diff --git a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/data/loanproduct/DefaultLoanProduct.java b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/data/loanproduct/DefaultLoanProduct.java
index 0216023d6..d63f973fa 100644
--- a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/data/loanproduct/DefaultLoanProduct.java
+++ b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/data/loanproduct/DefaultLoanProduct.java
@@ -41,6 +41,7 @@ public enum DefaultLoanProduct implements LoanProduct {
     LP2_DOWNPAYMENT_AUTO_ADVANCED_PAYMENT_ALLOCATION, //
     LP2_DOWNPAYMENT_ADVANCED_PAYMENT_ALLOCATION, //
     LP2_DOWNPAYMENT_INTEREST, LP2_DOWNPAYMENT_INTEREST_AUTO, //
+    LP2_ADV_CUST_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL, //
     LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL, //
     LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_VERTICAL, //
     LP2_DOWNPAYMENT_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL_INSTALLMENT_LEVEL_DELINQUENCY, //
diff --git a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/factory/LoanProductsRequestFactory.java b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/factory/LoanProductsRequestFactory.java
index 6ff44f21e..376813d58 100644
--- a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/factory/LoanProductsRequestFactory.java
+++ b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/factory/LoanProductsRequestFactory.java
@@ -66,6 +66,7 @@ public class LoanProductsRequestFactory {
     public static final String NAME_PREFIX_INTEREST_FLAT_LP2 = "LP2InterestFlat-";
     public static final String NAME_PREFIX_INTEREST_DECLINING = "LP1InterestDeclining-";
     public static final String NAME_PREFIX_INTEREST_DECLINING_RECALCULATION = "LP1InterestDecliningRecalculation-";
+    public static final String NAME_PREFIX_INTEREST_RECALCULATION_WITH_DOWN_PAYMENT_LP3 = "LP3InterestRecalculationWithDownPayment-";
     public static final String NAME_PREFIX_LP2_EMI = "LP2Emi-";
     public static final String SHORT_NAME_PREFIX = "p";
     public static final String SHORT_NAME_PREFIX_INTEREST = "i";
@@ -94,8 +95,11 @@ public class LoanProductsRequestFactory {
     public static final String TRANSACTION_PROCESSING_STRATEGY_CODE = TransactionProcessingStrategyCode.PENALTIES_FEES_INTEREST_PRINCIPAL_ORDER.value;
     public static final String TRANSACTION_PROCESSING_STRATEGY_CODE_ADVANCED = TransactionProcessingStrategyCode.ADVANCED_PAYMENT_ALLOCATION.value;
     public static final Integer DAYS_IN_YEAR_TYPE = DaysInYearType.ACTUAL.value;
+    public static final Integer DAYS_IN_YEAR_TYPE_360 = DaysInYearType.DAYS360.value;
     public static final Integer DAYS_IN_MONTH_TYPE = DaysInMonthType.ACTUAL.value;
+    public static final Integer DAYS_IN_MONTH_TYPE_30 = DaysInMonthType.DAYS30.value;
     public static final Integer LOAN_ACCOUNTING_RULE = AccountingRule.ACCRUAL_PERIODIC.value;
+    public static final Integer LOAN_ACCOUNTING_RULE_NONE = AccountingRule.NONE.value;
     public static final String OVER_APPLIED_CALCULATION_TYPE = "percentage";
     public static final Integer OVER_APPLIED_NUMBER = 50;
     public static final Integer DELINQUENCY_BUCKET_ID = DelinquencyBucket.BASIC_DELINQUENCY_BUCKET.value;
@@ -657,6 +661,38 @@ public class LoanProductsRequestFactory {
                 .recalculationRestFrequencyInterval(1);//
     }
 
+    public PostLoanProductsRequest defaultLoanProductsRequestLP2InterestDailyRecalculationWithDownPayment() {
+        final String name = Utils.randomNameGenerator(NAME_PREFIX_INTEREST_RECALCULATION_WITH_DOWN_PAYMENT_LP3, 4);
+        final String shortName = Utils.randomNameGenerator(SHORT_NAME_PREFIX_INTEREST, 3);
+
+        return new PostLoanProductsRequest().name(name).shortName(shortName)
+                .description(DESCRIPTION_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE).startDate(null).closeDate(null)
+                .accountMovesOutOfNPAOnlyOnArrearsCompletion(false).accountingRule(LOAN_ACCOUNTING_RULE_NONE)
+                .allowApprovedDisbursedAmountsOverApplied(true)
+                .allowAttributeOverrides(new AllowAttributeOverrides().amortizationType(true).interestType(true)
+                        .transactionProcessingStrategyCode(true).interestCalculationPeriodType(true).inArrearsTolerance(true)
+                        .repaymentEvery(true).graceOnPrincipalAndInterestPayment(true).graceOnArrearsAgeing(true))
+                .allowPartialPeriodInterestCalcualtion(false).allowVariableInstallments(false).amortizationType(AMORTIZATION_TYPE)
+                .canDefineInstallmentAmount(true).canUseForTopup(false).charges(new ArrayList<>()).creditAllocation(new ArrayList<>())
+                .currencyCode(CURRENCY_CODE).dateFormat(DATE_FORMAT).daysInMonthType(DAYS_IN_MONTH_TYPE_30)
+                .daysInYearType(DAYS_IN_YEAR_TYPE_360).delinquencyBucketId(DELINQUENCY_BUCKET_ID.longValue()).digitsAfterDecimal(2)
+                .disallowExpectedDisbursements(true).dueDaysForRepaymentEvent(1).enableDownPayment(false)
+                .enableInstallmentLevelDelinquency(true).fixedLength(null).holdGuaranteeFunds(false).inMultiplesOf(0)
+                .includeInBorrowerCycle(false).interestCalculationPeriodType(0).interestRateFrequencyType(3).interestRatePerPeriod(9.99)
+                .interestRateVariationsForBorrowerCycle(new ArrayList<>()).interestRecalculationCompoundingMethod(0).interestType(0)
+                .isArrearsBasedOnOriginalSchedule(false).isEqualAmortization(false).isInterestRecalculationEnabled(true)
+                .isLinkedToFloatingInterestRates(false).loanScheduleProcessingType("HORIZONTAL").loanScheduleType("PROGRESSIVE")
+                .locale(LOCALE_EN).maxInterestRatePerPeriod((double) 50).maxNumberOfRepayments(48).maxPrincipal((double) 10000)
+                .maxTrancheCount(10).minInterestRatePerPeriod((double) 0).minNumberOfRepayments(1).minPrincipal((double) 1)
+                .multiDisburseLoan(true).numberOfRepaymentVariationsForBorrowerCycle(new ArrayList<>()).numberOfRepayments(3)
+                .outstandingLoanBalance((double) 10000).overAppliedCalculationType("flat").overAppliedNumber(10000)
+                .overDueDaysForRepaymentEvent(2).preClosureInterestCalculationStrategy(1).principal((double) 40)
+                .principalThresholdForLastInstallment(50).principalVariationsForBorrowerCycle(new ArrayList<>())
+                .recalculationRestFrequencyInterval(1).recalculationRestFrequencyType(2).repaymentEvery(1).repaymentFrequencyType(2L)
+                .repaymentStartDateType(2).rescheduleStrategyMethod(4).supportedInterestRefundTypes(new ArrayList<>())
+                .transactionProcessingStrategyCode(TRANSACTION_PROCESSING_STRATEGY_CODE_ADVANCED).useBorrowerCycle(false);
+    }
+
     public PostLoanProductsRequest defaultLoanProductsRequestLP2() {
         String name = Utils.randomNameGenerator(NAME_PREFIX_LP2, 4);
         String shortName = Utils.randomNameGenerator(SHORT_NAME_PREFIX, 3);
diff --git a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/initializer/global/LoanProductGlobalInitializerStep.java b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/initializer/global/LoanProductGlobalInitializerStep.java
index 24e51f80d..74090fd80 100644
--- a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/initializer/global/LoanProductGlobalInitializerStep.java
+++ b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/initializer/global/LoanProductGlobalInitializerStep.java
@@ -548,6 +548,36 @@ public class LoanProductGlobalInitializerStep implements FineractGlobalInitializ
                 .createLoanProduct(loanProductsRequestLP2AdvPmtAllocProgressiveLoanScheduleHorizontal).execute();
         TestContext.INSTANCE.set(TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL,
                 responseLP2AdvPmtAllocProgressiveLoanScheduleHorizontal);
+
+        // LP2 with Down-payment + advanced custom payment allocation + progressive loan schedule + horizontal
+        // (LP2_DOWNPAYMENT_ADV_CUSTOM_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL)
+        String name44 = DefaultLoanProduct.LP2_ADV_CUST_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL.getName();
+
+        PostLoanProductsRequest loanProductsRequestAdvCustomPaymentAllocationProgressiveLoanSchedule = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2InterestDailyRecalculationWithDownPayment()//
+                .name(name44)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT",
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_FEE, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_FEE, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_FEE), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        Response<PostLoanProductsResponse> responseLoanProductsRequestAdvCustomPaymentAllocationProgressiveLoanSchedule = loanProductsApi
+                .createLoanProduct(loanProductsRequestAdvCustomPaymentAllocationProgressiveLoanSchedule).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADVANCED_CUSTOM_PAYMENT_ALLOCATION_PROGRESSIVE_LOAN_SCHEDULE,
+                responseLoanProductsRequestAdvCustomPaymentAllocationProgressiveLoanSchedule);
     }
 
     public static AdvancedPaymentData createPaymentAllocation(String transactionType, String futureInstallmentAllocationRule,
diff --git a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/loan/LoanStepDef.java b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/loan/LoanStepDef.java
index 4fdf238d2..b460e117e 100644
--- a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/loan/LoanStepDef.java
+++ b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/loan/LoanStepDef.java
@@ -1141,13 +1141,10 @@ public class LoanStepDef extends AbstractStepDef {
         List<List<String>> data = table.asLists();
         for (int i = 1; i < data.size(); i++) {
             List<String> expectedValues = data.get(i);
-            String transactionDateExpected = expectedValues.get(0);
             List<List<String>> actualValuesList = transactions.stream()//
-                    .filter(t -> transactionDateExpected.equals(FORMATTER.format(t.getDate())))//
                     .map(t -> fetchValuesOfTransaction(table.row(0), t))//
                     .collect(Collectors.toList());//
-            boolean containsExpectedValues = actualValuesList.stream()//
-                    .anyMatch(actualValues -> actualValues.equals(expectedValues));//
+            boolean containsExpectedValues = actualValuesList.get(i - 1).equals(expectedValues);//
             assertThat(containsExpectedValues).as(ErrorMessageHelper.wrongValueInLineInTransactionsTab(i, actualValuesList, expectedValues))
                     .isTrue();
         }
diff --git a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/support/TestContextKey.java b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/support/TestContextKey.java
index e902c4f90..eff442220 100644
--- a/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/support/TestContextKey.java
+++ b/fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/support/TestContextKey.java
@@ -61,6 +61,7 @@ public abstract class TestContextKey {
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_DECLINING_PERIOD_SAME_AS_PAYMENT = "loanProductCreateResponseLP1InterestDecliningPeriodSameAsPayment";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_1MONTH_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_MONTHLY = "loanProductCreateResponseLP1InterestDecliningPeriodSameAsPaymentRecalculation";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE = "loanProductCreateResponseLP1InterestDecliningBalanceDailyRecalculationCompoundingNone";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADVANCED_CUSTOM_PAYMENT_ALLOCATION_PROGRESSIVE_LOAN_SCHEDULE = "loanProductCreateResponseLP2ProgressiveLoanScheduleCustomPaymentAllocation";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE = "loanProductCreateResponseLP1InterestDecliningBalanceDailyRecalculationSameAsRepaymentCompoundingNone";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_DECLINING_BALANCE_SAR_RECALCULATION_SAME_AS_REPAYMENT_COMPOUNDING_NONE_MULTI_DISBURSEMENT = "loanProductCreateResponseLP1InterestDecliningBalanceDailyRecalculationSameAsRepaymentCompoundingNoneMultiDisbursement";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_DECLINING_BALANCE_DAILY_RECALCULATION_COMPOUNDING_NONE_RESCHEDULE_REDUCE_NR_INSTALLMENTS = "loanProductCreateResponseLP1InterestDecliningBalanceDailyRecalculationCompoundingNoneRescheduleReduceNrInstallments";
diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanAccrualTransaction.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanAccrualTransaction.feature
index 23c360c0b..2805d403f 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanAccrualTransaction.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanAccrualTransaction.feature
@@ -171,8 +171,8 @@ Feature: LoanAccrualTransaction
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 July 2023     | Disbursement     | 5000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 5000.0       |
-      | 06 July 2023     | Accrual          | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
       | 06 July 2023     | Repayment        | 5011.0 | 5000.0    | 0.0      | 10.0 | 0.0       | 0.0          |
+      | 06 July 2023     | Accrual          | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
 
 
   Scenario: Verify that the accrual transaction correctly created in case a CBR is applied on the loan
@@ -195,8 +195,8 @@ Feature: LoanAccrualTransaction
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 July 2023     | Disbursement     | 5000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 5000.0       |
-      | 06 July 2023     | Accrual          | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
       | 06 July 2023     | Repayment        | 5011.0 | 5000.0    | 0.0      | 10.0 | 0.0       | 0.0          |
+      | 06 July 2023     | Accrual          | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
     When Admin makes Credit Balance Refund transaction on "06 July 2023" with 1 EUR transaction amount
     Then Loan status will be "CLOSED_OBLIGATIONS_MET"
     Then Loan Repayment schedule has 1 periods, with the following data for periods:
@@ -209,8 +209,8 @@ Feature: LoanAccrualTransaction
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type      | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 July 2023     | Disbursement          | 5000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 5000.0       |
-      | 06 July 2023     | Accrual               | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
       | 06 July 2023     | Repayment             | 5011.0 | 5000.0    | 0.0      | 10.0 | 0.0       | 0.0          |
+      | 06 July 2023     | Accrual               | 10.0   | 0.0       | 0.0      | 10.0 | 0.0       | 0.0          |
       | 06 July 2023     | Credit Balance Refund | 1.0    | 0.0       | 0.0      | 0.0  | 0.0       | 0.0          |
 
 
diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanCharge.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanCharge.feature
index d56c6b700..b3b86e030 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanCharge.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanCharge.feature
@@ -109,7 +109,6 @@ Feature: LoanCharge
     Then Loan has 260 outstanding amount
 
 #    TODO clear, make it work properly
-  @Skip
   Scenario: Charge adjustment works properly
     When Admin sets the business date to "22 October 2022"
     When Admin creates a client with random data
@@ -147,7 +146,7 @@ Feature: LoanCharge
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due  | Paid | In advance | Late | Outstanding |
       | 1000          | 0        | 0    | 10        | 1010 | 3    | 3          | 0    | 1007        |
-    Then Loan Transactions tab has a transaction with date: "23 October 2022", and with the following data:
+    Then Loan Transactions tab has a transaction with date: "04 November 2022", and with the following data:
       | Transaction Type  | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | Charge Adjustment | 3.0    | 0.0       | 0.0      | 0.0  | 3.0       | 1000.0       |
 
@@ -163,7 +162,7 @@ Feature: LoanCharge
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due  | Paid | In advance | Late | Outstanding |
       | 1000          | 0        | 0    | 10        | 1010 | 11   | 11         | 0    | 999         |
-    Then Loan Transactions tab has a transaction with date: "25 October 2022", and with the following data:
+    Then Loan Transactions tab has a transaction with date: "04 November 2022", and with the following data:
       | Transaction Type  | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | Charge Adjustment | 3.0    | 1.0       | 0.0      | 0.0  | 2.0       | 999.0        |
 
@@ -574,8 +573,8 @@ Feature: LoanCharge
     When Admin successfully disburse the loan on "01 January 2023" with "1000" EUR transaction amount
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type                    | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
-      | 01 January 2023  | Repayment (at time of disbursement) | 15.0   | 0.0       | 0.0      | 15.0 | 0.0       | 1000.0       |
       | 01 January 2023  | Disbursement                        | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
+      | 01 January 2023  | Repayment (at time of disbursement) | 15.0   | 0.0       | 0.0      | 15.0 | 0.0       | 1000.0       |
     Then Loan Charges tab has the following data:
       | Name                        | isPenalty | Payment due at | Due as of | Calculation type | Due  | Paid | Waived | Outstanding |
       | Disbursement percentage fee | false     | Disbursement   |           | % Amount         | 15.0 | 15.0 | 0.0    | 0.0         |
@@ -1673,3 +1672,39 @@ Feature: LoanCharge
     Then Loan Charges tab has the following data:
       | Name    | isPenalty | Payment due at     | Due as of        | Calculation type | Due   | Paid | Waived | Outstanding |
       | NSF fee | true      | Specified due date | 22 February 2023 | Flat             | 100.0 | 0.0  | 100.0  | 0.0         |
+
+  Scenario: Verify that there are no payable interest after charge adjustment made on the same date for progressive loan with custom payment allocation order
+    When Admin sets the business date to "27 September 2024"
+    When Admin creates a client with random data
+    When Admin creates a fully customized loan with the following data:
+      | LoanProduct                                                 | submitted on date | with Principal | ANNUAL interest rate % | interest type     | interest calculation period | amortization type  | loanTermFrequency | loanTermFrequencyType | repaymentEvery | repaymentFrequencyType | numberOfRepayments | graceOnPrincipalPayment | graceOnInterestPayment | interest free period | Payment strategy            |
+      | LP2_ADV_CUST_PMT_ALLOC_PROGRESSIVE_LOAN_SCHEDULE_HORIZONTAL | 27 Sep 2024       | 100            | 9.99                   | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 1                 | MONTHS                | 1              | MONTHS                 | 1                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "27 September 2024" with "40" amount and expected disbursement date on "27 September 2024"
+    When Admin successfully disburse the loan on "27 September 2024" with "40" EUR transaction amount
+    Then Loan Repayment schedule has 1 periods, with the following data for periods:
+      | Nr | Days | Date              | Paid date          | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late | Outstanding |
+      |    |      | 27 September 2024 |                    | 40.0            |               |          | 0.0  |           | 0.0   | 0.0   |            |      |             |
+      | 1  | 30   | 27 October 2024   |                    | 0.0             | 40.0          | 0.33     | 0.0  | 0.0       | 40.33 | 0.0   | 0.0        | 0.0  | 40.33       |
+    Then Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late | Outstanding |
+      | 40.0          | 0.33     | 0.0  | 0.0       | 40.33 | 0.0   | 0.0        | 0.0  | 40.33       |
+    Then Loan Transactions tab has the following data:
+      | Transaction date  | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
+      | 27 September 2024 | Disbursement     | 40.0   | 0.0       | 0.0      | 0.0  | 0.0       | 40.0         |
+      | 27 September 2024 | Accrual          | 0.33   | 0.0       | 0.33     | 0.0  | 0.0       | 0.0          |
+    When Admin adds "LOAN_NSF_FEE" due date charge with "27 September 2024" due date and 1 EUR transaction amount
+    When Admin makes a charge adjustment for the last "LOAN_NSF_FEE" type charge which is due on "27 September 2024" with 1 EUR transaction amount and externalId ""
+    Then Loan has 40.32 outstanding amount
+    Then Loan Repayment schedule has 1 periods, with the following data for periods:
+      | Nr | Days | Date              | Paid date         | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late | Outstanding |
+      |    |      | 27 September 2024 |                   | 40.0            |               |          | 0.0  |           | 0.0   | 0.0   |            |      |             |
+      | 1  | 30   | 27 October 2024   |                   | 0.0             | 40.0          | 0.32     | 0.0  | 1.0       | 41.32 | 1.0   | 1.0        | 0.0  | 40.32       |
+    Then Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late | Outstanding |
+      | 40.0          | 0.32     | 0.0  | 1.0       | 41.32 | 1.0   | 1.0        | 0.0  | 40.32       |
+    Then Loan Transactions tab has the following data:
+      | Transaction date  | Transaction Type  | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
+      | 27 September 2024 | Disbursement      | 40.0   | 0.0       | 0.0      | 0.0  | 0.0       | 40.0         |
+      | 27 September 2024 | Accrual           | 0.33   | 0.0       | 0.33     | 0.0  | 0.0       | 0.0          |
+      | 27 September 2024 | Accrual           | 1.0    | 0.0       | 0.0      | 0.0  | 1.0       | 0.0          |
+      | 27 September 2024 | Charge Adjustment | 1.0    | 1.0       | 0.0      | 0.0  | 0.0       | 39.0         |
\ No newline at end of file
diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeOff.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeOff.feature
index 6338c2726..0fa866774 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeOff.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeOff.feature
@@ -929,8 +929,8 @@ Feature: Charge-off
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 February 2023 | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 01 June 2023     | Charge-off       | 15.0   | 0.0       | 0.0      | 0.0  | 15.0      | 0.0          |
     When Admin sets the business date to "10 June 2023"
     When Customer undo "1"th "Repayment" transaction made on "10 February 2023"
@@ -945,8 +945,8 @@ Feature: Charge-off
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 February 2023 | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 01 June 2023     | Charge-off       | 1035.0 | 1000.0    | 0.0      | 20.0 | 15.0      | 0.0          |
     Then On Loan Transactions tab the "Repayment" Transaction with date "10 February 2023" is reverted
 
@@ -976,8 +976,8 @@ Feature: Charge-off
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 February 2023 | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 01 June 2023     | Charge-off       | 15.0   | 0.0       | 0.0      | 0.0  | 15.0      | 0.0          |
     When Admin sets the business date to "10 June 2023"
     When Customer undo "1"th "Repayment" transaction made on "10 February 2023"
@@ -992,8 +992,8 @@ Feature: Charge-off
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 February 2023 | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 February 2023 | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 01 June 2023     | Charge-off       | 1035.0 | 1000.0    | 0.0      | 20.0 | 15.0      | 0.0          |
     Then On Loan Transactions tab the "Repayment" Transaction with date "10 February 2023" is reverted
 
diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
index f56fb68f5..45a14d91b 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
@@ -2904,8 +2904,8 @@ Feature: LoanChargeback
       | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
       | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
       | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  |  0.0      | 90.0         | 0.0         |
-      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
       | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
     Then Loan has 0 outstanding amount
     Then Loan has 10 overpaid amount
     Then Loan status will be "OVERPAID"
@@ -2937,8 +2937,8 @@ Feature: LoanChargeback
       | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
       | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
       | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  | 0.0       | 90.0         | 0.0         |
-      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
       | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
       | 15 April 2024    | Chargeback               | 7.0    | 2.0       | 0.0      | 0.0  | 5.0       | 0.0          | 7.0         |
     Then Loan Transactions tab has a "CHARGEBACK" transaction with date "15 April 2024" which has the following Journal entries:
       | Type      | Account code | Account name              | Debit | Credit |
@@ -2961,8 +2961,8 @@ Feature: LoanChargeback
       | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
       | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
       | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  | 0.0       | 90.0         | 0.0         |
-      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
       | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
       | 15 April 2024    | Chargeback               | 7.0    | 2.0       | 0.0      | 0.0  | 5.0       | 0.0          | 7.0         |
       | 16 April 2024    | Chargeback               | 7.0    | 7.0       | 0.0      | 0.0  | 0.0       | 4.0          | 3.0         |
     Then Loan Transactions tab has a "CHARGEBACK" transaction with date "16 April 2024" which has the following Journal entries:
diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanRepayment.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanRepayment.feature
index ce9872936..3b7649d6a 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanRepayment.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanRepayment.feature
@@ -2337,8 +2337,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | Snooze fee | false     | Specified due date | 01 February 2023 | Flat             | 20.0 | 20.0 | 0.0    | 0.0         |
@@ -2358,8 +2358,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | NSF fee    | true      | Specified due date | 01 February 2023 | Flat             | 20.0 | 0.0  | 0.0    | 20.0        |
@@ -2451,8 +2451,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | Snooze fee | false     | Specified due date | 01 February 2023 | Flat             | 20.0 | 20.0 | 0.0    | 0.0         |
@@ -2472,8 +2472,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | NSF fee    | true      | Specified due date | 28 January 2023  | Flat             | 20.0 | 0.0  | 0.0    | 20.0        |
@@ -2542,8 +2542,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | Snooze fee | false     | Specified due date | 01 February 2023 | Flat             | 20.0 | 20.0 | 0.0    | 0.0         |
@@ -2563,8 +2563,8 @@ Feature: LoanRepayment
     Then Loan Transactions tab has the following data:
       | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
-      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
       | 10 January 2023  | Repayment        | 1020.0 | 1000.0    | 0.0      | 20.0 | 0.0       | 0.0          |
+      | 10 January 2023  | Accrual          | 20.0   | 0.0       | 0.0      | 20.0 | 0.0       | 0.0          |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
       | NSF fee    | true      | Specified due date | 28 January 2023  | Flat             | 20.0 | 0.0  | 0.0    | 20.0        |
@@ -2750,8 +2750,8 @@ Feature: LoanRepayment
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
       | 10 January 2023  | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 15 January 2023  | Repayment        | 500.0  | 470.0     | 10.0     | 0.0  | 20.0      | 530.0        |
-      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 25 January 2023  | Accrual          | 50.0   | 0.0       | 10.0     | 20.0 | 20.0      | 0.0          |
+      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 01 February 2023 | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
     Then Loan Charges tab has the following data:
       | Name       | isPenalty | Payment due at     | Due as of        | Calculation type | Due  | Paid | Waived | Outstanding |
@@ -2770,8 +2770,8 @@ Feature: LoanRepayment
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
       | 10 January 2023  | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 15 January 2023  | Repayment        | 500.0  | 470.0     | 10.0     | 0.0  | 20.0      | 530.0        |
-      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 25 January 2023  | Accrual          | 50.0   | 0.0       | 10.0     | 20.0 | 20.0      | 0.0          |
+      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 01 February 2023 | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 01 February 2023 | Repayment        | 10.0   | 0.0       | 10.0     | 0.0  | 0.0       | 1000.0       |
     And Customer makes "AUTOPAY" repayment on "01 February 2023" with 1000 EUR transaction amount
@@ -2780,8 +2780,8 @@ Feature: LoanRepayment
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
       | 10 January 2023  | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 15 January 2023  | Repayment        | 500.0  | 470.0     | 10.0     | 0.0  | 20.0      | 530.0        |
-      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 25 January 2023  | Accrual          | 50.0   | 0.0       | 10.0     | 20.0 | 20.0      | 0.0          |
+      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 01 February 2023 | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 01 February 2023 | Repayment        | 10.0   | 0.0       | 10.0     | 0.0  | 0.0       | 1000.0       |
       | 01 February 2023 | Repayment        | 1000.0 | 1000.0    | 0.0      | 0.0  | 0.0       | 0.0          |
@@ -2791,8 +2791,8 @@ Feature: LoanRepayment
       | 01 January 2023  | Disbursement     | 1000.0 | 0.0       | 0.0      | 0.0  | 0.0       | 1000.0       |
       | 10 January 2023  | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 15 January 2023  | Repayment        | 500.0  | 470.0     | 10.0     | 0.0  | 20.0      | 530.0        |
-      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 25 January 2023  | Accrual          | 50.0   | 0.0       | 10.0     | 20.0 | 20.0      | 0.0          |
+      | 25 January 2023  | Repayment        | 530.0  | 500.0     | 10.0     | 0.0  | 20.0      | 500.0        |
       | 01 February 2023 | Repayment        | 20.0   | 0.0       | 0.0      | 0.0  | 20.0      | 1000.0       |
       | 01 February 2023 | Repayment        | 10.0   | 0.0       | 10.0     | 0.0  | 0.0       | 1000.0       |
       | 01 February 2023 | Repayment        | 1000.0 | 1000.0    | 0.0      | 0.0  | 0.0       | 0.0          |
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanChargeWritePlatformServiceImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanChargeWritePlatformServiceImpl.java
index 1a42976b1..488c7fc55 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanChargeWritePlatformServiceImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanChargeWritePlatformServiceImpl.java
@@ -837,16 +837,20 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
                 LoanTransactionRelationTypeEnum.CHARGE_ADJUSTMENT);
         loanChargeAdjustmentTransaction.getLoanTransactionRelations().add(loanTransactionRelation);
 
-        loanAccountDomainService.saveLoanTransactionWithDataIntegrityViolationChecks(loanChargeAdjustmentTransaction);
-
         defaultLoanLifecycleStateMachine.transition(LoanEvent.LOAN_REPAYMENT_OR_WAIVER, loan);
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = loanRepaymentScheduleTransactionProcessorFactory
                 .determineProcessor(loan.transactionProcessingStrategy());
-        loanRepaymentScheduleTransactionProcessor.processLatestTransaction(loanChargeAdjustmentTransaction,
-                new TransactionCtx(loan.getCurrency(), loan.getRepaymentScheduleInstallments(), loan.getActiveCharges(),
-                        new MoneyHolder(loan.getTotalOverpaidAsMoney()), null));
-
         loan.addLoanTransaction(loanChargeAdjustmentTransaction);
+        if (loan.isInterestBearing() && loan.getLoanProductRelatedDetail().isInterestRecalculationEnabled()) {
+            loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(loan.getDisbursementDate(),
+                    loan.retrieveListOfTransactionsForReprocessing(), loan.getCurrency(), loan.getRepaymentScheduleInstallments(),
+                    loan.getActiveCharges());
+        } else {
+            loanRepaymentScheduleTransactionProcessor.processLatestTransaction(loanChargeAdjustmentTransaction,
+                    new TransactionCtx(loan.getCurrency(), loan.getRepaymentScheduleInstallments(), loan.getActiveCharges(),
+                            new MoneyHolder(loan.getTotalOverpaidAsMoney()), null));
+        }
+        loanAccountDomainService.saveLoanTransactionWithDataIntegrityViolationChecks(loanChargeAdjustmentTransaction);
         loan.updateLoanSummaryAndStatus();
 
         loanAccountDomainService.saveAndFlushLoanWithDataIntegrityViolationChecks(loan);