FINERACT-2107: Interest Refund - Allocation, Business Event & Full Repayment

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

@@ -55,6 +55,8 @@ import org.apache.fineract.infrastructure.event.business.domain.loan.transaction
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionGoodwillCreditPreBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionInterestPaymentWaiverPostBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionInterestPaymentWaiverPreBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionInterestRefundPostBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionInterestRefundPreBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionMakeRepaymentPostBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionMakeRepaymentPreBusinessEvent;
 import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionMerchantIssuedRefundPostBusinessEvent;
@@ -89,11 +91,14 @@ import org.apache.fineract.portfolio.loanaccount.data.HolidayDetailDTO;
 import org.apache.fineract.portfolio.loanaccount.data.LoanRefundRequestData;
 import org.apache.fineract.portfolio.loanaccount.data.LoanScheduleDelinquencyData;
 import org.apache.fineract.portfolio.loanaccount.data.ScheduleGeneratorDTO;
+import org.apache.fineract.portfolio.loanaccount.service.InterestRefundService;
+import org.apache.fineract.portfolio.loanaccount.service.InterestRefundServiceDelegate;
 import org.apache.fineract.portfolio.loanaccount.service.LoanAccrualTransactionBusinessEventService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanAccrualsProcessingService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanAssembler;
 import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
 import org.apache.fineract.portfolio.loanaccount.service.ReplayedTransactionBusinessEventService;
+import org.apache.fineract.portfolio.loanproduct.domain.LoanSupportedInterestRefundTypes;
 import org.apache.fineract.portfolio.note.domain.Note;
 import org.apache.fineract.portfolio.note.domain.NoteRepository;
 import org.apache.fineract.portfolio.paymentdetail.domain.PaymentDetail;
@@ -133,6 +138,7 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
     private final DelinquencyEffectivePauseHelper delinquencyEffectivePauseHelper;
     private final DelinquencyReadPlatformService delinquencyReadPlatformService;
     private final LoanAccrualsProcessingService loanAccrualsProcessingService;
+    private final InterestRefundServiceDelegate interestRefundServiceDelegate;
 
     @Transactional
     @Override
@@ -159,6 +165,26 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
         this.loanCollateralManagementRepository.saveAll(loanCollateralManagementSet);
     }
 
+    @Transactional
+    public LoanTransaction createInterestRefundLoanTransaction(Loan loan, final LocalDate transactionDate,
+            BigDecimal relatedRefundTransactionAmount) {
+        InterestRefundService interestRefundService = interestRefundServiceDelegate.lookupInterestRefundService(loan);
+        if (interestRefundService == null) {
+            return null;
+        }
+        BigDecimal interestRefundAmount = interestRefundService.calculateInterestRefundAmount(loan.getId(), relatedRefundTransactionAmount,
+                transactionDate);
+
+        final ExternalId txnExternalId = externalIdFactory.create();
+
+        businessEventNotifierService.notifyPreBusinessEvent(new LoanTransactionInterestRefundPreBusinessEvent(loan));
+
+        LoanTransaction newInterestRefundTransaction;
+        newInterestRefundTransaction = LoanTransaction.interestRefund(loan, interestRefundAmount, transactionDate, txnExternalId);
+
+        return newInterestRefundTransaction;
+    }
+
     @Transactional
     @Override
     public LoanTransaction makeRepayment(final LoanTransactionType repaymentTransactionType, Loan loan, final LocalDate transactionDate,
@@ -199,6 +225,18 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
         final ScheduleGeneratorDTO scheduleGeneratorDTO = this.loanUtilService.buildScheduleGeneratorDTO(loan, recalculateFrom,
                 holidayDetailDto);
 
+        boolean shouldCreateInterestRefundTransaction = loan.getLoanProductRelatedDetail().getSupportedInterestRefundTypes().stream()
+                .map(LoanSupportedInterestRefundTypes::getTransactionType)
+                .anyMatch(transactionType -> transactionType.equals(repaymentTransactionType));
+        LoanTransaction newInterestRefundTransaction = null;
+
+        if (shouldCreateInterestRefundTransaction) {
+            newInterestRefundTransaction = createInterestRefundLoanTransaction(loan, transactionDate, transactionAmount);
+            if (newInterestRefundTransaction != null) {
+                loan.addLoanTransaction(newInterestRefundTransaction);
+            }
+        }
+
         final ChangedTransactionDetail changedTransactionDetail = loan.makeRepayment(newRepaymentTransaction,
                 defaultLoanLifecycleStateMachine, existingTransactionIds, existingReversedTransactionIds, isRecoveryRepayment,
                 scheduleGeneratorDTO, isHolidayValidationDone);
@@ -209,6 +247,9 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
         }
 
         saveLoanTransactionWithDataIntegrityViolationChecks(newRepaymentTransaction);
+        if (newInterestRefundTransaction != null) {
+            saveLoanTransactionWithDataIntegrityViolationChecks(newInterestRefundTransaction);
+        }
 
         /***
          * TODO Vishwas Batch save is giving me a HibernateOptimisticLockingFailureException, looping and saving for the
@@ -243,7 +284,6 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
             businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
             businessEventNotifierService.notifyPostBusinessEvent(transactionRepaymentEvent);
         }
-
         // disable all active standing orders linked to this loan if status
         // changes to closed
         disableStandingInstructionsLinkedToClosedLoan(loan);
@@ -276,7 +316,10 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
                 }
             }
         }
-
+        if (shouldCreateInterestRefundTransaction && newInterestRefundTransaction != null) {
+            businessEventNotifierService
+                    .notifyPostBusinessEvent(new LoanTransactionInterestRefundPostBusinessEvent(newInterestRefundTransaction));
+        }
         return newRepaymentTransaction;
     }
 
@@ -299,6 +342,8 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
             repaymentEvent = new LoanTransactionRecoveryPaymentPreBusinessEvent(loan);
         } else if (repaymentTransactionType.isDownPayment()) {
             repaymentEvent = new LoanTransactionDownPaymentPreBusinessEvent(loan);
+        } else if (repaymentTransactionType.isInterestRefund()) {
+            repaymentEvent = new LoanTransactionInterestRefundPreBusinessEvent(loan);
         }
         return repaymentEvent;
     }
@@ -322,6 +367,8 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
             repaymentEvent = new LoanTransactionRecoveryPaymentPostBusinessEvent(transaction);
         } else if (repaymentTransactionType.isDownPayment()) {
             repaymentEvent = new LoanTransactionDownPaymentPostBusinessEvent(transaction);
+        } else if (repaymentTransactionType.isInterestRefund()) {
+            repaymentEvent = new LoanTransactionInterestRefundPostBusinessEvent(transaction);
         }
         return repaymentEvent;
     }

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

@@ -0,0 +1,115 @@
+/**
+ * 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.portfolio.loanaccount.service;
+
+import java.math.BigDecimal;
+import java.time.LocalDate;
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Objects;
+import java.util.concurrent.atomic.AtomicReference;
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.organisation.monetary.domain.Money;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleInstallment;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.AdvancedPaymentScheduleTransactionProcessor;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.data.ProgressiveLoanInterestScheduleModel;
+import org.apache.fineract.portfolio.loanaccount.starter.AdvancedPaymentScheduleTransactionProcessorCondition;
+import org.apache.fineract.portfolio.loanproduct.calc.EMICalculator;
+import org.springframework.context.annotation.Conditional;
+import org.springframework.stereotype.Service;
+import org.springframework.transaction.annotation.Propagation;
+import org.springframework.transaction.annotation.Transactional;
+
+@Slf4j
+@RequiredArgsConstructor
+@Conditional(AdvancedPaymentScheduleTransactionProcessorCondition.class)
+@Service
+public class ProgressiveLoanInterestRefundServiceImpl implements InterestRefundService {
+
+    private final AdvancedPaymentScheduleTransactionProcessor processor;
+    private final EMICalculator emiCalculator;
+    private final LoanAssembler loanAssembler;
+
+    @Override
+    public boolean canHandle(Loan loan) {
+        return loan != null && loan.isInterestBearing() && processor.accept(loan.getTransactionProcessingStrategyCode());
+    }
+
+    private static boolean omitDisbursements(LoanTransaction lt, final AtomicReference<BigDecimal> refundFinal) {
+        if (lt.getTypeOf().isDisbursement() && refundFinal.get().compareTo(BigDecimal.ZERO) > 0) {
+            if (lt.getAmount().compareTo(refundFinal.get()) <= 0) {
+                refundFinal.set(refundFinal.get().subtract(lt.getAmount()));
+                return false;
+            }
+        }
+        return true;
+    }
+
+    private static LoanTransaction calculateReducedAmountDisbursements(LoanTransaction lt, final AtomicReference<BigDecimal> refundFinal) {
+        if (lt.getTypeOf().isDisbursement() && refundFinal.get().compareTo(BigDecimal.ZERO) > 0) {
+            LoanTransaction result = new LoanTransaction(lt.getLoan(), lt.getLoan().getOffice(), lt.getTypeOf().getValue(), lt.getDateOf(),
+                    lt.getAmount().subtract(refundFinal.get()), lt.getPrincipalPortion(), lt.getInterestPortion(),
+                    lt.getFeeChargesPortion(), lt.getPenaltyChargesPortion(),
+                    lt.getOverPaymentPortion(lt.getLoan().getCurrency()).getAmount(), lt.isReversed(), lt.getPaymentDetail(),
+                    lt.getExternalId());
+            refundFinal.set(BigDecimal.ZERO);
+            return result;
+        }
+        return lt;
+    }
+
+    private BigDecimal totalInterest(final Loan loan, BigDecimal refundAmount, LocalDate relatedRefundTransactionDate) {
+        final AtomicReference<BigDecimal> refundFinal = new AtomicReference<>(refundAmount);
+        List<LoanTransaction> transactionsToReprocess = loan.getLoanTransactions().stream().filter(lt -> !lt.isReversed()) //
+                .filter(lt -> !lt.isAccrual() && !lt.isAccrualActivity()) //
+                .filter(lt -> omitDisbursements(lt, refundFinal)) //
+                .map(lt -> calculateReducedAmountDisbursements(lt, refundFinal)).toList();
+
+        List<LoanRepaymentScheduleInstallment> installmentsToReprocess = new ArrayList<>(
+                loan.getRepaymentScheduleInstallments().stream().filter(i -> !i.isReAged() && !i.isAdditional()).toList());
+
+        ProgressiveLoanInterestScheduleModel modelAfter = processor.reprocessProgressiveLoanTransactions(loan.getDisbursementDate(),
+                transactionsToReprocess, loan.getCurrency(), installmentsToReprocess, loan.getActiveCharges()).getRight();
+        BigDecimal payableInterest = BigDecimal.ZERO;
+        if (modelAfter != null && loan.getStatus().isActive()) {
+            LoanRepaymentScheduleInstallment actualInstallment = loan.getRelatedRepaymentScheduleInstallment(relatedRefundTransactionDate);
+            if (actualInstallment == null) {
+                actualInstallment = loan.getLastLoanRepaymentScheduleInstallment();
+            }
+            payableInterest = emiCalculator.getPayableDetails(modelAfter, actualInstallment.getDueDate(), relatedRefundTransactionDate)
+                    .getPayableInterest().getAmount();
+        }
+        BigDecimal paidInterest = installmentsToReprocess.stream().map(i -> i.getInterestPaid(loan.getCurrency())).filter(Objects::nonNull)
+                .map(Money::getAmount).reduce(BigDecimal.ZERO, BigDecimal::add);
+        return payableInterest.add(paidInterest);
+    }
+
+    @Override
+    @Transactional(readOnly = true, propagation = Propagation.REQUIRES_NEW)
+    public BigDecimal calculateInterestRefundAmount(Long loanId, BigDecimal relatedRefundTransactionAmount,
+            LocalDate relatedRefundTransactionDate) {
+        Loan loan = loanAssembler.assembleFrom(loanId);
+        BigDecimal totalInterestBeforeRefund = totalInterest(loan, BigDecimal.ZERO, relatedRefundTransactionDate);
+        BigDecimal totalInterestAfterRefund = totalInterest(loan, relatedRefundTransactionAmount, relatedRefundTransactionDate);
+        return totalInterestBeforeRefund.subtract(totalInterestAfterRefund);
+    }
+}

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

@@ -169,4 +169,5 @@
     <include file="parts/0148_transaction_summary_with_asset_owner_report_performance_improvement.xml" relativeToChangelogFile="true" />
     <include file="parts/0149_update_global_configuration_names.xml" relativeToChangelogFile="true" />
     <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" />
 </databaseChangeLog>

fineract-provider/src/main/resources/db/changelog/tenant/parts/0151_interest_refund_business_events.xml

@@ -0,0 +1,35 @@
+<?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 author="fineract" id="1">
+        <insert tableName="m_external_event_configuration">
+            <column name="type" value="LoanTransactionInterestRefundPostBusinessEvent"/>
+            <column name="enabled" valueBoolean="false"/>
+        </insert>
+        <insert tableName="m_external_event_configuration">
+            <column name="type" value="LoanTransactionInterestRefundPreBusinessEvent"/>
+            <column name="enabled" valueBoolean="false"/>
+        </insert>
+    </changeSet>
+</databaseChangeLog>

fineract-provider/src/test/java/org/apache/fineract/infrastructure/event/external/service/ExternalEventConfigurationValidationServiceTest.java

@@ -104,7 +104,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanUndoReAmortizeTransactionBusinessEvent", "LoanReAgeBusinessEvent", "LoanUndoReAgeBusinessEvent",
                 "LoanReAmortizeBusinessEvent", "LoanUndoReAmortizeBusinessEvent", "LoanTransactionInterestPaymentWaiverPreBusinessEvent",
                 "LoanTransactionInterestPaymentWaiverPostBusinessEvent", "LoanTransactionAccrualActivityPostBusinessEvent",
-                "LoanTransactionAccrualActivityPreBusinessEvent");
+                "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
+                "LoanTransactionInterestRefundPreBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));
@@ -189,7 +190,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanUndoReAmortizeTransactionBusinessEvent", "LoanReAgeBusinessEvent", "LoanUndoReAgeBusinessEvent",
                 "LoanReAmortizeBusinessEvent", "LoanUndoReAmortizeBusinessEvent", "LoanTransactionInterestPaymentWaiverPreBusinessEvent",
                 "LoanTransactionInterestPaymentWaiverPostBusinessEvent", "LoanTransactionAccrualActivityPostBusinessEvent",
-                "LoanTransactionAccrualActivityPreBusinessEvent");
+                "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
+                "LoanTransactionInterestRefundPreBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));