FINERACT-2042 Handling overpayment of chargeback with credit allocations

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

@@ -140,6 +140,7 @@ import org.apache.fineract.portfolio.loanproduct.domain.InterestRecalculationCom
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProduct;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRelatedDetail;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanRescheduleStrategyMethod;
+import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationTransactionType;
 import org.apache.fineract.portfolio.loanproduct.domain.RecalculationFrequencyType;
 import org.apache.fineract.portfolio.loanproduct.domain.RepaymentStartDateType;
 import org.apache.fineract.portfolio.loanproduct.service.LoanEnumerations;
@@ -5959,10 +5960,18 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom {
                         .minus(loanTransaction.getOverPaymentPortion(getCurrency()));
                 loanTransaction.updateOutstandingLoanBalance(outstanding.getAmount());
             } else if (loanTransaction.isChargeback() || loanTransaction.isCreditBalanceRefund()) {
-                Money transactionOutstanding = loanTransaction.getAmount(getCurrency());
+                Money transactionOutstanding = loanTransaction.getPrincipalPortion(getCurrency());
                 if (!loanTransaction.getOverPaymentPortion(getCurrency()).isZero()) {
-                    transactionOutstanding = loanTransaction.getAmount(getCurrency())
+                    // in case of advanced payment strategy and creditAllocations the full amount is recognized first
-                            .minus(loanTransaction.getOverPaymentPortion(getCurrency()));
+                    if (this.getCreditAllocationRules() != null && this.getCreditAllocationRules().size() > 0) {
+                        Money payedPrincipal = loanTransaction.getLoanTransactionToRepaymentScheduleMappings().stream()
+                                .map(mapping -> mapping.getPrincipalPortion(getCurrency())).reduce(Money.zero(getCurrency()), Money::plus);
+                        transactionOutstanding = loanTransaction.getPrincipalPortion(getCurrency()).minus(payedPrincipal);
+                    } else {
+                        // in case legacy payment strategy
+                        transactionOutstanding = loanTransaction.getAmount(getCurrency())
+                                .minus(loanTransaction.getOverPaymentPortion(getCurrency()));
+                    }
                     if (transactionOutstanding.isLessThanZero()) {
                         transactionOutstanding = Money.zero(getCurrency());
                     }
@@ -7198,6 +7207,13 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom {
         return paymentAllocationRules;
     }
 
+    public LoanPaymentAllocationRule getPaymentAllocationRuleOrDefault(PaymentAllocationTransactionType transactionType) {
+        Optional<LoanPaymentAllocationRule> paymentAllocationRule = this.getPaymentAllocationRules().stream()
+                .filter(rule -> rule.getTransactionType().equals(transactionType)).findFirst();
+        return paymentAllocationRule.orElse(this.getPaymentAllocationRules().stream()
+                .filter(rule -> rule.getTransactionType().equals(PaymentAllocationTransactionType.DEFAULT)).findFirst().get());
+    }
+
     public void setPaymentAllocationRules(List<LoanPaymentAllocationRule> loanPaymentAllocationRules) {
         this.paymentAllocationRules = loanPaymentAllocationRules;
     }

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

@@ -130,8 +130,14 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
     @Column(name = "is_additional", nullable = false)
     private boolean additional;
 
-    @Column(name = "credits_amount", scale = 6, precision = 19, nullable = true)
+    @Column(name = "credited_principal", scale = 6, precision = 19, nullable = true)
-    private BigDecimal credits;
+    private BigDecimal creditedPrincipal;
+
+    @Column(name = "credited_fee", scale = 6, precision = 19, nullable = true)
+    private BigDecimal creditedFee;
+
+    @Column(name = "credited_penalty", scale = 6, precision = 19, nullable = true)
+    private BigDecimal creditedPenalty;
 
     @Column(name = "is_down_payment", nullable = false)
     private boolean isDownPayment;
@@ -246,8 +252,16 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
         return this.dueDate;
     }
 
-    public Money getCredits(final MonetaryCurrency currency) {
+    public Money getCreditedPrincipal(final MonetaryCurrency currency) {
-        return Money.of(currency, this.credits);
+        return Money.of(currency, this.creditedPrincipal);
+    }
+
+    public Money getCreditedFee(final MonetaryCurrency currency) {
+        return Money.of(currency, this.creditedFee);
+    }
+
+    public Money getCreditedPenalty(final MonetaryCurrency currency) {
+        return Money.of(currency, this.creditedPenalty);
     }
 
     public Money getPrincipal(final MonetaryCurrency currency) {
@@ -408,9 +422,17 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
 
         this.obligationsMet = false;
         this.obligationsMetOnDate = null;
-        if (this.credits != null) {
+        if (this.creditedPrincipal != null) {
-            this.principal = this.principal.subtract(this.credits);
+            this.principal = this.principal.subtract(this.creditedPrincipal);
-            this.credits = null;
+            this.creditedPrincipal = null;
+        }
+        if (this.creditedFee != null) {
+            this.feeChargesCharged = this.feeChargesCharged.subtract(this.creditedFee);
+            this.creditedFee = null;
+        }
+        if (this.creditedPenalty != null) {
+            this.penaltyCharges = this.penaltyCharges.subtract(this.creditedPenalty);
+            this.creditedPenalty = null;
         }
     }
 
@@ -780,11 +802,27 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
         checkIfRepaymentPeriodObligationsAreMet(transactionDate, transactionAmount.getCurrency());
     }
 
-    public void addToCredits(final BigDecimal amount) {
+    public void addToCreditedPrincipal(final BigDecimal amount) {
-        if (this.credits == null) {
+        if (this.creditedPrincipal == null) {
-            this.credits = amount;
+            this.creditedPrincipal = amount;
         } else {
-            this.credits = this.credits.add(amount);
+            this.creditedPrincipal = this.creditedPrincipal.add(amount);
+        }
+    }
+
+    public void addToCreditedFee(final BigDecimal amount) {
+        if (this.creditedFee == null) {
+            this.creditedFee = amount;
+        } else {
+            this.creditedFee = this.creditedFee.add(amount);
+        }
+    }
+
+    public void addToCreditedPenalty(final BigDecimal amount) {
+        if (this.creditedPenalty == null) {
+            this.creditedPenalty = amount;
+        } else {
+            this.creditedPenalty = this.creditedPenalty.add(amount);
         }
     }
 
@@ -908,7 +946,7 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
     }
 
     public void updateCredits(final LocalDate transactionDate, final Money transactionAmount) {
-        addToCredits(transactionAmount.getAmount());
+        addToCreditedPrincipal(transactionAmount.getAmount());
         addToPrincipal(transactionDate, transactionAmount);
     }
 

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

@@ -74,6 +74,9 @@ public class LoanSummary {
     @Column(name = "total_charges_due_at_disbursement_derived", scale = 6, precision = 19)
     private BigDecimal totalFeeChargesDueAtDisbursement;
 
+    @Column(name = "fee_adjustments_derived", scale = 6, precision = 19)
+    private BigDecimal totalFeeAdjustments;
+
     @Column(name = "fee_charges_repaid_derived", scale = 6, precision = 19)
     private BigDecimal totalFeeChargesRepaid;
 
@@ -89,6 +92,9 @@ public class LoanSummary {
     @Column(name = "penalty_charges_charged_derived", scale = 6, precision = 19)
     private BigDecimal totalPenaltyChargesCharged;
 
+    @Column(name = "penalty_adjustments_derived", scale = 6, precision = 19)
+    private BigDecimal totalPenaltyAdjustments;
+
     @Column(name = "penalty_charges_repaid_derived", scale = 6, precision = 19)
     private BigDecimal totalPenaltyChargesRepaid;
 
@@ -204,6 +210,8 @@ public class LoanSummary {
     public void zeroFields() {
         this.totalPrincipalDisbursed = BigDecimal.ZERO;
         this.totalPrincipalAdjustments = BigDecimal.ZERO;
+        this.totalFeeAdjustments = BigDecimal.ZERO;
+        this.totalPenaltyAdjustments = BigDecimal.ZERO;
         this.totalPrincipalRepaid = BigDecimal.ZERO;
         this.totalPrincipalWrittenOff = BigDecimal.ZERO;
         this.totalPrincipalOutstanding = BigDecimal.ZERO;
@@ -238,6 +246,8 @@ public class LoanSummary {
         this.totalPrincipalDisbursed = principal.getAmount();
         this.totalPrincipalAdjustments = summaryWrapper.calculateTotalPrincipalAdjusted(repaymentScheduleInstallments, currency)
                 .getAmount();
+        this.totalFeeAdjustments = summaryWrapper.calculateTotalFeeAdjusted(repaymentScheduleInstallments, currency).getAmount();
+        this.totalPenaltyAdjustments = summaryWrapper.calculateTotalPenaltyAdjusted(repaymentScheduleInstallments, currency).getAmount();
         this.totalPrincipalRepaid = summaryWrapper.calculateTotalPrincipalRepaid(repaymentScheduleInstallments, currency).getAmount();
         this.totalPrincipalWrittenOff = summaryWrapper.calculateTotalPrincipalWrittenOff(repaymentScheduleInstallments, currency)
                 .getAmount();
@@ -259,7 +269,9 @@ public class LoanSummary {
         this.totalFeeChargesCharged = totalFeeChargesCharged.getAmount();
 
         Money totalFeeChargesRepaidAtDisbursement = summaryWrapper.calculateTotalChargesRepaidAtDisbursement(charges, currency);
-        this.totalFeeChargesRepaid = totalFeeChargesRepaidAtDisbursement.getAmount();
+        Money totalFeeChargesRepaidAfterDisbursement = summaryWrapper.calculateTotalFeeChargesRepaid(repaymentScheduleInstallments,
+                currency);
+        this.totalFeeChargesRepaid = totalFeeChargesRepaidAfterDisbursement.plus(totalFeeChargesRepaidAtDisbursement).getAmount();
 
         if (charges != null) {
             this.totalFeeChargesWaived = summaryWrapper.calculateTotalFeeChargesWaived(charges, currency).getAmount();

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

@@ -45,7 +45,25 @@ public final class LoanSummaryWrapper {
             final MonetaryCurrency currency) {
         Money total = Money.zero(currency);
         for (final LoanRepaymentScheduleInstallment installment : repaymentScheduleInstallments) {
-            total = total.plus(installment.getCredits(currency));
+            total = total.plus(installment.getCreditedPrincipal(currency));
+        }
+        return total;
+    }
+
+    public Money calculateTotalFeeAdjusted(final List<LoanRepaymentScheduleInstallment> repaymentScheduleInstallments,
+            final MonetaryCurrency currency) {
+        Money total = Money.zero(currency);
+        for (final LoanRepaymentScheduleInstallment installment : repaymentScheduleInstallments) {
+            total = total.plus(installment.getCreditedFee(currency));
+        }
+        return total;
+    }
+
+    public Money calculateTotalPenaltyAdjusted(final List<LoanRepaymentScheduleInstallment> repaymentScheduleInstallments,
+            final MonetaryCurrency currency) {
+        Money total = Money.zero(currency);
+        for (final LoanRepaymentScheduleInstallment installment : repaymentScheduleInstallments) {
+            total = total.plus(installment.getCreditedPenalty(currency));
         }
         return total;
     }
@@ -247,7 +265,8 @@ public final class LoanSummaryWrapper {
             return total;
         }
         for (final LoanCharge loanCharge : charges) {
-            if (!loanCharge.isPenaltyCharge() && loanCharge.getAmountPaid(currency).isGreaterThanZero()) {
+            if (!loanCharge.isPenaltyCharge() && loanCharge.getAmountPaid(currency).isGreaterThanZero()
+                    && loanCharge.isDisbursementCharge()) {
                 total = total.plus(loanCharge.getAmountPaid(currency));
             }
         }

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

@@ -494,7 +494,7 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
             for (final LoanRepaymentScheduleInstallment currentInstallment : installments) {
                 pastDueDate = currentInstallment.getDueDate();
                 if (!currentInstallment.isAdditional() && DateUtils.isAfter(currentInstallment.getDueDate(), transactionDate)) {
-                    currentInstallment.addToCredits(transactionAmount.getAmount());
+                    currentInstallment.addToCreditedPrincipal(transactionAmount.getAmount());
                     currentInstallment.addToPrincipal(transactionDate, transactionAmount);
                     if (repaidAmount.isGreaterThanZero()) {
                         currentInstallment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
@@ -526,7 +526,7 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
             if (!loanTransactionMapped) {
                 if (loanTransaction.getTransactionDate().equals(pastDueDate)) {
                     LoanRepaymentScheduleInstallment currentInstallment = installments.get(installments.size() - 1);
-                    currentInstallment.addToCredits(transactionAmount.getAmount());
+                    currentInstallment.addToCreditedPrincipal(transactionAmount.getAmount());
                     currentInstallment.addToPrincipal(transactionDate, transactionAmount);
                     if (repaidAmount.isGreaterThanZero()) {
                         currentInstallment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
@@ -539,7 +539,7 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
                             pastDueDate, transactionDate, transactionAmount.getAmount(), zeroMoney.getAmount(), zeroMoney.getAmount(),
                             zeroMoney.getAmount(), false, null);
                     installment.markAsAdditional();
-                    installment.addToCredits(transactionAmount.getAmount());
+                    installment.addToCreditedPrincipal(transactionAmount.getAmount());
                     loan.addLoanRepaymentScheduleInstallment(installment);
 
                     if (repaidAmount.isGreaterThanZero()) {

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java

@@ -25,6 +25,7 @@ import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.FE
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.INTEREST;
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PENALTY;
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PRINCIPAL;
+import static org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationTransactionType.DEFAULT;
 
 import java.math.BigDecimal;
 import java.math.MathContext;
@@ -76,7 +77,6 @@ import org.apache.fineract.portfolio.loanproduct.domain.CreditAllocationTransact
 import org.apache.fineract.portfolio.loanproduct.domain.DueType;
 import org.apache.fineract.portfolio.loanproduct.domain.FutureInstallmentAllocationRule;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRelatedDetail;
-import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationTransactionType;
 import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationType;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -235,27 +235,31 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
         if (hasNoCustomCreditAllocationRule(loanTransaction)) {
             super.processCreditTransaction(loanTransaction, ctx.getOverpaymentHolder(), ctx.getCurrency(), ctx.getInstallments());
         } else {
-            log.debug("Processing credit transaction with custom credit allocation rules");
-
             loanTransaction.resetDerivedComponents();
-            List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
             final Comparator<LoanRepaymentScheduleInstallment> byDate = Comparator.comparing(LoanRepaymentScheduleInstallment::getDueDate);
             ctx.getInstallments().sort(byDate);
             final Money zeroMoney = Money.zero(ctx.getCurrency());
             Money transactionAmount = loanTransaction.getAmount(ctx.getCurrency());
-            Money amountToDistribute = MathUtil
+            Money totalOverpaid = ctx.getOverpaymentHolder().getMoneyObject();
-                    .negativeToZero(loanTransaction.getAmount(ctx.getCurrency()).minus(ctx.getOverpaymentHolder().getMoneyObject()));
+            Money amountToDistribute = MathUtil.negativeToZero(loanTransaction.getAmount(ctx.getCurrency()).minus(totalOverpaid));
-            Money repaidAmount = MathUtil.negativeToZero(transactionAmount.minus(amountToDistribute));
+            Money overpaymentAmount = MathUtil.negativeToZero(transactionAmount.minus(amountToDistribute));
-            loanTransaction.setOverPayments(repaidAmount);
+            loanTransaction.setOverPayments(overpaymentAmount);
-            ctx.getOverpaymentHolder().setMoneyObject(ctx.getOverpaymentHolder().getMoneyObject().minus(repaidAmount));
 
-            if (amountToDistribute.isGreaterThanZero()) {
+            if (transactionAmount.isGreaterThanZero()) {
                 if (loanTransaction.isChargeback()) {
                     LoanTransaction originalTransaction = findOriginalTransaction(loanTransaction, ctx);
-                    Map<AllocationType, BigDecimal> originalAllocation = getOriginalAllocation(originalTransaction);
+                    // get the original allocation from the opriginal transaction
+                    Map<AllocationType, Money> originalAllocationNotAdjusted = getOriginalAllocation(originalTransaction,
+                            ctx.getCurrency());
                     LoanCreditAllocationRule chargeBackAllocationRule = getChargebackAllocationRules(loanTransaction);
+
+                    // if there were earlier chargebacks then let's calculate the remaining amounts for each portion
+                    Map<AllocationType, Money> originalAllocation = adjustOriginalAllocationWithFormerChargebacks(originalTransaction,
+                            originalAllocationNotAdjusted, loanTransaction, ctx, chargeBackAllocationRule);
+
+                    // calculate the current chargeback allocation
                     Map<AllocationType, Money> chargebackAllocation = calculateChargebackAllocationMap(originalAllocation,
-                            amountToDistribute.getAmount(), chargeBackAllocationRule.getAllocationTypes(), ctx.getCurrency());
+                            transactionAmount.getAmount(), chargeBackAllocationRule.getAllocationTypes(), ctx.getCurrency());
 
                     loanTransaction.updateComponents(chargebackAllocation.get(PRINCIPAL), chargebackAllocation.get(INTEREST),
                             chargebackAllocation.get(FEE), chargebackAllocation.get(PENALTY));
@@ -266,18 +270,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                     for (final LoanRepaymentScheduleInstallment currentInstallment : ctx.getInstallments()) {
                         pastDueDate = currentInstallment.getDueDate();
                         if (!currentInstallment.isAdditional() && DateUtils.isAfter(currentInstallment.getDueDate(), transactionDate)) {
-
+                            recognizeAmountsAfterChargeback(ctx.getCurrency(), transactionDate, currentInstallment, chargebackAllocation);
-                            currentInstallment.addToCredits(transactionAmount.getAmount());
-                            currentInstallment.addToPrincipal(transactionDate, chargebackAllocation.get(PRINCIPAL));
-                            Money originalInterest = currentInstallment.getInterestCharged(ctx.getCurrency());
-                            currentInstallment.updateInterestCharged(
-                                    originalInterest.plus(chargebackAllocation.get(INTEREST)).getAmountDefaultedToNullIfZero());
-
-                            if (repaidAmount.isGreaterThanZero()) {
-                                currentInstallment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
-                                transactionMappings.add(LoanTransactionToRepaymentScheduleMapping.createFrom(loanTransaction,
-                                        currentInstallment, repaidAmount, zeroMoney, zeroMoney, zeroMoney));
-                            }
                             loanTransactionMapped = true;
                             break;
 
@@ -287,16 +280,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                             if (DateUtils.isAfter(transactionDate, currentInstallment.getDueDate())) {
                                 currentInstallment.updateDueDate(transactionDate);
                             }
-                            currentInstallment.addToCredits(transactionAmount.getAmount());
+                            recognizeAmountsAfterChargeback(ctx.getCurrency(), transactionDate, currentInstallment, chargebackAllocation);
-                            currentInstallment.addToPrincipal(transactionDate, chargebackAllocation.get(PRINCIPAL));
-                            Money originalInterest = currentInstallment.getInterestCharged(ctx.getCurrency());
-                            currentInstallment.updateInterestCharged(
-                                    originalInterest.plus(chargebackAllocation.get(INTEREST)).getAmountDefaultedToNullIfZero());
-                            if (repaidAmount.isGreaterThanZero()) {
-                                currentInstallment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
-                                transactionMappings.add(LoanTransactionToRepaymentScheduleMapping.createFrom(loanTransaction,
-                                        currentInstallment, repaidAmount, zeroMoney, zeroMoney, zeroMoney));
-                            }
                             loanTransactionMapped = true;
                             break;
                         }
@@ -307,42 +291,99 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                         if (loanTransaction.getTransactionDate().equals(pastDueDate)) {
                             LoanRepaymentScheduleInstallment currentInstallment = ctx.getInstallments()
                                     .get(ctx.getInstallments().size() - 1);
-                            currentInstallment.addToCredits(transactionAmount.getAmount());
+                            recognizeAmountsAfterChargeback(ctx.getCurrency(), transactionDate, currentInstallment, chargebackAllocation);
-                            currentInstallment.addToPrincipal(transactionDate, chargebackAllocation.get(PRINCIPAL));
-                            Money originalInterest = currentInstallment.getInterestCharged(ctx.getCurrency());
-                            currentInstallment.updateInterestCharged(
-                                    originalInterest.plus(chargebackAllocation.get(INTEREST)).getAmountDefaultedToNullIfZero());
-                            if (repaidAmount.isGreaterThanZero()) {
-                                currentInstallment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
-                                transactionMappings.add(LoanTransactionToRepaymentScheduleMapping.createFrom(loanTransaction,
-                                        currentInstallment, repaidAmount, zeroMoney, zeroMoney, zeroMoney));
-                            }
                         } else {
                             Loan loan = loanTransaction.getLoan();
                             LoanRepaymentScheduleInstallment installment = new LoanRepaymentScheduleInstallment(loan,
                                     (ctx.getInstallments().size() + 1), pastDueDate, transactionDate, zeroMoney.getAmount(),
                                     zeroMoney.getAmount(), zeroMoney.getAmount(), zeroMoney.getAmount(), false, null);
-                            installment.markAsAdditional();
+                            recognizeAmountsAfterChargeback(ctx.getCurrency(), transactionDate, installment, chargebackAllocation);
-                            installment.addToCredits(transactionAmount.getAmount());
-                            installment.addToPrincipal(transactionDate, chargebackAllocation.get(PRINCIPAL));
-                            Money originalInterest = installment.getInterestCharged(ctx.getCurrency());
-                            installment.updateInterestCharged(
-                                    originalInterest.plus(chargebackAllocation.get(INTEREST)).getAmountDefaultedToNullIfZero());
                             loan.addLoanRepaymentScheduleInstallment(installment);
-                            if (repaidAmount.isGreaterThanZero()) {
-                                installment.payPrincipalComponent(loanTransaction.getTransactionDate(), repaidAmount);
-                                transactionMappings.add(LoanTransactionToRepaymentScheduleMapping.createFrom(loanTransaction, installment,
-                                        repaidAmount, zeroMoney, zeroMoney, zeroMoney));
-                            }
                         }
                     }
-
+                    allocateOverpayment(loanTransaction, ctx.getCurrency(), loanTransaction.getLoan().getRepaymentScheduleInstallments(),
-                    loanTransaction.updateLoanTransactionToRepaymentScheduleMappings(transactionMappings);
+                            ctx.getOverpaymentHolder());
+                } else {
+                    throw new RuntimeException("Unsupported transaction " + loanTransaction.getTypeOf().name());
                 }
             }
         }
     }
 
+    private Map<AllocationType, Money> adjustOriginalAllocationWithFormerChargebacks(LoanTransaction originalTransaction,
+            Map<AllocationType, Money> originalAllocation, LoanTransaction chargeBackTransaction, TransactionCtx ctx,
+            LoanCreditAllocationRule chargeBackAllocationRule) {
+        // these are the list of existing transactions
+        List<LoanTransaction> allTransactions = new ArrayList<>(chargeBackTransaction.getLoan().getLoanTransactions());
+
+        // Remove the current chargeback from the list
+        if (chargeBackTransaction.getId() != null) {
+            allTransactions.remove(chargeBackTransaction);
+        } else {
+            Long oldId = ctx.getChangedTransactionDetail().getCurrentTransactionToOldId().get(chargeBackTransaction);
+            allTransactions.remove(allTransactions.stream().filter(tr -> Objects.equals(tr.getId(), oldId)).findFirst().get());
+        }
+
+        // Add the replayed transactions and remove their old version before the replay
+        if (ctx.getChangedTransactionDetail() != null && ctx.getChangedTransactionDetail().getNewTransactionMappings() != null) {
+            for (Long id : ctx.getChangedTransactionDetail().getNewTransactionMappings().keySet()) {
+                allTransactions.remove(allTransactions.stream().filter(tr -> Objects.equals(tr.getId(), id)).findFirst().get());
+                allTransactions.add(ctx.getChangedTransactionDetail().getNewTransactionMappings().get(id));
+            }
+        }
+
+        // keep only the chargeback transactions
+        List<LoanTransaction> chargebacks = allTransactions.stream().filter(LoanTransaction::isChargeback).toList();
+
+        // let's figure out the original transaction for these chargebacks, and order them by ascending order
+        List<LoanTransaction> chargebacksForTheSameOriginal = chargebacks.stream()
+                .filter(tr -> findOriginalTransaction(tr, ctx) == originalTransaction).sorted(loanTransactionDateComparator()).toList();
+
+        Map<AllocationType, Money> allocation = new HashMap<>(originalAllocation);
+        for (LoanTransaction loanTransaction : chargebacksForTheSameOriginal) {
+            Map<AllocationType, Money> temp = calculateChargebackAllocationMap(allocation, loanTransaction.getAmount(),
+                    chargeBackAllocationRule.getAllocationTypes(), ctx.getCurrency());
+            allocation.keySet().forEach(k -> allocation.put(k, allocation.get(k).minus(temp.get(k))));
+        }
+        return allocation;
+    }
+
+    @NotNull
+    private Comparator<LoanTransaction> loanTransactionDateComparator() {
+        return (tr1, tr2) -> {
+            if (tr1.getTransactionDate().compareTo(tr2.getTransactionDate()) != 0) {
+                return tr1.getTransactionDate().compareTo(tr2.getTransactionDate());
+            } else if (tr1.getSubmittedOnDate().compareTo(tr2.getSubmittedOnDate()) != 0) {
+                return tr1.getSubmittedOnDate().compareTo(tr2.getSubmittedOnDate());
+            } else {
+                return tr1.getCreatedDateTime().compareTo(tr2.getCreatedDateTime());
+            }
+        };
+    }
+
+    private void recognizeAmountsAfterChargeback(MonetaryCurrency currency, LocalDate localDate,
+            LoanRepaymentScheduleInstallment installment, Map<AllocationType, Money> chargebackAllocation) {
+        Money principal = chargebackAllocation.get(PRINCIPAL);
+        if (principal.isGreaterThanZero()) {
+            installment.addToCreditedPrincipal(principal.getAmount());
+            installment.addToPrincipal(localDate, principal);
+        }
+
+        Money fee = chargebackAllocation.get(FEE);
+        if (fee.isGreaterThanZero()) {
+            installment.addToCreditedFee(fee.getAmount());
+            installment.addToChargePortion(fee, Money.zero(currency), Money.zero(currency), Money.zero(currency), Money.zero(currency),
+                    Money.zero(currency));
+        }
+
+        Money penalty = chargebackAllocation.get(PENALTY);
+        if (penalty.isGreaterThanZero()) {
+            installment.addToCreditedPenalty(penalty.getAmount());
+            installment.addToChargePortion(Money.zero(currency), Money.zero(currency), Money.zero(currency), penalty, Money.zero(currency),
+                    Money.zero(currency));
+        }
+    }
+
     @NotNull
     private LoanCreditAllocationRule getChargebackAllocationRules(LoanTransaction loanTransaction) {
         LoanCreditAllocationRule chargeBackAllocationRule = loanTransaction.getLoan().getCreditAllocationRules().stream()
@@ -351,23 +392,23 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
     }
 
     @NotNull
-    private Map<AllocationType, BigDecimal> getOriginalAllocation(LoanTransaction originalLoanTransaction) {
+    private Map<AllocationType, Money> getOriginalAllocation(LoanTransaction originalLoanTransaction, MonetaryCurrency currency) {
-        Map<AllocationType, BigDecimal> originalAllocation = new HashMap<>();
+        Map<AllocationType, Money> originalAllocation = new HashMap<>();
-        originalAllocation.put(PRINCIPAL, originalLoanTransaction.getPrincipalPortion());
+        originalAllocation.put(PRINCIPAL, Money.of(currency, originalLoanTransaction.getPrincipalPortion()));
-        originalAllocation.put(INTEREST, originalLoanTransaction.getInterestPortion());
+        originalAllocation.put(INTEREST, Money.of(currency, originalLoanTransaction.getInterestPortion()));
-        originalAllocation.put(PENALTY, originalLoanTransaction.getPenaltyChargesPortion());
+        originalAllocation.put(PENALTY, Money.of(currency, originalLoanTransaction.getPenaltyChargesPortion()));
-        originalAllocation.put(FEE, originalLoanTransaction.getFeeChargesPortion());
+        originalAllocation.put(FEE, Money.of(currency, originalLoanTransaction.getFeeChargesPortion()));
         return originalAllocation;
     }
 
-    protected Map<AllocationType, Money> calculateChargebackAllocationMap(Map<AllocationType, BigDecimal> originalAllocation,
+    protected Map<AllocationType, Money> calculateChargebackAllocationMap(Map<AllocationType, Money> originalAllocation,
             BigDecimal amountToDistribute, List<AllocationType> allocationTypes, MonetaryCurrency currency) {
         BigDecimal remainingAmount = amountToDistribute;
         Map<AllocationType, Money> result = new HashMap<>();
         Arrays.stream(AllocationType.values()).forEach(allocationType -> result.put(allocationType, Money.of(currency, BigDecimal.ZERO)));
         for (AllocationType allocationType : allocationTypes) {
             if (remainingAmount.compareTo(BigDecimal.ZERO) > 0) {
-                BigDecimal originalAmount = originalAllocation.get(allocationType);
+                BigDecimal originalAmount = originalAllocation.get(allocationType).getAmount();
                 if (originalAmount != null && remainingAmount.compareTo(originalAmount) > 0
                         && originalAmount.compareTo(BigDecimal.ZERO) > 0) {
                     result.put(allocationType, Money.of(currency, originalAmount));
@@ -395,14 +436,14 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
 
         List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
         LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> PaymentAllocationTransactionType.DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
+                .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
         LoanPaymentAllocationRule paymentAllocationRule = paymentAllocationRules.stream()
                 .filter(e -> loanTransaction.getTypeOf().equals(e.getTransactionType().getLoanTransactionType())).findFirst()
                 .orElse(defaultPaymentAllocationRule);
         Balances balances = new Balances(zero, zero, zero, zero);
         List<PaymentAllocationType> paymentAllocationTypes;
         FutureInstallmentAllocationRule futureInstallmentAllocationRule;
-        if (PaymentAllocationTransactionType.DEFAULT.equals(paymentAllocationRule.getTransactionType())) {
+        if (DEFAULT.equals(paymentAllocationRule.getTransactionType())) {
             // if the allocation rule is not defined then the reverse order of the default allocation rule will be used
             paymentAllocationTypes = new ArrayList<>(paymentAllocationRule.getAllocationTypes());
             Collections.reverse(paymentAllocationTypes);
@@ -560,7 +601,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
             List<LoanTransactionToRepaymentScheduleMapping> transactionMappings = new ArrayList<>();
             List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
             LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                    .filter(e -> PaymentAllocationTransactionType.DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
+                    .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
 
             Money transactionAmountUnprocessed = null;
             Money zero = Money.zero(currency);
@@ -926,7 +967,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
 
         List<LoanPaymentAllocationRule> paymentAllocationRules = loanTransaction.getLoan().getPaymentAllocationRules();
         LoanPaymentAllocationRule defaultPaymentAllocationRule = paymentAllocationRules.stream()
-                .filter(e -> PaymentAllocationTransactionType.DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
+                .filter(e -> DEFAULT.equals(e.getTransactionType())).findFirst().orElseThrow();
         LoanPaymentAllocationRule paymentAllocationRule = paymentAllocationRules.stream()
                 .filter(e -> loanTransaction.getTypeOf().equals(e.getTransactionType().getLoanTransactionType())).findFirst()
                 .orElse(defaultPaymentAllocationRule);

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

@@ -39,4 +39,5 @@
   <include relativeToChangelogFile="true" file="parts/1014_add_loan_account_custom_snapshot_event.xml"/>
   <include relativeToChangelogFile="true" file="parts/1015_remove_disable_schedule_extension_column.xml"/>
   <include relativeToChangelogFile="true" file="parts/1016_add_credit_allocation_rule.xml"/>
+  <include relativeToChangelogFile="true" file="parts/1017_add_fee_and_penalty_adjustments_to_loan.xml"/>
 </databaseChangeLog>

fineract-loan/src/main/resources/db/changelog/tenant/module/loan/parts/1017_add_fee_and_penalty_adjustments_to_loan.xml

@@ -0,0 +1,43 @@
+<?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-4.1.xsd">
+    <changeSet author="fineract" id="1">
+        <addColumn tableName="m_loan">
+            <column name="fee_adjustments_derived" type="DECIMAL(19, 6)" defaultValueNumeric="0.000000">
+                <constraints nullable="false"/>
+            </column>
+            <column name="penalty_adjustments_derived" type="DECIMAL(19, 6)" defaultValueNumeric="0.000000">
+                <constraints nullable="false"/>
+            </column>
+        </addColumn>
+    </changeSet>
+
+    <changeSet author="fineract" id="2">
+        <addColumn tableName="m_loan_repayment_schedule">
+            <column defaultValueComputed="NULL" name="credited_fee" type="DECIMAL(19, 6)"/>
+            <column defaultValueComputed="NULL" name="credited_penalty" type="DECIMAL(19, 6)"/>
+        </addColumn>
+        <renameColumn tableName="m_loan_repayment_schedule" oldColumnName="credits_amount" newColumnName="credited_principal"  columnDataType="DECIMAL(19, 6)"/>
+    </changeSet>
+
+
+</databaseChangeLog>

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoansApiResourceSwagger.java

@@ -524,6 +524,8 @@ final class LoansApiResourceSwagger {
             public Double interestOutstanding;
             @Schema(example = "200000.000000")
             public Double interestOverdue;
+            @Schema(example = "0.00")
+            public Double feeAdjustments;
             @Schema(example = "18000.000000")
             public Double feeChargesCharged;
             @Schema(example = "0.000000")
@@ -538,6 +540,8 @@ final class LoansApiResourceSwagger {
             public Double feeChargesOutstanding;
             @Schema(example = "15000.000000")
             public Double feeChargesOverdue;
+            @Schema(example = "0.00")
+            public Double penaltyAdjustments;
             @Schema(example = "0.000000")
             public Double penaltyChargesCharged;
             @Schema(example = "0.000000")

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/data/LoanScheduleAccrualData.java

@@ -51,12 +51,15 @@ public class LoanScheduleAccrualData {
     private BigDecimal dueDatePenaltyIncome;
     private BigDecimal accruableIncome;
 
+    private BigDecimal creditedFee;
+    private BigDecimal creditedPenalty;
+
     public LoanScheduleAccrualData(final Long loanId, final Long officeId, final Integer installmentNumber, final LocalDate accruedTill,
             final PeriodFrequencyType repaymentFrequency, final Integer repayEvery, final LocalDate dueDate, final LocalDate fromDate,
             final Long repaymentScheduleId, final Long loanProductId, final BigDecimal interestIncome, final BigDecimal feeIncome,
             final BigDecimal penaltyIncome, final BigDecimal accruedInterestIncome, final BigDecimal accruedFeeIncome,
             final BigDecimal accruedPenaltyIncome, final CurrencyData currencyData, final LocalDate interestCalculatedFrom,
-            final BigDecimal waivedInterestIncome) {
+            final BigDecimal waivedInterestIncome, BigDecimal creditedFee, BigDecimal creditedPenalty) {
         this.loanId = loanId;
         this.installmentNumber = installmentNumber;
         this.officeId = officeId;
@@ -76,6 +79,8 @@ public class LoanScheduleAccrualData {
         this.repayEvery = repayEvery;
         this.interestCalculatedFrom = interestCalculatedFrom;
         this.waivedInterestIncome = waivedInterestIncome;
+        this.creditedFee = creditedFee;
+        this.creditedPenalty = creditedPenalty;
     }
 
     public Long getLoanId() {
@@ -185,4 +190,12 @@ public class LoanScheduleAccrualData {
         this.accruableIncome = accruableIncome;
     }
 
+    public BigDecimal getCreditedFee() {
+        return this.creditedFee;
+    }
+
+    public BigDecimal getCreditedPenalty() {
+        return this.creditedPenalty;
+    }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/data/LoanSummaryData.java

@@ -21,6 +21,7 @@ package org.apache.fineract.portfolio.loanaccount.data;
 import java.math.BigDecimal;
 import java.time.LocalDate;
 import java.util.Collection;
+import lombok.Builder;
 import lombok.Data;
 import lombok.experimental.Accessors;
 import org.apache.fineract.organisation.monetary.data.CurrencyData;
@@ -31,6 +32,7 @@ import org.springframework.util.CollectionUtils;
  * Immutable data object representing loan summary information.
  */
 @Data
+@Builder
 @Accessors(chain = true)
 public class LoanSummaryData {
 
@@ -48,6 +50,7 @@ public class LoanSummaryData {
     private final BigDecimal interestOutstanding;
     private final BigDecimal interestOverdue;
     private final BigDecimal feeChargesCharged;
+    private final BigDecimal feeAdjustments;
     private final BigDecimal feeChargesDueAtDisbursementCharged;
     private final BigDecimal feeChargesPaid;
     private final BigDecimal feeChargesWaived;
@@ -55,6 +58,7 @@ public class LoanSummaryData {
     private final BigDecimal feeChargesOutstanding;
     private final BigDecimal feeChargesOverdue;
     private final BigDecimal penaltyChargesCharged;
+    private final BigDecimal penaltyAdjustments;
     private final BigDecimal penaltyChargesPaid;
     private final BigDecimal penaltyChargesWaived;
     private final BigDecimal penaltyChargesWrittenOff;
@@ -90,61 +94,6 @@ public class LoanSummaryData {
     private final Long chargeOffReasonId;
     private final String chargeOffReason;
 
-    public LoanSummaryData(final CurrencyData currency, final BigDecimal principalDisbursed, final BigDecimal principalAdjustments,
-            final BigDecimal principalPaid, final BigDecimal principalWrittenOff, final BigDecimal principalOutstanding,
-            final BigDecimal principalOverdue, final BigDecimal interestCharged, final BigDecimal interestPaid,
-            final BigDecimal interestWaived, final BigDecimal interestWrittenOff, final BigDecimal interestOutstanding,
-            final BigDecimal interestOverdue, final BigDecimal feeChargesCharged, final BigDecimal feeChargesDueAtDisbursementCharged,
-            final BigDecimal feeChargesPaid, final BigDecimal feeChargesWaived, final BigDecimal feeChargesWrittenOff,
-            final BigDecimal feeChargesOutstanding, final BigDecimal feeChargesOverdue, final BigDecimal penaltyChargesCharged,
-            final BigDecimal penaltyChargesPaid, final BigDecimal penaltyChargesWaived, final BigDecimal penaltyChargesWrittenOff,
-            final BigDecimal penaltyChargesOutstanding, final BigDecimal penaltyChargesOverdue, final BigDecimal totalExpectedRepayment,
-            final BigDecimal totalRepayment, final BigDecimal totalExpectedCostOfLoan, final BigDecimal totalCostOfLoan,
-            final BigDecimal totalWaived, final BigDecimal totalWrittenOff, final BigDecimal totalOutstanding,
-            final BigDecimal totalOverdue, final LocalDate overdueSinceDate, final Long writeoffReasonId, final String writeoffReason,
-            final BigDecimal totalRecovered, final Long chargeOffReasonId, final String chargeOffReason) {
-        this.currency = currency;
-        this.principalDisbursed = principalDisbursed;
-        this.principalAdjustments = principalAdjustments;
-        this.principalPaid = principalPaid;
-        this.principalWrittenOff = principalWrittenOff;
-        this.principalOutstanding = principalOutstanding;
-        this.principalOverdue = principalOverdue;
-        this.interestCharged = interestCharged;
-        this.interestPaid = interestPaid;
-        this.interestWaived = interestWaived;
-        this.interestWrittenOff = interestWrittenOff;
-        this.interestOutstanding = interestOutstanding;
-        this.interestOverdue = interestOverdue;
-        this.feeChargesCharged = feeChargesCharged;
-        this.feeChargesDueAtDisbursementCharged = feeChargesDueAtDisbursementCharged;
-        this.feeChargesPaid = feeChargesPaid;
-        this.feeChargesWaived = feeChargesWaived;
-        this.feeChargesWrittenOff = feeChargesWrittenOff;
-        this.feeChargesOutstanding = feeChargesOutstanding;
-        this.feeChargesOverdue = feeChargesOverdue;
-        this.penaltyChargesCharged = penaltyChargesCharged;
-        this.penaltyChargesPaid = penaltyChargesPaid;
-        this.penaltyChargesWaived = penaltyChargesWaived;
-        this.penaltyChargesWrittenOff = penaltyChargesWrittenOff;
-        this.penaltyChargesOutstanding = penaltyChargesOutstanding;
-        this.penaltyChargesOverdue = penaltyChargesOverdue;
-        this.totalExpectedRepayment = totalExpectedRepayment;
-        this.totalRepayment = totalRepayment;
-        this.totalExpectedCostOfLoan = totalExpectedCostOfLoan;
-        this.totalCostOfLoan = totalCostOfLoan;
-        this.totalWaived = totalWaived;
-        this.totalWrittenOff = totalWrittenOff;
-        this.totalOutstanding = totalOutstanding;
-        this.totalOverdue = totalOverdue;
-        this.overdueSinceDate = overdueSinceDate;
-        this.writeoffReasonId = writeoffReasonId;
-        this.writeoffReason = writeoffReason;
-        this.totalRecovered = totalRecovered;
-        this.chargeOffReasonId = chargeOffReasonId;
-        this.chargeOffReason = chargeOffReason;
-    }
-
     public static LoanSummaryData withTransactionAmountsSummary(final LoanSummaryData defaultSummaryData,
             final Collection<LoanTransactionData> loanTransactions) {
 
@@ -184,34 +133,41 @@ public class LoanSummaryData {
             totalRepaymentTransactionReversed = computeTotalAmountForReversedTransactions(LoanTransactionType.REPAYMENT, loanTransactions);
         }
 
-        return new LoanSummaryData(defaultSummaryData.currency, defaultSummaryData.principalDisbursed,
+        return LoanSummaryData.builder().currency(defaultSummaryData.currency).principalDisbursed(defaultSummaryData.principalDisbursed)
-                defaultSummaryData.principalAdjustments, defaultSummaryData.principalPaid, defaultSummaryData.principalWrittenOff,
+                .principalAdjustments(defaultSummaryData.principalAdjustments).principalPaid(defaultSummaryData.principalPaid)
-                defaultSummaryData.principalOutstanding, defaultSummaryData.principalOverdue, defaultSummaryData.interestCharged,
+                .principalWrittenOff(defaultSummaryData.principalWrittenOff).principalOutstanding(defaultSummaryData.principalOutstanding)
-                defaultSummaryData.interestPaid, defaultSummaryData.interestWaived, defaultSummaryData.interestWrittenOff,
+                .principalOverdue(defaultSummaryData.principalOverdue).interestCharged(defaultSummaryData.interestCharged)
-                defaultSummaryData.interestOutstanding, defaultSummaryData.interestOverdue, defaultSummaryData.feeChargesCharged,
+                .interestPaid(defaultSummaryData.interestPaid).interestWaived(defaultSummaryData.interestWaived)
-                defaultSummaryData.feeChargesDueAtDisbursementCharged, defaultSummaryData.feeChargesPaid,
+                .interestWrittenOff(defaultSummaryData.interestWrittenOff).interestOutstanding(defaultSummaryData.interestOutstanding)
-                defaultSummaryData.feeChargesWaived, defaultSummaryData.feeChargesWrittenOff, defaultSummaryData.feeChargesOutstanding,
+                .interestOverdue(defaultSummaryData.interestOverdue).feeChargesCharged(defaultSummaryData.feeChargesCharged)
-                defaultSummaryData.feeChargesOverdue, defaultSummaryData.penaltyChargesCharged, defaultSummaryData.penaltyChargesPaid,
+                .feeAdjustments(defaultSummaryData.feeAdjustments)
-                defaultSummaryData.penaltyChargesWaived, defaultSummaryData.penaltyChargesWrittenOff,
+                .feeChargesDueAtDisbursementCharged(defaultSummaryData.feeChargesDueAtDisbursementCharged)
-                defaultSummaryData.penaltyChargesOutstanding, defaultSummaryData.penaltyChargesOverdue,
+                .feeChargesPaid(defaultSummaryData.feeChargesPaid).feeChargesWaived(defaultSummaryData.feeChargesWaived)
-                defaultSummaryData.totalExpectedRepayment, defaultSummaryData.totalRepayment, defaultSummaryData.totalExpectedCostOfLoan,
+                .feeChargesWrittenOff(defaultSummaryData.feeChargesWrittenOff)
-                defaultSummaryData.totalCostOfLoan, defaultSummaryData.totalWaived, defaultSummaryData.totalWrittenOff,
+                .feeChargesOutstanding(defaultSummaryData.feeChargesOutstanding).feeChargesOverdue(defaultSummaryData.feeChargesOverdue)
-                defaultSummaryData.totalOutstanding, defaultSummaryData.totalOverdue, defaultSummaryData.overdueSinceDate,
+                .penaltyChargesCharged(defaultSummaryData.penaltyChargesCharged).penaltyAdjustments(defaultSummaryData.penaltyAdjustments)
-                defaultSummaryData.writeoffReasonId, defaultSummaryData.writeoffReason, defaultSummaryData.totalRecovered,
+                .penaltyChargesPaid(defaultSummaryData.penaltyChargesPaid).penaltyChargesWaived(defaultSummaryData.penaltyChargesWaived)
-                defaultSummaryData.chargeOffReasonId, defaultSummaryData.chargeOffReason).setTotalMerchantRefund(totalMerchantRefund)
+                .penaltyChargesWrittenOff(defaultSummaryData.penaltyChargesWrittenOff)
-                .setTotalMerchantRefundReversed(totalMerchantRefundReversed).setTotalPayoutRefund(totalPayoutRefund)
+                .penaltyChargesOutstanding(defaultSummaryData.penaltyChargesOutstanding)
-                .setTotalPayoutRefundReversed(totalPayoutRefundReversed).setTotalGoodwillCredit(totalGoodwillCredit)
+                .penaltyChargesOverdue(defaultSummaryData.penaltyChargesOverdue)
-                .setTotalGoodwillCreditReversed(totalGoodwillCreditReversed).setTotalChargeAdjustment(totalChargeAdjustment)
+                .totalExpectedRepayment(defaultSummaryData.totalExpectedRepayment).totalRepayment(defaultSummaryData.totalRepayment)
-                .setTotalChargeAdjustmentReversed(totalChargeAdjustmentReversed).setTotalChargeback(totalChargeback)
+                .totalExpectedCostOfLoan(defaultSummaryData.totalExpectedCostOfLoan).totalCostOfLoan(defaultSummaryData.totalCostOfLoan)
-                .setTotalCreditBalanceRefund(totalCreditBalanceRefund).setTotalCreditBalanceRefundReversed(totalCreditBalanceRefundReversed)
+                .totalWaived(defaultSummaryData.totalWaived).totalWrittenOff(defaultSummaryData.totalWrittenOff)
-                .setTotalRepaymentTransaction(totalRepaymentTransaction)
+                .totalOutstanding(defaultSummaryData.totalOutstanding).totalOverdue(defaultSummaryData.totalOverdue)
-                .setTotalRepaymentTransactionReversed(totalRepaymentTransactionReversed);
+                .overdueSinceDate(defaultSummaryData.overdueSinceDate).writeoffReasonId(defaultSummaryData.writeoffReasonId)
+                .writeoffReason(defaultSummaryData.writeoffReason).totalRecovered(defaultSummaryData.totalRecovered)
+                .chargeOffReasonId(defaultSummaryData.chargeOffReasonId).chargeOffReason(defaultSummaryData.chargeOffReason)
+                .totalMerchantRefund(totalMerchantRefund).totalMerchantRefundReversed(totalMerchantRefundReversed)
+                .totalPayoutRefund(totalPayoutRefund).totalPayoutRefundReversed(totalPayoutRefundReversed)
+                .totalGoodwillCredit(totalGoodwillCredit).totalGoodwillCreditReversed(totalGoodwillCreditReversed)
+                .totalChargeAdjustment(totalChargeAdjustment).totalChargeAdjustmentReversed(totalChargeAdjustmentReversed)
+                .totalChargeback(totalChargeback).totalCreditBalanceRefund(totalCreditBalanceRefund)
+                .totalCreditBalanceRefundReversed(totalCreditBalanceRefundReversed).totalRepaymentTransaction(totalRepaymentTransaction)
+                .totalRepaymentTransactionReversed(totalRepaymentTransactionReversed).build();
     }
 
     public static LoanSummaryData withOnlyCurrencyData(CurrencyData currencyData) {
-        return new LoanSummaryData(currencyData, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null,
+        return LoanSummaryData.builder().currency(currencyData).build();
-                null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null,
-                null, null, null, null);
     }
 
     private static BigDecimal computeTotalAmountForReversedTransactions(LoanTransactionType transactionType,

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java

@@ -695,7 +695,8 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
                     installment.getFeeChargesCharged(currency).getAmount(), installment.getPenaltyChargesCharged(currency).getAmount(),
                     installment.getInterestAccrued(currency).getAmount(), installment.getFeeAccrued(currency).getAmount(),
                     installment.getPenaltyAccrued(currency).getAmount(), currencyData, interestCalculatedFrom,
-                    installment.getInterestWaived(currency).getAmount());
+                    installment.getInterestWaived(currency).getAmount(), installment.getCreditedFee(currency).getAmount(),
+                    installment.getCreditedPenalty(currency).getAmount());
             loanScheduleAccrualDatas.add(accrualData);
 
         }
@@ -940,10 +941,12 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
                         .minus(loanRepaymentScheduleInstallment.getInterestWaived(currency));
                 feePortion = feePortion.add(loanRepaymentScheduleInstallment.getFeeChargesCharged(currency))
                         .minus(loanRepaymentScheduleInstallment.getFeeAccrued(currency))
-                        .minus(loanRepaymentScheduleInstallment.getFeeChargesWaived(currency));
+                        .minus(loanRepaymentScheduleInstallment.getFeeChargesWaived(currency))
+                        .minus(loanRepaymentScheduleInstallment.getCreditedFee(currency));
                 penaltyPortion = penaltyPortion.add(loanRepaymentScheduleInstallment.getPenaltyChargesCharged(currency))
                         .minus(loanRepaymentScheduleInstallment.getPenaltyAccrued(currency))
-                        .minus(loanRepaymentScheduleInstallment.getPenaltyChargesWaived(currency));
+                        .minus(loanRepaymentScheduleInstallment.getPenaltyChargesWaived(currency))
+                        .minus(loanRepaymentScheduleInstallment.getCreditedPenalty(currency));
             }
             Money total = interestPortion.plus(feePortion).plus(penaltyPortion);
 

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

@@ -168,7 +168,9 @@ public class LoanAccrualWritePlatformServiceImpl implements LoanAccrualWritePlat
 
         BigDecimal totalAccInterest = accrualData.getAccruedInterestIncome();
         BigDecimal totalAccPenalty = accrualData.getAccruedPenaltyIncome();
+        BigDecimal totalCreditedPenalty = accrualData.getCreditedPenalty();
         BigDecimal totalAccFee = accrualData.getAccruedFeeIncome();
+        BigDecimal totalCreditedFee = accrualData.getCreditedFee();
 
         if (totalAccInterest == null) {
             totalAccInterest = BigDecimal.ZERO;
@@ -183,7 +185,10 @@ public class LoanAccrualWritePlatformServiceImpl implements LoanAccrualWritePlat
             if (totalAccFee == null) {
                 totalAccFee = BigDecimal.ZERO;
             }
-            feePortion = feePortion.subtract(totalAccFee);
+            if (totalCreditedFee == null) {
+                totalCreditedFee = BigDecimal.ZERO;
+            }
+            feePortion = feePortion.subtract(totalAccFee).subtract(totalCreditedFee);
             amount = amount.add(feePortion);
             totalAccFee = totalAccFee.add(feePortion);
             if (feePortion.compareTo(BigDecimal.ZERO) == 0) {
@@ -195,7 +200,10 @@ public class LoanAccrualWritePlatformServiceImpl implements LoanAccrualWritePlat
             if (totalAccPenalty == null) {
                 totalAccPenalty = BigDecimal.ZERO;
             }
-            penaltyPortion = penaltyPortion.subtract(totalAccPenalty);
+            if (totalCreditedPenalty == null) {
+                totalCreditedPenalty = BigDecimal.ZERO;
+            }
+            penaltyPortion = penaltyPortion.subtract(totalAccPenalty).subtract(totalCreditedPenalty);
             amount = amount.add(penaltyPortion);
             totalAccPenalty = totalAccPenalty.add(penaltyPortion);
             if (penaltyPortion.compareTo(BigDecimal.ZERO) == 0) {
@@ -234,6 +242,9 @@ public class LoanAccrualWritePlatformServiceImpl implements LoanAccrualWritePlat
             if (scheduleAccrualData.getAccruedFeeIncome() != null) {
                 feePortion = feePortion.subtract(scheduleAccrualData.getAccruedFeeIncome());
             }
+            if (scheduleAccrualData.getCreditedFee() != null) {
+                feePortion = feePortion.subtract(scheduleAccrualData.getCreditedFee());
+            }
             amount = amount.add(feePortion);
             if (feePortion.compareTo(BigDecimal.ZERO) == 0) {
                 feePortion = null;
@@ -248,6 +259,9 @@ public class LoanAccrualWritePlatformServiceImpl implements LoanAccrualWritePlat
             if (scheduleAccrualData.getAccruedPenaltyIncome() != null) {
                 penaltyPortion = penaltyPortion.subtract(scheduleAccrualData.getAccruedPenaltyIncome());
             }
+            if (scheduleAccrualData.getCreditedPenalty() != null) {
+                penaltyPortion = penaltyPortion.subtract(scheduleAccrualData.getCreditedPenalty());
+            }
             amount = amount.add(penaltyPortion);
             if (penaltyPortion.compareTo(BigDecimal.ZERO) == 0) {
                 penaltyPortion = null;

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

@@ -649,6 +649,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                     + " l.loan_officer_id as loanOfficerId, s.display_name as loanOfficerName, "
                     + " l.principal_disbursed_derived as principalDisbursed, l.principal_repaid_derived as principalPaid,"
                     + " l.principal_adjustments_derived as principalAdjustments, l.principal_writtenoff_derived as principalWrittenOff,"
+                    + " l.fee_adjustments_derived as feeAdjustments, l.penalty_adjustments_derived as penaltyAdjustments,"
                     + " l.principal_outstanding_derived as principalOutstanding, l.interest_charged_derived as interestCharged,"
                     + " l.interest_repaid_derived as interestPaid, l.interest_waived_derived as interestWaived,"
                     + " l.interest_writtenoff_derived as interestWrittenOff, l.interest_outstanding_derived as interestOutstanding,"
@@ -912,6 +913,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                 final BigDecimal interestOverdue = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "interestOverdue");
 
                 final BigDecimal feeChargesCharged = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeChargesCharged");
+                final BigDecimal feeAdjustments = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeAdjustments");
                 final BigDecimal feeChargesPaid = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeChargesPaid");
                 final BigDecimal feeChargesWaived = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeChargesWaived");
                 final BigDecimal feeChargesWrittenOff = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeChargesWrittenOff");
@@ -919,6 +921,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                 final BigDecimal feeChargesOverdue = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeChargesOverdue");
 
                 final BigDecimal penaltyChargesCharged = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyChargesCharged");
+                final BigDecimal penaltyAdjustments = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyAdjustments");
                 final BigDecimal penaltyChargesPaid = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyChargesPaid");
                 final BigDecimal penaltyChargesWaived = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyChargesWaived");
                 final BigDecimal penaltyChargesWrittenOff = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyChargesWrittenOff");
@@ -938,14 +941,24 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                 final LocalDate overdueSinceDate = JdbcSupport.getLocalDate(rs, "overdueSinceDate");
                 inArrears = (overdueSinceDate != null);
 
-                loanSummary = new LoanSummaryData(currencyData, principalDisbursed, principalAdjustments, principalPaid,
+                loanSummary = LoanSummaryData.builder().currency(currencyData).principalDisbursed(principalDisbursed)
-                        principalWrittenOff, principalOutstanding, principalOverdue, interestCharged, interestPaid, interestWaived,
+                        .principalAdjustments(principalAdjustments).principalPaid(principalPaid).principalWrittenOff(principalWrittenOff)
-                        interestWrittenOff, interestOutstanding, interestOverdue, feeChargesCharged, feeChargesDueAtDisbursementCharged,
+                        .principalOutstanding(principalOutstanding).principalOverdue(principalOverdue).interestCharged(interestCharged)
-                        feeChargesPaid, feeChargesWaived, feeChargesWrittenOff, feeChargesOutstanding, feeChargesOverdue,
+                        .interestPaid(interestPaid).interestWaived(interestWaived).interestWrittenOff(interestWrittenOff)
-                        penaltyChargesCharged, penaltyChargesPaid, penaltyChargesWaived, penaltyChargesWrittenOff,
+                        .interestOutstanding(interestOutstanding).interestOverdue(interestOverdue).feeChargesCharged(feeChargesCharged)
-                        penaltyChargesOutstanding, penaltyChargesOverdue, totalExpectedRepayment, totalRepayment, totalExpectedCostOfLoan,
+                        .feeAdjustments(feeAdjustments).feeChargesDueAtDisbursementCharged(feeChargesDueAtDisbursementCharged)
-                        totalCostOfLoan, totalWaived, totalWrittenOff, totalOutstanding, totalOverdue, overdueSinceDate, writeoffReasonId,
+                        .feeChargesPaid(feeChargesPaid).feeChargesWaived(feeChargesWaived).feeChargesWrittenOff(feeChargesWrittenOff)
-                        writeoffReason, totalRecovered, chargeOffReasonId, chargeOffReason);
+                        .feeChargesOutstanding(feeChargesOutstanding).feeChargesOverdue(feeChargesOverdue)
+                        .penaltyChargesCharged(penaltyChargesCharged).penaltyAdjustments(penaltyAdjustments)
+                        .penaltyChargesPaid(penaltyChargesPaid).penaltyChargesWaived(penaltyChargesWaived)
+                        .penaltyChargesWrittenOff(penaltyChargesWrittenOff).penaltyChargesOutstanding(penaltyChargesOutstanding)
+                        .penaltyChargesOverdue(penaltyChargesOverdue).totalExpectedRepayment(totalExpectedRepayment)
+                        .totalRepayment(totalRepayment).totalExpectedCostOfLoan(totalExpectedCostOfLoan).totalCostOfLoan(totalCostOfLoan)
+                        .totalWaived(totalWaived).totalWrittenOff(totalWrittenOff).totalOutstanding(totalOutstanding)
+                        .totalOverdue(totalOverdue).overdueSinceDate(overdueSinceDate).writeoffReasonId(writeoffReasonId)
+                        .writeoffReason(writeoffReason).totalRecovered(totalRecovered).chargeOffReasonId(chargeOffReasonId)
+                        .chargeOffReason(chargeOffReason).build();
+
             }
 
             GroupGeneralData groupData = null;
@@ -1144,7 +1157,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                     + " ls.fee_charges_amount as feeChargesDue, ls.fee_charges_completed_derived as feeChargesPaid, ls.fee_charges_waived_derived as feeChargesWaived, ls.fee_charges_writtenoff_derived as feeChargesWrittenOff, "
                     + " ls.penalty_charges_amount as penaltyChargesDue, ls.penalty_charges_completed_derived as penaltyChargesPaid, ls.penalty_charges_waived_derived as penaltyChargesWaived, "
                     + " ls.penalty_charges_writtenoff_derived as penaltyChargesWrittenOff, ls.total_paid_in_advance_derived as totalPaidInAdvanceForPeriod, "
-                    + " ls.total_paid_late_derived as totalPaidLateForPeriod, ls.credits_amount as totalCredits, ls.is_down_payment isDownPayment "
+                    + " ls.total_paid_late_derived as totalPaidLateForPeriod, (coalesce(ls.credited_principal,0) + coalesce(ls.credited_fee,0) + coalesce(ls.credited_penalty,0)) as totalCredits, ls.is_down_payment isDownPayment "
                     + " from m_loan_repayment_schedule ls ";
         }
 
@@ -1912,6 +1925,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                     .append("ls.duedate as duedate,ls.fromdate as fromdate ,ls.id as scheduleId,loan.product_id as productId,")
                     .append("ls.interest_amount as interest, ls.interest_waived_derived as interestWaived,")
                     .append("ls.penalty_charges_amount as penalty, ").append("ls.fee_charges_amount as charges, ")
+                    .append("ls.credited_penalty as credited_penalty, ").append("ls.credited_fee as credited_fee, ")
                     .append("ls.accrual_interest_derived as accinterest,ls.accrual_fee_charges_derived as accfeecharege,ls.accrual_penalty_charges_derived as accpenalty,")
                     .append(" loan.currency_code as currencyCode,loan.currency_digits as currencyDigits,loan.currency_multiplesof as inMultiplesOf,")
                     .append("curr.display_symbol as currencyDisplaySymbol,curr.name as currencyName,curr.internationalized_name_code as currencyNameCode")
@@ -1946,6 +1960,8 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
             final BigDecimal accruedInterestIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "accinterest");
             final BigDecimal accruedFeeIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "accfeecharege");
             final BigDecimal accruedPenaltyIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "accpenalty");
+            final BigDecimal creditedFee = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "credited_fee");
+            final BigDecimal creditedPenalty = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "credited_penalty");
 
             final String currencyCode = rs.getString("currencyCode");
             final String currencyName = rs.getString("currencyName");
@@ -1958,7 +1974,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
 
             return new LoanScheduleAccrualData(loanId, officeId, installmentNumber, accruedTill, frequency, repayEvery, dueDate, fromDate,
                     repaymentScheduleId, loanProductId, interestIncome, feeIncome, penaltyIncome, accruedInterestIncome, accruedFeeIncome,
-                    accruedPenaltyIncome, currencyData, interestCalculatedFrom, interestIncomeWaived);
+                    accruedPenaltyIncome, currencyData, interestCalculatedFrom, interestIncomeWaived, creditedFee, creditedPenalty);
         }
 
     }
@@ -1972,6 +1988,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                     .append("ls.installment as installmentNumber, ")
                     .append("ls.interest_amount as interest, ls.interest_waived_derived as interestWaived,")
                     .append("ls.penalty_charges_amount as penalty, ").append("ls.fee_charges_amount as charges, ")
+                    .append("ls.credited_penalty as credited_penalty, ").append("ls.credited_fee as credited_fee, ")
                     .append("ls.accrual_interest_derived as accinterest,ls.accrual_fee_charges_derived as accfeecharege,ls.accrual_penalty_charges_derived as accpenalty,")
                     .append(" loan.currency_code as currencyCode,loan.currency_digits as currencyDigits,loan.currency_multiplesof as inMultiplesOf,")
                     .append("curr.display_symbol as currencyDisplaySymbol,curr.name as currencyName,curr.internationalized_name_code as currencyNameCode")
@@ -1996,6 +2013,9 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
             final BigDecimal interestIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "interest");
             final BigDecimal feeIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "charges");
             final BigDecimal penaltyIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "penalty");
+            final BigDecimal creditedFee = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "credited_fee");
+            final BigDecimal creditedPenalty = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "credited_penalty");
+
             final BigDecimal interestIncomeWaived = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "interestWaived");
             final BigDecimal accruedInterestIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "accinterest");
             final BigDecimal accruedFeeIncome = JdbcSupport.getBigDecimalDefaultToNullIfZero(rs, "accfeecharege");
@@ -2015,7 +2035,7 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
             final LocalDate interestCalculatedFrom = null;
             return new LoanScheduleAccrualData(loanId, officeId, installmentNumber, accruedTill, frequency, repayEvery, dueDate, fromdate,
                     repaymentScheduleId, loanProductId, interestIncome, feeIncome, penaltyIncome, accruedInterestIncome, accruedFeeIncome,
-                    accruedPenaltyIncome, currencyData, interestCalculatedFrom, interestIncomeWaived);
+                    accruedPenaltyIncome, currencyData, interestCalculatedFrom, interestIncomeWaived, creditedFee, creditedPenalty);
         }
     }
 

fineract-provider/src/test/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessorTest.java

@@ -24,11 +24,15 @@ import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.IN
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PENALTY;
 import static org.apache.fineract.portfolio.loanproduct.domain.AllocationType.PRINCIPAL;
 import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.mockito.ArgumentMatchers.any;
 import static org.mockito.ArgumentMatchers.eq;
 import static org.mockito.ArgumentMatchers.refEq;
 import static org.mockito.Mockito.lenient;
 import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.mockStatic;
+import static org.mockito.Mockito.spy;
 import static org.mockito.Mockito.times;
+import static org.mockito.Mockito.when;
 
 import java.math.BigDecimal;
 import java.math.RoundingMode;
@@ -83,7 +87,7 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
 
     private final LocalDate transactionDate = LocalDate.of(2023, 7, 11);
     private static final MonetaryCurrency MONETARY_CURRENCY = new MonetaryCurrency("USD", 2, 1);
-    private static final MockedStatic<MoneyHelper> MONEY_HELPER = Mockito.mockStatic(MoneyHelper.class);
+    private static final MockedStatic<MoneyHelper> MONEY_HELPER = mockStatic(MoneyHelper.class);
     private AdvancedPaymentScheduleTransactionProcessor underTest;
 
     @BeforeAll
@@ -123,34 +127,33 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         Money zero = Money.zero(currency);
         Loan loan = mock(Loan.class);
         Money chargeAmountMoney = Money.of(currency, chargeAmount);
-        LoanRepaymentScheduleInstallment installment = Mockito
+        LoanRepaymentScheduleInstallment installment = spy(
-                .spy(new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, disbursementDate.plusMonths(1), BigDecimal.valueOf(0L),
+                new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, disbursementDate.plusMonths(1), BigDecimal.valueOf(0L),
                         BigDecimal.valueOf(0L), chargeAmount, BigDecimal.valueOf(0L), false, null, BigDecimal.ZERO));
 
-        Mockito.when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
+        when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
-        Mockito.when(chargePaidBy.getLoanCharge()).thenReturn(charge);
+        when(chargePaidBy.getLoanCharge()).thenReturn(charge);
-        Mockito.when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
+        when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
-        Mockito.when(loanTransaction.getAmount()).thenReturn(chargeAmount);
+        when(loanTransaction.getAmount()).thenReturn(chargeAmount);
-        Mockito.when(loanTransaction.getAmount(currency)).thenReturn(chargeAmountMoney);
+        when(loanTransaction.getAmount(currency)).thenReturn(chargeAmountMoney);
-        Mockito.when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
+        when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
-        Mockito.when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
+        when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
-        Mockito.when(loanTransaction.getLoan()).thenReturn(loan);
+        when(loanTransaction.getLoan()).thenReturn(loan);
-        Mockito.when(loan.getDisbursementDate()).thenReturn(disbursementDate);
+        when(loan.getDisbursementDate()).thenReturn(disbursementDate);
-        Mockito.when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate()))
+        when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate())).thenReturn(true);
-                .thenReturn(true);
+        when(installment.getInstallmentNumber()).thenReturn(1);
-        Mockito.when(installment.getInstallmentNumber()).thenReturn(1);
+        when(charge.updatePaidAmountBy(refEq(chargeAmountMoney), eq(1), refEq(zero))).thenReturn(chargeAmountMoney);
-        Mockito.when(charge.updatePaidAmountBy(refEq(chargeAmountMoney), eq(1), refEq(zero))).thenReturn(chargeAmountMoney);
+        when(loanTransaction.isPenaltyPayment()).thenReturn(false);
-        Mockito.when(loanTransaction.isPenaltyPayment()).thenReturn(false);
 
         underTest.processLatestTransaction(loanTransaction,
                 new TransactionCtx(currency, List.of(installment), Set.of(charge), new MoneyHolder(overpaidAmount)));
 
-        Mockito.verify(installment, Mockito.times(1)).payFeeChargesComponent(eq(transactionDate), eq(chargeAmountMoney));
+        Mockito.verify(installment, times(1)).payFeeChargesComponent(eq(transactionDate), eq(chargeAmountMoney));
-        Mockito.verify(loanTransaction, Mockito.times(1)).updateComponents(refEq(zero), refEq(zero), refEq(chargeAmountMoney), refEq(zero));
+        Mockito.verify(loanTransaction, times(1)).updateComponents(refEq(zero), refEq(zero), refEq(chargeAmountMoney), refEq(zero));
         assertEquals(zero.getAmount(), loanTransaction.getAmount(currency).minus(chargeAmountMoney).getAmount());
         assertEquals(0, chargeAmount.compareTo(installment.getFeeChargesCharged(currency).getAmount()));
         assertEquals(0, BigDecimal.ZERO.compareTo(installment.getFeeChargesOutstanding(currency).getAmount()));
-        Mockito.verify(loan, Mockito.times(0)).getPaymentAllocationRules();
+        Mockito.verify(loan, times(0)).getPaymentAllocationRules();
     }
 
     @Test
@@ -168,35 +171,33 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         Money chargeAmountMoney = Money.of(currency, chargeAmount);
         BigDecimal transactionAmount = BigDecimal.valueOf(20.00);
         Money transactionAmountMoney = Money.of(currency, transactionAmount);
-        LoanRepaymentScheduleInstallment installment = Mockito
+        LoanRepaymentScheduleInstallment installment = spy(
-                .spy(new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, disbursementDate.plusMonths(1), BigDecimal.valueOf(0L),
+                new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, disbursementDate.plusMonths(1), BigDecimal.valueOf(0L),
                         BigDecimal.valueOf(0L), chargeAmount, BigDecimal.valueOf(0L), false, null, BigDecimal.ZERO));
 
-        Mockito.when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
+        when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
-        Mockito.when(chargePaidBy.getLoanCharge()).thenReturn(charge);
+        when(chargePaidBy.getLoanCharge()).thenReturn(charge);
-        Mockito.when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
+        when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
-        Mockito.when(loanTransaction.getAmount()).thenReturn(transactionAmount);
+        when(loanTransaction.getAmount()).thenReturn(transactionAmount);
-        Mockito.when(loanTransaction.getAmount(currency)).thenReturn(transactionAmountMoney);
+        when(loanTransaction.getAmount(currency)).thenReturn(transactionAmountMoney);
-        Mockito.when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
+        when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
-        Mockito.when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
+        when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
-        Mockito.when(loanTransaction.getLoan()).thenReturn(loan);
+        when(loanTransaction.getLoan()).thenReturn(loan);
-        Mockito.when(loan.getDisbursementDate()).thenReturn(disbursementDate);
+        when(loan.getDisbursementDate()).thenReturn(disbursementDate);
-        Mockito.when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate()))
+        when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate())).thenReturn(true);
-                .thenReturn(true);
+        when(installment.getInstallmentNumber()).thenReturn(1);
-        Mockito.when(installment.getInstallmentNumber()).thenReturn(1);
+        when(charge.updatePaidAmountBy(refEq(transactionAmountMoney), eq(1), refEq(zero))).thenReturn(transactionAmountMoney);
-        Mockito.when(charge.updatePaidAmountBy(refEq(transactionAmountMoney), eq(1), refEq(zero))).thenReturn(transactionAmountMoney);
+        when(loanTransaction.isPenaltyPayment()).thenReturn(false);
-        Mockito.when(loanTransaction.isPenaltyPayment()).thenReturn(false);
 
         underTest.processLatestTransaction(loanTransaction,
                 new TransactionCtx(currency, List.of(installment), Set.of(charge), new MoneyHolder(overpaidAmount)));
 
-        Mockito.verify(installment, Mockito.times(1)).payFeeChargesComponent(eq(transactionDate), eq(transactionAmountMoney));
+        Mockito.verify(installment, times(1)).payFeeChargesComponent(eq(transactionDate), eq(transactionAmountMoney));
-        Mockito.verify(loanTransaction, Mockito.times(1)).updateComponents(refEq(zero), refEq(zero), refEq(transactionAmountMoney),
+        Mockito.verify(loanTransaction, times(1)).updateComponents(refEq(zero), refEq(zero), refEq(transactionAmountMoney), refEq(zero));
-                refEq(zero));
         assertEquals(zero.getAmount(), loanTransaction.getAmount(currency).minus(transactionAmountMoney).getAmount());
         assertEquals(0, chargeAmount.compareTo(installment.getFeeChargesCharged(currency).getAmount()));
         assertEquals(0, BigDecimal.valueOf(80.00).compareTo(installment.getFeeChargesOutstanding(currency).getAmount()));
-        Mockito.verify(loan, Mockito.times(0)).getPaymentAllocationRules();
+        Mockito.verify(loan, times(0)).getPaymentAllocationRules();
     }
 
     @Test
@@ -216,94 +217,50 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         BigDecimal transactionAmount = BigDecimal.valueOf(120.00);
         Money transactionAmountMoney = Money.of(currency, transactionAmount);
         LoanPaymentAllocationRule loanPaymentAllocationRule = mock(LoanPaymentAllocationRule.class);
-        LoanRepaymentScheduleInstallment installment = Mockito
+        LoanRepaymentScheduleInstallment installment = spy(new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, transactionDate,
-                .spy(new LoanRepaymentScheduleInstallment(loan, 1, disbursementDate, transactionDate, BigDecimal.valueOf(100L),
+                BigDecimal.valueOf(100L), BigDecimal.valueOf(0L), chargeAmount, BigDecimal.valueOf(0L), false, null, BigDecimal.ZERO));
-                        BigDecimal.valueOf(0L), chargeAmount, BigDecimal.valueOf(0L), false, null, BigDecimal.ZERO));
 
-        Mockito.when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
+        when(loanTransaction.getTypeOf()).thenReturn(LoanTransactionType.CHARGE_PAYMENT);
-        Mockito.when(chargePaidBy.getLoanCharge()).thenReturn(charge);
+        when(chargePaidBy.getLoanCharge()).thenReturn(charge);
-        Mockito.when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
+        when(loanTransaction.getLoanChargesPaid()).thenReturn(Set.of(chargePaidBy));
-        Mockito.when(loanTransaction.getAmount()).thenReturn(transactionAmount);
+        when(loanTransaction.getAmount()).thenReturn(transactionAmount);
-        Mockito.when(loanTransaction.getAmount(currency)).thenReturn(transactionAmountMoney);
+        when(loanTransaction.getAmount(currency)).thenReturn(transactionAmountMoney);
-        Mockito.when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
+        when(loanTransaction.getTransactionDate()).thenReturn(transactionDate);
-        Mockito.when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
+        when(charge.getAmountOutstanding(currency)).thenReturn(chargeAmountMoney);
-        Mockito.when(loanTransaction.getLoan()).thenReturn(loan);
+        when(loanTransaction.getLoan()).thenReturn(loan);
-        Mockito.when(loanTransaction.getLoan().getLoanProductRelatedDetail()).thenReturn(loanProductRelatedDetail);
+        when(loanTransaction.getLoan().getLoanProductRelatedDetail()).thenReturn(loanProductRelatedDetail);
-        Mockito.when(loanProductRelatedDetail.getLoanScheduleProcessingType()).thenReturn(LoanScheduleProcessingType.HORIZONTAL);
+        when(loanProductRelatedDetail.getLoanScheduleProcessingType()).thenReturn(LoanScheduleProcessingType.HORIZONTAL);
-        Mockito.when(loan.getDisbursementDate()).thenReturn(disbursementDate);
+        when(loan.getDisbursementDate()).thenReturn(disbursementDate);
-        Mockito.when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate()))
+        when(charge.isDueForCollectionFromIncludingAndUpToAndIncluding(disbursementDate, installment.getDueDate())).thenReturn(true);
-                .thenReturn(true);
+        when(installment.getInstallmentNumber()).thenReturn(1);
-        Mockito.when(installment.getInstallmentNumber()).thenReturn(1);
+        when(charge.updatePaidAmountBy(refEq(chargeAmountMoney), eq(1), refEq(zero))).thenReturn(chargeAmountMoney);
-        Mockito.when(charge.updatePaidAmountBy(refEq(chargeAmountMoney), eq(1), refEq(zero))).thenReturn(chargeAmountMoney);
+        when(loanTransaction.isPenaltyPayment()).thenReturn(false);
-        Mockito.when(loanTransaction.isPenaltyPayment()).thenReturn(false);
+        when(loan.getPaymentAllocationRules()).thenReturn(List.of(loanPaymentAllocationRule));
-        Mockito.when(loan.getPaymentAllocationRules()).thenReturn(List.of(loanPaymentAllocationRule));
+        when(loanPaymentAllocationRule.getTransactionType()).thenReturn(PaymentAllocationTransactionType.DEFAULT);
-        Mockito.when(loanPaymentAllocationRule.getTransactionType()).thenReturn(PaymentAllocationTransactionType.DEFAULT);
+        when(loanPaymentAllocationRule.getAllocationTypes()).thenReturn(List.of(PaymentAllocationType.DUE_PRINCIPAL));
-        Mockito.when(loanPaymentAllocationRule.getAllocationTypes()).thenReturn(List.of(PaymentAllocationType.DUE_PRINCIPAL));
+        when(loanTransaction.isOn(eq(transactionDate))).thenReturn(true);
-        Mockito.when(loanTransaction.isOn(eq(transactionDate))).thenReturn(true);
 
         underTest.processLatestTransaction(loanTransaction,
                 new TransactionCtx(currency, List.of(installment), Set.of(charge), new MoneyHolder(overpaidAmount)));
 
-        Mockito.verify(installment, Mockito.times(1)).payFeeChargesComponent(eq(transactionDate), eq(chargeAmountMoney));
+        Mockito.verify(installment, times(1)).payFeeChargesComponent(eq(transactionDate), eq(chargeAmountMoney));
-        Mockito.verify(loanTransaction, Mockito.times(1)).updateComponents(refEq(zero), refEq(zero), refEq(chargeAmountMoney), refEq(zero));
+        Mockito.verify(loanTransaction, times(1)).updateComponents(refEq(zero), refEq(zero), refEq(chargeAmountMoney), refEq(zero));
         assertEquals(0, BigDecimal.valueOf(20).compareTo(loanTransaction.getAmount(currency).minus(chargeAmountMoney).getAmount()));
         assertEquals(0, chargeAmount.compareTo(installment.getFeeChargesCharged(currency).getAmount()));
         assertEquals(0, BigDecimal.ZERO.compareTo(installment.getFeeChargesOutstanding(currency).getAmount()));
         assertEquals(0, BigDecimal.valueOf(80).compareTo(installment.getPrincipalOutstanding(currency).getAmount()));
-        Mockito.verify(loan, Mockito.times(1)).getPaymentAllocationRules();
+        Mockito.verify(loan, times(1)).getPaymentAllocationRules();
     }
 
     @Test
-    public void testProcessCreditTransactionWithAllocationRuleInterestAndPrincipal() {
+    public void testProcessCreditTransactionWithAllocationRulePrincipalPenaltyFeeInterest() {
         // given
         Loan loan = mock(Loan.class);
-        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan);
+        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan, 25.0);
 
-        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(INTEREST, PRINCIPAL, PENALTY, FEE);
+        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(PRINCIPAL, PENALTY, FEE, INTEREST);
-        Mockito.when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
+        when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
-        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction);
+        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction, 10, 0, 20, 5);
-        lenient().when(loan.getLoanTransactions()).thenReturn(List.of(repayment));
-
-        MoneyHolder overpaymentHolder = new MoneyHolder(Money.zero(MONETARY_CURRENCY));
-        List<LoanRepaymentScheduleInstallment> installments = new ArrayList<>();
-        LoanRepaymentScheduleInstallment installment = createMockInstallment(LocalDate.of(2023, 1, 31), false);
-        installments.add(installment);
-
-        // when
-
-        TransactionCtx ctx = new TransactionCtx(MONETARY_CURRENCY, installments, null, overpaymentHolder);
-        underTest.processCreditTransaction(chargeBackTransaction, ctx);
-
-        // then
-        Mockito.verify(installment, Mockito.times(1)).addToCredits(new BigDecimal("25.00"));
-        Mockito.verify(installment, Mockito.times(1)).updateInterestCharged(new BigDecimal("20.00"));
-        ArgumentCaptor<LocalDate> localDateArgumentCaptor = ArgumentCaptor.forClass(LocalDate.class);
-        ArgumentCaptor<Money> moneyCaptor = ArgumentCaptor.forClass(Money.class);
-        Mockito.verify(installment, Mockito.times(1)).addToPrincipal(localDateArgumentCaptor.capture(), moneyCaptor.capture());
-        Assertions.assertEquals(LocalDate.of(2023, 1, 1), localDateArgumentCaptor.getValue());
-        assertEquals(0, moneyCaptor.getValue().getAmount().compareTo(BigDecimal.valueOf(5.0)));
-
-        ArgumentCaptor<Money> principal = ArgumentCaptor.forClass(Money.class);
-        ArgumentCaptor<Money> interest = ArgumentCaptor.forClass(Money.class);
-        ArgumentCaptor<Money> fee = ArgumentCaptor.forClass(Money.class);
-        ArgumentCaptor<Money> penalty = ArgumentCaptor.forClass(Money.class);
-        Mockito.verify(chargeBackTransaction, times(1)).updateComponents(principal.capture(), interest.capture(), fee.capture(),
-                penalty.capture());
-        assertEquals(0, principal.getValue().getAmount().compareTo(BigDecimal.valueOf(5.0)));
-        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.valueOf(20.0)));
-        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.ZERO));
-        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.ZERO));
-    }
-
-    @Test
-    public void testProcessCreditTransactionWithAllocationRulePrincipalAndInterest() {
-        // given
-        Loan loan = mock(Loan.class);
-        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan);
-
-        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(PRINCIPAL, INTEREST, PENALTY, FEE);
-        Mockito.when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
-        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction);
         lenient().when(loan.getLoanTransactions()).thenReturn(List.of(repayment));
 
         MoneyHolder overpaymentHolder = new MoneyHolder(Money.zero(MONETARY_CURRENCY));
@@ -315,15 +272,31 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         TransactionCtx ctx = new TransactionCtx(MONETARY_CURRENCY, installments, null, overpaymentHolder);
         underTest.processCreditTransaction(chargeBackTransaction, ctx);
 
-        // then
+        // verify principal
-        Mockito.verify(installment, Mockito.times(1)).addToCredits(new BigDecimal("25.00"));
+        Mockito.verify(installment, times(1)).addToCreditedPrincipal(new BigDecimal("10.00"));
-        Mockito.verify(installment, Mockito.times(1)).updateInterestCharged(new BigDecimal("15.00"));
         ArgumentCaptor<LocalDate> localDateArgumentCaptor = ArgumentCaptor.forClass(LocalDate.class);
         ArgumentCaptor<Money> moneyCaptor = ArgumentCaptor.forClass(Money.class);
-        Mockito.verify(installment, Mockito.times(1)).addToPrincipal(localDateArgumentCaptor.capture(), moneyCaptor.capture());
+        Mockito.verify(installment, times(1)).addToPrincipal(localDateArgumentCaptor.capture(), moneyCaptor.capture());
         Assertions.assertEquals(LocalDate.of(2023, 1, 1), localDateArgumentCaptor.getValue());
         assertEquals(0, moneyCaptor.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
 
+        // verify charges on installment
+        Mockito.verify(installment, times(1)).addToCreditedFee(new BigDecimal("10.00"));
+        Mockito.verify(installment, times(1)).addToCreditedPenalty(new BigDecimal("5.00"));
+
+        ArgumentCaptor<Money> feeCaptor = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> penaltyCaptor = ArgumentCaptor.forClass(Money.class);
+        Mockito.verify(installment, times(2)).addToChargePortion(feeCaptor.capture(), any(), any(), penaltyCaptor.capture(), any(), any());
+        assertEquals(2, feeCaptor.getAllValues().size());
+        assertEquals(2, penaltyCaptor.getAllValues().size());
+
+        assertEquals(0, feeCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.valueOf(10.0)));
+        assertEquals(0, feeCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.ZERO));
+
+        assertEquals(0, penaltyCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, penaltyCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.valueOf(5.0)));
+
+        // verify transaction
         ArgumentCaptor<Money> principal = ArgumentCaptor.forClass(Money.class);
         ArgumentCaptor<Money> interest = ArgumentCaptor.forClass(Money.class);
         ArgumentCaptor<Money> fee = ArgumentCaptor.forClass(Money.class);
@@ -331,24 +304,74 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         Mockito.verify(chargeBackTransaction, times(1)).updateComponents(principal.capture(), interest.capture(), fee.capture(),
                 penalty.capture());
         assertEquals(0, principal.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
-        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.valueOf(15.0)));
+        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
-        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.valueOf(5.0)));
-        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.ZERO));
+    }
+
+    @Test
+    public void testProcessCreditTransactionWithAllocationRulePenaltyFeePrincipalInterest() {
+        // given
+        Loan loan = mock(Loan.class);
+        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan, 25.0);
+
+        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(PENALTY, FEE, PRINCIPAL, INTEREST);
+        when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
+        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction, 10, 0, 20, 5);
+        lenient().when(loan.getLoanTransactions()).thenReturn(List.of(repayment));
+
+        MoneyHolder overpaymentHolder = new MoneyHolder(Money.zero(MONETARY_CURRENCY));
+        List<LoanRepaymentScheduleInstallment> installments = new ArrayList<>();
+        LoanRepaymentScheduleInstallment installment = createMockInstallment(LocalDate.of(2023, 1, 31), false);
+        installments.add(installment);
+
+        // when
+        TransactionCtx ctx = new TransactionCtx(MONETARY_CURRENCY, installments, null, overpaymentHolder);
+        underTest.processCreditTransaction(chargeBackTransaction, ctx);
+
+        // verify charges on installment
+        Mockito.verify(installment, times(1)).addToCreditedFee(new BigDecimal("20.00"));
+        Mockito.verify(installment, times(1)).addToCreditedPenalty(new BigDecimal("5.00"));
+
+        ArgumentCaptor<Money> feeCaptor = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> penaltyCaptor = ArgumentCaptor.forClass(Money.class);
+        Mockito.verify(installment, times(2)).addToChargePortion(feeCaptor.capture(), any(), any(), penaltyCaptor.capture(), any(), any());
+        assertEquals(2, feeCaptor.getAllValues().size());
+        assertEquals(2, penaltyCaptor.getAllValues().size());
+
+        assertEquals(0, feeCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.valueOf(20.0)));
+        assertEquals(0, feeCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.ZERO));
+
+        assertEquals(0, penaltyCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, penaltyCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.valueOf(5.0)));
+
+        // verify transaction
+        ArgumentCaptor<Money> principal = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> interest = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> fee = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> penalty = ArgumentCaptor.forClass(Money.class);
+        Mockito.verify(chargeBackTransaction, times(1)).updateComponents(principal.capture(), interest.capture(), fee.capture(),
+                penalty.capture());
+        assertEquals(0, principal.getValue().getAmount().compareTo(BigDecimal.valueOf(0)));
+        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.valueOf(0)));
+        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.valueOf(20.0)));
+        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.valueOf(5.0)));
     }
 
     @Test
     public void testProcessCreditTransactionWithAllocationRulePrincipalAndInterestWithAdditionalInstallment() {
         // given
         Loan loan = mock(Loan.class);
-        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan);
+        LoanTransaction chargeBackTransaction = createChargebackTransaction(loan, 25.0);
 
-        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(PRINCIPAL, INTEREST, PENALTY, FEE);
+        LoanCreditAllocationRule mockCreditAllocationRule = createMockCreditAllocationRule(PRINCIPAL, PENALTY, FEE, INTEREST);
-        Mockito.when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
+        when(loan.getCreditAllocationRules()).thenReturn(List.of(mockCreditAllocationRule));
-        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction);
+        LoanTransaction repayment = createRepayment(loan, chargeBackTransaction, 10, 0, 20, 5);
         lenient().when(loan.getLoanTransactions()).thenReturn(List.of(repayment));
 
         MoneyHolder overpaymentHolder = new MoneyHolder(Money.zero(MONETARY_CURRENCY));
         List<LoanRepaymentScheduleInstallment> installments = new ArrayList<>();
+
         LoanRepaymentScheduleInstallment installment1 = createMockInstallment(LocalDate.of(2022, 12, 20), false);
         LoanRepaymentScheduleInstallment installment2 = createMockInstallment(LocalDate.of(2022, 12, 27), true);
         installments.add(installment1);
@@ -358,15 +381,31 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         TransactionCtx ctx = new TransactionCtx(MONETARY_CURRENCY, installments, null, overpaymentHolder);
         underTest.processCreditTransaction(chargeBackTransaction, ctx);
 
-        // then
+        // verify principal
-        Mockito.verify(installment2, Mockito.times(1)).addToCredits(new BigDecimal("25.00"));
+        Mockito.verify(installment2, times(1)).addToCreditedPrincipal(new BigDecimal("10.00"));
-        Mockito.verify(installment2, Mockito.times(1)).updateInterestCharged(new BigDecimal("15.00"));
         ArgumentCaptor<LocalDate> localDateArgumentCaptor = ArgumentCaptor.forClass(LocalDate.class);
         ArgumentCaptor<Money> moneyCaptor = ArgumentCaptor.forClass(Money.class);
-        Mockito.verify(installment2, Mockito.times(1)).addToPrincipal(localDateArgumentCaptor.capture(), moneyCaptor.capture());
+        Mockito.verify(installment2, times(1)).addToPrincipal(localDateArgumentCaptor.capture(), moneyCaptor.capture());
         Assertions.assertEquals(LocalDate.of(2023, 1, 1), localDateArgumentCaptor.getValue());
         assertEquals(0, moneyCaptor.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
 
+        // verify charges on installment
+        Mockito.verify(installment2, times(1)).addToCreditedFee(new BigDecimal("10.00"));
+        Mockito.verify(installment2, times(1)).addToCreditedPenalty(new BigDecimal("5.00"));
+
+        ArgumentCaptor<Money> feeCaptor = ArgumentCaptor.forClass(Money.class);
+        ArgumentCaptor<Money> penaltyCaptor = ArgumentCaptor.forClass(Money.class);
+        Mockito.verify(installment2, times(2)).addToChargePortion(feeCaptor.capture(), any(), any(), penaltyCaptor.capture(), any(), any());
+        assertEquals(2, feeCaptor.getAllValues().size());
+        assertEquals(2, penaltyCaptor.getAllValues().size());
+
+        assertEquals(0, feeCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.valueOf(10.0)));
+        assertEquals(0, feeCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.ZERO));
+
+        assertEquals(0, penaltyCaptor.getAllValues().get(0).getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, penaltyCaptor.getAllValues().get(1).getAmount().compareTo(BigDecimal.valueOf(5.0)));
+
+        // verify transaction
         ArgumentCaptor<Money> principal = ArgumentCaptor.forClass(Money.class);
         ArgumentCaptor<Money> interest = ArgumentCaptor.forClass(Money.class);
         ArgumentCaptor<Money> fee = ArgumentCaptor.forClass(Money.class);
@@ -374,9 +413,9 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         Mockito.verify(chargeBackTransaction, times(1)).updateComponents(principal.capture(), interest.capture(), fee.capture(),
                 penalty.capture());
         assertEquals(0, principal.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
-        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.valueOf(15.0)));
+        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.valueOf(10.0)));
-        assertEquals(0, fee.getValue().getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.valueOf(5.0)));
-        assertEquals(0, penalty.getValue().getAmount().compareTo(BigDecimal.ZERO));
+        assertEquals(0, interest.getValue().getAmount().compareTo(BigDecimal.ZERO));
     }
 
     private LoanRepaymentScheduleInstallment createMockInstallment(LocalDate localDate, boolean isAdditional) {
@@ -396,15 +435,16 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         return mockCreditAllocationRule;
     }
 
-    private LoanTransaction createRepayment(Loan loan, LoanTransaction toTransaction) {
+    private LoanTransaction createRepayment(Loan loan, LoanTransaction toTransaction, double principalPortion, double interestPortion,
+            double feePortion, double penaltyPortion) {
         LoanTransaction repayment = mock(LoanTransaction.class);
         lenient().when(repayment.getLoan()).thenReturn(loan);
         lenient().when(repayment.isRepayment()).thenReturn(true);
         lenient().when(repayment.getTypeOf()).thenReturn(REPAYMENT);
-        lenient().when(repayment.getPrincipalPortion()).thenReturn(BigDecimal.valueOf(10));
+        lenient().when(repayment.getPrincipalPortion()).thenReturn(BigDecimal.valueOf(principalPortion));
-        lenient().when(repayment.getInterestPortion()).thenReturn(BigDecimal.valueOf(20));
+        lenient().when(repayment.getInterestPortion()).thenReturn(BigDecimal.valueOf(interestPortion));
-        lenient().when(repayment.getFeeChargesPortion()).thenReturn(BigDecimal.ZERO);
+        lenient().when(repayment.getFeeChargesPortion()).thenReturn(BigDecimal.valueOf(feePortion));
-        lenient().when(repayment.getPenaltyChargesPortion()).thenReturn(BigDecimal.ZERO);
+        lenient().when(repayment.getPenaltyChargesPortion()).thenReturn(BigDecimal.valueOf(penaltyPortion));
 
         LoanTransactionRelation relation = mock(LoanTransactionRelation.class);
         lenient().when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
@@ -414,14 +454,14 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         return repayment;
     }
 
-    private LoanTransaction createChargebackTransaction(Loan loan) {
+    private LoanTransaction createChargebackTransaction(Loan loan, double transactionAmount) {
         LoanTransaction chargeback = mock(LoanTransaction.class);
         lenient().when(chargeback.isChargeback()).thenReturn(true);
         lenient().when(chargeback.getTypeOf()).thenReturn(LoanTransactionType.CHARGEBACK);
         lenient().when(chargeback.getLoan()).thenReturn(loan);
-        lenient().when(chargeback.getAmount()).thenReturn(BigDecimal.valueOf(25));
+        lenient().when(chargeback.getAmount()).thenReturn(BigDecimal.valueOf(transactionAmount));
-        Money amount = Money.of(MONETARY_CURRENCY, BigDecimal.valueOf(25));
+        Money money = Money.of(MONETARY_CURRENCY, BigDecimal.valueOf(transactionAmount));
-        lenient().when(chargeback.getAmount(MONETARY_CURRENCY)).thenReturn(amount);
+        lenient().when(chargeback.getAmount(MONETARY_CURRENCY)).thenReturn(money);
         lenient().when(chargeback.getTransactionDate()).thenReturn(LocalDate.of(2023, 1, 1));
         return chargeback;
     }
@@ -431,40 +471,41 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
         Map<AllocationType, Money> result;
         MonetaryCurrency currency = mock(MonetaryCurrency.class);
 
-        result = underTest.calculateChargebackAllocationMap(allocationMap(50.0, 100.0, 200.0, 12.0), BigDecimal.valueOf(50.0),
+        result = underTest.calculateChargebackAllocationMap(allocationMap(50.0, 100.0, 200.0, 12.0, currency), BigDecimal.valueOf(50.0),
                 List.of(PRINCIPAL, INTEREST, FEE, PENALTY), currency);
-        verify(allocationMap(50.0, 0, 0, 0), result);
+        verify(allocationMap(50.0, 0, 0, 0, currency), result);
 
-        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0), BigDecimal.valueOf(50.0),
+        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0, currency), BigDecimal.valueOf(50.0),
                 List.of(PRINCIPAL, INTEREST, FEE, PENALTY), currency);
-        verify(allocationMap(40.0, 10, 0, 0), result);
+        verify(allocationMap(40.0, 10, 0, 0, currency), result);
 
-        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0), BigDecimal.valueOf(50.0),
+        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0, currency), BigDecimal.valueOf(50.0),
                 List.of(PRINCIPAL, FEE, PENALTY, INTEREST), currency);
-        verify(allocationMap(40.0, 0, 10, 0), result);
+        verify(allocationMap(40.0, 0, 10, 0, currency), result);
 
-        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0), BigDecimal.valueOf(340.0),
+        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0, currency), BigDecimal.valueOf(340.0),
                 List.of(PRINCIPAL, FEE, PENALTY, INTEREST), currency);
-        verify(allocationMap(40.0, 88.0, 200.0, 12.0), result);
+        verify(allocationMap(40.0, 88.0, 200.0, 12.0, currency), result);
 
-        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0), BigDecimal.valueOf(352.0),
+        result = underTest.calculateChargebackAllocationMap(allocationMap(40.0, 100.0, 200.0, 12.0, currency), BigDecimal.valueOf(352.0),
                 List.of(PRINCIPAL, FEE, PENALTY, INTEREST), currency);
-        verify(allocationMap(40.0, 100.0, 200.0, 12.0), result);
+        verify(allocationMap(40.0, 100.0, 200.0, 12.0, currency), result);
     }
 
-    private void verify(Map<AllocationType, BigDecimal> expected, Map<AllocationType, Money> actual) {
+    private void verify(Map<AllocationType, Money> expected, Map<AllocationType, Money> actual) {
         Assertions.assertEquals(expected.size(), actual.size());
         expected.forEach((k, v) -> {
-            Assertions.assertEquals(0, v.compareTo(actual.get(k).getAmount()), "Not matching for " + k);
+            Assertions.assertEquals(0, v.getAmount().compareTo(actual.get(k).getAmount()), "Not matching for " + k);
         });
     }
 
-    private Map<AllocationType, BigDecimal> allocationMap(double principal, double interest, double fee, double penalty) {
+    private Map<AllocationType, Money> allocationMap(double principal, double interest, double fee, double penalty,
-        Map<AllocationType, BigDecimal> allocationMap = new HashMap<>();
+            MonetaryCurrency currency) {
-        allocationMap.put(AllocationType.PRINCIPAL, BigDecimal.valueOf(principal));
+        Map<AllocationType, Money> allocationMap = new HashMap<>();
-        allocationMap.put(AllocationType.INTEREST, BigDecimal.valueOf(interest));
+        allocationMap.put(AllocationType.PRINCIPAL, Money.of(currency, BigDecimal.valueOf(principal)));
-        allocationMap.put(AllocationType.FEE, BigDecimal.valueOf(fee));
+        allocationMap.put(AllocationType.INTEREST, Money.of(currency, BigDecimal.valueOf(interest)));
-        allocationMap.put(AllocationType.PENALTY, BigDecimal.valueOf(penalty));
+        allocationMap.put(AllocationType.FEE, Money.of(currency, BigDecimal.valueOf(fee)));
+        allocationMap.put(AllocationType.PENALTY, Money.of(currency, BigDecimal.valueOf(penalty)));
         return allocationMap;
     }
 
@@ -472,17 +513,17 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
     public void testFindOriginalTransactionShouldFindOriginalInLoansTransactionWhenIdProvided() {
         // given
         LoanTransaction chargebackTransaction = mock(LoanTransaction.class);
-        Mockito.when(chargebackTransaction.getId()).thenReturn(123L);
+        when(chargebackTransaction.getId()).thenReturn(123L);
         Loan loan = mock(Loan.class);
-        Mockito.when(chargebackTransaction.getLoan()).thenReturn(loan);
+        when(chargebackTransaction.getLoan()).thenReturn(loan);
         LoanTransaction repayment1 = mock(LoanTransaction.class);
         LoanTransaction repayment2 = mock(LoanTransaction.class);
-        Mockito.when(loan.getLoanTransactions()).thenReturn(List.of(chargebackTransaction, repayment1, repayment2));
+        when(loan.getLoanTransactions()).thenReturn(List.of(chargebackTransaction, repayment1, repayment2));
 
         LoanTransactionRelation relation = mock(LoanTransactionRelation.class);
-        Mockito.when(relation.getToTransaction()).thenReturn(chargebackTransaction);
+        when(relation.getToTransaction()).thenReturn(chargebackTransaction);
-        Mockito.when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
+        when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
-        Mockito.when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
+        when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
         TransactionCtx ctx = mock(TransactionCtx.class);
 
         // when
@@ -496,14 +537,14 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
     public void testFindOriginalTransactionThrowsRuntimeExceptionWhenIdProvidedAndRelationsAreMissing() {
         // given
         LoanTransaction chargebackTransaction = mock(LoanTransaction.class);
-        Mockito.when(chargebackTransaction.getId()).thenReturn(123L);
+        when(chargebackTransaction.getId()).thenReturn(123L);
         Loan loan = mock(Loan.class);
-        Mockito.when(chargebackTransaction.getLoan()).thenReturn(loan);
+        when(chargebackTransaction.getLoan()).thenReturn(loan);
         LoanTransaction repayment1 = mock(LoanTransaction.class);
         LoanTransaction repayment2 = mock(LoanTransaction.class);
-        Mockito.when(loan.getLoanTransactions()).thenReturn(List.of(chargebackTransaction, repayment1, repayment2));
+        when(loan.getLoanTransactions()).thenReturn(List.of(chargebackTransaction, repayment1, repayment2));
 
-        Mockito.when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of());
+        when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of());
 
         TransactionCtx ctx = mock(TransactionCtx.class);
 
@@ -517,22 +558,22 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
     public void testFindOriginalTransactionShouldFindOriginalInLoansTransactionFromTransactionCtxWhenIdIsNotProvided() {
         // given
         LoanTransaction chargebackReplayed = mock(LoanTransaction.class);
-        Mockito.when(chargebackReplayed.getId()).thenReturn(null);
+        when(chargebackReplayed.getId()).thenReturn(null);
         LoanTransaction repayment1 = mock(LoanTransaction.class);
         LoanTransaction repayment2 = mock(LoanTransaction.class);
 
         LoanTransaction originalChargeback = mock(LoanTransaction.class);
-        Mockito.when(originalChargeback.getId()).thenReturn(123L);
+        when(originalChargeback.getId()).thenReturn(123L);
         LoanTransactionRelation relation = mock(LoanTransactionRelation.class);
-        Mockito.when(relation.getToTransaction()).thenReturn(originalChargeback);
+        when(relation.getToTransaction()).thenReturn(originalChargeback);
-        Mockito.when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
+        when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
-        Mockito.when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
+        when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
 
         TransactionCtx ctx = mock(TransactionCtx.class);
         ChangedTransactionDetail changedTransactionDetail = mock(ChangedTransactionDetail.class);
-        Mockito.when(ctx.getChangedTransactionDetail()).thenReturn(changedTransactionDetail);
+        when(ctx.getChangedTransactionDetail()).thenReturn(changedTransactionDetail);
-        Mockito.when(changedTransactionDetail.getCurrentTransactionToOldId()).thenReturn(Map.of(chargebackReplayed, 123L));
+        when(changedTransactionDetail.getCurrentTransactionToOldId()).thenReturn(Map.of(chargebackReplayed, 123L));
-        Mockito.when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of(122L, repayment1, 121L, repayment2));
+        when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of(122L, repayment1, 121L, repayment2));
 
         // when
         LoanTransaction originalTransaction = underTest.findOriginalTransaction(chargebackReplayed, ctx);
@@ -545,25 +586,25 @@ class AdvancedPaymentScheduleTransactionProcessorTest {
     public void testFindOriginalTransactionShouldFindOriginalInLoansTransactionFromTransactionCtxWhenIdIsNotProvidedFallbackToPersistedTransactions() {
         // given
         LoanTransaction chargebackReplayed = mock(LoanTransaction.class);
-        Mockito.when(chargebackReplayed.getId()).thenReturn(null);
+        when(chargebackReplayed.getId()).thenReturn(null);
         LoanTransaction repayment1 = mock(LoanTransaction.class);
         LoanTransaction repayment2 = mock(LoanTransaction.class);
         Loan loan = mock(Loan.class);
-        Mockito.when(chargebackReplayed.getLoan()).thenReturn(loan);
+        when(chargebackReplayed.getLoan()).thenReturn(loan);
-        Mockito.when(loan.getLoanTransactions()).thenReturn(List.of(repayment1, repayment2));
+        when(loan.getLoanTransactions()).thenReturn(List.of(repayment1, repayment2));
 
         LoanTransaction originalChargeback = mock(LoanTransaction.class);
-        Mockito.when(originalChargeback.getId()).thenReturn(123L);
+        when(originalChargeback.getId()).thenReturn(123L);
         LoanTransactionRelation relation = mock(LoanTransactionRelation.class);
-        Mockito.when(relation.getToTransaction()).thenReturn(originalChargeback);
+        when(relation.getToTransaction()).thenReturn(originalChargeback);
-        Mockito.when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
+        when(relation.getRelationType()).thenReturn(LoanTransactionRelationTypeEnum.CHARGEBACK);
-        Mockito.when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
+        when(repayment2.getLoanTransactionRelations()).thenReturn(Set.of(relation));
 
         TransactionCtx ctx = mock(TransactionCtx.class);
         ChangedTransactionDetail changedTransactionDetail = mock(ChangedTransactionDetail.class);
-        Mockito.when(ctx.getChangedTransactionDetail()).thenReturn(changedTransactionDetail);
+        when(ctx.getChangedTransactionDetail()).thenReturn(changedTransactionDetail);
-        Mockito.when(changedTransactionDetail.getCurrentTransactionToOldId()).thenReturn(Map.of(chargebackReplayed, 123L));
+        when(changedTransactionDetail.getCurrentTransactionToOldId()).thenReturn(Map.of(chargebackReplayed, 123L));
-        Mockito.when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of());
+        when(changedTransactionDetail.getNewTransactionMappings()).thenReturn(Map.of());
 
         // when
         LoanTransaction originalTransaction = underTest.findOriginalTransaction(chargebackReplayed, ctx);

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

@@ -476,6 +476,46 @@ public abstract class BaseLoanIntegrationTest {
                                     totalOutstanding));
                 }
 
+                Double outstandingPrincipalExpected = installments[i].outstandingAmounts != null
+                        ? installments[i].outstandingAmounts.principalOutstanding
+                        : null;
+                Double outstandingPrincipal = period.getPrincipalOutstanding();
+                if (outstandingPrincipalExpected != null) {
+                    Assertions.assertEquals(outstandingPrincipalExpected, outstandingPrincipal,
+                            "%d. installment's outstanding principal is different, expected: %.2f, actual: %.2f".formatted(i,
+                                    outstandingPrincipalExpected, outstandingPrincipal));
+                }
+
+                Double outstandingFeeExpected = installments[i].outstandingAmounts != null
+                        ? installments[i].outstandingAmounts.feeOutstanding
+                        : null;
+                Double outstandingFee = period.getFeeChargesOutstanding();
+                if (outstandingFeeExpected != null) {
+                    Assertions.assertEquals(outstandingFeeExpected, outstandingFee,
+                            "%d. installment's outstanding fee is different, expected: %.2f, actual: %.2f".formatted(i,
+                                    outstandingFeeExpected, outstandingFee));
+                }
+
+                Double outstandingPenaltyExpected = installments[i].outstandingAmounts != null
+                        ? installments[i].outstandingAmounts.penaltyOutstanding
+                        : null;
+                Double outstandingPenalty = period.getPenaltyChargesOutstanding();
+                if (outstandingPenaltyExpected != null) {
+                    Assertions.assertEquals(outstandingPenaltyExpected, outstandingPenalty,
+                            "%d. installment's outstanding penalty is different, expected: %.2f, actual: %.2f".formatted(i,
+                                    outstandingPenaltyExpected, outstandingPenalty));
+                }
+
+                Double outstandingTotalExpected = installments[i].outstandingAmounts != null
+                        ? installments[i].outstandingAmounts.totalOutstanding
+                        : null;
+                Double outstandingTotal = period.getTotalOutstandingForPeriod();
+                if (outstandingTotalExpected != null) {
+                    Assertions.assertEquals(outstandingTotalExpected, outstandingTotal,
+                            "%d. installment's total outstanding is different, expected: %.2f, actual: %.2f".formatted(i,
+                                    outstandingTotalExpected, outstandingTotal));
+                }
+
             }
             Assertions.assertEquals(installments[i].completed, period.getComplete());
             Assertions.assertEquals(LocalDate.parse(installments[i].dueDate, dateTimeFormatter), period.getDueDate());
@@ -603,22 +643,31 @@ public abstract class BaseLoanIntegrationTest {
     }
 
     protected Installment installment(double principalAmount, Boolean completed, String dueDate) {
-        return new Installment(principalAmount, null, null, null, null, completed, dueDate);
+        return new Installment(principalAmount, null, null, null, null, completed, dueDate, null);
     }
 
     protected Installment installment(double principalAmount, double interestAmount, double totalOutstandingAmount, Boolean completed,
             String dueDate) {
-        return new Installment(principalAmount, interestAmount, null, null, totalOutstandingAmount, completed, dueDate);
+        return new Installment(principalAmount, interestAmount, null, null, totalOutstandingAmount, completed, dueDate, null);
     }
 
     protected Installment installment(double principalAmount, double interestAmount, double feeAmount, double totalOutstandingAmount,
             Boolean completed, String dueDate) {
-        return new Installment(principalAmount, interestAmount, feeAmount, null, totalOutstandingAmount, completed, dueDate);
+        return new Installment(principalAmount, interestAmount, feeAmount, null, totalOutstandingAmount, completed, dueDate, null);
     }
 
     protected Installment installment(double principalAmount, double interestAmount, double feeAmount, double penaltyAmount,
             double totalOutstandingAmount, Boolean completed, String dueDate) {
-        return new Installment(principalAmount, interestAmount, feeAmount, penaltyAmount, totalOutstandingAmount, completed, dueDate);
+        return new Installment(principalAmount, interestAmount, feeAmount, penaltyAmount, totalOutstandingAmount, completed, dueDate, null);
+    }
+
+    protected Installment installment(double principalAmount, double interestAmount, double feeAmount, double penaltyAmount,
+            OutstandingAmounts outstandingAmounts, Boolean completed, String dueDate) {
+        return new Installment(principalAmount, interestAmount, feeAmount, penaltyAmount, null, completed, dueDate, outstandingAmounts);
+    }
+
+    protected OutstandingAmounts outstanding(double principal, double fee, double penalty, double total) {
+        return new OutstandingAmounts(principal, fee, penalty, total);
     }
 
     protected BatchRequestBuilder batchRequest() {
@@ -735,6 +784,17 @@ public abstract class BaseLoanIntegrationTest {
         Double totalOutstandingAmount;
         Boolean completed;
         String dueDate;
+        OutstandingAmounts outstandingAmounts;
+    }
+
+    @AllArgsConstructor
+    @ToString
+    public static class OutstandingAmounts {
+
+        Double principalOutstanding;
+        Double feeOutstanding;
+        Double penaltyOutstanding;
+        Double totalOutstanding;
     }
 
     public static class AmortizationType {

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

@@ -26,6 +26,8 @@ import lombok.extern.slf4j.Slf4j;
 import org.apache.fineract.client.models.AdvancedPaymentData;
 import org.apache.fineract.client.models.CreditAllocationData;
 import org.apache.fineract.client.models.CreditAllocationOrder;
+import org.apache.fineract.client.models.GetLoansLoanIdResponse;
+import org.apache.fineract.client.models.GetLoansLoanIdSummary;
 import org.apache.fineract.client.models.PaymentAllocationOrder;
 import org.apache.fineract.client.models.PostLoanProductsRequest;
 import org.apache.fineract.client.models.PostLoanProductsResponse;
@@ -38,6 +40,7 @@ import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanSchedul
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationType;
 import org.jetbrains.annotations.Nullable;
+import org.junit.jupiter.api.Assertions;
 import org.junit.jupiter.api.Test;
 import org.junit.jupiter.api.extension.ExtendWith;
 
@@ -46,13 +49,15 @@ import org.junit.jupiter.api.extension.ExtendWith;
 public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoanIntegrationTest {
 
     @Test
-    public void createLoanWithCreditAllocationAndChargebackPenaltyFeeInterestAndPrincipal() {
+    public void simpleChargebackWithCreditAllocationPenaltyFeeInterestAndPrincipal() {
         runAt("01 January 2023", () -> {
             // Create Client
             Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
             // Create Loan Product
-            Long loanProductId = createLoanProduct(chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+            Long loanProductId = createLoanProduct(//
-
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
             // Apply and Approve Loan
             Long loanId = applyAndApproveLoan(clientId, loanProductId);
 
@@ -92,15 +97,13 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
             verifyTransactions(loanId, //
                     transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
                     transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
-                    transaction(100.0, "Chargeback", "20 January 2023", 1037.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
             );
 
             // Verify Repayment Schedule
             verifyRepaymentSchedule(loanId, //
                     installment(0, null, "01 January 2023"), //
-                    installment(343.0, 0, 50, 20, 30.0, false, "01 February 2023"), // TODO: we still need to add the
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"),
-                                                                                    // fee and the penalty to the
-                                                                                    // outstanding
                     installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
                     installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
                     installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
@@ -109,13 +112,145 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
     }
 
     @Test
-    public void createLoanWithCreditAllocationAndChargebackPenaltyFeeInterestAndPrincipalOnNPlusOneInstallment() {
+    public void simpleChargebackWithCreditAllocationPenaltyFeeInterestAndPrincipalOnTheLastDayOfTheInstallment() {
         runAt("01 January 2023", () -> {
             // Create Client
             Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
             // Create Loan Product
-            Long loanProductId = createLoanProduct(chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
 
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("01 February 2023");
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+            // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "01 February 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0, true, "01 February 2023"), //
+                    installment(343.0, 0, 50, 20, 413.0, false, "01 March 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+        });
+    }
+
+    @Test
+    public void simpleChargebackWithCreditAllocationPenaltyFeeInterestAndPrincipalOnTheLastDayOfTheLoan() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("01 May 2023");
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+            // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "01 May 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(341.0, 0, 50, 20, 411.0, false, "01 May 2023") //
+            );
+        });
+    }
+
+    @Test
+    public void chargebackWithCreditAllocationPenaltyFeeInterestAndPrincipalOnNPlusOneInstallment() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
             // Apply and Approve Loan
             Long loanId = applyAndApproveLoan(clientId, loanProductId);
 
@@ -169,7 +304,7 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
                     transaction(313.0, "Repayment", "20 March 2023", 311.0, 313.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
                     transaction(381.0, "Repayment", "20 April 2023", 0.0, 311.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
                     transaction(70.0, "Accrual", "20 April 2023", 0.0, 0.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
-                    transaction(100.0, "Chargeback", "02 May 2023", 100.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+                    transaction(100.0, "Chargeback", "02 May 2023", 30.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
             );
 
             verifyRepaymentSchedule(loanId, //
@@ -178,20 +313,21 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
                     installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
                     installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
                     installment(311.0, 0, 50, 20, 0.0, true, "01 May 2023"), //
-                    installment(30.0, 0, 0, 0, 30.0, false, "02 May 2023") // TODO: fee and penalty must be added here
+                    installment(30.0, 0, 50, 20, 100.0, false, "02 May 2023") //
-                                                                           // after chargeback
             );
         });
     }
 
     @Test
-    public void createLoanWithCreditAllocationAndChargebackReverseReplayWithBackdatedPayment() {
+    public void chargebackWithCreditAllocationAndReverseReplayWithBackdatedPayment() {
         runAt("01 January 2023", () -> {
             // Create Client
             Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
             // Create Loan Product
-            Long loanProductId = createLoanProduct(chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+            Long loanProductId = createLoanProduct(//
-
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
             // Apply and Approve Loan
             Long loanId = applyAndApproveLoan(clientId, loanProductId);
 
@@ -232,15 +368,13 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
             verifyTransactions(loanId, //
                     transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
                     transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
-                    transaction(100.0, "Chargeback", "21 January 2023", 1037.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+                    transaction(100.0, "Chargeback", "21 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
             );
 
             // Verify Repayment Schedule
             verifyRepaymentSchedule(loanId, //
                     installment(0, null, "01 January 2023"), //
-                    installment(343.0, 0, 50, 20, 30.0, false, "01 February 2023"), // TODO: we still need to add the
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"), //
-                    // fee and the penalty to the
-                    // outstanding
                     installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
                     installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
                     installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
@@ -260,13 +394,15 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
     }
 
     @Test
-    public void createLoanWithCreditAllocationAndOnlyTheChargebackReverseReplayedWithBackdatedPayment() {
+    public void chargebackWithCreditAllocationReverseReplayedWithBackdatedPayment() {
         runAt("01 January 2023", () -> {
             // Create Client
             Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
             // Create Loan Product
-            Long loanProductId = createLoanProduct(chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+            Long loanProductId = createLoanProduct(//
-
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
             // Apply and Approve Loan
             Long loanId = applyAndApproveLoan(clientId, loanProductId);
 
@@ -307,15 +443,13 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
             verifyTransactions(loanId, //
                     transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
                     transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
-                    transaction(100.0, "Chargeback", "22 January 2023", 1037.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+                    transaction(100.0, "Chargeback", "22 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
             );
 
             // Verify Repayment Schedule
             verifyRepaymentSchedule(loanId, //
                     installment(0, null, "01 January 2023"), //
-                    installment(343.0, 0, 50, 20, 30.0, false, "01 February 2023"), // TODO: we still need to add the
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"),
-                    // fee and the penalty to the
-                    // outstanding
                     installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
                     installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
                     installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
@@ -330,18 +464,24 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
                     transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
                     transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
                     transaction(200.0, "Repayment", "21 January 2023", 737.0, 200.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
-                    transaction(100.0, "Chargeback", "22 January 2023", 837.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+                    transaction(100.0, "Chargeback", "22 January 2023", 767.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
             );
+
+            verifyLoanSummaryAmounts(loanId, 30.0, 50.0, 20.0, 837.0);
         });
     }
 
     @Test
-    public void createLoanWithCreditAllocationAndChargebackPrincipalInterestFeePenalty() {
+    public void chargebackWithCreditAllocationPrincipalInterestFeePenalty() {
         runAt("01 January 2023", () -> {
             // Create Client
             Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+
             // Create Loan Product
-            Long loanProductId = createLoanProduct(chargebackAllocation("PRINCIPAL", "INTEREST", "FEE", "PENALTY"));
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PRINCIPAL", "INTEREST", "FEE", "PENALTY")//
+            );
 
             // Apply and Approve Loan
             Long loanId = applyAndApproveLoan(clientId, loanProductId);
@@ -387,16 +527,501 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
             // Verify Repayment Schedule
             verifyRepaymentSchedule(loanId, //
                     installment(0, null, "01 January 2023"), //
-                    installment(413.0, 0, 50, 20, 100.0, false, "01 February 2023"), // TODO: we still need to add the
+                    installment(413.0, 0, 50, 20, 100.0, false, "01 February 2023"),
-                    // fee and the penalty to the
-                    // outstanding
                     installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
                     installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
                     installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
             );
+
+            verifyLoanSummaryAmounts(loanId, 100.0, 0.0, 0.0, 1037);
         });
     }
 
+    @Test
+    public void chargebackWithCreditAllocationPrincipalInterestFeePenaltyWhenOverpaid() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PRINCIPAL", "INTEREST", "FEE", "PENALTY")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 1370.0, "20 January 2023"); // 1250 + 70 = 1320; 50
+                                                                                                // overpayment
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0.0, true, "01 May 2023") //
+            );
+
+            updateBusinessDate("02 May 2023");
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 principal, 0 interest, 0 fee 0 penalty
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(1370.0, "Repayment", "20 January 2023", 0, 1250.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(70.0, "Accrual", "20 January 2023", 0.0, 0.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "02 May 2023", 50.0, 100.0, 0.0, 0.0, 0.0, 0.0, 50.0) //
+            );
+
+            // Verify Repayment Schedule
+            // DEFAULT payment allocation is ..., DUE_PENALTY, DUE_FEE, DUE_PRINCIPAL, ...
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0, true, "01 May 2023"), //
+                    installment(100.0, 0, 0, 0, outstanding(50.0, 0d, 0d, 50.0), false, "02 May 2023") //
+            );
+        });
+    }
+
+    @Test
+    public void chargebackWithCreditAllocationFeePenaltyPrincipalInterestWhenOverpaid() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("FEE", "PENALTY", "PRINCIPAL", "INTEREST")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 1370.0, "20 January 2023"); // 1250 + 70 = 1320; 50
+                                                                                                // overpayment
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0.0, true, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 principal, 0 interest, 0 fee 0 penalty
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(1370.0, "Repayment", "20 January 2023", 0, 1250.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(70.0, "Accrual", "20 January 2023", 0.0, 0.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 30.0, 30.0, 0.0, 50.0, 20.0, 0.0, 50.0) //
+            );
+
+            // Verify Repayment Schedule,
+            // DEFAULT payment allocation is ..., DUE_PENALTY, DUE_FEE, DUE_PRINCIPAL, ...
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 100, 40, outstanding(30.0, 20.0, 0.0, 50.0), false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0.0, true, "01 May 2023") //
+            );
+
+            verifyLoanSummaryAmounts(loanId, 30.0, 50.0, 20.0, 50.0);
+        });
+    }
+
+    @Test
+    public void chargebackWithCreditAllocationFeePenaltyPrincipalInterestWhenOverpaidDefaultPaymentPrincipalFirst() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocationPrincipalFirst(), //
+                    chargebackAllocation("FEE", "PENALTY", "PRINCIPAL", "INTEREST")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 1370.0, "20 January 2023"); // 1250 + 70 = 1320; 50
+            // overpayment
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0.0, true, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 principal, 0 interest, 0 fee 0 penalty
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(1370.0, "Repayment", "20 January 2023", 0, 1250.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(70.0, "Accrual", "20 January 2023", 0.0, 0.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 0.0, 30.0, 0.0, 50.0, 20.0, 0.0, 50.0) //
+            );
+
+            // Verify Repayment Schedule,
+            // DEFAULT payment allocation is ..., DUE_PRINCIPAL, DUE_FEE, DUE_PENALTY ...
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 100, 40, outstanding(0.0, 30.0, 20.0, 50.0), false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 0.0, true, "01 May 2023") //
+            );
+
+            verifyLoanSummaryAmounts(loanId, 30.0, 50.0, 20.0, 50.0);
+        });
+    }
+
+    @Test
+    public void doubleChargebackWithCreditAllocationPenaltyFeeInterestAndPrincipal() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+            // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("21 January 2023");
+
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 to principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 1067.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(443.0, 0, 100, 40, 200.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+        });
+    }
+
+    @Test
+    public void doubleChargebackReverseReplayedBothFeeAndPenaltyPayedWithCreditAllocationPenaltyFeeInterestAndPrincipal() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+            // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("21 January 2023");
+
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 to principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 1067.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(443.0, 0, 100, 40, 200.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Let's add repayment to trigger reverse replay for both chargebacks
+            addRepaymentForLoan(loanId, 200.0, "19 January 2023");
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(200.0, "Repayment", "19 January 2023", 1120.0, 130.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 737.0, 383.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 837.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 937.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+        });
+    }
+
+    @Test
+    public void doubleChargebackReverseReplayedOnlyPenaltyPayedWithCreditAllocationPenaltyFeeInterestAndPrincipal() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(//
+                    createDefaultPaymentAllocation(), //
+                    chargebackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL")//
+            );
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "15 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+            // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 100, 40, 100.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("21 January 2023");
+
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 to principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 1067.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(443.0, 0, 100, 40, 200.0, false, "01 February 2023"),
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Let's add repayment to trigger reverse replay for both chargebacks
+            addRepaymentForLoan(loanId, 20.0, "19 January 2023");
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(20.0, "Repayment", "19 January 2023", 1250.0, 0.0, 0.0, 0.0, 20.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 917.0, 333.0, 0.0, 50.0, 0.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 967.0, 50.0, 0.0, 50.0, 0.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 1067.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+        });
+    }
+
+    private void verifyLoanSummaryAmounts(Long loanId, double creditedPrincipal, double creditedFee, double creditedPenalty,
+            double totalOutstanding) {
+        GetLoansLoanIdResponse loanResponse = loanTransactionHelper.getLoan(requestSpec, responseSpec, loanId.intValue());
+        GetLoansLoanIdSummary summary = loanResponse.getSummary();
+        Assertions.assertNotNull(summary);
+        Assertions.assertEquals(creditedPrincipal, summary.getPrincipalAdjustments());
+        Assertions.assertEquals(creditedFee, summary.getFeeAdjustments());
+        Assertions.assertEquals(creditedPenalty, summary.getPenaltyAdjustments());
+        Assertions.assertEquals(totalOutstanding, summary.getTotalOutstanding());
+    }
+
     @Nullable
     private Long applyAndApproveLoan(Long clientId, Long loanProductId) {
         PostLoansRequest applicationRequest = applyLoanRequest(clientId, loanProductId, "01 January 2023", 1250.0, 4)//
@@ -415,22 +1040,23 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
         return loanId;
     }
 
-    public Long createLoanProduct(CreditAllocationData... creditAllocationData) {
+    public Long createLoanProduct(AdvancedPaymentData defaultAllocation, CreditAllocationData creditAllocationData) {
-        PostLoanProductsRequest postLoanProductsRequest = loanProductWithAdvancedPaymentAllocationWith4Installments(creditAllocationData);
+        PostLoanProductsRequest postLoanProductsRequest = loanProductWithAdvancedPaymentAllocationWith4Installments(defaultAllocation,
+                creditAllocationData);
         PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(postLoanProductsRequest);
         return loanProductResponse.getResourceId();
     }
 
-    private PostLoanProductsRequest loanProductWithAdvancedPaymentAllocationWith4Installments(
+    private PostLoanProductsRequest loanProductWithAdvancedPaymentAllocationWith4Installments(AdvancedPaymentData defaultAllocation,
-            CreditAllocationData... creditAllocationData) {
+            CreditAllocationData creditAllocationData) {
         return createOnePeriod30DaysLongNoInterestPeriodicAccrualProduct().numberOfRepayments(4)//
                 .repaymentEvery(1)//
                 .repaymentFrequencyType(RepaymentFrequencyType.MONTHS.longValue())//
                 .loanScheduleType(LoanScheduleType.PROGRESSIVE.toString()) //
                 .loanScheduleProcessingType(LoanScheduleProcessingType.VERTICAL.toString()) //
                 .transactionProcessingStrategyCode("advanced-payment-allocation-strategy")
-                .paymentAllocation(List.of(createDefaultPaymentAllocation(), createRepaymentPaymentAllocation()))
+                .paymentAllocation(List.of(defaultAllocation, createRepaymentPaymentAllocation()))
-                .creditAllocation(Arrays.asList(creditAllocationData));
+                .creditAllocation(List.of(creditAllocationData));
     }
 
     private AdvancedPaymentData createDefaultPaymentAllocation() {
@@ -448,6 +1074,21 @@ public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoa
         return advancedPaymentData;
     }
 
+    private AdvancedPaymentData createDefaultPaymentAllocationPrincipalFirst() {
+        AdvancedPaymentData advancedPaymentData = new AdvancedPaymentData();
+        advancedPaymentData.setTransactionType("DEFAULT");
+        advancedPaymentData.setFutureInstallmentAllocationRule("NEXT_INSTALLMENT");
+
+        List<PaymentAllocationOrder> paymentAllocationOrders = getPaymentAllocationOrder(PaymentAllocationType.PAST_DUE_PENALTY,
+                PaymentAllocationType.PAST_DUE_FEE, PaymentAllocationType.PAST_DUE_PRINCIPAL, PaymentAllocationType.PAST_DUE_INTEREST,
+                PaymentAllocationType.DUE_PRINCIPAL, PaymentAllocationType.DUE_FEE, PaymentAllocationType.DUE_PENALTY,
+                PaymentAllocationType.DUE_INTEREST, PaymentAllocationType.IN_ADVANCE_PRINCIPAL, PaymentAllocationType.IN_ADVANCE_FEE,
+                PaymentAllocationType.IN_ADVANCE_PENALTY, PaymentAllocationType.IN_ADVANCE_INTEREST);
+
+        advancedPaymentData.setPaymentAllocationOrder(paymentAllocationOrders);
+        return advancedPaymentData;
+    }
+
     private AdvancedPaymentData createRepaymentPaymentAllocation() {
         AdvancedPaymentData advancedPaymentData = new AdvancedPaymentData();
         advancedPaymentData.setTransactionType("REPAYMENT");