FINERACT-2148: loan charge off behaviour configuration

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

@@ -0,0 +1,45 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.loanaccount.domain;
+
+import java.util.Arrays;
+import java.util.List;
+import lombok.Getter;
+import lombok.RequiredArgsConstructor;
+import org.apache.fineract.infrastructure.core.data.StringEnumOptionData;
+
+@Getter
+@RequiredArgsConstructor
+public enum LoanChargeOffBehaviour {
+
+    REGULAR("chargeOffBehaviour.regular", "Regular"), //
+    ZERO_INTEREST("chargeOffBehaviour.zeroInterest", "Zero interest after charge-off"), //
+    ;
+
+    private final String code;
+    private final String humanReadableName;
+
+    public static List<StringEnumOptionData> getValuesAsStringEnumOptionDataList() {
+        return Arrays.stream(values()).map(v -> new StringEnumOptionData(v.name(), v.getCode(), v.getHumanReadableName())).toList();
+    }
+
+    public StringEnumOptionData getValueAsStringEnumOptionData() {
+        return new StringEnumOptionData(name(), getCode(), getHumanReadableName());
+    }
+}

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

@@ -47,6 +47,7 @@ import org.apache.fineract.portfolio.loanaccount.data.DisbursementData;
 import org.apache.fineract.portfolio.loanaccount.data.HolidayDetailDTO;
 import org.apache.fineract.portfolio.loanaccount.data.LoanTermVariationsData;
 import org.apache.fineract.portfolio.loanaccount.data.LoanTermVariationsDataWrapper;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanproduct.domain.AmortizationMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestCalculationPeriodMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestMethod;
@@ -228,6 +229,7 @@ public final class LoanApplicationTerms {
     private LoanScheduleProcessingType loanScheduleProcessingType;
     private boolean enableAccrualActivityPosting;
     private List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes;
+    private LoanChargeOffBehaviour chargeOffBehaviour;
 
     private LoanApplicationTerms(Builder builder) {
         this.currency = builder.currency;
@@ -458,7 +460,8 @@ public final class LoanApplicationTerms {
             final Boolean isAutoRepaymentForDownPaymentEnabled, final RepaymentStartDateType repaymentStartDateType,
             final LocalDate submittedOnDate, final LoanScheduleType loanScheduleType,
             final LoanScheduleProcessingType loanScheduleProcessingType, final Integer fixedLength,
-            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes) {
+            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes,
+            final LoanChargeOffBehaviour chargeOffBehaviour) {
 
         final LoanRescheduleStrategyMethod rescheduleStrategyMethod = null;
         final CalendarHistoryDataWrapper calendarHistoryDataWrapper = null;
@@ -477,7 +480,7 @@ public final class LoanApplicationTerms {
                 isInterestToBeRecoveredFirstWhenGreaterThanEMI, fixedPrincipalPercentagePerInstallment,
                 isPrincipalCompoundingDisabledForOverdueLoans, enableDownPayment, disbursedAmountPercentageForDownPayment,
                 isAutoRepaymentForDownPaymentEnabled, repaymentStartDateType, submittedOnDate, loanScheduleType, loanScheduleProcessingType,
-                fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
 
     }
 
@@ -551,7 +554,7 @@ public final class LoanApplicationTerms {
                 isPrincipalCompoundingDisabledForOverdueLoans, isDownPaymentEnabled, disbursedAmountPercentageForDownPayment,
                 isAutoRepaymentForDownPaymentEnabled, repaymentStartDateType, submittedOnDate, loanScheduleType, loanScheduleProcessingType,
                 fixedLength, loanProductRelatedDetail.isEnableAccrualActivityPosting(),
-                loanProductRelatedDetail.getSupportedInterestRefundTypes());
+                loanProductRelatedDetail.getSupportedInterestRefundTypes(), loanProductRelatedDetail.getChargeOffBehaviour());
     }
 
     private LoanApplicationTerms(final ApplicationCurrency currency, final Integer loanTermFrequency,
@@ -581,7 +584,7 @@ public final class LoanApplicationTerms {
             final BigDecimal disbursedAmountPercentageForDownPayment, final boolean isAutoRepaymentForDownPaymentEnabled,
             final RepaymentStartDateType repaymentStartDateType, final LocalDate submittedOnDate, final LoanScheduleType loanScheduleType,
             final LoanScheduleProcessingType loanScheduleProcessingType, final Integer fixedLength, boolean enableAccrualActivityPosting,
-            final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes) {
+            final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes, final LoanChargeOffBehaviour chargeOffBehaviour) {
 
         this.currency = currency;
         this.loanTermFrequency = loanTermFrequency;
@@ -680,6 +683,7 @@ public final class LoanApplicationTerms {
         this.loanScheduleProcessingType = loanScheduleProcessingType;
         this.fixedLength = fixedLength;
         this.supportedInterestRefundTypes = supportedInterestRefundTypes;
+        this.chargeOffBehaviour = chargeOffBehaviour;
     }
 
     public Money adjustPrincipalIfLastRepaymentPeriod(final Money principalForPeriod, final Money totalCumulativePrincipalToDate,
@@ -1540,7 +1544,8 @@ public final class LoanApplicationTerms {
                 this.graceOnArrearsAgeing, this.daysInMonthType.getValue(), this.daysInYearType.getValue(),
                 this.interestRecalculationEnabled, this.isEqualAmortization, this.isDownPaymentEnabled,
                 this.disbursedAmountPercentageForDownPayment, this.isAutoRepaymentForDownPaymentEnabled, this.loanScheduleType,
-                this.loanScheduleProcessingType, this.fixedLength, this.enableAccrualActivityPosting, this.supportedInterestRefundTypes);
+                this.loanScheduleProcessingType, this.fixedLength, this.enableAccrualActivityPosting, this.supportedInterestRefundTypes,
+                this.chargeOffBehaviour);
     }
 
     public Integer getLoanTermFrequency() {

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/LoanProductConstants.java

@@ -166,5 +166,6 @@ public interface LoanProductConstants {
 
     String ENABLE_ACCRUAL_ACTIVITY_POSTING = "enableAccrualActivityPosting";
     String SUPPORTED_INTEREST_REFUND_TYPES = "supportedInterestRefundTypes";
+    String CHARGE_OFF_BEHAVIOUR = "chargeOffBehaviour";
 
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/api/LoanProductsApiResourceSwagger.java

@@ -321,6 +321,8 @@ final class LoanProductsApiResourceSwagger {
         }
 
         public List<String> supportedInterestRefundTypes;
+        @Schema(example = "REGULAR")
+        public String chargeOffBehaviour;
     }
 
     @Schema(description = "PostLoanProductsResponse")
@@ -604,6 +606,7 @@ final class LoanProductsApiResourceSwagger {
         public Integer principalThresholdForLastInstalment;
         public GetLoanProductsResponse.GetLoanProductsRepaymentStartDateType repaymentStartDateType;
         public List<StringEnumOptionData> supportedInterestRefundTypes;
+        public StringEnumOptionData chargeOffBehaviour;
     }
 
     @Schema(description = "GetLoanProductsTemplateResponse")
@@ -1088,6 +1091,8 @@ final class LoanProductsApiResourceSwagger {
         public List<StringEnumOptionData> supportedInterestRefundTypes;
         public List<StringEnumOptionData> supportedInterestRefundTypesOptions;
         public List<GetLoanProductsChargeOffReasonOptions> chargeOffReasonOptions;
+        public StringEnumOptionData chargeOffBehaviour;
+        public List<StringEnumOptionData> chargeOffBehaviourOptions;
     }
 
     @Schema(description = "GetLoanProductsProductIdResponse")
@@ -1374,6 +1379,7 @@ final class LoanProductsApiResourceSwagger {
         public Boolean enableAccrualActivityPosting;
         public List<StringEnumOptionData> supportedInterestRefundTypes;
         public List<GetLoanProductsTemplateResponse.GetLoanProductsChargeOffReasonOptions> chargeOffReasonOptions;
+        public StringEnumOptionData chargeOffBehaviour;
     }
 
     @Schema(description = "PutLoanProductsProductIdRequest")
@@ -1667,6 +1673,8 @@ final class LoanProductsApiResourceSwagger {
         }
 
         public List<String> supportedInterestRefundTypes;
+        @Schema(example = "REGULAR")
+        public String chargeOffBehaviour;
     }
 
     public static final class AdvancedPaymentData {

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/data/LoanProductData.java

@@ -46,6 +46,7 @@ import org.apache.fineract.portfolio.delinquency.data.DelinquencyBucketData;
 import org.apache.fineract.portfolio.floatingrates.data.FloatingRateData;
 import org.apache.fineract.portfolio.fund.data.FundData;
 import org.apache.fineract.portfolio.loanaccount.data.LoanInterestRecalculationData;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.domain.AllocationType;
@@ -137,6 +138,7 @@ public class LoanProductData implements Serializable {
     private final Integer installmentAmountInMultiplesOf;
     private final EnumOptionData repaymentStartDateType;
     private final List<StringEnumOptionData> supportedInterestRefundTypes;
+    private final StringEnumOptionData chargeOffBehaviour;
 
     // charges
     private final Collection<ChargeData> charges;
@@ -195,6 +197,7 @@ public class LoanProductData implements Serializable {
     private final List<FloatingRateData> floatingRateOptions;
     private final List<EnumOptionData> repaymentStartDateTypeOptions;
     private final List<StringEnumOptionData> supportedInterestRefundTypesOptions;
+    private final List<StringEnumOptionData> chargeOffBehaviourOptions;
 
     private final Boolean multiDisburseLoan;
     private final Integer maxTrancheCount;
@@ -333,6 +336,7 @@ public class LoanProductData implements Serializable {
         final EnumOptionData loanScheduleProcessingTypeOptions = null;
         final boolean enableAccrualActivityPosting = false;
         final List<StringEnumOptionData> supportedInterestRefundTypes = null;
+        final StringEnumOptionData chargeOffBehaviour = null;
 
         return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                 numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -353,7 +357,7 @@ public class LoanProductData implements Serializable {
                 fixedPrincipalPercentagePerInstallment, delinquencyBucketOptions, delinquencyBucket, dueDaysForRepaymentEvent,
                 overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                 paymentAllocation, creditAllocation, repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType,
-                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
 
     }
 
@@ -455,6 +459,7 @@ public class LoanProductData implements Serializable {
         final EnumOptionData loanScheduleProcessingType = null;
         final boolean enableAccrualActivityPosting = false;
         final List<StringEnumOptionData> supportedInterestRefundTypes = null;
+        final StringEnumOptionData chargeOffBehaviour = null;
 
         return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                 numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -475,7 +480,7 @@ public class LoanProductData implements Serializable {
                 fixedPrincipalPercentagePerInstallment, delinquencyBucketOptions, delinquencyBucket, dueDaysForRepaymentEvent,
                 overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                 paymentAllocation, creditAllocation, repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType,
-                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
 
     }
 
@@ -584,6 +589,7 @@ public class LoanProductData implements Serializable {
         final EnumOptionData loanScheduleProcessingType = LoanScheduleProcessingType.HORIZONTAL.asEnumOptionData();
         final boolean enableAccrualActivityPosting = false;
         final List<StringEnumOptionData> supportedInterestRefundTypes = null;
+        final StringEnumOptionData chargeOffBehaviour = LoanChargeOffBehaviour.REGULAR.getValueAsStringEnumOptionData();
 
         return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                 numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -604,7 +610,7 @@ public class LoanProductData implements Serializable {
                 fixedPrincipalPercentagePerInstallment, delinquencyBucketOptions, delinquencyBucket, dueDaysForRepaymentEvent,
                 overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                 paymentAllocation, creditAllocation, repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType,
-                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
 
     }
 
@@ -707,6 +713,7 @@ public class LoanProductData implements Serializable {
         final EnumOptionData loanScheduleProcessingType = null;
         final boolean enableAccrualActivityPosting = false;
         final List<StringEnumOptionData> supportedInterestRefundTypes = null;
+        final StringEnumOptionData chargeOffBehaviour = null;
 
         return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                 numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -727,7 +734,7 @@ public class LoanProductData implements Serializable {
                 fixedPrincipalPercentagePerInstallment, delinquencyBucketOptions, delinquencyBucket, dueDaysForRepaymentEvent,
                 overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                 paymentAllocation, creditAllocationData, repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType,
-                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
     }
 
     public static LoanProductData withAccountingDetails(final LoanProductData productData, final Map<String, Object> accountingMappings,
@@ -778,7 +785,8 @@ public class LoanProductData implements Serializable {
             final Collection<AdvancedPaymentData> paymentAllocation, final Collection<CreditAllocationData> creditAllocation,
             final EnumOptionData repaymentStartDateType, final boolean enableInstallmentLevelDelinquency,
             final EnumOptionData loanScheduleType, final EnumOptionData loanScheduleProcessingType, final Integer fixedLength,
-            final boolean enableAccrualActivityPosting, final List<StringEnumOptionData> supportedInterestRefundTypes) {
+            final boolean enableAccrualActivityPosting, final List<StringEnumOptionData> supportedInterestRefundTypes,
+            StringEnumOptionData chargeOffBehaviour) {
         this.id = id;
         this.name = name;
         this.shortName = shortName;
@@ -918,6 +926,8 @@ public class LoanProductData implements Serializable {
         this.enableAccrualActivityPosting = enableAccrualActivityPosting;
         this.supportedInterestRefundTypes = supportedInterestRefundTypes;
         this.supportedInterestRefundTypesOptions = null;
+        this.chargeOffBehaviour = chargeOffBehaviour;
+        this.chargeOffBehaviourOptions = null;
         this.chargeOffReasonOptions = null;
     }
 
@@ -941,7 +951,8 @@ public class LoanProductData implements Serializable {
             final List<EnumOptionData> advancedPaymentAllocationTypes, final List<EnumOptionData> loanScheduleTypeOptions,
             final List<EnumOptionData> loanScheduleProcessingTypeOptions, final List<EnumOptionData> creditAllocationTransactionTypes,
             final List<EnumOptionData> creditAllocationAllocationTypes,
-            final List<StringEnumOptionData> supportedInterestRefundTypesOptions, final List<CodeValueData> chargeOffReasonOptions) {
+            final List<StringEnumOptionData> supportedInterestRefundTypesOptions,
+            final List<StringEnumOptionData> chargeOffBehaviourOptions, final List<CodeValueData> chargeOffReasonOptions) {
 
         this.id = productData.id;
         this.name = productData.name;
@@ -1099,6 +1110,8 @@ public class LoanProductData implements Serializable {
         this.enableAccrualActivityPosting = productData.enableAccrualActivityPosting;
         this.supportedInterestRefundTypesOptions = supportedInterestRefundTypesOptions;
         this.supportedInterestRefundTypes = productData.supportedInterestRefundTypes;
+        this.chargeOffBehaviour = productData.chargeOffBehaviour;
+        this.chargeOffBehaviourOptions = chargeOffBehaviourOptions;
         this.chargeOffReasonOptions = chargeOffReasonOptions;
     }
 

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/domain/LoanProduct.java

@@ -63,6 +63,7 @@ import org.apache.fineract.portfolio.floatingrates.data.FloatingRateDTO;
 import org.apache.fineract.portfolio.floatingrates.data.FloatingRatePeriodData;
 import org.apache.fineract.portfolio.floatingrates.domain.FloatingRate;
 import org.apache.fineract.portfolio.fund.domain.Fund;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -451,6 +452,15 @@ public class LoanProduct extends AbstractPersistableCustom<Long> {
             });
         }
 
+        final LoanChargeOffBehaviour chargeOffBehaviour;
+        if (command.parameterExists(LoanProductConstants.CHARGE_OFF_BEHAVIOUR)) {
+            chargeOffBehaviour = LoanChargeOffBehaviour
+                    .valueOf(command.stringValueOfParameterNamed(LoanProductConstants.CHARGE_OFF_BEHAVIOUR));
+        } else {
+            // For backward compatibility
+            chargeOffBehaviour = LoanChargeOffBehaviour.REGULAR;
+        }
+
         return new LoanProduct(fund, loanTransactionProcessingStrategy, loanProductPaymentAllocationRules, loanProductCreditAllocationRules,
                 name, shortName, description, currency, principal, minPrincipal, maxPrincipal, interestRatePerPeriod,
                 minInterestRatePerPeriod, maxInterestRatePerPeriod, interestFrequencyType, annualInterestRate, interestMethod,
@@ -470,7 +480,7 @@ public class LoanProduct extends AbstractPersistableCustom<Long> {
                 allowApprovedDisbursedAmountsOverApplied, overAppliedCalculationType, overAppliedNumber, dueDaysForRepaymentEvent,
                 overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                 repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType, loanScheduleProcessingType, fixedLength,
-                enableAccrualActivityPosting, supportedInterestRefundTypes);
+                enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour);
 
     }
 
@@ -688,7 +698,8 @@ public class LoanProduct extends AbstractPersistableCustom<Long> {
             final boolean enableAutoRepaymentForDownPayment, final RepaymentStartDateType repaymentStartDateType,
             final boolean enableInstallmentLevelDelinquency, final LoanScheduleType loanScheduleType,
             final LoanScheduleProcessingType loanScheduleProcessingType, final Integer fixedLength,
-            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes) {
+            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes,
+            final LoanChargeOffBehaviour chargeOffBehaviour) {
         this.fund = fund;
         this.transactionProcessingStrategyCode = transactionProcessingStrategyCode;
 
@@ -738,7 +749,7 @@ public class LoanProduct extends AbstractPersistableCustom<Long> {
                 inArrearsTolerance, graceOnArrearsAgeing, daysInMonthType.getValue(), daysInYearType.getValue(),
                 isInterestRecalculationEnabled, isEqualAmortization, enableDownPayment, disbursedAmountPercentageForDownPayment,
                 enableAutoRepaymentForDownPayment, loanScheduleType, loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting,
-                supportedInterestRefundTypes);
+                supportedInterestRefundTypes, chargeOffBehaviour);
 
         this.loanProductMinMaxConstraints = new LoanProductMinMaxConstraints(defaultMinPrincipal, defaultMaxPrincipal,
                 defaultMinNominalInterestRatePerPeriod, defaultMaxNominalInterestRatePerPeriod, defaultMinNumberOfInstallments,

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/domain/LoanProductRelatedDetail.java

@@ -37,6 +37,7 @@ import org.apache.fineract.portfolio.common.domain.DaysInMonthType;
 import org.apache.fineract.portfolio.common.domain.DaysInYearType;
 import org.apache.fineract.portfolio.common.domain.PeriodFrequencyType;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -159,6 +160,10 @@ public class LoanProductRelatedDetail implements LoanProductMinimumRepaymentSche
     @Column(name = "supported_interest_refund_types")
     private List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes = List.of();
 
+    @Column(name = "charge_off_behaviour")
+    @Enumerated(EnumType.STRING)
+    private LoanChargeOffBehaviour chargeOffBehaviour;
+
     public static LoanProductRelatedDetail createFrom(final MonetaryCurrency currency, final BigDecimal principal,
             final BigDecimal nominalInterestRatePerPeriod, final PeriodFrequencyType interestRatePeriodFrequencyType,
             final BigDecimal nominalAnnualInterestRate, final InterestMethod interestMethod,
@@ -171,7 +176,8 @@ public class LoanProductRelatedDetail implements LoanProductMinimumRepaymentSche
             final boolean enableDownPayment, final BigDecimal disbursedAmountPercentageForDownPayment,
             final boolean enableAutoRepaymentForDownPayment, final LoanScheduleType loanScheduleType,
             final LoanScheduleProcessingType loanScheduleProcessingType, final Integer fixedLength,
-            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes) {
+            final boolean enableAccrualActivityPosting, final List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes,
+            final LoanChargeOffBehaviour chargeOffBehaviour) {
 
         return new LoanProductRelatedDetail(currency, principal, nominalInterestRatePerPeriod, interestRatePeriodFrequencyType,
                 nominalAnnualInterestRate, interestMethod, interestCalculationPeriodMethod, allowPartialPeriodInterestCalcualtion,
@@ -179,7 +185,8 @@ public class LoanProductRelatedDetail implements LoanProductMinimumRepaymentSche
                 recurringMoratoriumOnPrincipalPeriods, graceOnInterestPayment, graceOnInterestCharged, amortizationMethod,
                 inArrearsTolerance, graceOnArrearsAgeing, daysInMonthType, daysInYearType, isInterestRecalculationEnabled,
                 isEqualAmortization, enableDownPayment, disbursedAmountPercentageForDownPayment, enableAutoRepaymentForDownPayment,
-                loanScheduleType, loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                loanScheduleType, loanScheduleProcessingType, fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes,
+                chargeOffBehaviour);
     }
 
     protected LoanProductRelatedDetail() {
@@ -198,7 +205,8 @@ public class LoanProductRelatedDetail implements LoanProductMinimumRepaymentSche
             final boolean enableDownPayment, final BigDecimal disbursedAmountPercentageForDownPayment,
             final boolean enableAutoRepaymentForDownPayment, final LoanScheduleType loanScheduleType,
             final LoanScheduleProcessingType loanScheduleProcessingType, final Integer fixedLength,
-            final boolean enableAccrualActivityPosting, List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes) {
+            final boolean enableAccrualActivityPosting, List<LoanSupportedInterestRefundTypes> supportedInterestRefundTypes,
+            final LoanChargeOffBehaviour chargeOffBehaviour) {
         this.currency = currency;
         this.principal = defaultPrincipal;
         this.nominalInterestRatePerPeriod = defaultNominalInterestRatePerPeriod;
@@ -233,6 +241,7 @@ public class LoanProductRelatedDetail implements LoanProductMinimumRepaymentSche
         this.loanScheduleProcessingType = loanScheduleProcessingType;
         this.enableAccrualActivityPosting = enableAccrualActivityPosting;
         this.supportedInterestRefundTypes = supportedInterestRefundTypes;
+        this.chargeOffBehaviour = chargeOffBehaviour;
     }
 
     private Integer defaultToNullIfZero(final Integer value) {

fineract-loan/src/main/resources/db/changelog/tenant/module/loan/module-changelog-master.xml

@@ -45,4 +45,5 @@
   <include relativeToChangelogFile="true" file="parts/1020_add_re_aged_flag_to_loan_installment.xml"/>
   <include relativeToChangelogFile="true" file="parts/1021_add_loan_status_change_history.xml"/>
   <include relativeToChangelogFile="true" file="parts/1022_add_interest_refund_support.xml"/>
+  <include relativeToChangelogFile="true" file="parts/1023_add_charge_off_behaviour.xml"/>
 </databaseChangeLog>

fineract-loan/src/main/resources/db/changelog/tenant/module/loan/parts/1023_add_charge_off_behaviour.xml

@@ -0,0 +1,36 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+
+    <changeSet author="fineract" id="1023-1">
+        <addColumn tableName="m_product_loan">
+            <column name="charge_off_behaviour" type="varchar(20)" defaultValue="REGULAR"/>
+        </addColumn>
+    </changeSet>
+    <changeSet author="fineract" id="1023-2">
+        <addColumn tableName="m_loan">
+            <column name="charge_off_behaviour" type="varchar(20)" defaultValue="REGULAR"/>
+        </addColumn>
+    </changeSet>
+</databaseChangeLog>

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

@@ -528,7 +528,8 @@ public class LoanScheduleAssembler {
                 disbursedAmountPercentageForDownPayment, isAutoRepaymentForDownPaymentEnabled, repaymentStartDateType, submittedOnDate,
                 loanScheduleType, loanScheduleProcessingType, fixedLength,
                 loanProduct.getLoanProductRelatedDetail().isEnableAccrualActivityPosting(),
-                loanProduct.getLoanProductRelatedDetail().getSupportedInterestRefundTypes());
+                loanProduct.getLoanProductRelatedDetail().getSupportedInterestRefundTypes(),
+                loanProduct.getLoanProductRelatedDetail().getChargeOffBehaviour());
     }
 
     private CalendarInstance createCalendarForSameAsRepayment(final Integer repaymentEvery,

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanproduct/api/LoanProductsApiResource.java

@@ -79,6 +79,7 @@ import org.apache.fineract.portfolio.floatingrates.service.FloatingRatesReadPlat
 import org.apache.fineract.portfolio.fund.data.FundData;
 import org.apache.fineract.portfolio.fund.service.FundReadPlatformService;
 import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.LoanProductConstants;
@@ -429,6 +430,7 @@ public class LoanProductsApiResource {
         final List<EnumOptionData> creditAllocationAllocationTypes = AllocationType.getValuesAsEnumOptionDataList();
         final List<StringEnumOptionData> supportedInterestRefundTypesOptions = LoanSupportedInterestRefundTypes
                 .getValuesAsStringEnumOptionDataList();
+        final List<StringEnumOptionData> chargeOffBehaviourOptions = LoanChargeOffBehaviour.getValuesAsStringEnumOptionDataList();
         final List<CodeValueData> chargeOffReasonOptions = codeValueReadPlatformService
                 .retrieveCodeValuesByCode(LoanApiConstants.CHARGE_OFF_REASONS);
 
@@ -442,7 +444,7 @@ public class LoanProductsApiResource {
                 advancedPaymentAllocationTransactionTypes, advancedPaymentAllocationFutureInstallmentAllocationRules,
                 advancedPaymentAllocationTypes, LoanScheduleType.getValuesAsEnumOptionDataList(),
                 LoanScheduleProcessingType.getValuesAsEnumOptionDataList(), creditAllocationTransactionTypes,
-                creditAllocationAllocationTypes, supportedInterestRefundTypesOptions, chargeOffReasonOptions);
+                creditAllocationAllocationTypes, supportedInterestRefundTypesOptions, chargeOffBehaviourOptions, chargeOffReasonOptions);
     }
 
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanproduct/serialization/LoanProductDataValidator.java

@@ -49,6 +49,7 @@ import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.portfolio.calendar.service.CalendarUtils;
 import org.apache.fineract.portfolio.common.domain.PeriodFrequencyType;
 import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.AdvancedPaymentScheduleTransactionProcessor;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
@@ -182,7 +183,8 @@ public final class LoanProductDataValidator {
             LoanProductConstants.ENABLE_AUTO_REPAYMENT_DOWN_PAYMENT, LoanProductConstants.REPAYMENT_START_DATE_TYPE,
             LoanProductConstants.ENABLE_INSTALLMENT_LEVEL_DELINQUENCY, LoanProductConstants.LOAN_SCHEDULE_TYPE,
             LoanProductConstants.LOAN_SCHEDULE_PROCESSING_TYPE, LoanProductConstants.FIXED_LENGTH,
-            LoanProductConstants.ENABLE_ACCRUAL_ACTIVITY_POSTING, LoanProductConstants.SUPPORTED_INTEREST_REFUND_TYPES));
+            LoanProductConstants.ENABLE_ACCRUAL_ACTIVITY_POSTING, LoanProductConstants.SUPPORTED_INTEREST_REFUND_TYPES,
+            LoanProductConstants.CHARGE_OFF_BEHAVIOUR));
 
     private static final String[] SUPPORTED_LOAN_CONFIGURABLE_ATTRIBUTES = { LoanProductConstants.amortizationTypeParamName,
             LoanProductConstants.interestTypeParamName, LoanProductConstants.transactionProcessingStrategyCodeParamName,
@@ -862,6 +864,17 @@ public final class LoanProductDataValidator {
                     "Automatic interest refund functionality is only supported for Progressive loans");
         }
 
+        if (AdvancedPaymentScheduleTransactionProcessor.ADVANCED_PAYMENT_ALLOCATION_STRATEGY.equals(transactionProcessingStrategyCode)
+                && this.fromApiJsonHelper.parameterExists(LoanProductConstants.CHARGE_OFF_BEHAVIOUR, element)) {
+            String chargeOffBehaviour = this.fromApiJsonHelper.extractStringNamed(LoanProductConstants.CHARGE_OFF_BEHAVIOUR, element);
+            baseDataValidator.reset().parameter(LoanProductConstants.CHARGE_OFF_BEHAVIOUR).value(chargeOffBehaviour)
+                    .isOneOfEnumValues(LoanChargeOffBehaviour.class);
+        } else if (this.fromApiJsonHelper.parameterExists(LoanProductConstants.CHARGE_OFF_BEHAVIOUR, element)) {
+            baseDataValidator.reset().parameter(LoanProductConstants.CHARGE_OFF_BEHAVIOUR).failWithCode(
+                    "supported.only.for.progressive.loan.charge.off.behaviour",
+                    "Charge off behaviour is only supported for Progressive loans");
+        }
+
         throwExceptionIfValidationWarningsExist(dataValidationErrors);
     }
 

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanproduct/service/LoanProductReadPlatformServiceImpl.java

@@ -44,6 +44,7 @@ import org.apache.fineract.portfolio.charge.service.ChargeReadPlatformService;
 import org.apache.fineract.portfolio.common.service.CommonEnumerations;
 import org.apache.fineract.portfolio.delinquency.data.DelinquencyBucketData;
 import org.apache.fineract.portfolio.delinquency.service.DelinquencyReadPlatformService;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.data.AdvancedPaymentData;
@@ -278,8 +279,9 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
                     + "lfr.is_floating_interest_rate_calculation_allowed as isFloatingInterestRateCalculationAllowed, "
                     + "lp.allow_variabe_installments as isVariableIntallmentsAllowed, " + "lvi.minimum_gap as minimumGap, "
                     + "lvi.maximum_gap as maximumGap, dbuc.id as delinquencyBucketId, dbuc.name as delinquencyBucketName, "
-                    + "lp.can_use_for_topup as canUseForTopup, lp.is_equal_amortization as isEqualAmortization, lp.loan_schedule_type as loanScheduleType, lp.loan_schedule_processing_type as loanScheduleProcessingType, lp.supported_interest_refund_types as supportedInterestRefundTypes  "
-                    + " from m_product_loan lp " + " left join m_fund f on f.id = lp.fund_id "
+                    + "lp.can_use_for_topup as canUseForTopup, lp.is_equal_amortization as isEqualAmortization, lp.loan_schedule_type as loanScheduleType, lp.loan_schedule_processing_type as loanScheduleProcessingType, lp.supported_interest_refund_types as supportedInterestRefundTypes, "
+                    + "lp.charge_off_behaviour as chargeOffBehaviour" + " from m_product_loan lp "
+                    + " left join m_fund f on f.id = lp.fund_id "
                     + " left join m_product_loan_recalculation_details lpr on lpr.product_id=lp.id "
                     + " left join m_product_loan_guarantee_details lpg on lpg.loan_product_id=lp.id "
                     + " left join m_product_loan_configurable_attributes lca on lca.loan_product_id = lp.id "
@@ -535,6 +537,8 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
                         .map(LoanSupportedInterestRefundTypes::valueOf)
                         .map(LoanSupportedInterestRefundTypes::getValueAsStringEnumOptionData).toList();
             }
+            final String chargeOffBehaviourStr = rs.getString("chargeOffBehaviour");
+            final LoanChargeOffBehaviour loanChargeOffBehaviour = LoanChargeOffBehaviour.valueOf(chargeOffBehaviourStr);
 
             return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                     numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -557,7 +561,8 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
                     dueDaysForRepaymentEvent, overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageForDownPayment,
                     enableAutoRepaymentForDownPayment, advancedPaymentData, creditAllocationData, repaymentStartDateType,
                     enableInstallmentLevelDelinquency, loanScheduleType.asEnumOptionData(), loanScheduleProcessingType.asEnumOptionData(),
-                    fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes);
+                    fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes,
+                    loanChargeOffBehaviour.getValueAsStringEnumOptionData());
         }
     }
 

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanproduct/service/LoanProductWritePlatformServiceJpaRepositoryImpl.java

@@ -51,6 +51,7 @@ import org.apache.fineract.portfolio.floatingrates.domain.FloatingRateRepository
 import org.apache.fineract.portfolio.fund.domain.Fund;
 import org.apache.fineract.portfolio.fund.domain.FundRepository;
 import org.apache.fineract.portfolio.fund.exception.FundNotFoundException;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepositoryWrapper;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
@@ -277,6 +278,11 @@ public class LoanProductWritePlatformServiceJpaRepositoryImpl implements LoanPro
                 product.getLoanProductRelatedDetail().setSupportedInterestRefundTypes(supportedInterestRefundTypes);
             }
 
+            if (command.parameterExists(LoanProductConstants.CHARGE_OFF_BEHAVIOUR)) {
+                product.getLoanProductRelatedDetail().setChargeOffBehaviour(
+                        command.enumValueOfParameterNamed(LoanProductConstants.CHARGE_OFF_BEHAVIOUR, LoanChargeOffBehaviour.class));
+            }
+
             if (!changes.isEmpty()) {
                 product.validateLoanProductPreSave();
                 this.loanProductRepository.saveAndFlush(product);

fineract-provider/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/DefaultScheduledDateGeneratorTest.java

@@ -98,7 +98,7 @@ public class DefaultScheduledDateGeneratorTest {
                 Money.of(fromApplicationCurrency(dollarCurrency), ZERO), false, null, EMPTY_LIST, BigDecimal.valueOf(36_000L), null,
                 DaysInMonthType.ACTUAL, DaysInYearType.ACTUAL, false, null, null, null, null, null, ZERO, null, NONE, null, ZERO,
                 EMPTY_LIST, true, 0, false, holidayDetailDTO, false, false, false, null, false, false, null, false, DISBURSEMENT_DATE,
-                submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null);
+                submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null, null);
 
         // when
         List<? extends LoanScheduleModelPeriod> result = underTest.generateRepaymentPeriods(mathContext, expectedDisbursementDate,
@@ -169,7 +169,7 @@ public class DefaultScheduledDateGeneratorTest {
                 null, null, null, null, null, Money.of(fromApplicationCurrency(dollarCurrency), ZERO), false, null, EMPTY_LIST,
                 BigDecimal.valueOf(36_000L), null, DaysInMonthType.ACTUAL, DaysInYearType.ACTUAL, false, null, null, null, null, null, ZERO,
                 null, NONE, null, ZERO, EMPTY_LIST, true, 0, false, holidayDetailDTO, false, false, false, null, false, false, null, false,
-                DISBURSEMENT_DATE, submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null);
+                DISBURSEMENT_DATE, submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null, null);
     }
 
     private HolidayDetailDTO createHolidayDTO() {

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

@@ -45,6 +45,7 @@ import org.apache.fineract.integrationtests.common.accounting.FinancialActivityA
 import org.apache.fineract.integrationtests.common.loans.LoanProductTestBuilder;
 import org.apache.fineract.integrationtests.common.loans.LoanTestLifecycleExtension;
 import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationType;
@@ -408,6 +409,50 @@ public class LoanProductWithAdvancedPaymentAllocationIntegrationTests {
                 loanProductError.get(0).get("defaultUserMessage").replace('`', ' '));
     }
 
+    @Test
+    public void testCreateAndReadProgressiveLoanProductWithChargeOffBehaviour() {
+        // given
+        AdvancedPaymentData defaultAllocation = createDefaultPaymentAllocation();
+        AdvancedPaymentData repaymentPaymentAllocation = createRepaymentPaymentAllocation();
+
+        // when
+        String loanProductRequest = loanProductTestBuilder(
+                customization -> customization.addAdvancedPaymentAllocation(defaultAllocation, repaymentPaymentAllocation)
+                        .withChargeOffBehaviour(LoanChargeOffBehaviour.ZERO_INTEREST));
+
+        Integer loanProductId = LOAN_TRANSACTION_HELPER.getLoanProductId(loanProductRequest);
+        Assertions.assertNotNull(loanProductId);
+        GetLoanProductsProductIdResponse loanProduct = LOAN_TRANSACTION_HELPER.getLoanProduct(loanProductId);
+
+        // then
+        Assertions.assertNotNull(loanProduct.getChargeOffBehaviour());
+        Assertions.assertEquals(LoanChargeOffBehaviour.ZERO_INTEREST.name(), loanProduct.getChargeOffBehaviour().getId());
+
+        // when a new interest refund transaction was added
+        LOAN_TRANSACTION_HELPER.updateLoanProduct(loanProductId.longValue(),
+                new PutLoanProductsProductIdRequest().chargeOffBehaviour(LoanChargeOffBehaviour.REGULAR.name()));
+
+        loanProduct = LOAN_TRANSACTION_HELPER.getLoanProduct(loanProductId);
+
+        // then
+        Assertions.assertNotNull(loanProduct.getChargeOffBehaviour());
+        Assertions.assertEquals(LoanChargeOffBehaviour.REGULAR.name(), loanProduct.getChargeOffBehaviour().getId());
+    }
+
+    @Test
+    public void testCreateCumulativeLoanProductWithChargeOff() {
+        // given
+        // when
+        String loanProductRequest = loanProductTestBuilder(
+                customization -> customization.withChargeOffBehaviour(LoanChargeOffBehaviour.ZERO_INTEREST)
+                        .withLoanScheduleType(LoanScheduleType.CUMULATIVE).withRepaymentStrategy("mifos-standard-strategy"));
+        LoanTransactionHelper loanTransactionHelperBadRequest = new LoanTransactionHelper(REQUEST_SPEC,
+                new ResponseSpecBuilder().expectStatusCode(400).build());
+        List<Map<String, String>> loanProductError = loanTransactionHelperBadRequest.getLoanProductError(loanProductRequest, "errors");
+        Assertions.assertEquals("validation.msg.loanproduct.chargeOffBehaviour.supported.only.for.progressive.loan.charge.off.behaviour",
+                loanProductError.get(0).get("userMessageGlobalisationCode"));
+    }
+
     private String loanProductTestBuilder(Consumer<LoanProductTestBuilder> customization) {
         LoanProductTestBuilder builder = new LoanProductTestBuilder().withPrincipal("15,000.00").withNumberOfRepayments("4")
                 .withRepaymentAfterEvery("1").withRepaymentTypeAsMonth().withinterestRatePerPeriod("1")

integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanProductTestBuilder.java

@@ -31,6 +31,7 @@ import org.apache.fineract.client.models.AdvancedPaymentData;
 import org.apache.fineract.client.models.CreditAllocationData;
 import org.apache.fineract.integrationtests.common.Utils;
 import org.apache.fineract.integrationtests.common.accounting.Account;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 
@@ -162,6 +163,7 @@ public class LoanProductTestBuilder {
     private String loanScheduleProcessingType = LoanScheduleProcessingType.HORIZONTAL.name();
     private FullAccountingConfig fullAccountingConfig;
     private List<String> supportedInterestRefundTypes = null;
+    private String chargeOffBehaviour;
 
     public String build() {
         final HashMap<String, Object> map = build(null, null);
@@ -330,6 +332,10 @@ public class LoanProductTestBuilder {
             map.put("supportedInterestRefundTypes", supportedInterestRefundTypes);
         }
 
+        if (this.chargeOffBehaviour != null) {
+            map.put("chargeOffBehaviour", chargeOffBehaviour);
+        }
+
         return map;
     }
 
@@ -801,6 +807,11 @@ public class LoanProductTestBuilder {
         return this;
     }
 
+    public LoanProductTestBuilder withChargeOffBehaviour(LoanChargeOffBehaviour chargeOffBehaviour) {
+        this.chargeOffBehaviour = chargeOffBehaviour.name();
+        return this;
+    }
+
     public LoanProductTestBuilder withChargeOffReasonsToExpenseMappings(final Long reasonId, final Long accountId) {
         if (this.chargeOffReasonsToExpenseMappings == null) {
             this.chargeOffReasonsToExpenseMappings = new ArrayList<>();