diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/ChargeCalculationType.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/ChargeCalculationType.java
index 6eb153dcb..489293578 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/ChargeCalculationType.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/ChargeCalculationType.java
@@ -43,6 +43,10 @@ public enum ChargeCalculationType {
     public static Object[] validValuesForClients() {
         return new Integer[] { ChargeCalculationType.FLAT.getValue() };
     }
+    
+    public static Object[] validValuesForTrancheDisbursement(){
+    	return new Integer[] { ChargeCalculationType.FLAT.getValue(), ChargeCalculationType.PERCENT_OF_DISBURSEMENT_AMOUNT.getValue()};
+    }
 
     public static ChargeCalculationType fromInt(final Integer chargeCalculation) {
         ChargeCalculationType chargeCalculationType = ChargeCalculationType.INVALID;
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 fc54137a9..3016fc567 100755
--- 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
@@ -105,6 +105,10 @@ public final class ChargeDefinitionCommandFromApiJsonDeserializer {
                         .isOneOfTheseValues(ChargeCalculationType.validValuesForLoan());
             }
             
+            if(chargeTimeType != null && chargeCalculationType != null){
+            	performChargeTimeNCalculationTypeValidation(baseDataValidator, chargeTimeType, chargeCalculationType);
+            }
+
         } else if (appliesTo.isSavingsCharge()) {
             // savings applicable validation
             final Integer chargeTimeType = this.fromApiJsonHelper.extractIntegerSansLocaleNamed("chargeTimeType", element);
@@ -301,8 +305,26 @@ public final class ChargeDefinitionCommandFromApiJsonDeserializer {
 
         throwExceptionIfValidationWarningsExist(dataValidationErrors);
     }
+    
+	public void validateChargeTimeNCalculationType(Integer chargeTimeType, Integer ChargeCalculationType) {
+        final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
+        final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("charge");
+        performChargeTimeNCalculationTypeValidation(baseDataValidator, chargeTimeType, ChargeCalculationType);
+        throwExceptionIfValidationWarningsExist(dataValidationErrors);
+	}
+	
+	private void performChargeTimeNCalculationTypeValidation(DataValidatorBuilder baseDataValidator, 
+			final Integer chargeTimeType, final Integer chargeCalculationType){
+        if (chargeTimeType == ChargeTimeType.TRANCHE_DISBURSEMENT.getValue()){
+        	baseDataValidator.reset().parameter("chargeCalculationType").value(chargeCalculationType)
+        			.isOneOfTheseValues(ChargeCalculationType.validValuesForTrancheDisbursement());
+        } else {
+        	baseDataValidator.reset().parameter("chargeCalculationType").value(chargeCalculationType)
+        			.isNotOneOfTheseValues(ChargeCalculationType.PERCENT_OF_DISBURSEMENT_AMOUNT.getValue());
+        }	
+    }
 
-    private void throwExceptionIfValidationWarningsExist(final List<ApiParameterError> dataValidationErrors) {
+	private void throwExceptionIfValidationWarningsExist(final List<ApiParameterError> dataValidationErrors) {
         if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
     }
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/service/ChargeWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/service/ChargeWritePlatformServiceJpaRepositoryImpl.java
index 0b4ab63e9..4ea1f423f 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/service/ChargeWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/service/ChargeWritePlatformServiceJpaRepositoryImpl.java
@@ -112,6 +112,9 @@ public class ChargeWritePlatformServiceJpaRepositoryImpl implements ChargeWriteP
 
             final Map<String, Object> changes = chargeForUpdate.update(command);
 
+            this.fromApiJsonDeserializer.validateChargeTimeNCalculationType(chargeForUpdate.getChargeTimeType(),
+            																	chargeForUpdate.getChargeCalculation());
+
             // MIFOSX-900: Check if the Charge has been active before and now is
             // deactivated:
             if (changes.containsKey("active")) {
@@ -130,7 +133,7 @@ public class ChargeWritePlatformServiceJpaRepositoryImpl implements ChargeWriteP
                 if (isChargeExistWithLoans) { throw new ChargeCannotBeUpdatedException(
                         "error.msg.charge.frequency.cannot.be.updated.it.is.used.in.loan",
                         "This charge frequency cannot be updated, it is used in loan"); }
-            }
+            } 
 
             // Has account Id been changed ?
             if (changes.containsKey(ChargesApiConstants.glAccountIdParamName)) {