FINERACT-2113: Advanced Charge-off Expense Accounting - Add new "Advanced Accounting Rule"

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/domain/ProductToGLAccountMapping.java

@@ -63,10 +63,13 @@ public class ProductToGLAccountMapping extends AbstractPersistableCustom<Long> {
     @Column(name = "financial_account_type", nullable = true)
     private int financialAccountType;
 
+    @Column(name = "charge_off_reason_id", nullable = true)
+    private Long chargeOffReasonId;
+
     public static ProductToGLAccountMapping createNew(final GLAccount glAccount, final Long productId, final int productType,
-            final int financialAccountType) {
+            final int financialAccountType, final Long chargeOffReasonId) {
 
         return new ProductToGLAccountMapping().setGlAccount(glAccount).setProductId(productId).setProductType(productType)
-                .setFinancialAccountType(financialAccountType);
+                .setFinancialAccountType(financialAccountType).setChargeOffReasonId(chargeOffReasonId);
     }
 }

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/domain/ProductToGLAccountMappingRepository.java

@@ -35,7 +35,7 @@ public interface ProductToGLAccountMappingRepository
             @Param("productType") int productType, @Param("financialAccountType") int financialAccountType,
             @Param("chargeId") Long ChargeId);
 
-    @Query("select mapping from ProductToGLAccountMapping mapping where mapping.productId =:productId and mapping.productType =:productType and mapping.financialAccountType=:financialAccountType and mapping.paymentType is NULL and mapping.charge is NULL")
+    @Query("select mapping from ProductToGLAccountMapping mapping where mapping.productId =:productId and mapping.productType =:productType and mapping.financialAccountType=:financialAccountType and mapping.paymentType is NULL and mapping.charge is NULL and mapping.chargeOffReasonId is NULL")
     ProductToGLAccountMapping findCoreProductToFinAccountMapping(@Param("productId") Long productId, @Param("productType") int productType,
             @Param("financialAccountType") int financialAccountType);
 
@@ -61,4 +61,8 @@ public interface ProductToGLAccountMappingRepository
             @Param("productType") int productType);
 
     List<ProductToGLAccountMapping> findByProductIdAndProductType(Long productId, int productType);
+
+    @Query("select mapping from ProductToGLAccountMapping mapping where mapping.productId =:productId and mapping.productType =:productType and mapping.chargeOffReasonId is not NULL")
+    List<ProductToGLAccountMapping> findAllChargesOffReasonsMappings(@Param("productId") Long productId,
+            @Param("productType") int productType);
 }

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/service/ProductToGLAccountMappingHelper.java

@@ -27,6 +27,7 @@ import java.util.HashSet;
 import java.util.List;
 import java.util.Map;
 import java.util.Objects;
+import java.util.Optional;
 import java.util.Set;
 import lombok.RequiredArgsConstructor;
 import org.apache.fineract.accounting.common.AccountingConstants.CashAccountsForLoan;
@@ -39,7 +40,11 @@ import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGL
 import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMappingRepository;
 import org.apache.fineract.accounting.producttoaccountmapping.exception.ProductToGLAccountMappingInvalidException;
 import org.apache.fineract.accounting.producttoaccountmapping.exception.ProductToGLAccountMappingNotFoundException;
+import org.apache.fineract.infrastructure.codes.domain.CodeValue;
+import org.apache.fineract.infrastructure.codes.domain.CodeValueRepository;
 import org.apache.fineract.infrastructure.core.api.JsonCommand;
+import org.apache.fineract.infrastructure.core.data.ApiParameterError;
+import org.apache.fineract.infrastructure.core.exception.PlatformApiDataValidationException;
 import org.apache.fineract.infrastructure.core.serialization.FromJsonHelper;
 import org.apache.fineract.portfolio.PortfolioProductType;
 import org.apache.fineract.portfolio.charge.domain.Charge;
@@ -53,6 +58,7 @@ import org.springframework.stereotype.Component;
 public class ProductToGLAccountMappingHelper {
 
     protected static final List<GLAccountType> ASSET_LIABILITY_TYPES = List.of(GLAccountType.ASSET, GLAccountType.LIABILITY);
+    private static final Integer GL_ACCOUNT_EXPENSE_TYPE = 5;
 
     protected final GLAccountRepository accountRepository;
     protected final ProductToGLAccountMappingRepository accountMappingRepository;
@@ -60,6 +66,7 @@ public class ProductToGLAccountMappingHelper {
     private final ChargeRepositoryWrapper chargeRepositoryWrapper;
     protected final GLAccountRepositoryWrapper accountRepositoryWrapper;
     private final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper;
+    private final CodeValueRepository codeValueRepository;
 
     public void saveProductToAccountMapping(final JsonElement element, final String paramName, final Long productId,
             final int placeHolderTypeId, final GLAccountType expectedAccountType, final PortfolioProductType portfolioProductType) {
@@ -194,6 +201,27 @@ public class ProductToGLAccountMappingHelper {
         }
     }
 
+    public void saveChargeOffReasonToGLAccountMappings(final JsonCommand command, final JsonElement element, final Long productId,
+            final Map<String, Object> changes, final PortfolioProductType portfolioProductType) {
+
+        final String arrayName = LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue();
+        final JsonArray chargeOffReasonToExpenseAccountMappingArray = this.fromApiJsonHelper.extractJsonArrayNamed(arrayName, element);
+
+        if (chargeOffReasonToExpenseAccountMappingArray != null) {
+            if (changes != null) {
+                changes.put(arrayName, command.jsonFragment(arrayName));
+            }
+
+            for (int i = 0; i < chargeOffReasonToExpenseAccountMappingArray.size(); i++) {
+                final JsonObject jsonObject = chargeOffReasonToExpenseAccountMappingArray.get(i).getAsJsonObject();
+                final Long reasonId = jsonObject.get(LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue()).getAsLong();
+                final Long expenseAccountId = jsonObject.get(LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue()).getAsLong();
+
+                saveChargeOffReasonToExpenseMapping(productId, reasonId, expenseAccountId, portfolioProductType);
+            }
+        }
+    }
+
     /**
      * @param command
      * @param element
@@ -356,6 +384,65 @@ public class ProductToGLAccountMappingHelper {
         }
     }
 
+    public void updateChargeOffReasonToGLAccountMappings(final JsonCommand command, final JsonElement element, final Long productId,
+            final Map<String, Object> changes, final PortfolioProductType portfolioProductType) {
+
+        final List<ProductToGLAccountMapping> existingChargeOffReasonToGLAccountMappings = this.accountMappingRepository
+                .findAllChargesOffReasonsMappings(productId, portfolioProductType.getValue());
+        final JsonArray chargeOffReasonToGLAccountMappingArray = this.fromApiJsonHelper
+                .extractJsonArrayNamed(LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue(), element);
+
+        final Map<Long, Long> inputChargeOffReasonToGLAccountMap = new HashMap<>();
+
+        final Set<Long> existingChargeOffReasons = new HashSet<>();
+        if (chargeOffReasonToGLAccountMappingArray != null) {
+            if (changes != null) {
+                changes.put(LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue(),
+                        command.jsonFragment(LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue()));
+            }
+
+            for (int i = 0; i < chargeOffReasonToGLAccountMappingArray.size(); i++) {
+                final JsonObject jsonObject = chargeOffReasonToGLAccountMappingArray.get(i).getAsJsonObject();
+                final Long expenseGlAccountId = jsonObject.get(LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue()).getAsLong();
+                final Long chargeOffReasonCodeValueId = jsonObject
+                        .get(LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue()).getAsLong();
+                inputChargeOffReasonToGLAccountMap.put(chargeOffReasonCodeValueId, expenseGlAccountId);
+            }
+
+            // If input map is empty, delete all existing mappings
+            if (inputChargeOffReasonToGLAccountMap.isEmpty()) {
+                this.accountMappingRepository.deleteAllInBatch(existingChargeOffReasonToGLAccountMappings);
+            } else {
+                for (final ProductToGLAccountMapping existingChargeOffReasonToGLAccountMapping : existingChargeOffReasonToGLAccountMappings) {
+                    final Long currentChargeOffReasonId = existingChargeOffReasonToGLAccountMapping.getChargeOffReasonId();
+                    if (currentChargeOffReasonId != null) {
+                        existingChargeOffReasons.add(currentChargeOffReasonId);
+                        // update existing mappings (if required)
+                        if (inputChargeOffReasonToGLAccountMap.containsKey(currentChargeOffReasonId)) {
+                            final Long newGLAccountId = inputChargeOffReasonToGLAccountMap.get(currentChargeOffReasonId);
+                            if (!newGLAccountId.equals(existingChargeOffReasonToGLAccountMapping.getGlAccount().getId())) {
+                                final Optional<GLAccount> glAccount = accountRepository.findById(newGLAccountId);
+                                if (glAccount.isPresent()) {
+                                    existingChargeOffReasonToGLAccountMapping.setGlAccount(glAccount.get());
+                                    this.accountMappingRepository.saveAndFlush(existingChargeOffReasonToGLAccountMapping);
+                                }
+                            }
+                        } // deleted payment type
+                        else {
+                            this.accountMappingRepository.delete(existingChargeOffReasonToGLAccountMapping);
+                        }
+                    }
+                }
+
+                // only the newly added
+                for (Map.Entry<Long, Long> entry : inputChargeOffReasonToGLAccountMap.entrySet().stream()
+                        .filter(e -> !existingChargeOffReasons.contains(e.getKey())).toList()) {
+                    saveChargeOffReasonToExpenseMapping(productId, entry.getKey(), entry.getValue(), portfolioProductType);
+                }
+            }
+        }
+    }
+
     /**
      * @param productId
      *
@@ -402,6 +489,24 @@ public class ProductToGLAccountMappingHelper {
         this.accountMappingRepository.saveAndFlush(accountMapping);
     }
 
+    private void saveChargeOffReasonToExpenseMapping(final Long productId, final Long reasonId, final Long expenseAccountId,
+            final PortfolioProductType portfolioProductType) {
+
+        final Optional<GLAccount> glAccount = accountRepository.findById(expenseAccountId);
+
+        final boolean reasonMappingExists = this.accountMappingRepository
+                .findAllChargesOffReasonsMappings(productId, portfolioProductType.getValue()).stream()
+                .anyMatch(mapping -> mapping.getChargeOffReasonId().equals(reasonId));
+
+        if (glAccount.isPresent() && !reasonMappingExists) {
+            final ProductToGLAccountMapping accountMapping = new ProductToGLAccountMapping().setGlAccount(glAccount.get())
+                    .setProductId(productId).setProductType(portfolioProductType.getValue())
+                    .setFinancialAccountType(CashAccountsForLoan.CHARGE_OFF_EXPENSE.getValue()).setChargeOffReasonId(reasonId);
+
+            this.accountMappingRepository.saveAndFlush(accountMapping);
+        }
+    }
+
     private List<GLAccountType> getAllowedAccountTypesForFeeMapping() {
         List<GLAccountType> allowedAccountTypes = new ArrayList<>();
         allowedAccountTypes.add(GLAccountType.INCOME);
@@ -455,4 +560,38 @@ public class ProductToGLAccountMappingHelper {
             this.accountMappingRepository.deleteAllInBatch(productToGLAccountMappings);
         }
     }
+
+    public void validateChargeOffMappingsInDatabase(final List<JsonObject> mappings) {
+        final List<ApiParameterError> validationErrors = new ArrayList<>();
+
+        for (JsonObject jsonObject : mappings) {
+            final Long expenseGlAccountId = this.fromApiJsonHelper
+                    .extractLongNamed(LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue(), jsonObject);
+            final Long chargeOffReasonCodeValueId = this.fromApiJsonHelper
+                    .extractLongNamed(LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue(), jsonObject);
+
+            // Validation: chargeOffReasonCodeValueId must exist in the database
+            CodeValue codeValue = this.codeValueRepository.findByCodeNameAndId("ChargeOffReasons", chargeOffReasonCodeValueId);
+            if (codeValue == null) {
+                validationErrors.add(ApiParameterError.parameterError("validation.msg.chargeoffreason.invalid",
+                        "Charge-off reason with ID " + chargeOffReasonCodeValueId + " does not exist",
+                        LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue()));
+            }
+
+            // Validation: expenseGLAccountId must exist as a valid Expense GL account
+            final Optional<GLAccount> glAccount = accountRepository.findById(expenseGlAccountId);
+
+            if (glAccount.isEmpty() || !glAccount.get().getType().equals(GL_ACCOUNT_EXPENSE_TYPE)) {
+                validationErrors.add(ApiParameterError.parameterError("validation.msg.glaccount.not.found",
+                        "GL Account with ID " + expenseGlAccountId + " does not exist or is not an Expense GL account",
+                        LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue()));
+
+            }
+        }
+
+        // Throw all collected validation errors, if any
+        if (!validationErrors.isEmpty()) {
+            throw new PlatformApiDataValidationException(validationErrors);
+        }
+    }
 }

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/service/ProductToGLAccountMappingReadPlatformService.java

@@ -46,5 +46,4 @@ public interface ProductToGLAccountMappingReadPlatformService {
     List<PaymentTypeToGLAccountMapper> fetchPaymentTypeToFundSourceMappingsForShareProduct(Long productId);
 
     List<ChargeToGLAccountMapper> fetchFeeToIncomeAccountMappingsForShareProduct(Long productId);
-
 }

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/service/SavingsProductToGLAccountMappingHelper.java

@@ -29,6 +29,7 @@ import org.apache.fineract.accounting.glaccount.domain.GLAccountRepository;
 import org.apache.fineract.accounting.glaccount.domain.GLAccountRepositoryWrapper;
 import org.apache.fineract.accounting.glaccount.domain.GLAccountType;
 import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMappingRepository;
+import org.apache.fineract.infrastructure.codes.domain.CodeValueRepository;
 import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.infrastructure.core.serialization.FromJsonHelper;
 import org.apache.fineract.portfolio.PortfolioProductType;
@@ -42,9 +43,9 @@ public class SavingsProductToGLAccountMappingHelper extends ProductToGLAccountMa
     public SavingsProductToGLAccountMappingHelper(final GLAccountRepository glAccountRepository,
             final ProductToGLAccountMappingRepository glAccountMappingRepository, final FromJsonHelper fromApiJsonHelper,
             final ChargeRepositoryWrapper chargeRepositoryWrapper, final GLAccountRepositoryWrapper accountRepositoryWrapper,
-            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper) {
+            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper, final CodeValueRepository codeValueRepository) {
         super(glAccountRepository, glAccountMappingRepository, fromApiJsonHelper, chargeRepositoryWrapper, accountRepositoryWrapper,
-                paymentTypeRepositoryWrapper);
+                paymentTypeRepositoryWrapper, codeValueRepository);
     }
 
     /***

fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/service/ShareProductToGLAccountMappingHelper.java

@@ -28,6 +28,7 @@ import org.apache.fineract.accounting.glaccount.domain.GLAccountRepository;
 import org.apache.fineract.accounting.glaccount.domain.GLAccountRepositoryWrapper;
 import org.apache.fineract.accounting.glaccount.domain.GLAccountType;
 import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMappingRepository;
+import org.apache.fineract.infrastructure.codes.domain.CodeValueRepository;
 import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.infrastructure.core.serialization.FromJsonHelper;
 import org.apache.fineract.portfolio.PortfolioProductType;
@@ -41,9 +42,9 @@ public class ShareProductToGLAccountMappingHelper extends ProductToGLAccountMapp
     public ShareProductToGLAccountMappingHelper(final GLAccountRepository glAccountRepository,
             final ProductToGLAccountMappingRepository glAccountMappingRepository, final FromJsonHelper fromApiJsonHelper,
             final ChargeRepositoryWrapper chargeRepositoryWrapper, final GLAccountRepositoryWrapper accountRepositoryWrapper,
-            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper) {
+            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper, final CodeValueRepository codeValueRepository) {
         super(glAccountRepository, glAccountMappingRepository, fromApiJsonHelper, chargeRepositoryWrapper, accountRepositoryWrapper,
-                paymentTypeRepositoryWrapper);
+                paymentTypeRepositoryWrapper, codeValueRepository);
     }
 
     /***

fineract-core/src/main/java/org/apache/fineract/accounting/common/AccountingConstants.java

@@ -172,7 +172,10 @@ public final class AccountingConstants {
         INCOME_FROM_CHARGE_OFF_PENALTY("incomeFromChargeOffPenaltyAccountId"), //
         INCOME_FROM_GOODWILL_CREDIT_INTEREST("incomeFromGoodwillCreditInterestAccountId"), //
         INCOME_FROM_GOODWILL_CREDIT_FEES("incomeFromGoodwillCreditFeesAccountId"), //
-        INCOME_FROM_GOODWILL_CREDIT_PENALTY("incomeFromGoodwillCreditPenaltyAccountId"); //
+        INCOME_FROM_GOODWILL_CREDIT_PENALTY("incomeFromGoodwillCreditPenaltyAccountId"), //
+        CHARGE_OFF_REASONS_TO_EXPENSE("chargeOffReasonsToExpenseMappings"), //
+        EXPENSE_GL_ACCOUNT_ID("expenseGLAccountId"), //
+        CHARGE_OFF_REASON_CODE_VALUE_ID("chargeOffReasonCodeValueId"); //
 
         private final String value;
 

fineract-loan/src/main/java/org/apache/fineract/accounting/productaccountmapping/service/LoanProductToGLAccountMappingHelper.java

@@ -33,6 +33,7 @@ import org.apache.fineract.accounting.glaccount.domain.GLAccountType;
 import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMappingRepository;
 import org.apache.fineract.accounting.producttoaccountmapping.exception.ProductToGLAccountMappingInvalidException;
 import org.apache.fineract.accounting.producttoaccountmapping.service.ProductToGLAccountMappingHelper;
+import org.apache.fineract.infrastructure.codes.domain.CodeValueRepository;
 import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.infrastructure.core.serialization.FromJsonHelper;
 import org.apache.fineract.portfolio.PortfolioProductType;
@@ -46,9 +47,9 @@ public class LoanProductToGLAccountMappingHelper extends ProductToGLAccountMappi
     public LoanProductToGLAccountMappingHelper(final GLAccountRepository glAccountRepository,
             final ProductToGLAccountMappingRepository glAccountMappingRepository, final FromJsonHelper fromApiJsonHelper,
             final ChargeRepositoryWrapper chargeRepositoryWrapper, final GLAccountRepositoryWrapper accountRepositoryWrapper,
-            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper) {
+            final PaymentTypeRepositoryWrapper paymentTypeRepositoryWrapper, final CodeValueRepository codeValueRepository) {
         super(glAccountRepository, glAccountMappingRepository, fromApiJsonHelper, chargeRepositoryWrapper, accountRepositoryWrapper,
-                paymentTypeRepositoryWrapper);
+                paymentTypeRepositoryWrapper, codeValueRepository);
     }
 
     /***
@@ -138,6 +139,16 @@ public class LoanProductToGLAccountMappingHelper extends ProductToGLAccountMappi
         saveChargesToGLAccountMappings(command, element, productId, changes, PortfolioProductType.LOAN, false);
     }
 
+    public void saveChargeOffReasonToExpenseAccountMappings(final JsonCommand command, final JsonElement element, final Long productId,
+            final Map<String, Object> changes) {
+        saveChargeOffReasonToGLAccountMappings(command, element, productId, changes, PortfolioProductType.LOAN);
+    }
+
+    public void updateChargeOffReasonToExpenseAccountMappings(final JsonCommand command, final JsonElement element, final Long productId,
+            final Map<String, Object> changes) {
+        updateChargeOffReasonToGLAccountMappings(command, element, productId, changes, PortfolioProductType.LOAN);
+    }
+
     public void updateChargesToIncomeAccountMappings(final JsonCommand command, final JsonElement element, final Long productId,
             final Map<String, Object> changes) {
         // update both fee and penalty charges
@@ -387,5 +398,4 @@ public class LoanProductToGLAccountMappingHelper extends ProductToGLAccountMappi
         }
         return gLAccountType;
     }
-
 }

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

@@ -246,6 +246,7 @@ final class LoanProductsApiResourceSwagger {
         public Long incomeFromGoodwillCreditPenaltyAccountId;
         public List<GetLoanProductsProductIdResponse.GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings;
         public List<GetLoanProductsProductIdResponse.GetLoanFeeToIncomeAccountMappings> feeToIncomeAccountMappings;
+        public List<GetLoanProductsProductIdResponse.GetChargeOffReasonsToExpenseMappings> chargeOffReasonsToExpenseMappings;
         public List<ChargeToGLAccountMapper> penaltyToIncomeAccountMappings;
 
         // Multi Disburse
@@ -1209,6 +1210,16 @@ final class LoanProductsApiResourceSwagger {
             public Long fundSourceAccountId;
         }
 
+        static final class GetChargeOffReasonsToExpenseMappings {
+
+            private GetChargeOffReasonsToExpenseMappings() {}
+
+            @Schema(example = "1")
+            public Long chargeOffReasonCodeValueId;
+            @Schema(example = "12")
+            public Long expenseGLAccountId;
+        }
+
         static final class GetLoanFeeToIncomeAccountMappings {
 
             private GetLoanFeeToIncomeAccountMappings() {}
@@ -1319,6 +1330,7 @@ final class LoanProductsApiResourceSwagger {
         public GetLoanAccountingMappings accountingMappings;
         public Set<GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings;
         public Set<GetLoanFeeToIncomeAccountMappings> feeToIncomeAccountMappings;
+        public Set<GetChargeOffReasonsToExpenseMappings> chargeOffReasonsToExpenseMappings;
         @Schema(example = "false")
         public Boolean isRatesEnabled;
         @Schema(example = "true")
@@ -1577,6 +1589,7 @@ final class LoanProductsApiResourceSwagger {
         public Long incomeFromChargeOffPenaltyAccountId;
         public List<GetLoanProductsProductIdResponse.GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings;
         public List<GetLoanProductsProductIdResponse.GetLoanFeeToIncomeAccountMappings> feeToIncomeAccountMappings;
+        public List<GetLoanProductsProductIdResponse.GetChargeOffReasonsToExpenseMappings> chargeOffReasonsToExpenseMappings;
         public List<ChargeToGLAccountMapper> penaltyToIncomeAccountMappings;
         @Schema(example = "false")
         public Boolean enableAccrualActivityPosting;

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

@@ -151,6 +151,7 @@ public class LoanProductData implements Serializable {
     private Collection<PaymentTypeToGLAccountMapper> paymentChannelToFundSourceMappings;
     private Collection<ChargeToGLAccountMapper> feeToIncomeAccountMappings;
     private Collection<ChargeToGLAccountMapper> penaltyToIncomeAccountMappings;
+    private List<ChargeToGLAccountMapper> chargeOffReasonsToExpenseMappings;
     private final boolean enableAccrualActivityPosting;
 
     // rates
@@ -853,6 +854,7 @@ public class LoanProductData implements Serializable {
         this.paymentChannelToFundSourceMappings = null;
         this.feeToIncomeAccountMappings = null;
         this.penaltyToIncomeAccountMappings = null;
+        this.chargeOffReasonsToExpenseMappings = null;
         this.valueConditionTypeOptions = null;
         this.principalVariationsForBorrowerCycle = principalVariations;
         this.interestRateVariationsForBorrowerCycle = interestRateVariations;
@@ -992,6 +994,7 @@ public class LoanProductData implements Serializable {
         this.paymentChannelToFundSourceMappings = productData.paymentChannelToFundSourceMappings;
         this.feeToIncomeAccountMappings = productData.feeToIncomeAccountMappings;
         this.penaltyToIncomeAccountMappings = productData.penaltyToIncomeAccountMappings;
+        this.chargeOffReasonsToExpenseMappings = productData.chargeOffReasonsToExpenseMappings;
 
         this.chargeOptions = chargeOptions;
         this.penaltyOptions = penaltyOptions;

fineract-provider/src/main/java/org/apache/fineract/accounting/productaccountmapping/service/ProductToGLAccountMappingWritePlatformServiceImpl.java

@@ -130,6 +130,7 @@ public class ProductToGLAccountMappingWritePlatformServiceImpl implements Produc
                 // advanced accounting mappings
                 this.loanProductToGLAccountMappingHelper.savePaymentChannelToFundSourceMappings(command, element, loanProductId, null);
                 this.loanProductToGLAccountMappingHelper.saveChargesToIncomeAccountMappings(command, element, loanProductId, null);
+                this.loanProductToGLAccountMappingHelper.saveChargeOffReasonToExpenseAccountMappings(command, element, loanProductId, null);
             break;
             case ACCRUAL_UPFRONT:
                 // Fall Through
@@ -208,6 +209,7 @@ public class ProductToGLAccountMappingWritePlatformServiceImpl implements Produc
                 // advanced accounting mappings
                 this.loanProductToGLAccountMappingHelper.savePaymentChannelToFundSourceMappings(command, element, loanProductId, null);
                 this.loanProductToGLAccountMappingHelper.saveChargesToIncomeAccountMappings(command, element, loanProductId, null);
+                this.loanProductToGLAccountMappingHelper.saveChargeOffReasonToExpenseAccountMappings(command, element, loanProductId, null);
             break;
         }
     }
@@ -379,6 +381,8 @@ public class ProductToGLAccountMappingWritePlatformServiceImpl implements Produc
                     accountingRuleType);
             this.loanProductToGLAccountMappingHelper.updatePaymentChannelToFundSourceMappings(command, element, loanProductId, changes);
             this.loanProductToGLAccountMappingHelper.updateChargesToIncomeAccountMappings(command, element, loanProductId, changes);
+            this.loanProductToGLAccountMappingHelper.updateChargeOffReasonToExpenseAccountMappings(command, element, loanProductId,
+                    changes);
         }
         return changes;
     }

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

@@ -160,7 +160,7 @@ public class LoanProductsApiResource {
     @Operation(summary = "Create a Loan Product", description = "Depending of the Accounting Rule (accountingRule) selected, additional fields with details of the appropriate Ledger Account identifiers would need to be passed in.\n"
             + "\n" + "Refer MifosX Accounting Specs Draft for more details regarding the significance of the selected accounting rule\n\n"
             + "Mandatory Fields: name, shortName, currencyCode, digitsAfterDecimal, inMultiplesOf, principal, numberOfRepayments, repaymentEvery, repaymentFrequencyType, interestRatePerPeriod, interestRateFrequencyType, amortizationType, interestType, interestCalculationPeriodType, transactionProcessingStrategyCode, accountingRule, isInterestRecalculationEnabled, daysInYearType, daysInMonthType\n\n"
-            + "Optional Fields: inArrearsTolerance, graceOnPrincipalPayment, graceOnInterestPayment, graceOnInterestCharged, graceOnArrearsAgeing, charges, paymentChannelToFundSourceMappings, feeToIncomeAccountMappings, penaltyToIncomeAccountMappings, includeInBorrowerCycle, useBorrowerCycle,principalVariationsForBorrowerCycle, numberOfRepaymentVariationsForBorrowerCycle, interestRateVariationsForBorrowerCycle, multiDisburseLoan,maxTrancheCount, outstandingLoanBalance,overdueDaysForNPA,holdGuaranteeFunds, principalThresholdForLastInstalment, accountMovesOutOfNPAOnlyOnArrearsCompletion, canDefineInstallmentAmount, installmentAmountInMultiplesOf, allowAttributeOverrides, allowPartialPeriodInterestCalcualtion,dueDaysForRepaymentEvent,overDueDaysForRepaymentEvent,enableDownPayment,disbursedAmountPercentageDownPayment,enableAutoRepaymentForDownPayment,repaymentStartDateType\n\n"
+            + "Optional Fields: inArrearsTolerance, graceOnPrincipalPayment, graceOnInterestPayment, graceOnInterestCharged, graceOnArrearsAgeing, charges, paymentChannelToFundSourceMappings, feeToIncomeAccountMappings, penaltyToIncomeAccountMappings, chargeOffReasonsToExpenseMappings, includeInBorrowerCycle, useBorrowerCycle,principalVariationsForBorrowerCycle, numberOfRepaymentVariationsForBorrowerCycle, interestRateVariationsForBorrowerCycle, multiDisburseLoan,maxTrancheCount, outstandingLoanBalance,overdueDaysForNPA,holdGuaranteeFunds, principalThresholdForLastInstalment, accountMovesOutOfNPAOnlyOnArrearsCompletion, canDefineInstallmentAmount, installmentAmountInMultiplesOf, allowAttributeOverrides, allowPartialPeriodInterestCalcualtion,dueDaysForRepaymentEvent,overDueDaysForRepaymentEvent,enableDownPayment,disbursedAmountPercentageDownPayment,enableAutoRepaymentForDownPayment,repaymentStartDateType\n\n"
             + "Additional Mandatory Fields for Cash(2) based accounting: fundSourceAccountId, loanPortfolioAccountId, interestOnLoanAccountId, incomeFromFeeAccountId, incomeFromPenaltyAccountId, writeOffAccountId, transfersInSuspenseAccountId, overpaymentLiabilityAccountId\n\n"
             + "Additional Mandatory Fields for periodic (3) and upfront (4)accrual accounting: fundSourceAccountId, loanPortfolioAccountId, interestOnLoanAccountId, incomeFromFeeAccountId, incomeFromPenaltyAccountId, writeOffAccountId, receivableInterestAccountId, receivableFeeAccountId, receivablePenaltyAccountId, transfersInSuspenseAccountId, overpaymentLiabilityAccountId\n\n"
             + "Additional Mandatory Fields if interest recalculation is enabled(true): interestRecalculationCompoundingMethod, rescheduleStrategyMethod, recalculationRestFrequencyType\n\n"
@@ -336,6 +336,7 @@ public class LoanProductsApiResource {
         Collection<PaymentTypeToGLAccountMapper> paymentChannelToFundSourceMappings;
         Collection<ChargeToGLAccountMapper> feeToGLAccountMappings;
         Collection<ChargeToGLAccountMapper> penaltyToGLAccountMappings;
+        List<ChargeToGLAccountMapper> chargeOffReasonsToExpenseMappings;
         if (loanProduct.hasAccountingEnabled()) {
             accountingMappings = this.accountMappingReadPlatformService.fetchAccountMappingDetailsForLoanProduct(productId,
                     loanProduct.getAccountingRule().getId().intValue());

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

@@ -27,6 +27,7 @@ import java.math.BigDecimal;
 import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.Collections;
+import java.util.HashMap;
 import java.util.HashSet;
 import java.util.List;
 import java.util.Locale;
@@ -36,6 +37,7 @@ import lombok.RequiredArgsConstructor;
 import org.apache.commons.lang3.StringUtils;
 import org.apache.fineract.accounting.common.AccountingConstants.LoanProductAccountingParams;
 import org.apache.fineract.accounting.common.AccountingValidations;
+import org.apache.fineract.accounting.producttoaccountmapping.service.ProductToGLAccountMappingHelper;
 import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.infrastructure.core.data.ApiParameterError;
 import org.apache.fineract.infrastructure.core.data.DataValidatorBuilder;
@@ -141,7 +143,9 @@ public final class LoanProductDataValidator {
             LoanProductAccountingParams.INCOME_FROM_GOODWILL_CREDIT_INTEREST.getValue(),
             LoanProductAccountingParams.INCOME_FROM_GOODWILL_CREDIT_FEES.getValue(),
             LoanProductAccountingParams.INCOME_FROM_GOODWILL_CREDIT_PENALTY.getValue(),
-            LoanProductConstants.USE_BORROWER_CYCLE_PARAMETER_NAME,
+            LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue(),
+            LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue(),
+            LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue(), LoanProductConstants.USE_BORROWER_CYCLE_PARAMETER_NAME,
             LoanProductConstants.PRINCIPAL_VARIATIONS_FOR_BORROWER_CYCLE_PARAMETER_NAME,
             LoanProductConstants.INTEREST_RATE_VARIATIONS_FOR_BORROWER_CYCLE_PARAMETER_NAME,
             LoanProductConstants.NUMBER_OF_REPAYMENT_VARIATIONS_FOR_BORROWER_CYCLE_PARAMETER_NAME, LoanProductConstants.SHORT_NAME,
@@ -195,6 +199,7 @@ public final class LoanProductDataValidator {
     private final LoanRepaymentScheduleTransactionProcessorFactory loanRepaymentScheduleTransactionProcessorFactory;
     private final AdvancedPaymentAllocationsJsonParser advancedPaymentAllocationsJsonParser;
     private final AdvancedPaymentAllocationsValidator advancedPaymentAllocationsValidator;
+    private final ProductToGLAccountMappingHelper productToGLAccountMappingHelper;
 
     public void validateForCreate(final JsonCommand command) {
         String json = command.json();
@@ -718,6 +723,7 @@ public final class LoanProductDataValidator {
 
             validatePaymentChannelFundSourceMappings(baseDataValidator, element);
             validateChargeToIncomeAccountMappings(baseDataValidator, element);
+            validateChargeOffToExpenseMappings(baseDataValidator, element);
 
         }
 
@@ -1791,6 +1797,7 @@ public final class LoanProductDataValidator {
 
         validatePaymentChannelFundSourceMappings(baseDataValidator, element);
         validateChargeToIncomeAccountMappings(baseDataValidator, element);
+        validateChargeOffToExpenseMappings(baseDataValidator, element);
 
         validateMinMaxConstraints(element, baseDataValidator, loanProduct);
 
@@ -1964,6 +1971,60 @@ public final class LoanProductDataValidator {
         }
     }
 
+    private void validateChargeOffToExpenseMappings(final DataValidatorBuilder baseDataValidator, final JsonElement element) {
+        String parameterName = LoanProductAccountingParams.CHARGE_OFF_REASONS_TO_EXPENSE.getValue();
+
+        if (this.fromApiJsonHelper.parameterExists(parameterName, element)) {
+            final JsonArray chargeOffToExpenseMappingArray = this.fromApiJsonHelper.extractJsonArrayNamed(parameterName, element);
+            if (chargeOffToExpenseMappingArray != null && chargeOffToExpenseMappingArray.size() > 0) {
+                Map<Long, Set<Long>> chargeOffReasonToAccounts = new HashMap<>();
+                List<JsonObject> processedMappings = new ArrayList<>(); // Collect processed mappings for the new method
+
+                int i = 0;
+                do {
+                    final JsonObject jsonObject = chargeOffToExpenseMappingArray.get(i).getAsJsonObject();
+                    final Long expenseGlAccountId = this.fromApiJsonHelper
+                            .extractLongNamed(LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue(), jsonObject);
+                    final Long chargeOffReasonCodeValueId = this.fromApiJsonHelper
+                            .extractLongNamed(LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue(), jsonObject);
+
+                    // Validate parameters locally
+                    baseDataValidator.reset()
+                            .parameter(parameterName + OPENING_SQUARE_BRACKET + i + CLOSING_SQUARE_BRACKET + DOT
+                                    + LoanProductAccountingParams.EXPENSE_GL_ACCOUNT_ID.getValue())
+                            .value(expenseGlAccountId).notNull().integerGreaterThanZero();
+                    baseDataValidator.reset()
+                            .parameter(parameterName + OPENING_SQUARE_BRACKET + i + CLOSING_SQUARE_BRACKET + DOT
+                                    + LoanProductAccountingParams.CHARGE_OFF_REASON_CODE_VALUE_ID.getValue())
+                            .value(chargeOffReasonCodeValueId).notNull().integerGreaterThanZero();
+
+                    // Handle duplicate charge-off reason and GL Account validation
+                    chargeOffReasonToAccounts.putIfAbsent(chargeOffReasonCodeValueId, new HashSet<>());
+                    Set<Long> associatedAccounts = chargeOffReasonToAccounts.get(chargeOffReasonCodeValueId);
+
+                    if (associatedAccounts.contains(expenseGlAccountId)) {
+                        baseDataValidator.reset().parameter(parameterName + OPENING_SQUARE_BRACKET + i + CLOSING_SQUARE_BRACKET)
+                                .failWithCode("duplicate.chargeOffReason.and.glAccount");
+                    }
+                    associatedAccounts.add(expenseGlAccountId);
+
+                    if (associatedAccounts.size() > 1) {
+                        baseDataValidator.reset().parameter(parameterName + OPENING_SQUARE_BRACKET + i + CLOSING_SQUARE_BRACKET)
+                                .failWithCode("multiple.glAccounts.for.chargeOffReason");
+                    }
+
+                    // Collect mapping for additional validations
+                    processedMappings.add(jsonObject);
+
+                    i++;
+                } while (i < chargeOffToExpenseMappingArray.size());
+
+                // Call the new validation method for additional checks
+                productToGLAccountMappingHelper.validateChargeOffMappingsInDatabase(processedMappings);
+            }
+        }
+    }
+
     public void validateMinMaxConstraints(final JsonElement element, final DataValidatorBuilder baseDataValidator,
             final LoanProduct loanProduct) {
         validatePrincipalMinMaxConstraint(element, loanProduct, baseDataValidator);

fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml

@@ -171,4 +171,5 @@
     <include file="parts/0150_transaction_summary_with_asset_owner_report_interest_waiver_interest_refund_added.xml" relativeToChangelogFile="true" />
     <include file="parts/0151_interest_refund_business_events.xml" relativeToChangelogFile="true" />
     <include file="parts/0152_update_password_validation_policy.xml" relativeToChangelogFile="true" />
+    <include file="parts/0153_add_charge_off_reason_id_to_acc_product_mapping.xml" relativeToChangelogFile="true" />
 </databaseChangeLog>

fineract-provider/src/main/resources/db/changelog/tenant/parts/0153_add_charge_off_reason_id_to_acc_product_mapping.xml

@@ -0,0 +1,40 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+
+    <changeSet id="1" author="fineract">
+        <addColumn tableName="acc_product_mapping">
+            <column name="charge_off_reason_id" type="INT" defaultValueNumeric="NULL">
+                <constraints nullable="true"/>
+            </column>
+        </addColumn>
+        <addForeignKeyConstraint
+                baseTableName="acc_product_mapping"
+                baseColumnNames="charge_off_reason_id"
+                referencedTableName="m_code_value"
+                referencedColumnNames="id"
+                constraintName="fk_acc_product_mapping_charge_off_reason"/>
+    </changeSet>
+
+</databaseChangeLog>

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

@@ -0,0 +1,272 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.integrationtests;
+
+import static org.apache.fineract.integrationtests.common.funds.FundsResourceHandler.createFund;
+
+import io.restassured.builder.RequestSpecBuilder;
+import io.restassured.builder.ResponseSpecBuilder;
+import io.restassured.http.ContentType;
+import io.restassured.specification.RequestSpecification;
+import io.restassured.specification.ResponseSpecification;
+import java.util.ArrayList;
+import java.util.HashMap;
+import java.util.List;
+import org.apache.fineract.client.models.AllowAttributeOverrides;
+import org.apache.fineract.client.models.ChargeData;
+import org.apache.fineract.client.models.ChargeToGLAccountMapper;
+import org.apache.fineract.client.models.GetChargeOffReasonsToExpenseMappings;
+import org.apache.fineract.client.models.GetLoanFeeToIncomeAccountMappings;
+import org.apache.fineract.client.models.GetLoanPaymentChannelToFundSourceMappings;
+import org.apache.fineract.client.models.PostLoanProductsRequest;
+import org.apache.fineract.client.models.PutLoanProductsProductIdRequest;
+import org.apache.fineract.client.util.CallFailedRuntimeException;
+import org.apache.fineract.integrationtests.common.BusinessStepHelper;
+import org.apache.fineract.integrationtests.common.Utils;
+import org.apache.fineract.integrationtests.common.loans.LoanTestLifecycleExtension;
+import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
+import org.apache.fineract.integrationtests.common.products.DelinquencyBucketsHelper;
+import org.apache.fineract.integrationtests.common.system.CodeHelper;
+import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.BeforeAll;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.extension.ExtendWith;
+
+@ExtendWith(LoanTestLifecycleExtension.class)
+public class LoanProductChargeOffReasonMappingsTest extends BaseLoanIntegrationTest {
+
+    private static final String CODE_VALUE_NAME = "ChargeOffReasons";
+
+    private static ResponseSpecification responseSpec;
+    private static RequestSpecification requestSpec;
+    private static LoanTransactionHelper loanTransactionHelper;
+
+    @BeforeAll
+    public static void setup() {
+        Utils.initializeRESTAssured();
+        requestSpec = new RequestSpecBuilder().setContentType(ContentType.JSON).build();
+        requestSpec.header("Authorization", "Basic " + Utils.loginIntoServerAndGetBase64EncodedAuthenticationKey());
+        requestSpec.header("Fineract-Platform-TenantId", "default");
+        responseSpec = new ResponseSpecBuilder().expectStatusCode(200).build();
+        loanTransactionHelper = new LoanTransactionHelper(requestSpec, responseSpec);
+        BusinessStepHelper businessStepHelper = new BusinessStepHelper();
+        // setup COB Business Steps to prevent test failing due other integration test configurations
+        businessStepHelper.updateSteps("LOAN_CLOSE_OF_BUSINESS", "APPLY_CHARGE_TO_OVERDUE_LOANS", "LOAN_DELINQUENCY_CLASSIFICATION",
+                "CHECK_LOAN_REPAYMENT_DUE", "CHECK_LOAN_REPAYMENT_OVERDUE", "UPDATE_LOAN_ARREARS_AGING", "ADD_PERIODIC_ACCRUAL_ENTRIES",
+                "EXTERNAL_ASSET_OWNER_TRANSFER", "ACCRUAL_ACTIVITY_POSTING");
+    }
+
+    @Test
+    public void testCreateLoanProductWithValidChargeOffReason() {
+        final String creationBusinessDay = "15 January 2023";
+        runAt(creationBusinessDay, () -> {
+            Integer chargeOffReasons = createChargeOffReason();
+            Long localLoanProductId = loanTransactionHelper.createLoanProduct(loanProductsRequest(Long.valueOf(chargeOffReasons), 15L))
+                    .getResourceId();
+
+            Assertions.assertNotNull(localLoanProductId);
+        });
+    }
+
+    @Test
+    public void testUpdateLoanProductWithValidChargeOffReason() {
+        final String creationBusinessDay = "15 January 2023";
+        runAt(creationBusinessDay, () -> {
+            Integer chargeOffReasons = createChargeOffReason();
+            List<GetChargeOffReasonsToExpenseMappings> chargeOffReasonsToExpenseMappings = new ArrayList<>();
+            GetChargeOffReasonsToExpenseMappings getChargeOffReasonsToExpenseMappings = new GetChargeOffReasonsToExpenseMappings();
+            getChargeOffReasonsToExpenseMappings.setChargeOffReasonCodeValueId(Long.valueOf(chargeOffReasons));
+            getChargeOffReasonsToExpenseMappings.setExpenseGLAccountId(15L);
+            chargeOffReasonsToExpenseMappings.add(getChargeOffReasonsToExpenseMappings);
+
+            Long localLoanProductId = loanTransactionHelper.updateLoanProduct(1L,
+                    new PutLoanProductsProductIdRequest().locale("en").chargeOffReasonsToExpenseMappings(chargeOffReasonsToExpenseMappings))
+                    .getResourceId();
+
+            Assertions.assertNotNull(localLoanProductId);
+        });
+    }
+
+    @Test
+    public void testCreateLoanProductWithInvalidGLAccount() {
+        final String creationBusinessDay = "15 January 2023";
+        runAt(creationBusinessDay, () -> {
+            try {
+                Integer chargeOffReasons = createChargeOffReason();
+                loanTransactionHelper.createLoanProduct(loanProductsRequest(Long.valueOf(chargeOffReasons), 9999L));
+            } catch (CallFailedRuntimeException e) {
+                Assertions.assertTrue(e.getMessage().contains("validation.msg.glaccount.not.found"));
+            }
+        });
+    }
+
+    @Test
+    public void testCreateLoanProductWithInvalidChargeOffReason() {
+        final String creationBusinessDay = "15 January 2023";
+        runAt(creationBusinessDay, () -> {
+            try {
+                loanTransactionHelper.createLoanProduct(loanProductsRequest(1L, 12L));
+            } catch (CallFailedRuntimeException e) {
+                Assertions.assertTrue(e.getMessage().contains("validation.msg.chargeoffreason.invalid"));
+            }
+        });
+    }
+
+    private PostLoanProductsRequest loanProductsRequest(Long chargeOffReasonId, Long glAccountId) {
+        String name = Utils.uniqueRandomStringGenerator("LOAN_PRODUCT_", 6);
+        String shortName = Utils.uniqueRandomStringGenerator("", 4);
+
+        List<Integer> principalVariationsForBorrowerCycle = new ArrayList<>();
+        List<Integer> numberOfRepaymentVariationsForBorrowerCycle = new ArrayList<>();
+        List<Integer> interestRateVariationsForBorrowerCycle = new ArrayList<>();
+        List<ChargeData> charges = new ArrayList<>();
+        List<ChargeToGLAccountMapper> penaltyToIncomeAccountMappings = new ArrayList<>();
+        List<GetLoanFeeToIncomeAccountMappings> feeToIncomeAccountMappings = new ArrayList<>();
+
+        List<GetChargeOffReasonsToExpenseMappings> chargeOffReasonsToExpenseMappings = new ArrayList<>();
+        GetChargeOffReasonsToExpenseMappings getChargeOffReasonsToExpenseMappings = new GetChargeOffReasonsToExpenseMappings();
+        getChargeOffReasonsToExpenseMappings.setChargeOffReasonCodeValueId(chargeOffReasonId);
+        getChargeOffReasonsToExpenseMappings.setExpenseGLAccountId(glAccountId);
+        chargeOffReasonsToExpenseMappings.add(getChargeOffReasonsToExpenseMappings);
+
+        List<GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings = new ArrayList<>();
+        GetLoanPaymentChannelToFundSourceMappings loanPaymentChannelToFundSourceMappings = new GetLoanPaymentChannelToFundSourceMappings();
+        loanPaymentChannelToFundSourceMappings.fundSourceAccountId(fundSource.getAccountID().longValue());
+        loanPaymentChannelToFundSourceMappings.paymentTypeId(1L);
+        paymentChannelToFundSourceMappings.add(loanPaymentChannelToFundSourceMappings);
+
+        final Integer fundId = createFund(requestSpec, responseSpec);
+        Assertions.assertNotNull(fundId);
+
+        final Integer delinquencyBucketId = DelinquencyBucketsHelper.createDelinquencyBucket(requestSpec, responseSpec);
+        Assertions.assertNotNull(delinquencyBucketId);
+
+        return new PostLoanProductsRequest()//
+                .name(name)//
+                .enableAccrualActivityPosting(true)//
+                .shortName(shortName)//
+                .description(
+                        "LP1 with 12% DECLINING BALANCE interest, interest period: Daily, Interest recalculation-Daily, Compounding:none")//
+                .fundId(fundId.longValue())//
+                .startDate(null)//
+                .closeDate(null)//
+                .includeInBorrowerCycle(false)//
+                .currencyCode("EUR")//
+                .digitsAfterDecimal(2)//
+                .inMultiplesOf(1)//
+                .installmentAmountInMultiplesOf(1)//
+                .useBorrowerCycle(false)//
+                .minPrincipal(100.0)//
+                .principal(1000.0)//
+                .maxPrincipal(10000.0)//
+                .minNumberOfRepayments(1)//
+                .numberOfRepayments(1)//
+                .maxNumberOfRepayments(30)//
+                .isLinkedToFloatingInterestRates(false)//
+                .minInterestRatePerPeriod(0.0)//
+                .interestRatePerPeriod(12.0)//
+                .maxInterestRatePerPeriod(30.0)//
+                .interestRateFrequencyType(3)//
+                .repaymentEvery(30)//
+                .repaymentFrequencyType(0L)//
+                .principalVariationsForBorrowerCycle(principalVariationsForBorrowerCycle)//
+                .numberOfRepaymentVariationsForBorrowerCycle(numberOfRepaymentVariationsForBorrowerCycle)//
+                .interestRateVariationsForBorrowerCycle(interestRateVariationsForBorrowerCycle)//
+                .amortizationType(1)//
+                .interestType(0)//
+                .isEqualAmortization(false)//
+                .interestCalculationPeriodType(0)//
+                .transactionProcessingStrategyCode("mifos-standard-strategy")//
+                .daysInYearType(1)//
+                .daysInMonthType(1)//
+                .canDefineInstallmentAmount(true)//
+                .graceOnArrearsAgeing(3)//
+                .overdueDaysForNPA(179)//
+                .accountMovesOutOfNPAOnlyOnArrearsCompletion(false)//
+                .principalThresholdForLastInstallment(50)//
+                .allowVariableInstallments(false)//
+                .canUseForTopup(false)//
+                .holdGuaranteeFunds(false)//
+                .multiDisburseLoan(false)//
+                .allowAttributeOverrides(new AllowAttributeOverrides()//
+                        .amortizationType(true)//
+                        .interestType(true)//
+                        .transactionProcessingStrategyCode(true)//
+                        .interestCalculationPeriodType(true)//
+                        .inArrearsTolerance(true)//
+                        .repaymentEvery(true)//
+                        .graceOnPrincipalAndInterestPayment(true)//
+                        .graceOnArrearsAgeing(true))
+                .outstandingLoanBalance(10000.0)//
+                .charges(charges)//
+                .accountingRule(3)//
+
+                .fundSourceAccountId(suspenseAccount.getAccountID().longValue())//
+                .loanPortfolioAccountId(loansReceivableAccount.getAccountID().longValue())//
+                .transfersInSuspenseAccountId(suspenseAccount.getAccountID().longValue())//
+                .interestOnLoanAccountId(interestIncomeAccount.getAccountID().longValue())//
+                .incomeFromFeeAccountId(feeIncomeAccount.getAccountID().longValue())//
+                .incomeFromPenaltyAccountId(penaltyIncomeAccount.getAccountID().longValue())//
+                .incomeFromRecoveryAccountId(recoveriesAccount.getAccountID().longValue())//
+                .writeOffAccountId(writtenOffAccount.getAccountID().longValue())//
+                .overpaymentLiabilityAccountId(overpaymentAccount.getAccountID().longValue())//
+                .receivableInterestAccountId(interestReceivableAccount.getAccountID().longValue())//
+                .receivableFeeAccountId(feeReceivableAccount.getAccountID().longValue())//
+                .receivablePenaltyAccountId(penaltyReceivableAccount.getAccountID().longValue())//
+                .goodwillCreditAccountId(goodwillExpenseAccount.getAccountID().longValue())//
+                .incomeFromGoodwillCreditInterestAccountId(interestIncomeChargeOffAccount.getAccountID().longValue())//
+                .incomeFromGoodwillCreditFeesAccountId(feeChargeOffAccount.getAccountID().longValue())//
+                .incomeFromGoodwillCreditPenaltyAccountId(feeChargeOffAccount.getAccountID().longValue())//
+                .incomeFromChargeOffInterestAccountId(interestIncomeChargeOffAccount.getAccountID().longValue())//
+                .incomeFromChargeOffFeesAccountId(feeChargeOffAccount.getAccountID().longValue())//
+                .chargeOffExpenseAccountId(chargeOffExpenseAccount.getAccountID().longValue())//
+                .chargeOffFraudExpenseAccountId(chargeOffFraudExpenseAccount.getAccountID().longValue())//
+                .incomeFromChargeOffPenaltyAccountId(penaltyChargeOffAccount.getAccountID().longValue())//
+
+                .dateFormat("dd MMMM yyyy")//
+                .locale("en")//
+                .disallowExpectedDisbursements(false)//
+                .allowApprovedDisbursedAmountsOverApplied(false)//
+                .delinquencyBucketId(delinquencyBucketId.longValue())//
+                .paymentChannelToFundSourceMappings(paymentChannelToFundSourceMappings)//
+                .penaltyToIncomeAccountMappings(penaltyToIncomeAccountMappings)//
+                .chargeOffReasonsToExpenseMappings(chargeOffReasonsToExpenseMappings).feeToIncomeAccountMappings(feeToIncomeAccountMappings)//
+                .isInterestRecalculationEnabled(true)//
+                .preClosureInterestCalculationStrategy(1)//
+                .rescheduleStrategyMethod(3)//
+                .interestRecalculationCompoundingMethod(0)//
+                .recalculationRestFrequencyType(2)//
+                .recalculationRestFrequencyInterval(1)//
+                .allowPartialPeriodInterestCalcualtion(false);//
+    }
+
+    private Integer createChargeOffReason() {
+        Integer chargeOffReasonId;
+        HashMap<String, Object> codes = CodeHelper.getCodeByName(requestSpec, responseSpec, CODE_VALUE_NAME);
+        if (codes.isEmpty()) {
+            CodeHelper.createCode(requestSpec, responseSpec, CODE_VALUE_NAME, "");
+        }
+        codes = CodeHelper.getCodeByName(requestSpec, responseSpec, CODE_VALUE_NAME);
+        Integer codeId = (Integer) codes.get("id");
+        HashMap<String, Object> codeValues = CodeHelper.getOrCreateCodeValueByCodeIdAndCodeName(requestSpec, responseSpec, codeId,
+                CODE_VALUE_NAME, 1);
+        chargeOffReasonId = (Integer) codeValues.get("id");
+        return chargeOffReasonId;
+    }
+}

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

@@ -107,6 +107,7 @@ public class LoanProductTestBuilder {
 
     private List<Map<String, Long>> feeToIncomeAccountMappings = null;
     private List<Map<String, Long>> penaltyToIncomeAccountMappings = null;
+    private List<Map<String, Long>> chargeOffReasonsToExpenseMappings = null;
     private Account feeAndPenaltyAssetAccount;
 
     private Boolean multiDisburseLoan = false;
@@ -303,6 +304,10 @@ public class LoanProductTestBuilder {
             map.put("penaltyToIncomeAccountMappings", this.penaltyToIncomeAccountMappings);
         }
 
+        if (this.chargeOffReasonsToExpenseMappings != null) {
+            map.put("chargeOffReasonsToExpenseMappings", this.chargeOffReasonsToExpenseMappings);
+        }
+
         if (this.dueDaysForRepaymentEvent != null) {
             map.put("dueDaysForRepaymentEvent", this.dueDaysForRepaymentEvent);
         }
@@ -796,6 +801,17 @@ public class LoanProductTestBuilder {
         return this;
     }
 
+    public LoanProductTestBuilder withChargeOffReasonsToExpenseMappings(final Long reasonId, final Long accountId) {
+        if (this.chargeOffReasonsToExpenseMappings == null) {
+            this.chargeOffReasonsToExpenseMappings = new ArrayList<>();
+        }
+        Map<String, Long> newMap = new HashMap<>();
+        newMap.put("chargeOffReasonCodeValueId", reasonId);
+        newMap.put("expenseGLAccountId", accountId);
+        this.chargeOffReasonsToExpenseMappings.add(newMap);
+        return this;
+    }
+
     public String getTransactionProcessingStrategyCode() {
         return transactionProcessingStrategyCode;
     }

integration-tests/src/test/java/org/apache/fineract/integrationtests/common/system/CodeHelper.java

@@ -93,6 +93,35 @@ public final class CodeHelper {
         return code;
     }
 
+    public static HashMap<String, Object> getOrCreateCodeValueByCodeIdAndCodeName(final RequestSpecification requestSpec,
+            final ResponseSpecification responseSpec, final Integer codeId, final String codeName, final Integer position) {
+
+        ArrayList<HashMap<String, Object>> allCodeValues = CodeHelper.getAllCodeValuesByCodeId(requestSpec, responseSpec, codeId);
+        HashMap<String, Object> codesByName = filterCodesByName(allCodeValues, codeName);
+
+        if (codesByName.isEmpty()) {
+            CodeHelper.createCodeValue(requestSpec, responseSpec, codeId, codeName, position);
+            allCodeValues = CodeHelper.getAllCodeValuesByCodeId(requestSpec, responseSpec, codeId);
+        }
+
+        return filterCodesByName(allCodeValues, codeName);
+    }
+
+    private static HashMap<String, Object> filterCodesByName(ArrayList<HashMap<String, Object>> allCodeValues, String codeName) {
+        final HashMap<String, Object> codes = new HashMap<>();
+
+        for (HashMap<String, Object> map : allCodeValues) {
+            String name = (String) map.get("name");
+            if (name.equals(codeName)) {
+                codes.put("id", map.get("id"));
+                codes.put("name", map.get("name"));
+                break;
+            }
+        }
+
+        return codes;
+    }
+
     public static HashMap<String, Object> retrieveOrCreateCodeValue(Integer codeId, final RequestSpecification requestSpec,
             final ResponseSpecification responseSpec) {
         Integer codeValueId = null;
@@ -119,6 +148,13 @@ public final class CodeHelper {
 
     }
 
+    public static ArrayList<HashMap<String, Object>> getAllCodeValuesByCodeId(final RequestSpecification requestSpec,
+            final ResponseSpecification responseSpec, final Integer codeId) {
+
+        return Utils.performServerGet(requestSpec, responseSpec,
+                CODE_VALUE_URL.replace("[codeId]", codeId.toString()) + "?" + Utils.TENANT_IDENTIFIER, "");
+    }
+
     public static Object getSystemDefinedCodes(final RequestSpecification requestSpec, final ResponseSpecification responseSpec) {
 
         final String getResponse = given().spec(requestSpec).expect().spec(responseSpec).when()