FINERACT-1806-Accounting-treatments-for-Charge-off-loan-accounts

2023-02-13 10:47:45 +01:00
parent 0df3aa82cf
commit 4a78901b7c
16 changed files with 1514 additions and 17 deletions
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+/**
+ * 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 static org.junit.jupiter.api.Assertions.assertTrue;
+
+import io.restassured.builder.RequestSpecBuilder;
+import io.restassured.builder.ResponseSpecBuilder;
+import io.restassured.http.ContentType;
+import io.restassured.specification.RequestSpecification;
+import io.restassured.specification.ResponseSpecification;
+import java.time.LocalDate;
+import java.time.format.DateTimeFormatter;
+import java.time.format.DateTimeFormatterBuilder;
+import java.util.UUID;
+import org.apache.fineract.client.models.GetLoansLoanIdResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdChargesChargeIdRequest;
+import org.apache.fineract.client.models.PostLoansLoanIdChargesChargeIdResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsRequest;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsResponse;
+import org.apache.fineract.client.models.PutLoansLoanIdResponse;
+import org.apache.fineract.integrationtests.common.ClientHelper;
+import org.apache.fineract.integrationtests.common.Utils;
+import org.apache.fineract.integrationtests.common.accounting.Account;
+import org.apache.fineract.integrationtests.common.accounting.AccountHelper;
+import org.apache.fineract.integrationtests.common.accounting.JournalEntry;
+import org.apache.fineract.integrationtests.common.accounting.JournalEntryHelper;
+import org.apache.fineract.integrationtests.common.charges.ChargesHelper;
+import org.apache.fineract.integrationtests.common.loans.LoanApplicationTestBuilder;
+import org.apache.fineract.integrationtests.common.loans.LoanProductTestBuilder;
+import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
+import org.apache.fineract.integrationtests.common.system.CodeHelper;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+
+public class LoanChargeOffAccountingTest {
+
+    private ResponseSpecification responseSpec;
+    private ResponseSpecification responseSpec403;
+    private RequestSpecification requestSpec;
+    private ClientHelper clientHelper;
+    private LoanTransactionHelper loanTransactionHelper;
+    private LoanTransactionHelper loanTransactionHelperValidationError;
+    private JournalEntryHelper journalEntryHelper;
+    private AccountHelper accountHelper;
+    private Account assetAccount;
+    private Account incomeAccount;
+    private Account expenseAccount;
+    private Account overpaymentAccount;
+    private DateTimeFormatter dateFormatter = new DateTimeFormatterBuilder().appendPattern("dd MMMM yyyy").toFormatter();
+
+    @BeforeEach
+    public void setup() {
+        Utils.initializeRESTAssured();
+        this.requestSpec = new RequestSpecBuilder().setContentType(ContentType.JSON).build();
+        this.requestSpec.header("Authorization", "Basic " + Utils.loginIntoServerAndGetBase64EncodedAuthenticationKey());
+        this.responseSpec = new ResponseSpecBuilder().expectStatusCode(200).build();
+        this.responseSpec403 = new ResponseSpecBuilder().expectStatusCode(403).build();
+        this.loanTransactionHelper = new LoanTransactionHelper(this.requestSpec, this.responseSpec);
+        this.loanTransactionHelperValidationError = new LoanTransactionHelper(this.requestSpec, new ResponseSpecBuilder().build());
+        this.accountHelper = new AccountHelper(this.requestSpec, this.responseSpec);
+        this.assetAccount = this.accountHelper.createAssetAccount();
+        this.incomeAccount = this.accountHelper.createIncomeAccount();
+        this.expenseAccount = this.accountHelper.createExpenseAccount();
+        this.overpaymentAccount = this.accountHelper.createLiabilityAccount();
+        this.journalEntryHelper = new JournalEntryHelper(this.requestSpec, this.responseSpec);
+        this.clientHelper = new ClientHelper(this.requestSpec, this.responseSpec);
+    }
+
+    @Test
+    public void loanChargeOffAccountingTreatmentTestForPeriodicAccrualAccounting() {
+        // Loan ExternalId
+        String loanExternalIdStr = UUID.randomUUID().toString();
+
+        // Product to GL account mapping for test
+        // ASSET
+        // -fundSourceAccountId,loanPortfolioAccountId,transfersInSuspenseAccountId,receivableFeeAccountId,receivablePenaltyAccountId,receivableInterestAccountId
+        // INCOME-interestOnLoanAccountId,incomeFromFeeAccountId,incomeFromPenaltyAccountId,incomeFromRecoveryAccountId,incomeFromChargeOffInterestAccountId,incomeFromChargeOffFeesAccountId,incomeFromChargeOffPenaltyAccountId
+        // EXPENSE-writeOffAccountId,goodwillCreditAccountId,chargeOffExpenseAccountId,chargeOffFraudExpenseAccountId
+        // LIABILITY-overpaymentLiabilityAccountId
+
+        final Integer loanProductID = createLoanProductWithPeriodicAccrualAccounting(assetAccount, incomeAccount, expenseAccount,
+                overpaymentAccount);
+        final Integer clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId().intValue();
+        final Integer loanId = createLoanAccount(clientId, loanProductID, loanExternalIdStr);
+
+        // apply charges
+        Integer feeCharge = ChargesHelper.createCharges(requestSpec, responseSpec,
+                ChargesHelper.getLoanSpecifiedDueDateJSON(ChargesHelper.CHARGE_CALCULATION_TYPE_FLAT, "10", false));
+
+        LocalDate targetDate = LocalDate.of(2022, 9, 5);
+        final String feeCharge1AddedDate = dateFormatter.format(targetDate);
+        Integer feeLoanChargeId = this.loanTransactionHelper.addChargesForLoan(loanId,
+                LoanTransactionHelper.getSpecifiedDueDateChargesForLoanAsJSON(String.valueOf(feeCharge), feeCharge1AddedDate, "10"));
+
+        // apply penalty
+        Integer penalty = ChargesHelper.createCharges(requestSpec, responseSpec,
+                ChargesHelper.getLoanSpecifiedDueDateJSON(ChargesHelper.CHARGE_CALCULATION_TYPE_FLAT, "10", true));
+
+        final String penaltyCharge1AddedDate = dateFormatter.format(targetDate);
+
+        Integer penalty1LoanChargeId = this.loanTransactionHelper.addChargesForLoan(loanId,
+                LoanTransactionHelper.getSpecifiedDueDateChargesForLoanAsJSON(String.valueOf(penalty), penaltyCharge1AddedDate, "10"));
+
+        // set loan as chargeoff
+        String randomText = Utils.randomStringGenerator("en", 5) + Utils.randomNumberGenerator(6) + Utils.randomStringGenerator("is", 5);
+        Integer chargeOffReasonId = CodeHelper.createChargeOffCodeValue(requestSpec, responseSpec, randomText, 1);
+        String transactionExternalId = UUID.randomUUID().toString();
+        this.loanTransactionHelper.chargeOffLoan((long) loanId, new PostLoansLoanIdTransactionsRequest().transactionDate("6 September 2022")
+                .locale("en").dateFormat("dd MMMM yyyy").externalId(transactionExternalId).chargeOffReasonId((long) chargeOffReasonId));
+
+        GetLoansLoanIdResponse loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries For ChargeOff Transaction
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "6 September 2022",
+                new JournalEntry(1020, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "6 September 2022",
+                new JournalEntry(1000, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "6 September 2022",
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "6 September 2022",
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+
+        // make Repayment
+        final PostLoansLoanIdTransactionsResponse repaymentTransaction = loanTransactionHelper.makeLoanRepayment(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("7 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Repayment transaction
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "7 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "7 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Merchant Refund
+        final PostLoansLoanIdTransactionsResponse merchantIssuedRefund_1 = loanTransactionHelper.makeMerchantIssuedRefund((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("8 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Merchant Refund
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "8 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "8 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Payout Refund
+        final PostLoansLoanIdTransactionsResponse payoutRefund_1 = loanTransactionHelper.makePayoutRefund((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("9 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Payout Refund
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "9 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "9 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Goodwill Credit
+        final PostLoansLoanIdTransactionsResponse goodwillCredit_1 = loanTransactionHelper.makeGoodwillCredit((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("10 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Goodwill Credit
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "10 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "10 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+
+        // make overpaid repayment
+        final PostLoansLoanIdTransactionsResponse repaymentTransaction_1 = loanTransactionHelper.makeLoanRepayment(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("11 September 2022").locale("en")
+                        .transactionAmount(720.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getOverpaid());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal entries for overpaid repayment
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, "11 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "11 September 2022",
+                new JournalEntry(620, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "11 September 2022",
+                new JournalEntry(720, JournalEntry.TransactionType.DEBIT));
+
+        // CBR for making loan active again
+        final PostLoansLoanIdTransactionsResponse cbr_transaction = loanTransactionHelper.makeCreditBalanceRefund(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("12 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        // Charge Adjustment making loan overpaid
+        final PostLoansLoanIdChargesChargeIdResponse chargeAdjustmentResult = loanTransactionHelper.chargeAdjustment((long) loanId,
+                (long) feeLoanChargeId, new PostLoansLoanIdChargesChargeIdRequest().amount(10.0).locale("en"));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getOverpaid());
+
+        final LocalDate todaysDate = Utils.getLocalDateOfTenant();
+        String transactionDate = Utils.dateFormatter.format(todaysDate);
+
+        // verify Journal entries for Charge Adjustment
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, transactionDate,
+                new JournalEntry(10, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, transactionDate,
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+    }
+
+    @Test
+    public void loanChargeOffFraudAccountingTreatmentTestForCashBasedAccounting() {
+        // Loan ExternalId
+        String loanExternalIdStr = UUID.randomUUID().toString();
+
+        // Product to GL account mapping for test
+        // ASSET
+        // -fundSourceAccountId,loanPortfolioAccountId,transfersInSuspenseAccountId
+        // INCOME-interestOnLoanAccountId,incomeFromFeeAccountId,incomeFromPenaltyAccountId,incomeFromRecoveryAccountId,incomeFromChargeOffInterestAccountId,incomeFromChargeOffFeesAccountId,incomeFromChargeOffPenaltyAccountId
+        // EXPENSE-writeOffAccountId,goodwillCreditAccountId,chargeOffExpenseAccountId,chargeOffFraudExpenseAccountId
+        // LIABILITY-overpaymentLiabilityAccountId
+
+        final Integer loanProductID = createLoanProductWithCashBasedAccounting(assetAccount, incomeAccount, expenseAccount,
+                overpaymentAccount);
+        final Integer clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId().intValue();
+        final Integer loanId = createLoanAccount(clientId, loanProductID, loanExternalIdStr);
+
+        // apply charges
+        Integer feeCharge = ChargesHelper.createCharges(requestSpec, responseSpec,
+                ChargesHelper.getLoanSpecifiedDueDateJSON(ChargesHelper.CHARGE_CALCULATION_TYPE_FLAT, "10", false));
+
+        LocalDate targetDate = LocalDate.of(2022, 9, 5);
+        final String feeCharge1AddedDate = dateFormatter.format(targetDate);
+        Integer feeLoanChargeId = this.loanTransactionHelper.addChargesForLoan(loanId,
+                LoanTransactionHelper.getSpecifiedDueDateChargesForLoanAsJSON(String.valueOf(feeCharge), feeCharge1AddedDate, "10"));
+
+        // apply penalty
+        Integer penalty = ChargesHelper.createCharges(requestSpec, responseSpec,
+                ChargesHelper.getLoanSpecifiedDueDateJSON(ChargesHelper.CHARGE_CALCULATION_TYPE_FLAT, "10", true));
+
+        final String penaltyCharge1AddedDate = dateFormatter.format(targetDate);
+
+        Integer penalty1LoanChargeId = this.loanTransactionHelper.addChargesForLoan(loanId,
+                LoanTransactionHelper.getSpecifiedDueDateChargesForLoanAsJSON(String.valueOf(penalty), penaltyCharge1AddedDate, "10"));
+
+        // set loan as fraud
+        final String command = "markAsFraud";
+        String payload = loanTransactionHelper.getLoanFraudPayloadAsJSON("fraud", "true");
+        PutLoansLoanIdResponse putLoansLoanIdResponse = loanTransactionHelper.modifyLoanCommand(loanId, command, payload,
+                this.responseSpec);
+
+        GetLoansLoanIdResponse loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+
+        // set loan as chargeoff
+        String randomText = Utils.randomStringGenerator("en", 5) + Utils.randomNumberGenerator(6) + Utils.randomStringGenerator("is", 5);
+        Integer chargeOffReasonId = CodeHelper.createChargeOffCodeValue(requestSpec, responseSpec, randomText, 1);
+        String transactionExternalId = UUID.randomUUID().toString();
+        this.loanTransactionHelper.chargeOffLoan((long) loanId, new PostLoansLoanIdTransactionsRequest().transactionDate("6 September 2022")
+                .locale("en").dateFormat("dd MMMM yyyy").externalId(transactionExternalId).chargeOffReasonId((long) chargeOffReasonId));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries For ChargeOff Transaction
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "6 September 2022",
+                new JournalEntry(1000, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "6 September 2022",
+                new JournalEntry(20, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "6 September 2022",
+                new JournalEntry(1000, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "6 September 2022",
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "6 September 2022",
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+
+        // make Repayment
+        final PostLoansLoanIdTransactionsResponse repaymentTransaction = loanTransactionHelper.makeLoanRepayment(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("7 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Repayment transaction
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "7 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "7 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Merchant Refund
+        final PostLoansLoanIdTransactionsResponse merchantIssuedRefund_1 = loanTransactionHelper.makeMerchantIssuedRefund((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("8 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Merchant Refund
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "8 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "8 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Payout Refund
+        final PostLoansLoanIdTransactionsResponse payoutRefund_1 = loanTransactionHelper.makePayoutRefund((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("9 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Payout Refund
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "9 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "9 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+
+        // Goodwill Credit
+        final PostLoansLoanIdTransactionsResponse goodwillCredit_1 = loanTransactionHelper.makeGoodwillCredit((long) loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("10 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getActive());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal Entries for Goodwill Credit
+        this.journalEntryHelper.checkJournalEntryForExpenseAccount(expenseAccount, "10 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.DEBIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "10 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+
+        // make overpaid repayment
+        final PostLoansLoanIdTransactionsResponse repaymentTransaction_1 = loanTransactionHelper.makeLoanRepayment(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("11 September 2022").locale("en")
+                        .transactionAmount(720.0));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getOverpaid());
+        assertTrue(loanDetails.getFraud());
+        assertTrue(loanDetails.getChargedOff());
+
+        // verify Journal entries for overpaid repayment
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, "11 September 2022",
+                new JournalEntry(100, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, "11 September 2022",
+                new JournalEntry(620, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, "11 September 2022",
+                new JournalEntry(720, JournalEntry.TransactionType.DEBIT));
+
+        // CBR for making loan active again
+        final PostLoansLoanIdTransactionsResponse cbr_transaction = loanTransactionHelper.makeCreditBalanceRefund(loanExternalIdStr,
+                new PostLoansLoanIdTransactionsRequest().dateFormat("dd MMMM yyyy").transactionDate("12 September 2022").locale("en")
+                        .transactionAmount(100.0));
+
+        // Charge Adjustment making loan overpaid
+        final PostLoansLoanIdChargesChargeIdResponse chargeAdjustmentResult = loanTransactionHelper.chargeAdjustment((long) loanId,
+                (long) feeLoanChargeId, new PostLoansLoanIdChargesChargeIdRequest().amount(10.0).locale("en"));
+
+        loanDetails = this.loanTransactionHelper.getLoanDetails((long) loanId);
+        assertTrue(loanDetails.getStatus().getOverpaid());
+
+        final LocalDate todaysDate = Utils.getLocalDateOfTenant();
+        String transactionDate = Utils.dateFormatter.format(todaysDate);
+
+        // verify Journal entries for Charge Adjustment
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, transactionDate,
+                new JournalEntry(10, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForIncomeAccount(incomeAccount, transactionDate,
+                new JournalEntry(10, JournalEntry.TransactionType.DEBIT));
+    }
+
+    private Integer createLoanAccount(final Integer clientID, final Integer loanProductID, final String externalId) {
+
+        String loanApplicationJSON = new LoanApplicationTestBuilder().withPrincipal("1000").withLoanTermFrequency("1")
+                .withLoanTermFrequencyAsMonths().withNumberOfRepayments("1").withRepaymentEveryAfter("1")
+                .withRepaymentFrequencyTypeAsMonths().withInterestRatePerPeriod("0").withInterestTypeAsFlatBalance()
+                .withAmortizationTypeAsEqualPrincipalPayments().withInterestCalculationPeriodTypeSameAsRepaymentPeriod()
+                .withExpectedDisbursementDate("03 September 2022").withSubmittedOnDate("01 September 2022").withLoanType("individual")
+                .withExternalId(externalId).build(clientID.toString(), loanProductID.toString(), null);
+
+        final Integer loanId = loanTransactionHelper.getLoanId(loanApplicationJSON);
+        loanTransactionHelper.approveLoan("02 September 2022", "1000", loanId, null);
+        loanTransactionHelper.disburseLoanWithNetDisbursalAmount("03 September 2022", loanId, "1000");
+        return loanId;
+    }
+
+    private Integer createLoanProductWithPeriodicAccrualAccounting(final Account... accounts) {
+
+        final String loanProductJSON = new LoanProductTestBuilder().withPrincipal("1000").withRepaymentAfterEvery("1")
+                .withNumberOfRepayments("1").withRepaymentTypeAsMonth().withinterestRatePerPeriod("0")
+                .withInterestRateFrequencyTypeAsMonths().withAmortizationTypeAsEqualPrincipalPayment().withInterestTypeAsFlat()
+                .withAccountingRulePeriodicAccrual(accounts).withDaysInMonth("30").withDaysInYear("365").withMoratorium("0", "0")
+                .build(null);
+
+        return this.loanTransactionHelper.getLoanProductId(loanProductJSON);
+    }
+
+    private Integer createLoanProductWithCashBasedAccounting(final Account... accounts) {
+
+        final String loanProductJSON = new LoanProductTestBuilder().withPrincipal("1000").withRepaymentAfterEvery("1")
+                .withNumberOfRepayments("1").withRepaymentTypeAsMonth().withinterestRatePerPeriod("0")
+                .withInterestRateFrequencyTypeAsMonths().withAmortizationTypeAsEqualPrincipalPayment().withInterestTypeAsFlat()
+                .withAccountingRuleAsCashBased(accounts).withDaysInMonth("30").withDaysInYear("365").withMoratorium("0", "0").build(null);
+
+        return this.loanTransactionHelper.getLoanProductId(loanProductJSON);
+    }
+
+}
@@ -443,11 +443,16 @@ public class LoanProductTestBuilder {
                map.put("incomeFromFeeAccountId", ID);
                map.put("incomeFromPenaltyAccountId", ID);
                map.put("incomeFromRecoveryAccountId", ID);
+                map.put("incomeFromChargeOffInterestAccountId", ID);
+                map.put("incomeFromChargeOffFeesAccountId", ID);
+                map.put("incomeFromChargeOffPenaltyAccountId", ID);
            }
            if (this.accountList[i].getAccountType().equals(Account.AccountType.EXPENSE)) {
                final String ID = this.accountList[i].getAccountID().toString();
                map.put("writeOffAccountId", ID);
                map.put("goodwillCreditAccountId", ID);
+                map.put("chargeOffExpenseAccountId", ID);
+                map.put("chargeOffFraudExpenseAccountId", ID);
            }
            if (this.accountList[i].getAccountType().equals(Account.AccountType.LIABILITY)) {
                final String ID = this.accountList[i].getAccountID().toString();
@@ -481,11 +486,16 @@ public class LoanProductTestBuilder {
                map.put("incomeFromFeeAccountId", ID);
                map.put("incomeFromPenaltyAccountId", ID);
                map.put("incomeFromRecoveryAccountId", ID);
+                map.put("incomeFromChargeOffInterestAccountId", ID);
+                map.put("incomeFromChargeOffFeesAccountId", ID);
+                map.put("incomeFromChargeOffPenaltyAccountId", ID);
            }
            if (this.accountList[i].getAccountType().equals(Account.AccountType.EXPENSE)) {
                final String ID = this.accountList[i].getAccountID().toString();
                map.put("writeOffAccountId", ID);
                map.put("goodwillCreditAccountId", ID);
+                map.put("chargeOffExpenseAccountId", ID);
+                map.put("chargeOffFraudExpenseAccountId", ID);
            }
            if (this.accountList[i].getAccountType().equals(Account.AccountType.LIABILITY)) {
                final String ID = this.accountList[i].getAccountID().toString();