FINERACT-2148: Stop recalculating interest if the loan is charged-off

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoanTransactionsApiResourceSwagger.java

@@ -79,6 +79,14 @@ final class LoanTransactionsApiResourceSwagger {
 
         @Schema(example = "200.000000")
         public Double amount;
+        @Schema(example = "100.000000")
+        public Double principalPortion;
+        @Schema(example = "80.000000")
+        public Double interestPortion;
+        @Schema(example = "20.000000")
+        public Double feeChargesPortion;
+        @Schema(example = "20.000000")
+        public Double penaltyChargesPortion;
 
         public GetLoanCurrency currency;
     }

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

@@ -2722,7 +2722,7 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
     public OutstandingAmountsDTO fetchPrepaymentDetail(final ScheduleGeneratorDTO scheduleGeneratorDTO, final LocalDate onDate) {
         OutstandingAmountsDTO outstandingAmounts;
 
-        if (this.loanRepaymentScheduleDetail.isInterestRecalculationEnabled()) {
+        if (this.loanRepaymentScheduleDetail.isInterestRecalculationEnabled() && !isChargeOffOnDate(onDate)) {
             final MathContext mc = MoneyHelper.getMathContext();
 
             final InterestMethod interestMethod = this.loanRepaymentScheduleDetail.getInterestMethod();
@@ -3571,4 +3571,10 @@ public class Loan extends AbstractAuditableWithUTCDateTimeCustom<Long> {
     public boolean isProgressiveSchedule() {
         return getLoanProductRelatedDetail().getLoanScheduleType() == PROGRESSIVE;
     }
+
+    public boolean isChargeOffOnDate(final LocalDate onDate) {
+        final LoanTransaction chargeOffTransaction = findChargedOffTransaction();
+        return (chargeOffTransaction == null) ? false : (chargeOffTransaction.getDateOf().compareTo(onDate) <= 0);
+    }
+
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanScheduleService.java

@@ -54,7 +54,7 @@ public class LoanScheduleService {
     }
 
     public void recalculateScheduleFromLastTransaction(final Loan loan, final ScheduleGeneratorDTO generatorDTO) {
-        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
+        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled() && !loan.isChargedOff()) {
             regenerateRepaymentScheduleWithInterestRecalculation(loan, generatorDTO);
         } else {
             regenerateRepaymentSchedule(loan, generatorDTO);
@@ -73,7 +73,7 @@ public class LoanScheduleService {
          * loanTransaction.getTransactionDate().isAfter(recalculateFrom)) { recalculateFrom =
          * loanTransaction.getTransactionDate(); } } generatorDTO.setRecalculateFrom(recalculateFrom);
          */
-        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
+        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled() && !loan.isChargedOff()) {
             regenerateRepaymentScheduleWithInterestRecalculation(loan, generatorDTO);
         } else {
             regenerateRepaymentSchedule(loan, generatorDTO);

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

@@ -1154,7 +1154,7 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
     }
 
     public Loan runScheduleRecalculation(Loan loan, final LocalDate recalculateFrom) {
-        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
+        if (loan.repaymentScheduleDetail().isInterestRecalculationEnabled() && !loan.isChargedOff()) {
             final List<Long> existingTransactionIds = loan.findExistingTransactionIds();
             ScheduleGeneratorDTO generatorDTO = this.loanUtilService.buildScheduleGeneratorDTO(loan, recalculateFrom);
             ChangedTransactionDetail changedTransactionDetail = loanScheduleService

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

@@ -52,6 +52,7 @@ import org.apache.fineract.client.models.GetLoansLoanIdLoanChargeData;
 import org.apache.fineract.client.models.GetLoansLoanIdRepaymentPeriod;
 import org.apache.fineract.client.models.GetLoansLoanIdResponse;
 import org.apache.fineract.client.models.GetLoansLoanIdTransactions;
+import org.apache.fineract.client.models.GetLoansLoanIdTransactionsTemplateResponse;
 import org.apache.fineract.client.models.LoanProduct;
 import org.apache.fineract.client.models.PaymentAllocationOrder;
 import org.apache.fineract.client.models.PostClientsResponse;
@@ -82,6 +83,7 @@ import org.apache.fineract.integrationtests.common.charges.ChargesHelper;
 import org.apache.fineract.integrationtests.common.loans.LoanProductTestBuilder;
 import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
 import org.apache.fineract.integrationtests.common.organisation.StaffHelper;
+import org.apache.fineract.integrationtests.common.system.CodeHelper;
 import org.apache.fineract.integrationtests.useradministration.roles.RolesHelper;
 import org.apache.fineract.integrationtests.useradministration.users.UserHelper;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.AdvancedPaymentScheduleTransactionProcessor;
@@ -5802,6 +5804,92 @@ public class AdvancedPaymentAllocationLoanRepaymentScheduleTest extends BaseLoan
         });
     }
 
+    // UC153: Validate Stop recalculating interest if the loan is charged-off
+    // 1. Create a Loan product with Adv. Pment. Alloc. and with Interest Recalculation enabled
+    // 2. Submit Loan, approve and Disburse
+    // 3. Apply Charge-Off
+    // 4. Prepay the loan to get the same interest amount after Charge-Off
+    @Test
+    public void uc153() {
+        AtomicLong createdLoanId = new AtomicLong();
+        runAt("01 January 2024", () -> {
+            String operationDate = "01 January 2024";
+            Long clientId = client.getClientId();
+            BigDecimal interestRatePerPeriod = BigDecimal.valueOf(7.0);
+
+            final Integer rescheduleStrategyMethod = 4; // Adjust last, unpaid period
+            PostLoanProductsRequest loanProduct = createOnePeriod30DaysPeriodicAccrualProductWithAdvancedPaymentAllocationAndInterestRecalculation(
+                    (double) 80.0, rescheduleStrategyMethod);
+            final PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(loanProduct);
+            assertNotNull(loanProductResponse);
+
+            PostLoansRequest applicationRequest = applyLoanRequest(clientId, loanProductResponse.getResourceId(), operationDate, 100.0, 6);
+
+            applicationRequest = applicationRequest.numberOfRepayments(6)//
+                    .loanTermFrequency(6)//
+                    .loanTermFrequencyType(2)//
+                    .interestRatePerPeriod(interestRatePerPeriod)//
+                    .interestCalculationPeriodType(DAYS)//
+                    .transactionProcessingStrategyCode(LoanProductTestBuilder.ADVANCED_PAYMENT_ALLOCATION_STRATEGY)//
+                    .repaymentEvery(1)//
+                    .repaymentFrequencyType(2)//
+                    .maxOutstandingLoanBalance(BigDecimal.valueOf(10000.0))//
+            ;//
+
+            PostLoansResponse loanResponse = loanTransactionHelper.applyLoan(applicationRequest);
+
+            loanTransactionHelper.approveLoan(loanResponse.getLoanId(), new PostLoansLoanIdRequest()//
+                    .approvedLoanAmount(BigDecimal.valueOf(100))//
+                    .approvedOnDate(operationDate).dateFormat(DATETIME_PATTERN).locale("en"));//
+
+            loanTransactionHelper.disburseLoan(loanResponse.getLoanId(), new PostLoansLoanIdRequest()//
+                    .transactionAmount(BigDecimal.valueOf(100.0))//
+                    .actualDisbursementDate(operationDate).dateFormat(DATETIME_PATTERN).locale("en"));//
+
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanResponse.getLoanId());
+            validateLoanSummaryBalances(loanDetails, 125.67, 0.0, 100.0, 0.0, null);
+            createdLoanId.set(loanResponse.getLoanId());
+        });
+
+        runAt("01 February 2024", () -> {
+
+            loanTransactionHelper.makeLoanRepayment(createdLoanId.get(), new PostLoansLoanIdTransactionsRequest()
+                    .transactionDate("01 February 2024").dateFormat("dd MMMM yyyy").locale("en").transactionAmount(21.0));
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(createdLoanId.get());
+            validateLoanSummaryBalances(loanDetails, 104.67, 21.0, 86.11, 13.89, null);
+        });
+
+        runAt("01 March 2024", () -> {
+            String randomText = Utils.randomStringGenerator("en", 5) + Utils.randomNumberGenerator(6)
+                    + Utils.randomStringGenerator("is", 5);
+            String transactionExternalId = UUID.randomUUID().toString();
+            Integer chargeOffReasonId = CodeHelper.createChargeOffCodeValue(requestSpec, responseSpec, randomText, 1);
+
+            loanTransactionHelper.chargeOffLoan(createdLoanId.get(),
+                    new PostLoansLoanIdTransactionsRequest().transactionDate("01 March 2024").locale("en").dateFormat("dd MMMM yyyy")
+                            .externalId(transactionExternalId).chargeOffReasonId((long) chargeOffReasonId));
+
+            // Loan Prepayment (before) Charge-Off transaction - With Interest Recalculation
+            GetLoansLoanIdTransactionsTemplateResponse transactionBefore = loanTransactionHelper
+                    .retrieveTransactionTemplate(createdLoanId.get(), "prepayLoan", "dd MMMM yyyy", "15 February 2024", "en");
+            assertEquals(88.88, transactionBefore.getAmount());
+            assertEquals(86.11, transactionBefore.getPrincipalPortion());
+            assertEquals(2.77, transactionBefore.getInterestPortion());
+            assertEquals(0.00, transactionBefore.getFeeChargesPortion());
+            assertEquals(0.00, transactionBefore.getPenaltyChargesPortion());
+
+            // Loan Prepayment (after) Charge-Off transaction - WithOut Interest Recalculation
+            GetLoansLoanIdTransactionsTemplateResponse transactionAfter = loanTransactionHelper
+                    .retrieveTransactionTemplate(createdLoanId.get(), "prepayLoan", "dd MMMM yyyy", "01 March 2024", "en");
+            assertEquals(104.67, transactionAfter.getAmount());
+            assertEquals(86.11, transactionAfter.getPrincipalPortion());
+            assertEquals(18.56, transactionAfter.getInterestPortion());
+            assertEquals(0.00, transactionAfter.getFeeChargesPortion());
+            assertEquals(0.00, transactionAfter.getPenaltyChargesPortion());
+        });
+
+    }
+
     private Long applyAndApproveLoanProgressiveAdvancedPaymentAllocationStrategyMonthlyRepayments(Long clientId, Long loanProductId,
             Integer numberOfRepayments, String loanDisbursementDate, double amount) {
         LOG.info("------------------------------APPLY AND APPROVE LOAN ---------------------------------------");

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

@@ -1920,6 +1920,11 @@ public class LoanTransactionHelper extends IntegrationTest {
         return chargebackPayload;
     }
 
+    public GetLoansLoanIdTransactionsTemplateResponse retrieveTransactionTemplate(Long loanId, String command, String dateFormat,
+            String transactionDate, String locale) {
+        return ok(fineract().loanTransactions.retrieveTransactionTemplate(loanId, command, dateFormat, transactionDate, locale));
+    }
+
     public GetLoansLoanIdTransactionsTemplateResponse retrieveTransactionTemplate(String loanExternalIdStr, String command,
             String dateFormat, String transactionDate, String locale) {
         return ok(