FINERACT-1971: Wrong GL entries on refund with reverse replay and charge off

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java

@@ -60,6 +60,7 @@ import java.util.Objects;
 import java.util.Optional;
 import java.util.Set;
 import java.util.function.Predicate;
+import java.util.stream.Collectors;
 import lombok.Getter;
 import lombok.Setter;
 import org.apache.commons.lang3.StringUtils;
@@ -4329,18 +4330,39 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom {
         LoanTransaction chargeOffTransaction = this.loanTransactions.stream().filter(LoanTransaction::isChargeOff)
                 .filter(LoanTransaction::isNotReversed).findFirst().get();
 
+        LoanTransaction originalChargeOffTransaction = getOriginalTransactionIfReverseReplayed(chargeOffTransaction);
+
         this.loanTransactions.stream().filter(chargeOffDateCriteria).forEach(transaction -> {
             boolean isExistingTransaction = existingTransactionIds.contains(transaction.getId());
             boolean isExistingReversedTransaction = existingReversedTransactionIds.contains(transaction.getId());
-            List<Map<String, Object>> targetList = (transaction.getId().compareTo(chargeOffTransaction.getId()) < 0)
+            List<Map<String, Object>> targetList = null;
-                    ? newLoanTransactionsBeforeChargeOff
+            if ((transaction.isReversed() && isExistingTransaction && !isExistingReversedTransaction)) {
-                    : newLoanTransactionsAfterChargeOff;
+                // reversed transactions
-            if ((transaction.isReversed() && isExistingTransaction && !isExistingReversedTransaction) || !isExistingTransaction) {
+                LoanTransaction originalTransaction = getOriginalTransactionIfReverseReplayed(transaction);
+                targetList = originalTransaction.happenedBefore(originalChargeOffTransaction) ? newLoanTransactionsBeforeChargeOff
+                        : newLoanTransactionsAfterChargeOff;
+
+            } else if (!isExistingTransaction) {
+                // new and replayed transactions
+                targetList = transaction.happenedBefore(chargeOffTransaction) ? newLoanTransactionsBeforeChargeOff
+                        : newLoanTransactionsAfterChargeOff;
+            }
+            if (targetList != null) {
                 targetList.add(transaction.toMapData(currencyCode));
             }
         });
     }
 
+    private LoanTransaction getOriginalTransactionIfReverseReplayed(LoanTransaction loanTransaction) {
+        if (!loanTransaction.getLoanTransactionRelations().isEmpty()) {
+            return loanTransaction.getLoanTransactionRelations().stream()
+                    .filter(tr -> LoanTransactionRelationTypeEnum.REPLAYED.equals(tr.getRelationType())).map(tr -> tr.getToTransaction())
+                    .collect(Collectors.toList()).stream().sorted(Comparator.comparingLong(LoanTransaction::getId)).findFirst()
+                    .orElse(loanTransaction);
+        }
+        return loanTransaction;
+    }
+
     public Map<String, Object> deriveAccountingBridgeData(final String currencyCode, final List<Long> existingTransactionIds,
             final List<Long> existingReversedTransactionIds, boolean isAccountTransfer) {
 

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanTransaction.java

@@ -1016,6 +1016,25 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom {
         this.loanReAgeParameter = loanReAgeParameter;
     }
 
+    public boolean happenedBefore(LoanTransaction loanTransaction) {
+        // compare transaction date, creation date and then transaction id
+        if (DateUtils.isBefore(getTransactionDate(), loanTransaction.getTransactionDate())) {
+            return true;
+        }
+        if (DateUtils.isEqual(getTransactionDate(), loanTransaction.getTransactionDate())) {
+            if (DateUtils.isBefore(getCreatedDateTime(), loanTransaction.getCreatedDateTime())) {
+                return true;
+            }
+            if (DateUtils.isEqual(getCreatedDateTime(), loanTransaction.getCreatedDateTime())) {
+                if (getId().compareTo(loanTransaction.getId()) < 0) {
+                    return true;
+                }
+            }
+        }
+
+        return false;
+    }
+
     // TODO missing hashCode(), equals(Object obj), but probably OK as long as
     // this is never stored in a Collection.
 }

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

@@ -0,0 +1,215 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.integrationtests;
+
+import java.math.BigDecimal;
+import java.util.List;
+import java.util.UUID;
+import org.apache.commons.lang3.tuple.Pair;
+import org.apache.fineract.client.models.PostLoanProductsRequest;
+import org.apache.fineract.client.models.PostLoanProductsResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsRequest;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsTransactionIdRequest;
+import org.apache.fineract.integrationtests.common.ClientHelper;
+import org.apache.fineract.integrationtests.common.products.DelinquencyBucketsHelper;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanStatus;
+import org.junit.jupiter.api.Test;
+
+public class LoanChargeOffAccountingEntriesForReverseReplayedTransactionsTest extends BaseLoanIntegrationTest {
+
+    @Test
+    public void testJournalEntriesForChargeOffLoanWithMultipleReverseReplay() {
+        runAt("24 May 2024", () -> {
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+
+            // Create DelinquencyBuckets
+            Integer delinquencyBucketId = DelinquencyBucketsHelper.createDelinquencyBucket(requestSpec, responseSpec, List.of(//
+                    Pair.of(1, 10), //
+                    Pair.of(11, 30), //
+                    Pair.of(31, 60), //
+                    Pair.of(61, null)//
+            ));
+
+            // create loan product
+            PostLoanProductsRequest loanProductsRequest = createOnePeriod30DaysLongNoInterestPeriodicAccrualProduct().numberOfRepayments(3)//
+                    .repaymentEvery(15)//
+                    .repaymentFrequencyType(RepaymentFrequencyType.DAYS.longValue())//
+                    .disallowExpectedDisbursements(true)//
+                    .multiDisburseLoan(true)//
+                    .enableDownPayment(true)//
+                    .disbursedAmountPercentageForDownPayment(BigDecimal.valueOf(25.0))//
+                    .enableAutoRepaymentForDownPayment(true);
+
+            loanProductsRequest.setDelinquencyBucketId(delinquencyBucketId.longValue());
+
+            PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(loanProductsRequest);
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductResponse.getResourceId(), "24 May 2024", 1000.0, 3);
+
+            // disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(200), "24 May 2024");
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(50.0, "Down Payment", "24 May 2024"), //
+                    transaction(200.0, "Disbursement", "24 May 2024") //
+            );
+
+            // set business date 25 May
+            updateBusinessDate("25 May 2024");
+
+            // reverse downpayment transaction
+            Long downPaymentTransactionId = getTransactionId(loanId, "Down Payment", "24 May 2024");
+            loanTransactionHelper.reverseLoanTransaction(loanId, downPaymentTransactionId,
+                    new PostLoansLoanIdTransactionsTransactionIdRequest().dateFormat(DATETIME_PATTERN).transactionDate("25 May 2024")
+                            .transactionAmount(0.0).locale("en"));
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true) //
+            );
+
+            // set business date 26 May
+            updateBusinessDate("26 May 2024");
+            // charge-off loan
+            Long chargeOffTransactionId = chargeOffLoan(loanId, "26 May 2024");
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(200.0, "Charge-off", "26 May 2024", 0.0, 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, false) //
+            );
+
+            // make backdated repayment on 25 May
+            Long repaymentTransactionId = addRepaymentForLoan(loanId, 10.0, "25 May 2024");
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(10.0, "Repayment", "25 May 2024", 190.0, 10.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(190.0, "Charge-off", "26 May 2024", 0.0, 190.0, 0.0, 0.0, 0.0, 0.0, 0.0, false));
+
+            // make refund on 26 May equal to disbursal amount
+            String merchantIssuedRefundExternalId = UUID.randomUUID().toString();
+            Long merchantIssuedRefundId = loanTransactionHelper.makeMerchantIssuedRefund(loanId,
+                    new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("26 May 2024").locale("en")
+                            .transactionAmount(200.0).externalId(merchantIssuedRefundExternalId))
+                    .getResourceId();
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(10.0, "Repayment", "25 May 2024", 190.0, 10.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(190.0, "Charge-off", "26 May 2024", 0.0, 190.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(200.0, "Merchant Issued Refund", "26 May 2024", 0.0, 190.0, 0.0, 0.0, 0.0, 0.0, 10.0, false));
+
+            // verify loan status is overpaid
+            verifyLoanStatus(loanId, LoanStatus.OVERPAID);
+            // verify journal entries
+
+            // repayment
+            verifyTRJournalEntries(repaymentTransactionId, //
+                    credit(loansReceivableAccount, 10), //
+                    debit(fundSource, 10) //
+            );
+
+            // charge off
+            verifyTRJournalEntries(chargeOffTransactionId, //
+                    credit(loansReceivableAccount, 200), //
+                    debit(chargeOffExpenseAccount, 200), //
+                    debit(loansReceivableAccount, 200), //
+                    credit(chargeOffExpenseAccount, 200) //
+            );
+
+            // refund
+            verifyTRJournalEntries(merchantIssuedRefundId, //
+                    credit(chargeOffExpenseAccount, 190), //
+                    credit(overpaymentAccount, 10), //
+                    debit(fundSource, 200)
+
+            );
+
+            // set business date 27 May
+            updateBusinessDate("27 May 2024");
+
+            // CBR
+            loanTransactionHelper.makeCreditBalanceRefund(loanId, new PostLoansLoanIdTransactionsRequest().transactionDate("27 May 2024")
+                    .dateFormat(DATETIME_PATTERN).transactionAmount(10.0).locale("en"));
+
+            // verify loan status is closed
+            verifyLoanStatus(loanId, LoanStatus.CLOSED_OBLIGATIONS_MET);
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(10.0, "Repayment", "25 May 2024", 190.0, 10.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(190.0, "Charge-off", "26 May 2024", 0.0, 190.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(200.0, "Merchant Issued Refund", "26 May 2024", 0.0, 190.0, 0.0, 0.0, 0.0, 0.0, 10.0, false), //
+                    transaction(10.0, "Credit Balance Refund", "27 May 2024", 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 10.0, false));
+
+            // reverse backdated repayment
+            loanTransactionHelper.reverseLoanTransaction(loanId, repaymentTransactionId,
+                    new PostLoansLoanIdTransactionsTransactionIdRequest().dateFormat(DATETIME_PATTERN).transactionDate("27 May 2024")
+                            .transactionAmount(0.0).locale("en"));
+
+            // verify transactions
+            verifyTransactions(loanId, //
+                    transaction(200.0, "Disbursement", "24 May 2024", 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(50.0, "Down Payment", "24 May 2024", 150.0, 50.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(10.0, "Repayment", "25 May 2024", 190.0, 10.0, 0.0, 0.0, 0.0, 0.0, 0.0, true), //
+                    transaction(200.0, "Charge-off", "26 May 2024", 0.0, 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(200.0, "Merchant Issued Refund", "26 May 2024", 0.0, 200.0, 0.0, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(10.0, "Credit Balance Refund", "27 May 2024", 10.0, 10.0, 0.0, 0.0, 0.0, 0.0, 0.0, false));
+
+            // verify journal entries
+
+            // repayment
+            verifyTRJournalEntries(repaymentTransactionId, //
+                    credit(loansReceivableAccount, 10), //
+                    debit(fundSource, 10), //
+                    debit(loansReceivableAccount, 10), //
+                    credit(fundSource, 10) //
+            );
+
+            // replayed merchant issued refund
+            Long replayedMerchantIssuedRefundId = loanTransactionHelper.getLoanTransactionDetails(loanId, merchantIssuedRefundExternalId)
+                    .getId();
+
+            verifyTRJournalEntries(replayedMerchantIssuedRefundId, credit(chargeOffExpenseAccount, 200), //
+                    debit(fundSource, 200) //
+            );
+
+            // verify journal entries for reversed refund
+            verifyTRJournalEntries(merchantIssuedRefundId, //
+                    credit(chargeOffExpenseAccount, 190), //
+                    credit(overpaymentAccount, 10), //
+                    debit(fundSource, 200), //
+                    debit(chargeOffExpenseAccount, 190), //
+                    debit(overpaymentAccount, 10), //
+                    credit(fundSource, 200));
+
+        });
+    }
+}