diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
index d702c6f2e..b14995e74 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
@@ -116,7 +116,7 @@ public class Charge extends AbstractPersistable<Long> {
         final List<ApiParameterError> dataValidationErrors = new ArrayList<ApiParameterError>();
         final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("charges");
 
-        if (isMonthlyFee()) {
+        if (isMonthlyFee() || isAnnualFee()) {
             this.feeOnMonth = feeOnMonthDay.getMonthOfYear();
             this.feeOnDay = feeOnMonthDay.getDayOfMonth();
             this.feeInterval = feeInterval;
@@ -402,6 +402,10 @@ public class Charge extends AbstractPersistable<Long> {
         return ChargeTimeType.fromInt(this.chargeTime).isMonthlyFee();
     }
     
+    public boolean isAnnualFee() {
+        return ChargeTimeType.fromInt(this.chargeTime).isAnnualFee();
+    }
+    
     public MonthDay getFeeOnMonthDay(){
         MonthDay feeOnMonthDay = null;
         if (feeOnDay != null && feeOnMonth != null) {
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/serialization/ChargeDefinitionCommandFromApiJsonDeserializer.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/serialization/ChargeDefinitionCommandFromApiJsonDeserializer.java
index 087dfc450..700ba2649 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/serialization/ChargeDefinitionCommandFromApiJsonDeserializer.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/serialization/ChargeDefinitionCommandFromApiJsonDeserializer.java
@@ -92,14 +92,19 @@ public final class ChargeDefinitionCommandFromApiJsonDeserializer {
             baseDataValidator.reset().parameter("active").value(active).notNull();
         }
         
-        boolean isMonthlyFee = ChargeTimeType.fromInt(chargeTimeType).isMonthlyFee();
-        if(isMonthlyFee){
+        final ChargeTimeType ctt = ChargeTimeType.fromInt(chargeTimeType);
+        if(ctt.isMonthlyFee()){
             final MonthDay monthDay = this.fromApiJsonHelper.extractMonthDayNamed("feeOnMonthDay", element); 
             baseDataValidator.reset().parameter("feeOnMonthDay").value(monthDay).notNull();
             
             final Integer feeInterval = this.fromApiJsonHelper.extractIntegerNamed("feeInterval", element, Locale.getDefault());
             baseDataValidator.reset().parameter("feeInterval").value(feeInterval).notNull().inMinMaxRange(1, 12);
         }
+        
+        if(ctt.isAnnualFee()){
+            final MonthDay monthDay = this.fromApiJsonHelper.extractMonthDayNamed("feeOnMonthDay", element); 
+            baseDataValidator.reset().parameter("feeOnMonthDay").value(monthDay).notNull();
+        }
 
         throwExceptionIfValidationWarningsExist(dataValidationErrors);
     }