diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/AbstractLoanRepaymentScheduleTransactionProcessor.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/AbstractLoanRepaymentScheduleTransactionProcessor.java
index a6e62ea25..7412242bc 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/AbstractLoanRepaymentScheduleTransactionProcessor.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/AbstractLoanRepaymentScheduleTransactionProcessor.java
@@ -60,18 +60,27 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
                     handleTransaction(loanTransaction, currency, installments, charges);
                 } else {
                     /**
-                     * reverse existing transactions and create new transactions
-                     * in their Lieu
+                     * For existing transactions, check if the re-payment
+                     * breakup (principal, interest, fees, penalties) has
+                     * changed.<br>
                      **/
                     LoanTransaction newLoanTransaction = LoanTransaction.copyTransactionProperties(loanTransaction);
 
-                    // Reverse the original loan transaction
-                    loanTransaction.reverse();
-                    changedTransactionDetail.getReversedTransactions().add(loanTransaction);
-                    // Reset derived component of new loan transaction
+                    // Reset derived component of new loan transaction and
+                    // re-process transaction
                     newLoanTransaction.resetDerivedComponents();
-                    changedTransactionDetail.getNewTransactions().add(newLoanTransaction);
                     handleTransaction(newLoanTransaction, currency, installments, charges);
+
+                    /**
+                     * Check if the transaction amounts have changed. If so,
+                     * reverse the original transaction and update
+                     * changedTransactionDetail accordingly
+                     **/
+                    if (!LoanTransaction.transactionAmountsMatch(currency, loanTransaction, newLoanTransaction)) {
+                        loanTransaction.reverse();
+                        changedTransactionDetail.getReversedTransactions().add(loanTransaction);
+                        changedTransactionDetail.getNewTransactions().add(newLoanTransaction);
+                    }
                 }
 
             } else if (loanTransaction.isWriteOff()) {
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/ChangedTransactionDetail.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/ChangedTransactionDetail.java
index db73b3ec0..576fb115c 100755
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/ChangedTransactionDetail.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/ChangedTransactionDetail.java
@@ -3,6 +3,12 @@ package org.mifosplatform.portfolio.loanaccount.domain;
 import java.util.ArrayList;
 import java.util.List;
 
+/**
+ * Stores details of {@link LoanTransaction}'s that were reversed or newly
+ * created
+ * 
+ * 
+ */
 public class ChangedTransactionDetail {
 
     private List<LoanTransaction> newTransactions = new ArrayList<LoanTransaction>();
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
index 50e0e23c2..72fd18df4 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
@@ -520,6 +520,14 @@ public class Loan extends AbstractPersistable<Long> {
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategy);
         if (!loanCharge.isDueAtDisbursement() && loanCharge.isPaidOrPartiallyPaid(loanCurrency())) {
+            /****
+             * TODO Vishwas Currently we do not allow removing a loan charge
+             * after a loan is approved (hence there is no need to adjust any
+             * loan transactions).
+             * 
+             * Consider removing this block of code or logically completing it
+             * for the future by getting the list of affected Transactions
+             ***/
             final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retreiveListOfTransactionsPostDisbursement();
             loanRepaymentScheduleTransactionProcessor.handleTransaction(getDisbursementDate(), allNonContraTransactionsPostDisbursement,
                     getCurrency(), this.repaymentScheduleInstallments, setOfLoanCharges());
@@ -570,6 +578,14 @@ public class Loan extends AbstractPersistable<Long> {
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategy);
         if (!loanCharge.isDueAtDisbursement()) {
+            /****
+             * TODO Vishwas Currently we do not allow waiving updating loan
+             * charge after a loan is approved (hence there is no need to adjust
+             * any loan transactions).
+             * 
+             * Consider removing this block of code or logically completing it
+             * for the future by getting the list of affected Transactions
+             ***/
             final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retreiveListOfTransactionsPostDisbursement();
             loanRepaymentScheduleTransactionProcessor.handleTransaction(getDisbursementDate(), allNonContraTransactionsPostDisbursement,
                     getCurrency(), this.repaymentScheduleInstallments, setOfLoanCharges());
@@ -619,7 +635,7 @@ public class Loan extends AbstractPersistable<Long> {
                 .determineProcessor(this.transactionProcessingStrategy);
         if (!loanCharge.isDueAtDisbursement() && loanCharge.isPaidOrPartiallyPaid(loanCurrency())) {
             /****
-             * TODO vishwas Currently we do not allow waiving fully paid loan
+             * TODO Vishwas Currently we do not allow waiving fully paid loan
              * charge and waiving partially paid loan charges only waives the
              * remaining amount.
              * 
@@ -717,6 +733,15 @@ public class Loan extends AbstractPersistable<Long> {
 
         // if the loan application/contract is modified when repayments are
         // already against it - then need to re-process it
+
+        /****
+         * TODO Vishwas Currently we do not allow modifying a Loan contract once
+         * the loan is approved (hence there is no need to adjust any loan
+         * transactions).
+         * 
+         * Consider removing this block of code or logically completing it for
+         * the future by getting the list of affected Transactions
+         ***/
         final List<LoanTransaction> repaymentsOrWaivers = retreiveListOfTransactionsPostDisbursement();
 
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
@@ -1390,21 +1415,17 @@ public class Loan extends AbstractPersistable<Long> {
         updateLoanSummaryDerivedFields();
     }
 
-    public LoanTransaction waiveInterest(final JsonCommand command, final LoanLifecycleStateMachine loanLifecycleStateMachine,
-            final List<Long> existingTransactionIds, final List<Long> existingReversedTransactionIds) {
-
-        final LocalDate transactionDate = command.localDateValueOfParameterNamed("transactionDate");
-        final BigDecimal transactionAmount = command.bigDecimalValueOfParameterNamed("transactionAmount");
-
-        final Money amountToWaive = Money.of(loanCurrency(), transactionAmount);
-        final LoanTransaction waiveInterestTransaction = LoanTransaction.waiver(this, amountToWaive, transactionDate);
+    public ChangedTransactionDetail waiveInterest(final LoanTransaction waiveInterestTransaction,
+            final LoanLifecycleStateMachine loanLifecycleStateMachine, final List<Long> existingTransactionIds,
+            final List<Long> existingReversedTransactionIds) {
 
         existingTransactionIds.addAll(findExistingTransactionIds());
         existingReversedTransactionIds.addAll(findExistingReversedTransactionIds());
 
-        handleRepaymentOrWaiverTransaction(waiveInterestTransaction, loanLifecycleStateMachine, null);
+        ChangedTransactionDetail changedTransactionDetail = handleRepaymentOrWaiverTransaction(waiveInterestTransaction,
+                loanLifecycleStateMachine, null);
 
-        return waiveInterestTransaction;
+        return changedTransactionDetail;
     }
 
     public ChangedTransactionDetail makeRepayment(final LoanTransaction repaymentTransaction,
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/LoanTransaction.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/LoanTransaction.java
index 9b4dbe03d..698f2b273 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/LoanTransaction.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/LoanTransaction.java
@@ -100,6 +100,16 @@ public final class LoanTransaction extends AbstractPersistable<Long> {
         return applyCharge;
     }
 
+    public static boolean transactionAmountsMatch(MonetaryCurrency currency, LoanTransaction loanTransaction,
+            LoanTransaction newLoanTransaction) {
+        if (loanTransaction.getAmount(currency).isEqualTo(newLoanTransaction.getAmount(currency))
+                && (loanTransaction.getPrincipalPortion(currency).isEqualTo(newLoanTransaction.getPrincipalPortion(currency)))
+                && (loanTransaction.getInterestPortion(currency).isEqualTo(newLoanTransaction.getInterestPortion(currency)))
+                && (loanTransaction.getFeeChargesPortion(currency).isEqualTo(newLoanTransaction.getFeeChargesPortion(currency)))
+                && (loanTransaction.getPenaltyChargesPortion(currency).isEqualTo(newLoanTransaction.getPenaltyChargesPortion(currency)))) { return true; }
+        return false;
+    }
+
     private LoanTransaction(Loan loan, Integer typeOf, Date dateOf, BigDecimal amount, BigDecimal principalPortion,
             BigDecimal interestPortion, BigDecimal feeChargesPortion, BigDecimal penaltyChargesPortion, boolean reversed) {
         super();
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index 147b92751..3bf6e86d5 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -292,8 +292,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
          * TODO Vishwas Batch save is giving me a
          * HibernateOptimisticLockingFailureException, looping and saving for
          * the time being, not a major issue for now as this loop is entered
-         * only in edge cases (when a payment is made before the latest payment
-         * recorded against the loan)
+         * only in edge cases (when a adjustment is made before the latest
+         * payment recorded against the loan)
          ***/
         if (changedTransactionDetail != null) {
             for (LoanTransaction loanTransaction : changedTransactionDetail.getNewTransactions()) {
@@ -336,21 +336,41 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         changes.put("transactionAmount", command.stringValueOfParameterNamed("transactionAmount"));
         changes.put("locale", command.locale());
         changes.put("dateFormat", command.dateFormat());
+        final LocalDate transactionDate = command.localDateValueOfParameterNamed("transactionDate");
+        final BigDecimal transactionAmount = command.bigDecimalValueOfParameterNamed("transactionAmount");
 
         final Loan loan = retrieveLoanBy(loanId);
 
         final List<Long> existingTransactionIds = new ArrayList<Long>();
         final List<Long> existingReversedTransactionIds = new ArrayList<Long>();
-        final LoanTransaction waiveTransaction = loan.waiveInterest(command, defaultLoanLifecycleStateMachine(), existingTransactionIds,
-                existingReversedTransactionIds);
 
-        this.loanTransactionRepository.save(waiveTransaction);
+        final Money transactionAmountAsMoney = Money.of(loan.getCurrency(), transactionAmount);
+        LoanTransaction waiveInterestTransaction = LoanTransaction.waiver(loan, transactionAmountAsMoney, transactionDate);
+
+        final ChangedTransactionDetail changedTransactionDetail = loan.waiveInterest(waiveInterestTransaction,
+                defaultLoanLifecycleStateMachine(), existingTransactionIds, existingReversedTransactionIds);
+
+        this.loanTransactionRepository.save(waiveInterestTransaction);
+
+        /***
+         * TODO Vishwas Batch save is giving me a
+         * HibernateOptimisticLockingFailureException, looping and saving for
+         * the time being, not a major issue for now as this loop is entered
+         * only in edge cases (when a waiver is made before the latest payment
+         * recorded against the loan)
+         ***/
+        if (changedTransactionDetail != null) {
+            for (LoanTransaction loanTransaction : changedTransactionDetail.getNewTransactions()) {
+                this.loanTransactionRepository.save(loanTransaction);
+            }
+        }
+
         this.loanRepository.save(loan);
 
         final String noteText = command.stringValueOfParameterNamed("note");
         if (StringUtils.isNotBlank(noteText)) {
             changes.put("note", noteText);
-            final Note note = Note.loanTransactionNote(loan, waiveTransaction, noteText);
+            final Note note = Note.loanTransactionNote(loan, waiveInterestTransaction, noteText);
             this.noteRepository.save(note);
         }
 
@@ -358,7 +378,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
         return new CommandProcessingResultBuilder() //
                 .withCommandId(command.commandId()) //
-                .withEntityId(waiveTransaction.getId()) //
+                .withEntityId(waiveInterestTransaction.getId()) //
                 .withOfficeId(loan.getOfficeId()) //
                 .withClientId(loan.getClientId()) //
                 .withGroupId(loan.getGroupId()) //