FINERACT-2081: Fix Accrual activity - reverse and replayed couple of times after backdated repayment

.gitignore

@@ -30,3 +30,6 @@ fineract-provider/src/main/generated/
 
 **/out/
 gradleExp/
+
+.run/
+.java-version

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/support/TestContextKey.java

@@ -120,8 +120,8 @@ public abstract class TestContextKey {
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_ACTUAL_ACTUAL_INTEREST_RECALCULATION_DAILY = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmiActualActualInterestRecalculationDaily";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ACCELERATE_MATURITY_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationAccelerateMaturityChargeOffBehaviour";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_ACCRUAL_ACTIVITY = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030AccrualActivity";
-    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ACCELERATE_MATURITY_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentAccelerateMaturityChargeOffBehaviour";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_RECOGNITION_DISBURSEMENT_DAILY_EMI_360_30_ACCRUAL_ACTIVITY = "loanProductCreateResponseLP2AdvancedPaymentInterestRecognitionDisbursementDailyEmi36030AccrualActivity";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ACCELERATE_MATURITY_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentAccelerateMaturityChargeOffBehaviour";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_RECOGNITION_DISBURSEMENT_DAILY_EMI_ACTUAL_ACTUAL_ACCRUAL_ACTIVITY = "loanProductCreateResponseLP2AdvancedPaymentInterestRecognitionDisbursementDailyEmiActualActualAccrualActivity";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_EMI_360_30_CHARGEBACK_INTEREST_PENALTY_FEE_PRINCIPAL = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalcEmi36030ChargebackInterestPenaltyFeePrincipal";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALC_EMI_360_30_CHARGEBACK_INTEREST_FEE_PRINCIPAL = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalcEmi36030ChargebackInterestFeePrincipal";

fineract-e2e-tests-runner/src/test/resources/features/LoanAccrualActivity.feature

@@ -4584,7 +4584,7 @@ Feature: LoanAccrualActivity
       | 1  | 29   | 29 February 2024 |           | 1671.5	       | 328.5         | 11.67    | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
       | 2  | 31   | 31 March 2024    |           | 1341.14         | 330.36        | 9.81     | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
       | 3  | 30   | 30 April 2024    |           | 1008.79         | 332.35        | 7.82	  | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
-      | 4  | 31   | 31 May 2024      |           | 674.5 	       | 334.29        | 5.88	  | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
+      | 4  | 31   | 31 May 2024      |           | 674.5	         | 334.29        | 5.88	  | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
       | 5  | 30   | 30 June 2024     |           | 338.26 	       | 336.24        | 3.93	  | 0.0  | 0.0       | 340.17 | 0.0  | 0.0        | 0.0  | 340.17      |
       | 6  | 31   | 31 July 2024     |           | 0.0             | 338.26        | 1.97	  | 0.0  | 0.0       | 340.23 | 0.0  | 0.0        | 0.0  | 340.23      |
     Then Loan Repayment schedule has the following data in Total row:
@@ -4629,11 +4629,11 @@ Feature: LoanAccrualActivity
       | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due    | Paid   | In advance | Late | Outstanding |
       |    |      | 31 January 2024  |                  | 2000.0          |               |          | 0.0  |           | 0.0    | 0.0    |            |      |             |
       | 1  | 29   | 29 February 2024 | 15 February 2024 | 1665.86	      | 334.14        | 6.03     | 0.0  | 0.0       | 340.17 | 340.17 | 340.17     | 0.0  | 0.0         |
-      | 2  | 31   | 31 March 2024    |                  | 1340.11         | 325.75        | 14.42    | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
+      | 2  | 31   | 31 March 2024    |                  | 1340.11         | 325.75        | 14.42     | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
       | 3  | 30   | 30 April 2024    |                  | 1007.76         | 332.35        | 7.82	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
-      | 4  | 31   | 31 May 2024      |                  | 673.47 	      | 334.29        | 5.88	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
+      | 4  | 31   | 31 May 2024      |                  | 673.47 	        | 334.29        | 5.88	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
       | 5  | 30   | 30 June 2024     |                  | 337.23          | 336.24        | 3.93  	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
-      | 6  | 31   | 31 July 2024     |                  | 0.0             | 337.23        | 1.97  	 | 0.0  | 0.0       | 339.2  | 0.0    | 0.0        | 0.0  | 339.2       |
+      | 6  | 31   | 31 July 2024     |                  | 0.0             | 337.23        | 1.97  	 | 0.0  | 0.0       | 339.2 | 0.0    | 0.0        | 0.0  | 339.2      |
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due     | Paid   | In advance | Late | Outstanding |
       | 2000.0        | 40.05    | 0.0  | 0.0       | 2040.05 | 340.17 | 340.17     | 0.0  | 1699.88     |
@@ -4680,7 +4680,7 @@ Feature: LoanAccrualActivity
       | 1  | 29   | 29 February 2024 | 15 February 2024 | 1665.86	      | 334.14        | 6.03     | 0.0  | 0.0       | 340.17 | 340.17 | 340.17     | 0.0  | 0.0         |
       | 2  | 31   | 31 March 2024    |                  | 1340.11         | 325.75        | 14.42    | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
       | 3  | 30   | 30 April 2024    |                  | 1007.82         | 332.29        | 7.88	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
-      | 4  | 31   | 31 May 2024      |                  | 673.53 	      | 334.29        | 5.88	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
+      | 4  | 31   | 31 May 2024      |                  | 673.53  	      | 334.29        | 5.88	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
       | 5  | 30   | 30 June 2024     |                  | 337.29          | 336.24        | 3.93  	 | 0.0  | 0.0       | 340.17 | 0.0    | 0.0        | 0.0  | 340.17      |
       | 6  | 31   | 31 July 2024     |                  | 0.0             | 337.29        | 1.97  	 | 0.0  | 0.0       | 339.26 | 0.0    | 0.0        | 0.0  | 339.26      |
     Then Loan Repayment schedule has the following data in Total row:
@@ -4721,7 +4721,7 @@ Feature: LoanAccrualActivity
       | 28 February 2024 | Accrual            | 0.41   | 0.0       | 0.41     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 29 February 2024 | Accrual            | 0.38   | 0.0       | 0.38     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 29 February 2024 | Accrual Activity   | 6.03   | 0.0       | 6.03     | 0.0  | 0.0       | 0.0          | false    | true     |
-      | 01 March 2024    | Accrual Adjustment | 0.69   | 0.0       | 0.69     | 0.0  | 0.0       | 0.0          | false    | false     |
+      | 01 March 2024    | Accrual Adjustment | 0.69   | 0.0       | 0.69     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 02 March 2024    | Accrual            | 0.31   | 0.0       | 0.31     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 03 March 2024    | Accrual            | 0.31   | 0.0       | 0.31     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 04 March 2024    | Accrual            | 0.32   | 0.0       | 0.32     | 0.0  | 0.0       | 0.0          | false    | false    |

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

@@ -1058,4 +1058,9 @@ public class LoanRepaymentScheduleInstallment extends AbstractAuditableWithUTCDa
     public enum PaymentAction {
         PAY, UNPAY
     }
+
+    public boolean isTransactionDateWithinPeriod(LocalDate referenceDate) {
+        return DateUtils.isAfter(referenceDate, getFromDate()) && !DateUtils.isAfter(referenceDate, getDueDate());
+    }
+
 }

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

@@ -1035,4 +1035,8 @@ public class LoanTransaction extends AbstractAuditableWithUTCDateTimeCustom<Long
 
     // TODO missing hashCode(), equals(Object obj), but probably OK as long as
     // this is never stored in a Collection.
+
+    public void updateTransactionDate(final LocalDate transactionDate) {
+        this.dateOf = transactionDate;
+    }
 }

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

@@ -239,7 +239,16 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
             Money interestPortion = currentInstallment.getInterestCharged(currency);
             Money feeChargesPortion = currentInstallment.getFeeChargesCharged(currency);
             Money penaltyChargesPortion = currentInstallment.getPenaltyChargesCharged(currency);
-            loanTransaction.updateComponentsAndTotal(principalPortion, interestPortion, feeChargesPortion, penaltyChargesPortion);
+            if (interestPortion.plus(feeChargesPortion).plus(penaltyChargesPortion).isZero()) {
+                loanTransaction.reverse();
+            } else {
+                loanTransaction.updateComponentsAndTotal(principalPortion, interestPortion, feeChargesPortion, penaltyChargesPortion);
+                final Loan loan = loanTransaction.getLoan();
+                if ((loan.isClosedObligationsMet() || loan.isOverPaid()) && currentInstallment.isObligationsMet()
+                        && currentInstallment.isTransactionDateWithinPeriod(currentInstallment.getObligationsMetOnDate())) {
+                    loanTransaction.updateTransactionDate(currentInstallment.getObligationsMetOnDate());
+                }
+            }
         }
     }
 

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

@@ -417,7 +417,6 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
                     transaction(6.48, "Accrual Activity", "17 November 2024"), //
                     transaction(4.75, "Accrual Activity", "17 December 2024"), //
                     transaction(18.31, "Accrual Activity", "17 January 2025")); //
-
         });
     }
 
@@ -719,7 +718,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
 
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation();
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(40000),
-                    disbursementDay));
+                    disbursementDay, BigDecimal.ZERO));
 
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
@@ -798,7 +797,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
 
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation();
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(40000),
-                    disbursementDay));
+                    disbursementDay, BigDecimal.ZERO));
 
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
@@ -850,7 +849,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
         runAt(creationBusinessDay, () -> {
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation();
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(40000),
-                    disbursementDay));
+                    disbursementDay, BigDecimal.ZERO));
 
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
@@ -955,7 +954,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation(true);
 
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(40000),
-                    disbursementDay, disbursementDay2));
+                    disbursementDay, disbursementDay2, BigDecimal.ZERO));
 
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
@@ -1014,7 +1013,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation(true);
 
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(40000),
-                    disbursementDay, disbursementDay2));
+                    disbursementDay, disbursementDay2, BigDecimal.ZERO));
 
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
@@ -1119,7 +1118,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
         runAt(creationBusinessDay, () -> {
             Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation(true);
             loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(1000),
-                    disbursementDay, disbursementDay2));
+                    disbursementDay, disbursementDay2, BigDecimal.ZERO));
             loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(1000))
                     .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
 
@@ -1391,6 +1390,41 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
         });
     }
 
+    @Test
+    public void testReverseAndReplayedCoupleOfTimesAfterBackdatedRepayment() {
+        final String disbursementDay = "01 January 2025";
+        AtomicReference<Long> loanId = new AtomicReference<>();
+        runAt(disbursementDay, () -> {
+            Long localLoanProductId = createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocationInterestRecalculation(true);
+            loanId.set(applyForLoanApplicationAdvancedPaymentAllocation(client.getClientId(), localLoanProductId, BigDecimal.valueOf(800),
+                    disbursementDay, disbursementDay, BigDecimal.valueOf(0.3)));
+
+            loanTransactionHelper.approveLoan(loanId.get(), new PostLoansLoanIdRequest().approvedLoanAmount(BigDecimal.valueOf(800))
+                    .dateFormat(DATETIME_PATTERN).approvedOnDate(disbursementDay).locale("en"));
+
+            loanTransactionHelper.disburseLoan(loanId.get(), new PostLoansLoanIdRequest().actualDisbursementDate(disbursementDay)
+                    .dateFormat(DATETIME_PATTERN).transactionAmount(BigDecimal.valueOf(800.0)).locale("en"));
+        });
+
+        runAt("02 February 2025", () -> {
+            inlineLoanCOBHelper.executeInlineCOB(List.of(loanId.get()));
+            verifyTransactions(loanId.get(),
+                    transaction(10.60, "Accrual Activity", "01 February 2025", 0.0, 0.0, 10.60, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(10.60, "Accrual", "01 February 2025", 0.0, 0.0, 10.60, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(800.0, "Disbursement", disbursementDay, 800.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false));
+
+            loanTransactionHelper.makeLoanRepayment("31 January 2025", 900.0F, loanId.get().intValue());
+
+            verifyTransactions(loanId.get(),
+                    transaction(0.34, "Accrual Adjustment", "02 February 2025", 0.0, 0.0, 0.34, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(10.60, "Accrual", "01 February 2025", 0.0, 0.0, 10.60, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(10.26, "Accrual Activity", "31 January 2025", 0.0, 0.0, 10.26, 0.0, 0.0, 0.0, 0.0, false), //
+                    transaction(900.0, "Repayment", "31 January 2025", 0.0, 800, 10.26, 0.0, 0.0, 0.0, 89.74, false), //
+                    transaction(800.0, "Disbursement", disbursementDay, 800.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, false));
+
+        });
+    }
+
     private PostLoanProductsRequest loanProductsRequestInterestDecliningBalanceDailyRecalculationCompoundingNoneAccrualActivity() {
         String name = Utils.uniqueRandomStringGenerator("LOAN_PRODUCT_", 6);
         String shortName = Utils.uniqueRandomStringGenerator("", 4);
@@ -1439,6 +1473,7 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
                 .minInterestRatePerPeriod(0.0)//
                 .interestRatePerPeriod(12.0)//
                 .maxInterestRatePerPeriod(30.0)//
+                .interestRateFrequencyType(2)// Month
                 .interestRateFrequencyType(3)//
                 .repaymentEvery(30)//
                 .repaymentFrequencyType(0L)//
@@ -1631,19 +1666,28 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
     }
 
     private Long createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocation(boolean isMultiDisburse) {
+        Long resourceId = loanTransactionHelper
+                .createLoanProduct(loanProductAccountingAccrualAdvanvedPaymentAllocationAccrualActivity(isMultiDisburse)).getResourceId();
+        LOG.info("Test Progressive Loan Product Id {} isMultiDisburse {} http://localhost:4200/#/products/loan-products/{1}/general",
+                resourceId, isMultiDisburse);
+        return resourceId;
+    }
+
+    private PostLoanProductsRequest loanProductAccountingAccrualAdvanvedPaymentAllocationAccrualActivity(boolean isMultiDisburse) {
         String name = Utils.uniqueRandomStringGenerator("LOAN_PRODUCT_", 6);
         String shortName = Utils.uniqueRandomStringGenerator("", 4);
         AdvancedPaymentData defaultAllocation = createDefaultPaymentAllocation();
-        Long resourceId = loanTransactionHelper.createLoanProduct(new PostLoanProductsRequest().name(name).shortName(shortName)
+        return new PostLoanProductsRequest().name(name).shortName(shortName).multiDisburseLoan(isMultiDisburse)
-                .multiDisburseLoan(isMultiDisburse).maxTrancheCount(isMultiDisburse ? 2 : 1).interestType(isMultiDisburse ? 0 : 1)
+                .maxTrancheCount(isMultiDisburse ? 2 : 1).interestType(isMultiDisburse ? 0 : 1)
                 .interestCalculationPeriodType(isMultiDisburse ? 0 : 1).disallowExpectedDisbursements(isMultiDisburse)
                 .description("Test loan description").currencyCode("USD").digitsAfterDecimal(2).daysInYearType(1).daysInMonthType(1)
                 .recalculationRestFrequencyType(1).rescheduleStrategyMethod(1).loanScheduleType(LoanScheduleType.PROGRESSIVE.name())
-                .recalculationRestFrequencyInterval(0).isInterestRecalculationEnabled(false).locale("en_GB").numberOfRepayments(4)
+                .recalculationRestFrequencyInterval(0).locale("en_GB").numberOfRepayments(4).repaymentFrequencyType(2L).repaymentEvery(1)
-                .repaymentFrequencyType(2L).repaymentEvery(1).minPrincipal(100.0).principal(1000.0).maxPrincipal(10000000.0)
+                .minPrincipal(100.0).principal(1000.0).maxPrincipal(10000000.0).amortizationType(1).interestRatePerPeriod(0.0)
-                .amortizationType(1).interestRatePerPeriod(0.0).interestRateFrequencyType(1).dateFormat("dd MMMM yyyy")
+                .interestRateFrequencyType(1).dateFormat("dd MMMM yyyy")
                 .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION_STRATEGY).paymentAllocation(List.of(defaultAllocation))
-                .accountingRule(3).enableAccrualActivityPosting(true).fundSourceAccountId(fundSource.getAccountID().longValue())//
+                .accountingRule(3).isInterestRecalculationEnabled(false).enableAccrualActivityPosting(true)
+                .fundSourceAccountId(fundSource.getAccountID().longValue())//
                 .loanPortfolioAccountId(loansReceivableAccount.getAccountID().longValue())//
                 .transfersInSuspenseAccountId(suspenseAccount.getAccountID().longValue())//
                 .interestOnLoanAccountId(interestIncomeAccount.getAccountID().longValue())//
@@ -1663,18 +1707,30 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
                 .incomeFromChargeOffFeesAccountId(feeChargeOffAccount.getAccountID().longValue())//
                 .chargeOffExpenseAccountId(chargeOffExpenseAccount.getAccountID().longValue())//
                 .chargeOffFraudExpenseAccountId(chargeOffFraudExpenseAccount.getAccountID().longValue())//
-                .incomeFromChargeOffPenaltyAccountId(penaltyChargeOffAccount.getAccountID().longValue())//
+                .incomeFromChargeOffPenaltyAccountId(penaltyChargeOffAccount.getAccountID().longValue());//
-        ).getResourceId();
+    }
+
+    private Long createLoanProductAccountingAccrualPeriodicAdvancedPaymentAllocationInterestRecalculation(boolean isMultiDisburse) {
+        Long resourceId = loanTransactionHelper
+                .createLoanProduct(loanProductAccountingAccrualAdvanvedPaymentAllocationAccrualActivity(isMultiDisburse) //
+                        .interestRatePerPeriod(10.0) //
+                        .isInterestRecalculationEnabled(true)//
+                        .preClosureInterestCalculationStrategy(1) // TILL_PRE_CLOSE_DATE
+                        .rescheduleStrategyMethod(4) // ADJUST_LAST_UNPAID_PERIOD
+                        .interestRecalculationCompoundingMethod(0) // NONE
+                        .recalculationRestFrequencyType(2) // DAILY
+                        .recalculationRestFrequencyInterval(1)//
+                ).getResourceId();
         LOG.info("Test Progressive Loan Product Id {} isMultiDisburse {} http://localhost:4200/#/products/loan-products/{1}/general",
                 resourceId, isMultiDisburse);
         return resourceId;
     }
 
     private static Long applyForLoanApplicationAdvancedPaymentAllocation(final Long clientID, final Long loanProductID,
-            BigDecimal principal, String applicationDisbursementDate) {
+            BigDecimal principal, String applicationDisbursementDate, BigDecimal interestRatePerPeriod) {
         final PostLoansRequest loanRequest = new PostLoansRequest() //
                 .loanTermFrequency(4).locale("en_GB").loanTermFrequencyType(2).numberOfRepayments(4).repaymentFrequencyType(2)
-                .repaymentEvery(1).principal(principal).amortizationType(1).interestType(0).interestRatePerPeriod(BigDecimal.ZERO)
+                .repaymentEvery(1).principal(principal).amortizationType(1).interestType(0).interestRatePerPeriod(interestRatePerPeriod)
                 .interestCalculationPeriodType(1).dateFormat("dd MMMM yyyy")
                 .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION_STRATEGY).loanType("individual")
                 .expectedDisbursementDate(applicationDisbursementDate).submittedOnDate(applicationDisbursementDate).clientId(clientID)
@@ -1686,10 +1742,11 @@ public class LoanTransactionAccrualActivityPostingTest extends BaseLoanIntegrati
     }
 
     private static Long applyForLoanApplicationAdvancedPaymentAllocation(final Long clientID, final Long loanProductID,
-            BigDecimal principal, String applicationDisbursementDate, String applicationDisbursementDate2) {
+            BigDecimal principal, String applicationDisbursementDate, String applicationDisbursementDate2,
+            BigDecimal interestRatePerPeriod) {
         final PostLoansRequest loanRequest = new PostLoansRequest() //
                 .loanTermFrequency(4).locale("en_GB").loanTermFrequencyType(2).numberOfRepayments(4).repaymentFrequencyType(2)
-                .repaymentEvery(1).principal(principal).amortizationType(1).interestType(0).interestRatePerPeriod(BigDecimal.ZERO)
+                .repaymentEvery(1).principal(principal).amortizationType(1).interestType(0).interestRatePerPeriod(interestRatePerPeriod)
                 .interestCalculationPeriodType(0).dateFormat("dd MMMM yyyy")
                 .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION_STRATEGY).loanType("individual")
                 .submittedOnDate(applicationDisbursementDate).clientId(clientID).expectedDisbursementDate(applicationDisbursementDate2)