balances balances,
+            TransactionCtx transactionCtx) {
+        MonetaryCurrency currency = transactionCtx.getCurrency();
+        LoanScheduleProcessingType scheduleProcessingType = transaction.getLoan().getLoanProductRelatedDetail()
+                .getLoanScheduleProcessingType();
+        if (scheduleProcessingType.isHorizontal()) {
+            return processPeriodsHorizontally(transaction, transactionCtx, processAmount, allocationRule, transactionMappings, charges,
+                    balances);
+        }
+        if (scheduleProcessingType.isVertical()) {
+            return processPeriodsVertically(transaction, currency, transactionCtx.getInstallments(), processAmount, allocationRule,
+                    transactionMappings, charges, balances);
+        }
+        return processAmount;
+    }
+
    private Money processPeriodsHorizontally(LoanTransaction loanTransaction, TransactionCtx transactionCtx,
            Money transactionAmountUnprocessed, LoanPaymentAllocationRule paymentAllocationRule,
            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings, Set<LoanCharge> charges, Balances balances) {
@@ -1606,4 +1714,17 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
            default -> throw new UnsupportedOperationException(reAgeParameter.getFrequencyType().getCode());
        };
    }
+
+    @NotNull
+    public static LoanPaymentAllocationRule getAllocationRule(LoanTransaction loanTransaction) {
+        Loan loan = loanTransaction.getLoan();
+        return loan.getPaymentAllocationRules().stream()
+                .filter(e -> loanTransaction.getTypeOf() == e.getTransactionType().getLoanTransactionType()).findFirst()
+                .orElse(getDefaultAllocationRule(loan));
+    }
+
+    @NotNull
+    public static LoanPaymentAllocationRule getDefaultAllocationRule(Loan loan) {
+        return loan.getPaymentAllocationRules().stream().filter(e -> e.getTransactionType().isDefault()).findFirst().orElseThrow();
+    }
 }
@@ -23,6 +23,7 @@ import java.time.LocalDate;
 import java.time.OffsetDateTime;
 import java.util.Optional;
 import lombok.Getter;
+import org.apache.fineract.infrastructure.core.service.DateUtils;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
 import org.jetbrains.annotations.NotNull;
@@ -43,6 +44,14 @@ public class ChargeOrTransaction implements Comparable<ChargeOrTransaction> {
        this.loanCharge = Optional.empty();
    }

+    public boolean isTransaction() {
+        return loanTransaction.isPresent();
+    }
+
+    public boolean isCharge() {
+        return loanCharge.isPresent();
+    }
+
    private LocalDate getEffectiveDate() {
        if (loanCharge.isPresent()) {
            if (isBackdatedCharge()) {
@@ -58,11 +67,11 @@ public class ChargeOrTransaction implements Comparable<ChargeOrTransaction> {
    }

    private boolean isAccrualActivity() {
-        return loanTransaction.isPresent() && loanTransaction.get().isAccrualActivity();
+        return isTransaction() && loanTransaction.get().isAccrualActivity();
    }

    private boolean isBackdatedCharge() {
-        return loanCharge.get().getDueDate().isBefore(loanCharge.get().getSubmittedOnDate());
+        return isCharge() && DateUtils.isBefore(loanCharge.get().getDueDate(), loanCharge.get().getSubmittedOnDate());
    }

    private LocalDate getSubmittedOnDate() {
@@ -88,17 +97,15 @@ public class ChargeOrTransaction implements Comparable<ChargeOrTransaction> {
    @Override
    @SuppressFBWarnings(value = "EQ_COMPARETO_USE_OBJECT_EQUALS", justification = "TODO: fix this! See: https://stackoverflow.com/questions/2609037/findbugs-how-to-solve-eq-compareto-use-object-equals")
    public int compareTo(@NotNull ChargeOrTransaction o) {
-        int datePortion = this.getEffectiveDate().compareTo(o.getEffectiveDate());
+        int datePortion = DateUtils.compare(this.getEffectiveDate(), o.getEffectiveDate());
        if (datePortion == 0) {
-            if (this.isAccrualActivity() && !o.isAccrualActivity()) {
-                return 1;
+            boolean isAccrual = isAccrualActivity();
+            if (isAccrual != o.isAccrualActivity()) {
+                return isAccrual ? 1 : -1;
            }
-            if (!this.isAccrualActivity() && o.isAccrualActivity()) {
-                return -1;
-            }
-            int submittedDate = this.getSubmittedOnDate().compareTo(o.getSubmittedOnDate());
+            int submittedDate = DateUtils.compare(getSubmittedOnDate(), o.getSubmittedOnDate());
            if (submittedDate == 0) {
-                return this.getCreatedDateTime().compareTo(o.getCreatedDateTime());
+                return DateUtils.compare(getCreatedDateTime(), o.getCreatedDateTime());
            }
            return submittedDate;
        }
@@ -252,7 +252,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
        assertEquals(0, chargeAmount.compareTo(installment.getFeeChargesCharged(currency).getAmount()));
        assertEquals(0, BigDecimal.ZERO.compareTo(installment.getFeeChargesOutstanding(currency).getAmount()));
        assertEquals(0, BigDecimal.valueOf(80).compareTo(installment.getPrincipalOutstanding(currency).getAmount()));
-        Mockito.verify(loan, times(1)).getPaymentAllocationRules();
+        Mockito.verify(loan, times(2)).getPaymentAllocationRules();
    }

    @Test
@@ -531,7 +531,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
        TransactionCtx ctx = mock(TransactionCtx.class);

        // when
-        LoanTransaction originalTransaction = underTest.findOriginalTransaction(chargebackTransaction, ctx);
+        LoanTransaction originalTransaction = underTest.findChargebackOriginalTransaction(chargebackTransaction, ctx);

        // then
        Assertions.assertEquals(originalTransaction, repayment2);
@@ -554,7 +554,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {

        // when + then
        RuntimeException runtimeException = Assertions.assertThrows(RuntimeException.class,
-                () -> underTest.findOriginalTransaction(chargebackTransaction, ctx));
+                () -> underTest.findChargebackOriginalTransaction(chargebackTransaction, ctx));
        Assertions.assertEquals("Chargeback transaction must have an original transaction", runtimeException.getMessage());
    }

@@ -580,7 +580,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
        when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of(122L, repayment1, 121L, repayment2));

        // when
-        LoanTransaction originalTransaction = underTest.findOriginalTransaction(chargebackReplayed, ctx);
+        LoanTransaction originalTransaction = underTest.findChargebackOriginalTransaction(chargebackReplayed, ctx);

        // then
        Assertions.assertEquals(originalTransaction, repayment2);
@@ -611,7 +611,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
        when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of());

        // when
-        LoanTransaction originalTransaction = underTest.findOriginalTransaction(chargebackReplayed, ctx);
+        LoanTransaction originalTransaction = underTest.findChargebackOriginalTransaction(chargebackReplayed, ctx);

        // then
        Assertions.assertEquals(originalTransaction, repayment2);
@@ -209,29 +209,34 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
        boolean isAppliedOnBackDate = false;
        LoanCharge loanCharge = null;
        LocalDate recalculateFrom = loan.fetchInterestRecalculateFromDate();
+        LocalDate transactionDate = null;
        if (chargeDefinition.isPercentageOfDisbursementAmount()) {
            LoanTrancheDisbursementCharge loanTrancheDisbursementCharge;
            ExternalId externalId = externalIdFactory.createFromCommand(command, "externalId");
-            boolean needToGenerateNewExternalId = false;
+            boolean isFirst = true;
            for (LoanDisbursementDetails disbursementDetail : loanDisburseDetails) {
                if (disbursementDetail.actualDisbursementDate() == null) {
                    // If multiple charges to be applied, only the first one will get the provided externalId, for the
                    // rest we generate new ones (if needed)
-                    if (needToGenerateNewExternalId) {
+                    if (!isFirst) {
                        externalId = externalIdFactory.create();
                    }
+                    LocalDate dueDate = disbursementDetail.expectedDisbursementDateAsLocalDate();
                    loanCharge = loanChargeAssembler.createNewWithoutLoan(chargeDefinition, disbursementDetail.principal(), null, null,
-                            null, disbursementDetail.expectedDisbursementDateAsLocalDate(), null, null, externalId);
+                            null, dueDate, null, null, externalId);
                    loanTrancheDisbursementCharge = new LoanTrancheDisbursementCharge(loanCharge, disbursementDetail);
                    loanCharge.updateLoanTrancheDisbursementCharge(loanTrancheDisbursementCharge);
                    businessEventNotifierService.notifyPreBusinessEvent(new LoanAddChargeBusinessEvent(loanCharge));
                    validateAddLoanCharge(loan, chargeDefinition, loanCharge);
                    addCharge(loan, chargeDefinition, loanCharge);
                    isAppliedOnBackDate = true;
-                    if (DateUtils.isAfter(recalculateFrom, disbursementDetail.expectedDisbursementDateAsLocalDate())) {
-                        recalculateFrom = disbursementDetail.expectedDisbursementDateAsLocalDate();
+                    if (DateUtils.isAfter(recalculateFrom, dueDate)) {
+                        recalculateFrom = dueDate;
                    }
-                    needToGenerateNewExternalId = true;
+                    if (isFirst) {
+                        transactionDate = loanCharge.getEffectiveDueDate();
+                    }
+                    isFirst = false;
                }
            }
            if (loanCharge == null) {
@@ -246,35 +251,38 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo

            validateAddLoanCharge(loan, chargeDefinition, loanCharge);
            isAppliedOnBackDate = addCharge(loan, chargeDefinition, loanCharge);
-            if (loanCharge.getDueLocalDate() == null || DateUtils.isAfter(recalculateFrom, loanCharge.getDueLocalDate())) {
+            if (DateUtils.isAfter(recalculateFrom, loanCharge.getDueLocalDate())) {
                isAppliedOnBackDate = true;
                recalculateFrom = loanCharge.getDueLocalDate();
            }
+            transactionDate = loanCharge.getEffectiveDueDate();
        }

        boolean reprocessRequired = true;
-        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
+        // overpaid transactions will be reprocessed and pay this charge
+        boolean overpaidReprocess = !loanCharge.isDueAtDisbursement() && !loanCharge.isPaid() && loan.getStatus().isOverpaid();
+        if (!overpaidReprocess && loan.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
            if (isAppliedOnBackDate && loan.isFeeCompoundingEnabledForInterestRecalculation()) {
-
                loan = runScheduleRecalculation(loan, recalculateFrom);
                reprocessRequired = false;
            }
            this.loanWritePlatformService.updateOriginalSchedule(loan);
        }
-        // [For Adv payment allocation strategy] check if charge due date is earlier than last transaction
-        // date, if yes trigger reprocess else no reprocessing
-        if (AdvancedPaymentScheduleTransactionProcessor.ADVANCED_PAYMENT_ALLOCATION_STRATEGY.equals(loan.transactionProcessingStrategy())) {
+        if (!overpaidReprocess && AdvancedPaymentScheduleTransactionProcessor.ADVANCED_PAYMENT_ALLOCATION_STRATEGY
+                .equals(loan.transactionProcessingStrategy())) {
+            // [For Adv payment allocation strategy] check if charge due date is earlier than last transaction
+            // date, if yes trigger reprocess else no reprocessing
            LoanTransaction lastPaymentTransaction = loan.getLastTransactionForReprocessing();
-            if (lastPaymentTransaction != null) {
-                if (loanCharge.getEffectiveDueDate() != null
-                        && DateUtils.isAfter(loanCharge.getEffectiveDueDate(), lastPaymentTransaction.getTransactionDate())) {
-                    reprocessRequired = false;
-                }
+            if (lastPaymentTransaction != null
+                    && DateUtils.isAfter(loanCharge.getEffectiveDueDate(), lastPaymentTransaction.getTransactionDate())) {
+                reprocessRequired = false;
            }
        }

        if (reprocessRequired) {
-            ChangedTransactionDetail changedTransactionDetail = loan.reprocessTransactions();
+            ChangedTransactionDetail changedTransactionDetail = overpaidReprocess
+                    ? loan.reprocessTransactionsWithPostTransactionChecks(transactionDate)
+                    : loan.reprocessTransactions();
            if (changedTransactionDetail != null) {
                for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
                    loanAccountDomainService.saveLoanTransactionWithDataIntegrityViolationChecks(mapEntry.getValue());
@@ -284,7 +292,6 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
                replayedTransactionBusinessEventService.raiseTransactionReplayedEvents(changedTransactionDetail);
            }
            loan = loanAccountDomainService.saveAndFlushLoanWithDataIntegrityViolationChecks(loan);
-
        }

        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds);
@@ -1355,7 +1355,7 @@ public class ClientLoanIntegrationTest {
     * amount
     */
    @Test
-    public void loanWithCahargesOfTypeAmountPercentageAndCashBasedAccountingEnabled() {
+    public void loanWithChargesOfTypeAmountPercentageAndCashBasedAccountingEnabled() {

        final Integer clientID = ClientHelper.createClient(REQUEST_SPEC, RESPONSE_SPEC);
        ClientHelper.verifyClientCreatedOnServer(REQUEST_SPEC, RESPONSE_SPEC, clientID);