FINERACT-2210: Incorrect accounting of reversed charge-off transaction.

fineract-accounting/src/main/java/org/apache/fineract/accounting/journalentry/domain/JournalEntry.java

@@ -27,6 +27,7 @@ import jakarta.persistence.Table;
 import java.math.BigDecimal;
 import java.time.LocalDate;
 import lombok.Getter;
+import lombok.Setter;
 import org.apache.commons.lang3.StringUtils;
 import org.apache.fineract.accounting.glaccount.domain.GLAccount;
 import org.apache.fineract.infrastructure.core.domain.AbstractAuditableWithUTCDateTimeCustom;
@@ -54,6 +55,7 @@ public class JournalEntry extends AbstractAuditableWithUTCDateTimeCustom<Long> {
     @Column(name = "currency_code", length = 3, nullable = false)
     private String currencyCode;
 
+    @Setter
     @ManyToOne(fetch = FetchType.LAZY)
     @JoinColumn(name = "reversal_id")
     private JournalEntry reversalJournalEntry;
@@ -73,6 +75,7 @@ public class JournalEntry extends AbstractAuditableWithUTCDateTimeCustom<Long> {
     @Column(name = "share_transaction_id")
     private Long shareTransactionId;
 
+    @Setter
     @Column(name = "reversed", nullable = false)
     private boolean reversed = false;
 
@@ -151,11 +154,4 @@ public class JournalEntry extends AbstractAuditableWithUTCDateTimeCustom<Long> {
         return JournalEntryType.CREDIT.getValue().equals(this.type);
     }
 
-    public void setReversalJournalEntry(final JournalEntry reversalJournalEntry) {
-        this.reversalJournalEntry = reversalJournalEntry;
-    }
-
-    public void setReversed(final boolean reversed) {
-        this.reversed = reversed;
-    }
 }

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/data/loanproduct/DefaultLoanProduct.java

@@ -105,6 +105,7 @@ public enum DefaultLoanProduct implements LoanProduct {
     LP2_INTEREST_RECALCULATION_ACCELERATE_MATURITY_CHARGE_OFF_BEHAVIOUR_LAST_INSTALLMENT_STRATEGY, //
     LP2_ACCELERATE_MATURITY_CHARGE_OFF_BEHAVIOUR_LAST_INSTALLMENT_STRATEGY, //
     LP2_ADV_PYMNT_INTEREST_DAILY_INT_RECALCULATION_ZERO_INT_CHARGE_OFF_INT_RECOGNITION_FROM_DISB_DATE, //
+    LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON, //
     ;
 
     @Override

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/factory/LoanProductsRequestFactory.java

@@ -1250,4 +1250,126 @@ public class LoanProductsRequestFactory {
                 .chargeOffFraudExpenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT_FRAUD))//
                 .incomeFromChargeOffPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF));//
     }
+
+    public PostLoanProductsRequest defaultLoanProductsRequestLP2ChargeOffReasonToExpenseAccountMappings() {
+        final String name = Utils.randomNameGenerator(NAME_PREFIX_LP2, 4);
+        final String shortName = Utils.randomNameGenerator(SHORT_NAME_PREFIX, 3);
+
+        final List<Integer> principalVariationsForBorrowerCycle = new ArrayList<>();
+        final List<Integer> numberOfRepaymentVariationsForBorrowerCycle = new ArrayList<>();
+        final List<Integer> interestRateVariationsForBorrowerCycle = new ArrayList<>();
+        final List<LoanProductChargeData> charges = new ArrayList<>();
+        final List<LoanProductChargeToGLAccountMapper> penaltyToIncomeAccountMappings = new ArrayList<>();
+        final List<LoanProductChargeToGLAccountMapper> feeToIncomeAccountMappings = new ArrayList<>();
+
+        final List<GetLoanPaymentChannelToFundSourceMappings> paymentChannelToFundSourceMappings = new ArrayList<>();
+        final GetLoanPaymentChannelToFundSourceMappings loanPaymentChannelToFundSourceMappings = new GetLoanPaymentChannelToFundSourceMappings();
+        loanPaymentChannelToFundSourceMappings.fundSourceAccountId(accountTypeResolver.resolve(DefaultAccountType.FUND_RECEIVABLES));
+        loanPaymentChannelToFundSourceMappings.paymentTypeId(paymentTypeResolver.resolve(DefaultPaymentType.MONEY_TRANSFER));
+        paymentChannelToFundSourceMappings.add(loanPaymentChannelToFundSourceMappings);
+
+        final Long chargeOffReasonId = codeHelper.retrieveCodeByName(CHARGE_OFF_REASONS).getId();
+
+        final List<PostChargeOffReasonToExpenseAccountMappings> chargeOffReasonToExpenseAccountMappings = new ArrayList<>();
+        final PostChargeOffReasonToExpenseAccountMappings chargeOffDelinquentReason = new PostChargeOffReasonToExpenseAccountMappings();
+        chargeOffDelinquentReason.chargeOffReasonCodeValueId(codeValueResolver.resolve(chargeOffReasonId, DefaultCodeValue.DELINQUENT));
+        chargeOffDelinquentReason.expenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT_FRAUD));
+        chargeOffReasonToExpenseAccountMappings.add(chargeOffDelinquentReason);
+
+        return new PostLoanProductsRequest()//
+                .name(name)//
+                .shortName(shortName)//
+                .description(DESCRIPTION_LP2)//
+                .enableDownPayment(true)//
+                .enableAutoRepaymentForDownPayment(true)//
+                .disbursedAmountPercentageForDownPayment(new BigDecimal(25))//
+                .fundId(FUND_ID)//
+                .startDate(null)//
+                .closeDate(null)//
+                .includeInBorrowerCycle(false)//
+                .currencyCode(CURRENCY_CODE)//
+                .digitsAfterDecimal(2)//
+                .inMultiplesOf(0)//
+                .installmentAmountInMultiplesOf(1)//
+                .useBorrowerCycle(false)//
+                .minPrincipal(100.0)//
+                .principal(1000.0)//
+                .maxPrincipal(10000.0)//
+                .minNumberOfRepayments(1)//
+                .numberOfRepayments(3)//
+                .maxNumberOfRepayments(30)//
+                .isLinkedToFloatingInterestRates(false)//
+                .minInterestRatePerPeriod((double) 0)//
+                .interestRatePerPeriod((double) 0)//
+                .maxInterestRatePerPeriod((double) 0)//
+                .interestRateFrequencyType(INTEREST_RATE_FREQUENCY_TYPE_MONTH)//
+                .repaymentEvery(15)//
+                .repaymentFrequencyType(REPAYMENT_FREQUENCY_TYPE_DAYS)//
+                .principalVariationsForBorrowerCycle(principalVariationsForBorrowerCycle)//
+                .numberOfRepaymentVariationsForBorrowerCycle(numberOfRepaymentVariationsForBorrowerCycle)//
+                .interestRateVariationsForBorrowerCycle(interestRateVariationsForBorrowerCycle)//
+                .amortizationType(AMORTIZATION_TYPE)//
+                .interestType(INTEREST_TYPE_DECLINING_BALANCE)//
+                .isEqualAmortization(false)//
+                .interestCalculationPeriodType(INTEREST_CALCULATION_PERIOD_TYPE_SAME_AS_REPAYMENT)//
+                .transactionProcessingStrategyCode(TRANSACTION_PROCESSING_STRATEGY_CODE)//
+                .daysInYearType(DAYS_IN_YEAR_TYPE)//
+                .daysInMonthType(DAYS_IN_MONTH_TYPE)//
+                .canDefineInstallmentAmount(true)//
+                .graceOnArrearsAgeing(3)//
+                .overdueDaysForNPA(179)//
+                .accountMovesOutOfNPAOnlyOnArrearsCompletion(false)//
+                .principalThresholdForLastInstallment(50)//
+                .allowVariableInstallments(false)//
+                .canUseForTopup(false)//
+                .isInterestRecalculationEnabled(false)//
+                .holdGuaranteeFunds(false)//
+                .multiDisburseLoan(true)//
+                .allowAttributeOverrides(new AllowAttributeOverrides()//
+                        .amortizationType(true)//
+                        .interestType(true)//
+                        .transactionProcessingStrategyCode(true)//
+                        .interestCalculationPeriodType(true)//
+                        .inArrearsTolerance(true)//
+                        .repaymentEvery(true)//
+                        .graceOnPrincipalAndInterestPayment(true)//
+                        .graceOnArrearsAgeing(true))//
+                .allowPartialPeriodInterestCalcualtion(true)//
+                .maxTrancheCount(10)//
+                .outstandingLoanBalance(10000.0)//
+                .charges(charges)//
+                .accountingRule(LOAN_ACCOUNTING_RULE)//
+                .fundSourceAccountId(accountTypeResolver.resolve(DefaultAccountType.SUSPENSE_CLEARING_ACCOUNT))//
+                .loanPortfolioAccountId(accountTypeResolver.resolve(DefaultAccountType.LOANS_RECEIVABLE))//
+                .transfersInSuspenseAccountId(accountTypeResolver.resolve(DefaultAccountType.TRANSFER_IN_SUSPENSE_ACCOUNT))//
+                .interestOnLoanAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME))//
+                .incomeFromFeeAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_INCOME))//
+                .incomeFromPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_INCOME))//
+                .incomeFromRecoveryAccountId(accountTypeResolver.resolve(DefaultAccountType.RECOVERIES))//
+                .writeOffAccountId(accountTypeResolver.resolve(DefaultAccountType.WRITTEN_OFF))//
+                .overpaymentLiabilityAccountId(accountTypeResolver.resolve(DefaultAccountType.OVERPAYMENT_ACCOUNT))//
+                .receivableInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .receivableFeeAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .receivablePenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_FEE_RECEIVABLE))//
+                .dateFormat(DATE_FORMAT)//
+                .locale(LOCALE_EN)//
+                .disallowExpectedDisbursements(true)//
+                .allowApprovedDisbursedAmountsOverApplied(true)//
+                .overAppliedCalculationType(OVER_APPLIED_CALCULATION_TYPE)//
+                .overAppliedNumber(OVER_APPLIED_NUMBER)//
+                .delinquencyBucketId(DELINQUENCY_BUCKET_ID.longValue())//
+                .goodwillCreditAccountId(accountTypeResolver.resolve(DefaultAccountType.GOODWILL_EXPENSE_ACCOUNT))//
+                .incomeFromGoodwillCreditInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME_CHARGE_OFF))//
+                .incomeFromGoodwillCreditFeesAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .incomeFromGoodwillCreditPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .paymentChannelToFundSourceMappings(paymentChannelToFundSourceMappings)//
+                .penaltyToIncomeAccountMappings(penaltyToIncomeAccountMappings)//
+                .feeToIncomeAccountMappings(feeToIncomeAccountMappings)//
+                .incomeFromChargeOffInterestAccountId(accountTypeResolver.resolve(DefaultAccountType.INTEREST_INCOME_CHARGE_OFF))//
+                .incomeFromChargeOffFeesAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF))//
+                .chargeOffExpenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT))//
+                .chargeOffFraudExpenseAccountId(accountTypeResolver.resolve(DefaultAccountType.CREDIT_LOSS_BAD_DEBT))//
+                .chargeOffReasonToExpenseAccountMappings(chargeOffReasonToExpenseAccountMappings)//
+                .incomeFromChargeOffPenaltyAccountId(accountTypeResolver.resolve(DefaultAccountType.FEE_CHARGE_OFF));//
+    }
 }

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/initializer/global/LoanProductGlobalInitializerStep.java

@@ -1975,6 +1975,34 @@ public class LoanProductGlobalInitializerStep implements FineractGlobalInitializ
                 .createLoanProduct(loanProductsRequestInterest36030DecliningPeriodDailyIntRecalc).execute();
         TestContext.INSTANCE.set(TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP1_INTEREST_360_30__DECLINING_PERIOD_DAILY_INT_RECALC,
                 responseInterest36030DecliningPeriodDailyIntRecalc);
+
+        // LP2 + zero-interest chargeOff behaviour + progressive loan schedule + horizontal + delinquent charge-off
+        // reason to GL account mapping
+        // (LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON)
+        final String name83 = DefaultLoanProduct.LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON.getName();
+
+        final PostLoanProductsRequest loanProductsRequestAdvZeroInterestChargeOffProgressiveDelinquentReason = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2ChargeOffReasonToExpenseAccountMappings()//
+                .name(name83)//
+                .enableDownPayment(false)//
+                .enableAutoRepaymentForDownPayment(null)//
+                .disbursedAmountPercentageForDownPayment(null)//
+                .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.getValue())//
+                .loanScheduleType("PROGRESSIVE") //
+                .loanScheduleProcessingType("HORIZONTAL")//
+                .interestRateFrequencyType(3)//
+                .maxInterestRatePerPeriod(10.0)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT"), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")))//
+                .chargeOffBehaviour("ZERO_INTEREST");//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestAdvZeroInterestChargeOffProgressiveDelinquentReason = loanProductsApi
+                .createLoanProduct(loanProductsRequestAdvZeroInterestChargeOffProgressiveDelinquentReason).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON,
+                responseLoanProductsRequestAdvZeroInterestChargeOffProgressiveDelinquentReason);
     }
 
     public static AdvancedPaymentData createPaymentAllocation(String transactionType, String futureInstallmentAllocationRule,

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

@@ -116,6 +116,7 @@ public abstract class TestContextKey {
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationZeroInterestChargeOff";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentZeroInterestChargeOffBehaviour";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF = "loanProductCreateResponseLP2AdvancedPaymentZeroInterestChargeOff";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON = "loanProductCreateResponseLP2AdvancedPaymentZeroInterestChargeOffDelinquentReason";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_DAILY_ALLOW_PARTIAL_PERIOD = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030InterestRecalculationDailyAllowPartialPeriod";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_DAILY_ACCRUAL_ACTIVITY_POSTING = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030InterestRecalculationDailyAccrualActivityPosting";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_CHARGEBACK_INTEREST_FEE_PRINCIPAL = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030ChargebackInterestFeePrincipal";

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

@@ -7542,3 +7542,45 @@ Feature: Charge-off
       | 20 January 2024  | Charge-off         | 790.71 | 757.67    | 33.04    | 0.0  | 0.0       | 0.0          | false    | false    |
     Then Loan marked as charged-off on "20 January 2024"
     Then LoanAccrualAdjustmentTransactionBusinessEvent is raised on "20 January 2024"
+
+  @TestRailId:C3567
+  Scenario: Charge-off reversal on a fraud loan respects GL mapping based on charge-off reason
+    When Admin sets the business date to "1 January 2024"
+    And Admin creates a client with random data
+    And 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_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON | 01 January 2024   | 100            | 7                      | DECLINING_BALANCE | SAME_AS_REPAYMENT_PERIOD    | EQUAL_INSTALLMENTS | 6                 | MONTHS                | 1              | MONTHS                 | 6                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    Then Loan Repayment schedule has 6 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 |
+      |    |      | 01 January 2024  |           | 100.0           |               |          | 0.0  |           | 0.0   |      |            |      | 0.0         |
+      | 1  | 31   | 01 February 2024 |           | 83.59           | 16.41         | 0.59     | 0.0  | 0.0       | 17.0  | 0.0  | 0.0        | 0.0  | 17.0        |
+      | 2  | 29   | 01 March 2024    |           | 67.05           | 16.54         | 0.46     | 0.0  | 0.0       | 17.0  | 0.0  | 0.0        | 0.0  | 17.0        |
+      | 3  | 31   | 01 April 2024    |           | 50.45           | 16.6          | 0.4      | 0.0  | 0.0       | 17.0  | 0.0  | 0.0        | 0.0  | 17.0        |
+      | 4  | 30   | 01 May 2024      |           | 33.74           | 16.71         | 0.29     | 0.0  | 0.0       | 17.0  | 0.0  | 0.0        | 0.0  | 17.0        |
+      | 5  | 31   | 01 June 2024     |           | 16.94           | 16.8          | 0.2      | 0.0  | 0.0       | 17.0  | 0.0  | 0.0        | 0.0  | 17.0        |
+      | 6  | 30   | 01 July 2024     |           | 0.0             | 16.94         | 0.1      | 0.0  | 0.0       | 17.04 | 0.0  | 0.0        | 0.0  | 17.04       |
+    Then Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due    | Paid | In advance | Late | Outstanding |
+      | 100           | 2.04     | 0    | 0         | 102.04 | 0    | 0          | 0    | 102.04      |
+    And Admin successfully approves the loan on "1 January 2024" with "100" amount and expected disbursement date on "1 January 2024"
+    And Admin successfully disburse the loan on "1 January 2024" with "100" EUR transaction amount
+    Then Admin can successfully set Fraud flag to the loan
+    When Admin sets the business date to "03 February 2024"
+    And Admin does charge-off the loan with reason "DELINQUENT" on "03 February 2024"
+    Then Loan Transactions tab has a "CHARGE_OFF" transaction with date "03 February 2024" which has the following Journal entries:
+      | Type    | Account code | Account name               | Debit | Credit |
+      | ASSET   | 112601       | Loans Receivable           |       | 100.0  |
+      | ASSET   | 112603       | Interest/Fee Receivable    |       | 0.62   |
+      | EXPENSE | 744037       | Credit Loss/Bad Debt-Fraud | 100.0 |        |
+      | INCOME  | 404001       | Interest Income Charge Off | 0.62  |        |
+    Then Admin does a charge-off undo the loan
+    Then Loan Transactions tab has a "CHARGE_OFF" transaction with date "03 February 2024" which has the following Journal entries:
+      | Type    | Account code | Account name               | Debit | Credit |
+      | ASSET   | 112601       | Loans Receivable           |       | 100.0  |
+      | ASSET   | 112601       | Loans Receivable           | 100.0 |        |
+      | ASSET   | 112603       | Interest/Fee Receivable    |       | 0.62   |
+      | ASSET   | 112603       | Interest/Fee Receivable    | 0.62  |        |
+      | EXPENSE | 744037       | Credit Loss/Bad Debt-Fraud | 100.0 |        |
+      | EXPENSE | 744037       | Credit Loss/Bad Debt-Fraud |       | 100.0  |
+      | INCOME  | 404001       | Interest Income Charge Off | 0.62  |        |
+      | INCOME  | 404001       | Interest Income Charge Off |       | 0.62   |

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccountingProcessorHelper.java

@@ -68,14 +68,11 @@ import org.apache.fineract.portfolio.PortfolioProductType;
 import org.apache.fineract.portfolio.account.PortfolioAccountType;
 import org.apache.fineract.portfolio.account.service.AccountTransfersReadPlatformService;
 import org.apache.fineract.portfolio.charge.domain.ChargeRepositoryWrapper;
-import org.apache.fineract.portfolio.client.domain.ClientTransaction;
 import org.apache.fineract.portfolio.client.domain.ClientTransactionRepository;
 import org.apache.fineract.portfolio.loanaccount.data.LoanChargeData;
 import org.apache.fineract.portfolio.loanaccount.data.LoanTransactionEnumData;
-import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
 import org.apache.fineract.portfolio.savings.data.SavingsAccountTransactionEnumData;
-import org.apache.fineract.portfolio.savings.domain.SavingsAccountTransaction;
 import org.apache.fineract.portfolio.savings.domain.SavingsAccountTransactionRepository;
 import org.apache.fineract.portfolio.shareaccounts.data.ShareAccountTransactionEnumData;
 import org.springframework.dao.DataAccessException;
@@ -356,15 +353,12 @@ public class AccountingProcessorHelper {
      *            transactionDate
      * @param totalAmount
      *            totalAmount
-     * @param isReversal
-     *            isReversal
      * @param chargePaymentDTOs
      *            chargePaymentDTOs
      */
-    public void createJournalEntriesAndReversalsForLoanCharges(final Office office, final String currencyCode,
+    public void createJournalEntriesForLoanCharges(final Office office, final String currencyCode, final Integer accountTypeToBeDebited,
-            final Integer accountTypeToBeDebited, final Integer accountTypeToBeCredited, final Long loanProductId, final Long loanId,
+            final Integer accountTypeToBeCredited, final Long loanProductId, final Long loanId, final String transactionId,
-            final String transactionId, final LocalDate transactionDate, final BigDecimal totalAmount, final Boolean isReversal,
+            final LocalDate transactionDate, final BigDecimal totalAmount, final List<ChargePaymentDTO> chargePaymentDTOs) {
-            final List<ChargePaymentDTO> chargePaymentDTOs) {
 
         GLAccount receivableAccount = getLinkedGLAccountForLoanCharges(loanProductId, accountTypeToBeDebited, null);
         final Map<GLAccount, BigDecimal> creditDetailsMap = new LinkedHashMap<>();
@@ -387,13 +381,8 @@ public class AccountingProcessorHelper {
             final GLAccount account = entry.getKey();
             final BigDecimal amount = entry.getValue();
             totalCreditedAmount = totalCreditedAmount.add(amount);
-            if (isReversal) {
+            createDebitJournalEntryForLoan(office, currencyCode, receivableAccount, loanId, transactionId, transactionDate, amount);
-                createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
+            createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-                createCreditJournalEntryForLoan(office, currencyCode, receivableAccount, loanId, transactionId, transactionDate, amount);
-            } else {
-                createDebitJournalEntryForLoan(office, currencyCode, receivableAccount, loanId, transactionId, transactionDate, amount);
-                createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-            }
         }
 
         if (totalAmount.compareTo(totalCreditedAmount) != 0) {
@@ -453,61 +442,43 @@ public class AccountingProcessorHelper {
      * @param transactionId
      * @param transactionDate
      * @param amount
-     * @param isReversal
      */
-    public void createJournalEntriesAndReversalsForLoan(final Office office, final String currencyCode,
+    public void createJournalEntriesForLoan(final Office office, final String currencyCode, final Integer accountTypeToBeDebited,
-            final Integer accountTypeToBeDebited, final Integer accountTypeToBeCredited, final Long loanProductId, final Long paymentTypeId,
+            final Integer accountTypeToBeCredited, final Long loanProductId, final Long paymentTypeId, final Long loanId,
-            final Long loanId, final String transactionId, final LocalDate transactionDate, final BigDecimal amount,
+            final String transactionId, final LocalDate transactionDate, final BigDecimal amount) {
-            final Boolean isReversal) {
         int accountTypeToDebitId = accountTypeToBeDebited;
         int accountTypeToCreditId = accountTypeToBeCredited;
-        // reverse debits and credits for reversals
-        if (isReversal) {
-            accountTypeToDebitId = accountTypeToBeCredited;
-            accountTypeToCreditId = accountTypeToBeDebited;
-        }
         createJournalEntriesForLoan(office, currencyCode, accountTypeToDebitId, accountTypeToCreditId, loanProductId, paymentTypeId, loanId,
                 transactionId, transactionDate, amount);
     }
 
-    public void createSplitJournalEntriesAndReversalsForLoan(Office office, String currencyCode,
+    public void createSplitJournalEntriesForLoan(Office office, String currencyCode, List<JournalAmountHolder> splitAccountsHolder,
-            List<JournalAmountHolder> splitAccountsHolder, JournalAmountHolder totalAccountHolder, Long loanProductId, Long paymentTypeId,
+            JournalAmountHolder totalAccountHolder, Long loanProductId, Long paymentTypeId, Long loanId, String transactionId,
-            Long loanId, String transactionId, LocalDate transactionDate, Boolean isReversal) {
+            LocalDate transactionDate) {
         splitAccountsHolder.forEach(journalItemHolder -> {
             final GLAccount account = getLinkedGLAccountForLoanProduct(loanProductId, journalItemHolder.getAccountType(), paymentTypeId);
-            if (isReversal) {
+            createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate,
-                createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate,
+                    journalItemHolder.getAmount());
-                        journalItemHolder.getAmount());
-            } else {
-                createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate,
-                        journalItemHolder.getAmount());
-            }
-
         });
         final GLAccount totalAccount = getLinkedGLAccountForLoanProduct(loanProductId, totalAccountHolder.getAccountType(), paymentTypeId);
-        if (isReversal) {
+        createCreditJournalEntryForLoan(office, currencyCode, totalAccount, loanId, transactionId, transactionDate,
-            createDebitJournalEntryForLoan(office, currencyCode, totalAccount, loanId, transactionId, transactionDate,
+                totalAccountHolder.getAmount());
-                    totalAccountHolder.getAmount());
-        } else {
-            createCreditJournalEntryForLoan(office, currencyCode, totalAccount, loanId, transactionId, transactionDate,
-                    totalAccountHolder.getAmount());
-        }
     }
 
-    public void createCreditJournalEntryOrReversalForLoan(final Office office, final String currencyCode,
+    public void createCreditJournalEntryForLoan(final Office office, final String currencyCode,
             final CashAccountsForLoan accountMappingType, final Long loanProductId, final Long paymentTypeId, final Long loanId,
-            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal) {
+            final String transactionId, final LocalDate transactionDate, final BigDecimal amount) {
         final int accountMappingTypeId = accountMappingType.getValue();
-        createCreditJournalEntryOrReversalForLoan(office, currencyCode, accountMappingTypeId, loanProductId, paymentTypeId, loanId,
+        createCreditJournalEntryForLoan(office, currencyCode, accountMappingTypeId, loanProductId, paymentTypeId, loanId, transactionId,
-                transactionId, transactionDate, amount, isReversal);
+                transactionDate, amount);
     }
 
-    public void createCreditJournalEntryOrReversalForLoan(final Office office, final String currencyCode,
+    public void createCreditJournalEntryForLoan(final Office office, final String currencyCode,
             final AccrualAccountsForLoan accountMappingType, final Long loanProductId, final Long paymentTypeId, final Long loanId,
-            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal) {
+            final String transactionId, final LocalDate transactionDate, final BigDecimal amount) {
         final int accountMappingTypeId = accountMappingType.getValue();
-        createCreditJournalEntryOrReversalForLoan(office, currencyCode, accountMappingTypeId, loanProductId, paymentTypeId, loanId,
+        createCreditJournalEntryForLoan(office, currencyCode, accountMappingTypeId, loanProductId, paymentTypeId, loanId, transactionId,
-                transactionId, transactionDate, amount, isReversal);
+                transactionDate, amount);
     }
 
     /**
@@ -635,18 +606,6 @@ public class AccountingProcessorHelper {
         }
     }
 
-    public void createCashBasedDebitJournalEntriesAndReversalsForSavings(final Office office, final String currencyCode,
-            final Long debitAccountId, final Long savingsId, final String transactionId, final LocalDate transactionDate,
-            final BigDecimal amount, final Boolean isReversal) {
-        // reverse debits and credits for reversals
-        final GLAccount debitAccount = getGLAccountById(debitAccountId);
-        if (isReversal) {
-            createCreditJournalEntryForSavings(office, currencyCode, debitAccount, savingsId, transactionId, transactionDate, amount);
-        } else {
-            createDebitJournalEntryForSavings(office, currencyCode, debitAccount, savingsId, transactionId, transactionDate, amount);
-        }
-    }
-
     public void createCashBasedCreditJournalEntriesAndReversalsForSavings(final Office office, final String currencyCode,
             final Long creditAccountId, final Long savingsId, final String transactionId, final LocalDate transactionDate,
             final BigDecimal amount, final Boolean isReversal) {
@@ -685,18 +644,6 @@ public class AccountingProcessorHelper {
         }
     }
 
-    public void createAccrualBasedDebitJournalEntriesAndReversalsForSavings(final Office office, final String currencyCode,
-            final Long debitAccountId, final Long savingsId, final String transactionId, final LocalDate transactionDate,
-            final BigDecimal amount, final Boolean isReversal) {
-        // reverse debits and credits for reversals
-        final GLAccount debitAccount = getGLAccountById(debitAccountId);
-        if (isReversal) {
-            createCreditJournalEntryForSavings(office, currencyCode, debitAccount, savingsId, transactionId, transactionDate, amount);
-        } else {
-            createDebitJournalEntryForSavings(office, currencyCode, debitAccount, savingsId, transactionId, transactionDate, amount);
-        }
-    }
-
     public void createAccrualBasedBasedCreditJournalEntriesAndReversalsForSavings(final Office office, final String currencyCode,
             final Long creditAccountId, final Long savingsId, final String transactionId, final LocalDate transactionDate,
             final BigDecimal amount, final Boolean isReversal) {
@@ -723,80 +670,37 @@ public class AccountingProcessorHelper {
         createCreditJournalEntryForSavings(office, currencyCode, creditAccount, savingsId, transactionId, transactionDate, amount);
     }
 
-    public void createDebitJournalEntryOrReversalForLoan(final Office office, final String currencyCode, final int accountMappingTypeId,
+    public void createDebitJournalEntryForLoan(final Office office, final String currencyCode, final int accountMappingTypeId,
             final Long loanProductId, final Long paymentTypeId, final Long loanId, final String transactionId,
-            final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal) {
+            final LocalDate transactionDate, final BigDecimal amount) {
         final GLAccount account = getLinkedGLAccountForLoanProduct(loanProductId, accountMappingTypeId, paymentTypeId);
-        if (isReversal) {
+        createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-            createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        } else {
-            createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        }
     }
 
-    public void createDebitJournalEntryOrReversalForLoan(final Office office, final String currencyCode, final Long loanId,
+    public void createDebitJournalEntryForLoan(final Office office, final String currencyCode, final Long loanId,
-            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal,
+            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final GLAccount account) {
-            final GLAccount account) {
+        createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        if (isReversal) {
-            createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        } else {
-            createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        }
     }
 
-    public void createDebitJournalEntryOrReversalForLoanCharges(final Office office, final String currencyCode,
+    public void createDebitJournalEntryForLoanCharges(final Office office, final String currencyCode, final int accountMappingTypeId,
-            final int accountMappingTypeId, final Long loanProductId, final Long chargeId, final Long loanId, final String transactionId,
+            final Long loanProductId, final Long chargeId, final Long loanId, final String transactionId, final LocalDate transactionDate,
-            final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal) {
+            final BigDecimal amount) {
         final GLAccount account = getLinkedGLAccountForLoanCharges(loanProductId, accountMappingTypeId, chargeId);
-        if (isReversal) {
+        createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-            createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        } else {
-            createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        }
     }
 
-    public void createCreditJournalEntryOrReversalForLoanCharges(final Office office, final String currencyCode,
+    public void createCreditJournalEntryForLoanCharges(final Office office, final String currencyCode, final int accountMappingTypeId,
-            final int accountMappingTypeId, final Long loanProductId, final Long loanId, final String transactionId,
+            final Long loanProductId, final Long loanId, final String transactionId, final LocalDate transactionDate,
-            final LocalDate transactionDate, final BigDecimal totalAmount, final Boolean isReversal,
+            final BigDecimal totalAmount, final List<ChargePaymentDTO> chargePaymentDTOs) {
-            final List<ChargePaymentDTO> chargePaymentDTOs) {
+        createJournalEntriesForLoanChargesInternal(office, currencyCode, accountMappingTypeId, loanProductId, loanId, transactionId,
-        /***
+                transactionDate, totalAmount, chargePaymentDTOs, true);
-         * Map to track each account and the net credit to be made for a particular account
+    }
-         ***/
-        final Map<GLAccount, BigDecimal> creditDetailsMap = new LinkedHashMap<>();
-        for (final ChargePaymentDTO chargePaymentDTO : chargePaymentDTOs) {
-            final Long chargeId = chargePaymentDTO.getChargeId();
-            final GLAccount chargeSpecificAccount = getLinkedGLAccountForLoanCharges(loanProductId, accountMappingTypeId, chargeId);
-            BigDecimal chargeSpecificAmount = chargePaymentDTO.getAmount();
 
-            // adjust net credit amount if the account is already present in the
+    public void createDebitJournalEntryForLoanCharges(final Office office, final String currencyCode, final int accountMappingTypeId,
-            // map
+            final Long loanProductId, final Long loanId, final String transactionId, final LocalDate transactionDate,
-            if (creditDetailsMap.containsKey(chargeSpecificAccount)) {
+            final BigDecimal totalAmount, final List<ChargePaymentDTO> chargePaymentDTOs) {
-                final BigDecimal existingAmount = creditDetailsMap.get(chargeSpecificAccount);
+        createJournalEntriesForLoanChargesInternal(office, currencyCode, accountMappingTypeId, loanProductId, loanId, transactionId,
-                chargeSpecificAmount = chargeSpecificAmount.add(existingAmount);
+                transactionDate, totalAmount, chargePaymentDTOs, false);
-            }
-            creditDetailsMap.put(chargeSpecificAccount, chargeSpecificAmount);
-        }
-
-        BigDecimal totalCreditedAmount = BigDecimal.ZERO;
-        for (final Map.Entry<GLAccount, BigDecimal> entry : creditDetailsMap.entrySet()) {
-            final GLAccount account = entry.getKey();
-            final BigDecimal amount = entry.getValue();
-            totalCreditedAmount = totalCreditedAmount.add(amount);
-            if (isReversal) {
-                createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-            } else {
-                createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-            }
-        }
-
-        // TODO: Vishwas Temporary validation to be removed before moving to
-        // release branch
-        if (totalAmount.compareTo(totalCreditedAmount) != 0) {
-            throw new PlatformDataIntegrityException(
-                    "Meltdown in advanced accounting...sum of all charges is not equal to the fee charge for a transaction",
-                    "Meltdown in advanced accounting...sum of all charges is not equal to the fee charge for a transaction",
-                    totalCreditedAmount, totalAmount);
-        }
     }
 
     /**
@@ -899,38 +803,20 @@ public class AccountingProcessorHelper {
         }
     }
 
-    public LoanTransaction getLoanTransactionById(final Long loanTransactionId) {
-        return this.loanTransactionRepository.getReferenceById(loanTransactionId);
-    }
-
-    public SavingsAccountTransaction getSavingsTransactionById(final Long savingsTransactionId) {
-        return this.savingsAccountTransactionRepository.getReferenceById(savingsTransactionId);
-    }
-
-    public ClientTransaction getClientTransactionById(final Long clientTransactionId) {
-        return this.clientTransactionRepository.getReferenceById(clientTransactionId);
-    }
-
     public Office getOfficeById(final long officeId) {
         return this.officeRepository.getReferenceById(officeId);
     }
 
-    public void createCreditJournalEntryOrReversalForLoan(final Office office, final String currencyCode, final int accountMappingTypeId,
+    public void createCreditJournalEntryForLoan(final Office office, final String currencyCode, final int accountMappingTypeId,
             final Long loanProductId, final Long paymentTypeId, final Long loanId, final String transactionId,
-            final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal) {
+            final LocalDate transactionDate, final BigDecimal amount) {
         final GLAccount account = getLinkedGLAccountForLoanProduct(loanProductId, accountMappingTypeId, paymentTypeId);
-        createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate, amount, isReversal,
+        createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, amount, account);
-                account);
     }
 
-    public void createCreditJournalEntryOrReversalForLoan(final Office office, final String currencyCode, final Long loanId,
+    public void createCreditJournalEntryForLoan(final Office office, final String currencyCode, final Long loanId,
-            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final Boolean isReversal,
+            final String transactionId, final LocalDate transactionDate, final BigDecimal amount, final GLAccount account) {
-            final GLAccount account) {
+        createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        if (isReversal) {
-            createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        } else {
-            createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
-        }
     }
 
     private void createCreditJournalEntryForClientPayments(final Office office, final String currencyCode, final GLAccount account,
@@ -1403,4 +1289,38 @@ public class AccountingProcessorHelper {
         return savedJournalEntry;
     }
 
+    private void createJournalEntriesForLoanChargesInternal(final Office office, final String currencyCode, final int accountMappingTypeId,
+            final Long loanProductId, final Long loanId, final String transactionId, final LocalDate transactionDate,
+            final BigDecimal totalAmount, final List<ChargePaymentDTO> chargePaymentDTOs, final boolean isCredit) {
+        final Map<GLAccount, BigDecimal> creditDetailsMap = new LinkedHashMap<>();
+
+        for (final ChargePaymentDTO chargePaymentDTO : chargePaymentDTOs) {
+            final Long chargeId = chargePaymentDTO.getChargeId();
+            final GLAccount account = getLinkedGLAccountForLoanCharges(loanProductId, accountMappingTypeId, chargeId);
+            BigDecimal amount = chargePaymentDTO.getAmount();
+
+            creditDetailsMap.merge(account, amount, BigDecimal::add);
+        }
+
+        BigDecimal totalCreditedAmount = BigDecimal.ZERO;
+
+        for (Map.Entry<GLAccount, BigDecimal> entry : creditDetailsMap.entrySet()) {
+            GLAccount account = entry.getKey();
+            BigDecimal amount = entry.getValue();
+            totalCreditedAmount = totalCreditedAmount.add(amount);
+
+            if (isCredit) {
+                createCreditJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
+            } else {
+                createDebitJournalEntryForLoan(office, currencyCode, account, loanId, transactionId, transactionDate, amount);
+            }
+        }
+
+        if (totalAmount.compareTo(totalCreditedAmount) != 0) {
+            throw new PlatformDataIntegrityException(
+                    "Meltdown in advanced accounting...sum of all charges is not equal to the fee charge for a transaction",
+                    "Meltdown in advanced accounting...sum of all charges is not equal to the fee charge for a transaction",
+                    totalCreditedAmount, totalAmount);
+        }
+    }
 }

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java

@@ -46,16 +46,24 @@ import org.springframework.stereotype.Component;
 public class AccrualBasedAccountingProcessorForLoan implements AccountingProcessorForLoan {
 
     private final AccountingProcessorHelper helper;
+    private final JournalEntryWritePlatformService journalEntryWritePlatformService;
 
     @Override
     public void createJournalEntriesForLoan(final LoanDTO loanDTO) {
-        final GLClosure latestGLClosure = this.helper.getLatestClosureByBranch(loanDTO.getOfficeId());
+        final Long officeId = loanDTO.getOfficeId();
-        final Office office = this.helper.getOfficeById(loanDTO.getOfficeId());
+        final GLClosure latestGLClosure = this.helper.getLatestClosureByBranch(officeId);
+        final Office office = this.helper.getOfficeById(officeId);
         for (final LoanTransactionDTO loanTransactionDTO : loanDTO.getNewLoanTransactions()) {
             final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
             this.helper.checkForBranchClosures(latestGLClosure, transactionDate);
             final LoanTransactionEnumData transactionType = loanTransactionDTO.getTransactionType();
 
+            if (loanTransactionDTO.isReversed()) {
+                journalEntryWritePlatformService.createJournalEntryForReversedLoanTransaction(transactionDate,
+                        loanTransactionDTO.getTransactionId(), officeId);
+                continue;
+            }
+
             // Handle Disbursements
             if (transactionType.isDisbursement()) {
                 createJournalEntriesForDisbursements(loanDTO, loanTransactionDTO, office);
@@ -67,8 +75,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
 
             /*
-             * Handle repayments, loan refunds, repayments at disbursement and reversal of Repayments and Repayments at
+             * Handle repayments, loan refunds, repayments at disbursement (except charge adjustment)
-             * disbursement (except charge adjustment)
              */
             else if ((transactionType.isRepaymentType() && !transactionType.isChargeAdjustment())
                     || transactionType.isRepaymentAtDisbursement() || transactionType.isChargePayment()) {
@@ -91,7 +98,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
                 createJournalEntriesForCreditBalanceRefund(loanDTO, loanTransactionDTO, office);
             }
 
-            // Handle Write Offs, waivers and their reversals
+            // Handle Write Offs
             else if ((transactionType.isWriteOff() || transactionType.isWaiveInterest() || transactionType.isWaiveCharges())) {
                 createJournalEntriesForRepaymentsAndWriteOffs(loanDTO, loanTransactionDTO, office, true, false);
             }
@@ -135,7 +142,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPayment = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
 
         if (isMarkedAsChargeOff) {
@@ -202,14 +208,14 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         // create credit entries
         for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                    creditEntry.getValue(), isReversal, glAccount);
+                    creditEntry.getValue(), glAccount);
         }
         // create debit entries
         for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, debitEntry.getValue(),
-                    debitEntry.getValue(), isReversal, glAccount);
+                    glAccount);
         }
     }
 
@@ -227,7 +233,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
 
         // need to fetch if there are account mappings (always one)
@@ -272,14 +277,14 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         // create credit entries
         for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                    creditEntry.getValue(), isReversal, glAccount);
+                    creditEntry.getValue(), glAccount);
         }
         // create debit entries
         for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, debitEntry.getValue(),
-                    debitEntry.getValue(), isReversal, glAccount);
+                    glAccount);
         }
     }
 
@@ -318,7 +323,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
@@ -386,8 +390,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
 
         for (Map.Entry<GLAccount, BigDecimal> entry : accountMap.entrySet()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, entry.getValue(),
-                    entry.getValue(), isReversal, entry.getKey());
+                    entry.getKey());
         }
 
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -398,8 +402,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             } else {
                 accountMappingTypeId = AccrualAccountsForLoan.INCOME_FROM_FEES.getValue();
             }
-            this.helper.createDebitJournalEntryOrReversalForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId, loanId,
-                    loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    transactionId, transactionDate, totalDebitAmount);
         }
     }
 
@@ -418,13 +422,12 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         Map<GLAccount, BigDecimal> accountMap = new LinkedHashMap<>();
 
-        // handle principal payment (and reversals)
+        // handle principal payment
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -432,7 +435,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             accountMap.put(account, principalAmount);
         }
 
-        // handle interest payment (and reversals)
+        // handle interest payment
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -445,7 +448,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
         }
 
-        // handle fees payment (and reversals)
+        // handle fees payment
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(feesAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -458,7 +461,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
         }
 
-        // handle penalties payment (and reversals)
+        // handle penalties payment
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(penaltiesAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -485,8 +488,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
 
         for (Map.Entry<GLAccount, BigDecimal> entry : accountMap.entrySet()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, entry.getValue(),
-                    entry.getValue(), isReversal, entry.getKey());
+                    entry.getKey());
         }
 
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -497,8 +500,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             } else {
                 accountMappingTypeId = AccrualAccountsForLoan.INCOME_FROM_FEES.getValue();
             }
-            this.helper.createDebitJournalEntryOrReversalForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId, loanId,
-                    loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    transactionId, transactionDate, totalDebitAmount);
         }
     }
 
@@ -519,7 +522,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal amount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
         final BigDecimal overpaidAmount = Objects.isNull(loanTransactionDTO.getOverPayment()) ? BigDecimal.ZERO
                 : loanTransactionDTO.getOverPayment();
@@ -536,36 +538,36 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltyPaid = Objects.isNull(loanTransactionDTO.getPenaltyPaid()) ? BigDecimal.ZERO
                 : loanTransactionDTO.getPenaltyPaid();
 
-        helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE, loanProductId,
+        helper.createCreditJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE, loanProductId, paymentTypeId,
-                paymentTypeId, loanId, transactionId, transactionDate, amount, isReversal);
+                loanId, transactionId, transactionDate, amount);
 
         if (overpaidAmount.compareTo(BigDecimal.ZERO) > 0) {
-            helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
+            helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, overpaidAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, overpaidAmount);
         }
 
         if (principalCredited.compareTo(principalPaid) > 0) {
-            helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, getPrincipalAccount(loanDTO), loanProductId,
+            helper.createDebitJournalEntryForLoan(office, currencyCode, getPrincipalAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    paymentTypeId, loanId, transactionId, transactionDate, principalCredited.subtract(principalPaid), isReversal);
+                    transactionId, transactionDate, principalCredited.subtract(principalPaid));
         } else if (principalCredited.compareTo(principalPaid) < 0) {
-            helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, getPrincipalAccount(loanDTO), loanProductId,
+            helper.createCreditJournalEntryForLoan(office, currencyCode, getPrincipalAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    paymentTypeId, loanId, transactionId, transactionDate, principalPaid.subtract(principalCredited), isReversal);
+                    transactionId, transactionDate, principalPaid.subtract(principalCredited));
         }
 
         if (feeCredited.compareTo(feePaid) > 0) {
-            helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, getFeeAccount(loanDTO), loanProductId, paymentTypeId,
+            helper.createDebitJournalEntryForLoan(office, currencyCode, getFeeAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    loanId, transactionId, transactionDate, feeCredited.subtract(feePaid), isReversal);
+                    transactionId, transactionDate, feeCredited.subtract(feePaid));
         } else if (feeCredited.compareTo(feePaid) < 0) {
-            helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, getFeeAccount(loanDTO), loanProductId, paymentTypeId,
+            helper.createCreditJournalEntryForLoan(office, currencyCode, getFeeAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    loanId, transactionId, transactionDate, feePaid.subtract(feeCredited), isReversal);
+                    transactionId, transactionDate, feePaid.subtract(feeCredited));
         }
 
         if (penaltyCredited.compareTo(penaltyPaid) > 0) {
-            helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, getPenaltyAccount(loanDTO), loanProductId, paymentTypeId,
+            helper.createDebitJournalEntryForLoan(office, currencyCode, getPenaltyAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    loanId, transactionId, transactionDate, penaltyCredited.subtract(penaltyPaid), isReversal);
+                    transactionId, transactionDate, penaltyCredited.subtract(penaltyPaid));
         } else if (penaltyCredited.compareTo(penaltyPaid) < 0) {
-            helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, getPenaltyAccount(loanDTO), loanProductId, paymentTypeId,
+            helper.createCreditJournalEntryForLoan(office, currencyCode, getPenaltyAccount(loanDTO), loanProductId, paymentTypeId, loanId,
-                    loanId, transactionId, transactionDate, penaltyPaid.subtract(penaltyCredited), isReversal);
+                    transactionId, transactionDate, penaltyPaid.subtract(penaltyCredited));
         }
     }
 
@@ -616,29 +618,27 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal overpaymentPortion = loanTransactionDTO.getOverPayment() != null ? loanTransactionDTO.getOverPayment()
                 : BigDecimal.ZERO;
         final BigDecimal principalPortion = loanTransactionDTO.getAmount().subtract(overpaymentPortion);
-        final boolean isReversed = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        // create journal entries for the disbursement (or disbursement
+        // create journal entries for the disbursement
-        // reversal)
         if (MathUtil.isGreaterThanZero(principalPortion)) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, principalPortion, isReversed);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, principalPortion);
 
         }
         if (MathUtil.isGreaterThanZero(overpaymentPortion)) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, overpaymentPortion, isReversed);
+                    paymentTypeId, loanId, transactionId, transactionDate, overpaymentPortion);
         }
         if (loanTransactionDTO.isLoanToLoanTransfer()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversed);
+                    paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         } else if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversed);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         } else {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversed);
+                    paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         }
     }
 
@@ -667,7 +667,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
      * <b>Penalty Write off</b>: Debits "Losses Written off" and Credits "Receivable Penalties" <br/>
      * <br/>
      * <br/>
-     * In case the loan transaction has been reversed, all debits are turned into credits and vice versa
      *
      * @param loanTransactionDTO
      * @param loanDTO
@@ -701,7 +700,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
@@ -801,9 +799,9 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
 
             } else {
                 if (isIncomeFromFee) {
-                    this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+                    this.helper.createCreditJournalEntryForLoanCharges(office, currencyCode,
                             AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate,
-                            feesAmount, isReversal, loanTransactionDTO.getFeePayments());
+                            feesAmount, loanTransactionDTO.getFeePayments());
                     GLAccount debitAccount = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
                             AccrualAccountsForLoan.FUND_SOURCE.getValue(), paymentTypeId);
                     glAccountBalanceHolder.addToDebit(debitAccount, feesAmount);
@@ -879,44 +877,41 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         // create credit entries
         for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                    creditEntry.getValue(), isReversal, glAccount);
+                    creditEntry.getValue(), glAccount);
         }
 
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
             if (writeOff) {
-                this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode,
+                this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(),
-                        AccrualAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                        loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                        transactionDate, totalDebitAmount, isReversal);
             } else {
                 if (loanTransactionDTO.isLoanToLoanTransfer()) {
-                    this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+                    this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
-                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
                 } else if (loanTransactionDTO.isAccountTransfer()) {
-                    this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode,
+                    this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
-                            FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                            transactionDate, totalDebitAmount, isReversal);
                 } else {
                     // create debit entries
                     for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
                         GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
-                        this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+                        this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                                debitEntry.getValue(), isReversal, glAccount);
+                                debitEntry.getValue(), glAccount);
                     }
                 }
             }
         }
 
         /**
-         * Charge Refunds (and their reversals) have an extra refund related pair of journal entries in addition to
+         * Charge Refunds have an extra refund related pair of journal entries in addition to those related to the
-         * those related to the repayment above
+         * repayment above
          ***/
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
             if (loanTransactionDTO.getTransactionType().isChargeRefund()) {
                 Integer incomeAccount = this.helper.getValueForFeeOrPenaltyIncomeAccount(loanTransactionDTO.getChargeRefundChargeType());
-                this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, incomeAccount,
+                this.helper.createJournalEntriesForLoan(office, currencyCode, incomeAccount, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
-                        AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+                        loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                        totalDebitAmount, isReversal);
             }
         }
 
@@ -938,14 +933,13 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         Map<GLAccount, BigDecimal> accountMap = new LinkedHashMap<>();
         Map<Integer, BigDecimal> debitAccountMapForGoodwillCredit = new LinkedHashMap<>();
 
-        // handle principal payment or writeOff (and reversals)
+        // handle principal payment or writeOff
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -957,7 +951,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
         }
 
-        // handle interest payment of writeOff (and reversals)
+        // handle interest payment of writeOff
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -975,15 +969,14 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
         }
 
-        // handle fees payment of writeOff (and reversals)
+        // handle fees payment of writeOff
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
 
             totalDebitAmount = totalDebitAmount.add(feesAmount);
 
             if (isIncomeFromFee) {
-                this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+                this.helper.createCreditJournalEntryForLoanCharges(office, currencyCode, AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(),
-                        AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                        loanProductId, loanId, transactionId, transactionDate, feesAmount, loanTransactionDTO.getFeePayments());
-                        feesAmount, isReversal, loanTransactionDTO.getFeePayments());
             } else {
                 GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
                         AccrualAccountsForLoan.FEES_RECEIVABLE.getValue(), paymentTypeId);
@@ -1000,7 +993,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             }
         }
 
-        // handle penalties payment of writeOff (and reversals)
+        // handle penalties payment of writeOff
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(penaltiesAmount);
             if (isIncomeFromFee) {
@@ -1047,53 +1040,48 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
 
         for (Map.Entry<GLAccount, BigDecimal> entry : accountMap.entrySet()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, entry.getValue(),
-                    entry.getValue(), isReversal, entry.getKey());
+                    entry.getKey());
         }
 
         /**
-         * Single DEBIT transaction for write-offs or Repayments (and their reversals)
+         * Single DEBIT transaction for write-offs or Repayments
          ***/
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
             if (writeOff) {
-                this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode,
+                this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(),
-                        AccrualAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                        loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                        transactionDate, totalDebitAmount, isReversal);
             } else {
                 if (loanTransactionDTO.isLoanToLoanTransfer()) {
-                    this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+                    this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
-                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
                 } else if (loanTransactionDTO.isAccountTransfer()) {
-                    this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode,
+                    this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
-                            FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                            transactionDate, totalDebitAmount, isReversal);
                 } else {
                     if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                         // create debit entries
                         for (Map.Entry<Integer, BigDecimal> debitEntry : debitAccountMapForGoodwillCredit.entrySet()) {
-                            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, debitEntry.getKey().intValue(),
+                            this.helper.createDebitJournalEntryForLoan(office, currencyCode, debitEntry.getKey().intValue(), loanProductId,
-                                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, debitEntry.getValue(),
+                                    paymentTypeId, loanId, transactionId, transactionDate, debitEntry.getValue());
-                                    isReversal);
                         }
 
                     } else {
-                        this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode,
+                        this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
-                                AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                                loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                                transactionDate, totalDebitAmount, isReversal);
                     }
                 }
             }
         }
 
         /**
-         * Charge Refunds (and their reversals) have an extra refund related pair of journal entries in addition to
+         * Charge Refunds have an extra refund related pair of journal entries in addition to those related to the
-         * those related to the repayment above
+         * repayment above
          ***/
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0 && loanTransactionDTO.getTransactionType().isChargeRefund()) {
             Integer incomeAccount = this.helper.getValueForFeeOrPenaltyIncomeAccount(loanTransactionDTO.getChargeRefundChargeType());
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, incomeAccount,
+            this.helper.createJournalEntriesForLoan(office, currencyCode, incomeAccount, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
-                    AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                    totalDebitAmount, isReversal);
         }
     }
 
@@ -1120,8 +1108,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
 
     /**
      * Create a single Debit to fund source and a single credit to "Income from Recovery"
-     *
-     * In case the loan transaction is a reversal, all debits are turned into credits and vice versa
      */
     private void createJournalEntriesForRecoveryRepayments(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
             final Office office) {
@@ -1134,12 +1120,11 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal amount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
+        this.helper.createJournalEntriesForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
                 AccrualAccountsForLoan.INCOME_FROM_RECOVERY.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
-                transactionDate, amount, isReversal);
+                transactionDate, amount);
 
     }
 
@@ -1151,8 +1136,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
      *
      * <b>Penalties:</b> Debit <i>Penalties Receivable</i> and credit <i>Income from Penalties</i>
      *
-     * Also handles reversals for both fees and payment applications
-     *
      * @param loanDTO
      * @param loanTransactionDTO
      * @param office
@@ -1170,28 +1153,43 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal interestAmount = loanTransactionDTO.getInterest();
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
-        final boolean isReversed = transactionType.isAccrualAdjustment() != loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        // create journal entries for recognizing interest (or reversal)
+        // create journal entries for recognizing interest
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.INTEREST_RECEIVABLE.getValue(),
+            if (transactionType.isAccrualAdjustment()) {
-                    AccrualAccountsForLoan.INTEREST_ON_LOANS.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                this.helper.createJournalEntriesForLoan(office, currencyCode, AccrualAccountsForLoan.INTEREST_ON_LOANS.getValue(),
-                    transactionDate, interestAmount, isReversed);
+                        AccrualAccountsForLoan.INTEREST_RECEIVABLE.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                        transactionDate, interestAmount);
+            } else {
+                this.helper.createJournalEntriesForLoan(office, currencyCode, AccrualAccountsForLoan.INTEREST_RECEIVABLE.getValue(),
+                        AccrualAccountsForLoan.INTEREST_ON_LOANS.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
+                        transactionDate, interestAmount);
+            }
         }
-        // create journal entries for the fees application (or reversal)
+        // create journal entries for the fees application
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
-            this.helper.createJournalEntriesAndReversalsForLoanCharges(office, currencyCode,
+            if (transactionType.isAccrualAdjustment()) {
-                    AccrualAccountsForLoan.FEES_RECEIVABLE.getValue(), AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId,
+                this.helper.createJournalEntriesForLoanCharges(office, currencyCode, AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(),
-                    loanId, transactionId, transactionDate, feesAmount, isReversed, loanTransactionDTO.getFeePayments());
+                        AccrualAccountsForLoan.FEES_RECEIVABLE.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                        feesAmount, loanTransactionDTO.getFeePayments());
+            } else {
+                this.helper.createJournalEntriesForLoanCharges(office, currencyCode, AccrualAccountsForLoan.FEES_RECEIVABLE.getValue(),
+                        AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                        feesAmount, loanTransactionDTO.getFeePayments());
+            }
         }
-        // create journal entries for the penalties application (or reversal)
+        // create journal entries for the penalties application
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
-
+            if (transactionType.isAccrualAdjustment()) {
-            this.helper.createJournalEntriesAndReversalsForLoanCharges(office, currencyCode,
+                this.helper.createJournalEntriesForLoanCharges(office, currencyCode,
-                    AccrualAccountsForLoan.PENALTIES_RECEIVABLE.getValue(), AccrualAccountsForLoan.INCOME_FROM_PENALTIES.getValue(),
+                        AccrualAccountsForLoan.INCOME_FROM_PENALTIES.getValue(), AccrualAccountsForLoan.PENALTIES_RECEIVABLE.getValue(),
-                    loanProductId, loanId, transactionId, transactionDate, penaltiesAmount, isReversed,
+                        loanProductId, loanId, transactionId, transactionDate, penaltiesAmount, loanTransactionDTO.getPenaltyPayments());
-                    loanTransactionDTO.getPenaltyPayments());
+            } else {
+                this.helper.createJournalEntriesForLoanCharges(office, currencyCode, AccrualAccountsForLoan.PENALTIES_RECEIVABLE.getValue(),
+                        AccrualAccountsForLoan.INCOME_FROM_PENALTIES.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                        penaltiesAmount, loanTransactionDTO.getPenaltyPayments());
+            }
         }
     }
 
@@ -1205,17 +1203,16 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal refundAmount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
                     FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
-                    refundAmount, isReversal);
+                    refundAmount);
         } else {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
                     AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
-                    refundAmount, isReversal);
+                    refundAmount);
         }
     }
 
@@ -1236,7 +1233,6 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         // transaction properties
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         BigDecimal overpaymentAmount = loanTransactionDTO.getOverPayment();
@@ -1257,8 +1253,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
 
         JournalAmountHolder totalAmountHolder = new JournalAmountHolder(AccrualAccountsForLoan.FUND_SOURCE.getValue(), totalAmount);
-        helper.createSplitJournalEntriesAndReversalsForLoan(office, currencyCode, journalAmountHolders, totalAmountHolder, loanProductId,
+        helper.createSplitJournalEntriesForLoan(office, currencyCode, journalAmountHolders, totalAmountHolder, loanProductId, paymentTypeId,
-                paymentTypeId, loanId, transactionId, transactionDate, isReversal);
+                loanId, transactionId, transactionDate);
 
     }
 
@@ -1293,21 +1289,20 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.LOAN_PORTFOLIO,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, principalAmount, !isReversal);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, principalAmount);
         }
 
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.INTEREST_ON_LOANS,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.INTEREST_ON_LOANS.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, interestAmount, !isReversal);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, interestAmount);
         }
 
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -1321,9 +1316,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
                                 : chargePaymentDTO.getAmount(),
                         chargePaymentDTO.getLoanChargeId()));
             }
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(),
-                    AccrualAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate, feesAmount,
+                    loanProductId, loanId, transactionId, transactionDate, feesAmount, chargePaymentDTOs);
-                    !isReversal, chargePaymentDTOs);
         }
 
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -1336,21 +1330,18 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
                                 : chargePaymentDTO.getAmount(),
                         chargePaymentDTO.getLoanChargeId()));
             }
-
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, AccrualAccountsForLoan.INCOME_FROM_PENALTIES.getValue(),
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+                    loanProductId, loanId, transactionId, transactionDate, penaltiesAmount, chargePaymentDTOs);
-                    AccrualAccountsForLoan.INCOME_FROM_PENALTIES.getValue(), loanProductId, loanId, transactionId, transactionDate,
-                    penaltiesAmount, !isReversal, chargePaymentDTOs);
         }
 
         if (overPaymentAmount != null && overPaymentAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(overPaymentAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT, loanProductId,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
-                    paymentTypeId, loanId, transactionId, transactionDate, overPaymentAmount, !isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, overPaymentAmount);
         }
 
         /*** create a single debit entry (or reversal) for the entire amount **/
-        this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(),
+        this.helper.createCreditJournalEntryForLoan(office, currencyCode, AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId,
-                loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, !isReversal);
+                paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-
     }
 }

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/CashBasedAccountingProcessorForLoan.java

@@ -35,6 +35,7 @@ import org.apache.fineract.accounting.journalentry.data.LoanDTO;
 import org.apache.fineract.accounting.journalentry.data.LoanTransactionDTO;
 import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.organisation.office.domain.Office;
+import org.apache.fineract.portfolio.loanaccount.data.LoanTransactionEnumData;
 import org.springframework.stereotype.Component;
 
 @Component
@@ -42,48 +43,53 @@ import org.springframework.stereotype.Component;
 public class CashBasedAccountingProcessorForLoan implements AccountingProcessorForLoan {
 
     private final AccountingProcessorHelper helper;
+    private final JournalEntryWritePlatformService journalEntryWritePlatformService;
 
     @Override
     public void createJournalEntriesForLoan(final LoanDTO loanDTO) {
-        final GLClosure latestGLClosure = this.helper.getLatestClosureByBranch(loanDTO.getOfficeId());
+        final Long officeId = loanDTO.getOfficeId();
+        final GLClosure latestGLClosure = this.helper.getLatestClosureByBranch(officeId);
         final Long loanProductId = loanDTO.getLoanProductId();
         final String currencyCode = loanDTO.getCurrencyCode();
+        final Office office = this.helper.getOfficeById(officeId);
         for (final LoanTransactionDTO loanTransactionDTO : loanDTO.getNewLoanTransactions()) {
             final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
             final String transactionId = loanTransactionDTO.getTransactionId();
-            final Office office = this.helper.getOfficeById(loanTransactionDTO.getOfficeId());
             final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
             final Long loanId = loanDTO.getLoanId();
+            final LoanTransactionEnumData transactionType = loanTransactionDTO.getTransactionType();
 
             this.helper.checkForBranchClosures(latestGLClosure, transactionDate);
 
-            /** Handle Disbursements and reversals of disbursements **/
+            if (loanTransactionDTO.isReversed()) {
-            if (loanTransactionDTO.getTransactionType().isDisbursement()) {
+                journalEntryWritePlatformService.createJournalEntryForReversedLoanTransaction(transactionDate, transactionId, officeId);
+                continue;
+            }
+
+            /** Handle Disbursements **/
+            if (transactionType.isDisbursement()) {
                 createJournalEntriesForDisbursements(loanDTO, loanTransactionDTO, office);
             }
             /***
-             * Logic for repayments, repayments at disbursement and reversal of Repayments and Repayments at
+             * Logic for repayments, repayments at disbursement (except charge adjustment)
-             * disbursement (except charge adjustment)
              ***/
-            else if ((loanTransactionDTO.getTransactionType().isRepaymentType()
+            else if ((transactionType.isRepaymentType() && !transactionType.isChargeAdjustment())
-                    && !loanTransactionDTO.getTransactionType().isChargeAdjustment())
+                    || transactionType.isRepaymentAtDisbursement() || transactionType.isChargePayment()) {
-                    || loanTransactionDTO.getTransactionType().isRepaymentAtDisbursement()
-                    || loanTransactionDTO.getTransactionType().isChargePayment()) {
                 createJournalEntriesForRepayments(loanDTO, loanTransactionDTO, office);
             }
 
             /** Logic for handling recovery payments **/
-            else if (loanTransactionDTO.getTransactionType().isRecoveryRepayment()) {
+            else if (transactionType.isRecoveryRepayment()) {
                 createJournalEntriesForRecoveryRepayments(loanDTO, loanTransactionDTO, office);
             }
 
             /** Logic for Refunds of Overpayments **/
-            else if (loanTransactionDTO.getTransactionType().isRefund()) {
+            else if (transactionType.isRefund()) {
                 createJournalEntriesForRefund(loanDTO, loanTransactionDTO, office);
             }
 
             /** Logic for Credit Balance Refunds **/
-            else if (loanTransactionDTO.getTransactionType().isCreditBalanceRefund()) {
+            else if (transactionType.isCreditBalanceRefund()) {
                 createJournalEntriesForCreditBalanceRefund(loanDTO, loanTransactionDTO, office);
             }
 
@@ -91,33 +97,32 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
              * Only principal write off affects cash based accounting (interest and fee write off need not be
              * considered). Debit losses written off and credit Loan Portfolio
              **/
-            else if (loanTransactionDTO.getTransactionType().isWriteOff()) {
+            else if (transactionType.isWriteOff()) {
                 final BigDecimal principalAmount = loanTransactionDTO.getPrincipal();
                 if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
-                    this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode,
+                    this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(),
-                            CashAccountsForLoan.LOSSES_WRITTEN_OFF.getValue(), CashAccountsForLoan.LOAN_PORTFOLIO.getValue(), loanProductId,
+                            CashAccountsForLoan.LOAN_PORTFOLIO.getValue(), loanProductId, paymentTypeId, loanId, transactionId,
-                            paymentTypeId, loanId, transactionId, transactionDate, principalAmount, loanTransactionDTO.isReversed());
+                            transactionDate, principalAmount);
 
                 }
-            } else if (loanTransactionDTO.getTransactionType().isInitiateTransfer()
+            } else if (transactionType.isInitiateTransfer() || transactionType.isApproveTransfer()
-                    || loanTransactionDTO.getTransactionType().isApproveTransfer()
+                    || transactionType.isWithdrawTransfer()) {
-                    || loanTransactionDTO.getTransactionType().isWithdrawTransfer()) {
                 createJournalEntriesForTransfers(loanDTO, loanTransactionDTO, office);
             }
             /** Logic for Refunds of Active Loans **/
-            else if (loanTransactionDTO.getTransactionType().isRefundForActiveLoans()) {
+            else if (transactionType.isRefundForActiveLoans()) {
                 createJournalEntriesForRefundForActiveLoan(loanDTO, loanTransactionDTO, office);
             }
             // Logic for Chargebacks
-            else if (loanTransactionDTO.getTransactionType().isChargeback()) {
+            else if (transactionType.isChargeback()) {
                 createJournalEntriesForChargeback(loanDTO, loanTransactionDTO, office);
             }
             // Logic for Charge Adjustment
-            else if (loanTransactionDTO.getTransactionType().isChargeAdjustment()) {
+            else if (transactionType.isChargeAdjustment()) {
                 createJournalEntriesForChargeAdjustment(loanDTO, loanTransactionDTO, office);
             }
             // Logic for Charge-Off
-            else if (loanTransactionDTO.getTransactionType().isChargeoff()) {
+            else if (transactionType.isChargeoff()) {
                 createJournalEntriesForChargeOff(loanDTO, loanTransactionDTO, office);
             }
         }
@@ -138,7 +143,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
 
@@ -174,14 +178,14 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         // create credit entries
         for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                    creditEntry.getValue(), isReversal, glAccount);
+                    creditEntry.getValue(), glAccount);
         }
         // create debit entries
         for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, debitEntry.getValue(),
-                    debitEntry.getValue(), isReversal, glAccount);
+                    glAccount);
         }
     }
 
@@ -230,13 +234,12 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         Map<GLAccount, BigDecimal> accountMap = new LinkedHashMap<>();
 
-        // handle principal payment (and reversals)
+        // handle principal payment
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -244,7 +247,7 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             accountMap.put(account, principalAmount);
         }
 
-        // handle interest payment (and reversals)
+        // handle interest payment
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -257,7 +260,7 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             }
         }
 
-        // handle fees payment (and reversals)
+        // handle fees payment
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(feesAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -297,8 +300,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         }
 
         for (Map.Entry<GLAccount, BigDecimal> entry : accountMap.entrySet()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, entry.getValue(),
-                    entry.getValue(), isReversal, entry.getKey());
+                    entry.getKey());
         }
 
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -309,8 +312,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             } else {
                 accountMappingTypeId = CashAccountsForLoan.INCOME_FROM_FEES.getValue();
             }
-            this.helper.createDebitJournalEntryOrReversalForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId, loanId,
-                    loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    transactionId, transactionDate, totalDebitAmount);
         }
     }
 
@@ -329,13 +332,12 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         Map<GLAccount, BigDecimal> accountMap = new LinkedHashMap<>();
 
-        // handle principal payment (and reversals)
+        // handle principal payment
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
@@ -343,7 +345,7 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             accountMap.put(account, principalAmount);
         }
 
-        // handle interest payment (and reversals)
+        // handle interest payment
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -356,7 +358,7 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             }
         }
 
-        // handle fees payment (and reversals)
+        // handle fees payment
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(feesAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId, CashAccountsForLoan.INCOME_FROM_FEES.getValue(),
@@ -369,7 +371,7 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             }
         }
 
-        // handle penalties payment (and reversals)
+        // handle penalties payment
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(penaltiesAmount);
             GLAccount account = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
@@ -396,8 +398,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         }
 
         for (Map.Entry<GLAccount, BigDecimal> entry : accountMap.entrySet()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate, entry.getValue(),
-                    entry.getValue(), isReversal, entry.getKey());
+                    entry.getKey());
         }
 
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -408,8 +410,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
             } else {
                 accountMappingTypeId = CashAccountsForLoan.INCOME_FROM_FEES.getValue();
             }
-            this.helper.createDebitJournalEntryOrReversalForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, accountMappingTypeId, loanProductId, chargeId, loanId,
-                    loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    transactionId, transactionDate, totalDebitAmount);
         }
     }
 
@@ -430,20 +432,15 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal amount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
+        this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
-                CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate, amount,
+                CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate, amount);
-                isReversal);
     }
 
     /**
      * Debit loan Portfolio and credit Fund source for a Disbursement <br/>
      *
-     * All debits are turned into credits and vice versa in case of disbursement reversals
-     *
-     *
      * @param loanDTO
      * @param loanTransactionDTO
      * @param office
@@ -461,36 +458,32 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal overpaymentPortion = loanTransactionDTO.getOverPayment() != null ? loanTransactionDTO.getOverPayment()
                 : BigDecimal.ZERO;
         final BigDecimal principalPortion = loanTransactionDTO.getAmount().subtract(overpaymentPortion);
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         if (MathUtil.isGreaterThanZero(principalPortion)) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, principalPortion, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, principalPortion);
         }
 
         if (MathUtil.isGreaterThanZero(overpaymentPortion)) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, overpaymentPortion, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, overpaymentPortion);
         }
         if (loanTransactionDTO.isLoanToLoanTransfer()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         } else if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversal);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         } else {
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(),
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount(), isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, loanTransactionDTO.getAmount());
         }
     }
 
     /**
      * Debit loan Portfolio and credit Fund source for a Disbursement <br/>
      *
-     * All debits are turned into credits and vice versa in case of disbursement reversals
-     *
-     *
      * @param loanDTO
      * @param loanTransactionDTO
      * @param office
@@ -505,17 +498,16 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal refundAmount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
                     FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
-                    refundAmount, isReversal);
+                    refundAmount);
         } else {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
                     CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
-                    refundAmount, isReversal);
+                    refundAmount);
         }
     }
 
@@ -523,8 +515,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
      * Create a single Debit to fund source and multiple credits if applicable (loan portfolio for principal repayments,
      * Interest on loans for interest repayments, Income from fees for fees payment and Income from penalties for
      * penalty payment)
-     *
-     * In case the loan transaction is a reversal, all debits are turned into credits and vice versa
      */
     private void createJournalEntriesForRepayments(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
             final Office office) {
@@ -532,7 +522,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final boolean isMarkedChargeOff = loanDTO.isMarkedAsChargeOff();
         if (isMarkedChargeOff) {
             createJournalEntriesForChargeOffLoanRepayments(loanDTO, loanTransactionDTO, office);
-
         } else {
             createJournalEntriesForLoanRepayments(loanDTO, loanTransactionDTO, office);
         }
@@ -555,7 +544,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        final boolean isReversal = loanTransactionDTO.isReversed();
 
         GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
         BigDecimal totalDebitAmount = new BigDecimal(0);
@@ -707,36 +695,35 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         // create credit entries
         for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
             GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                    creditEntry.getValue(), isReversal, glAccount);
+                    creditEntry.getValue(), glAccount);
         }
 
-        /*** create a single debit entry (or reversal) for the entire amount **/
+        /*** create a single debit entry for the entire amount **/
         if (loanTransactionDTO.isLoanToLoanTransfer()) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
         } else if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
         } else {
             // create debit entries
             for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
                 GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
-                this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+                this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
-                        debitEntry.getValue(), isReversal, glAccount);
+                        debitEntry.getValue(), glAccount);
             }
         }
 
         /**
-         * Charge Refunds (and their reversals) have an extra refund related pair of journal entries in addition to
+         * Charge Refunds have an extra refund related pair of journal entries in addition to those related to the
-         * those related to the repayment above
+         * repayment above
          ***/
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0) {
             if (loanTransactionDTO.getTransactionType().isChargeRefund()) {
                 Integer incomeAccount = this.helper.getValueForFeeOrPenaltyIncomeAccount(loanTransactionDTO.getChargeRefundChargeType());
-                this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, incomeAccount,
+                this.helper.createJournalEntriesForLoan(office, currencyCode, incomeAccount, CashAccountsForLoan.FUND_SOURCE.getValue(),
-                        CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+                        loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                        totalDebitAmount, isReversal);
             }
         }
     }
@@ -755,7 +742,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
@@ -763,8 +749,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO, loanProductId,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO, loanProductId,
-                    paymentTypeId, loanId, transactionId, transactionDate, principalAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, principalAmount);
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                 populateDebitAccountEntry(loanProductId, principalAmount, CashAccountsForLoan.GOODWILL_CREDIT.getValue(),
                         debitAccountMapForGoodwillCredit, paymentTypeId);
@@ -773,8 +759,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.INTEREST_ON_LOANS,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.INTEREST_ON_LOANS, loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, interestAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, interestAmount);
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                 populateDebitAccountEntry(loanProductId, interestAmount,
                         CashAccountsForLoan.INCOME_FROM_GOODWILL_CREDIT_INTEREST.getValue(), debitAccountMapForGoodwillCredit,
@@ -784,9 +770,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(feesAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+            this.helper.createCreditJournalEntryForLoanCharges(office, currencyCode, CashAccountsForLoan.INCOME_FROM_FEES.getValue(),
-                    CashAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate, feesAmount,
+                    loanProductId, loanId, transactionId, transactionDate, feesAmount, loanTransactionDTO.getFeePayments());
-                    isReversal, loanTransactionDTO.getFeePayments());
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                 populateDebitAccountEntry(loanProductId, feesAmount, CashAccountsForLoan.INCOME_FROM_GOODWILL_CREDIT_FEES.getValue(),
                         debitAccountMapForGoodwillCredit, paymentTypeId);
@@ -795,9 +780,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(penaltiesAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+            this.helper.createCreditJournalEntryForLoanCharges(office, currencyCode, CashAccountsForLoan.INCOME_FROM_PENALTIES.getValue(),
-                    CashAccountsForLoan.INCOME_FROM_PENALTIES.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                    loanProductId, loanId, transactionId, transactionDate, penaltiesAmount, loanTransactionDTO.getPenaltyPayments());
-                    penaltiesAmount, isReversal, loanTransactionDTO.getPenaltyPayments());
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                 populateDebitAccountEntry(loanProductId, penaltiesAmount,
                         CashAccountsForLoan.INCOME_FROM_GOODWILL_CREDIT_PENALTY.getValue(), debitAccountMapForGoodwillCredit,
@@ -807,45 +791,44 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
         if (overPaymentAmount != null && overPaymentAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(overPaymentAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT, loanProductId,
+            this.helper.createCreditJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT, loanProductId, paymentTypeId,
-                    paymentTypeId, loanId, transactionId, transactionDate, overPaymentAmount, isReversal);
+                    loanId, transactionId, transactionDate, overPaymentAmount);
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
                 populateDebitAccountEntry(loanProductId, overPaymentAmount, CashAccountsForLoan.GOODWILL_CREDIT.getValue(),
                         debitAccountMapForGoodwillCredit, paymentTypeId);
             }
         }
 
-        /*** create a single debit entry (or reversal) for the entire amount **/
+        /*** create a single debit entry for the entire amount **/
         if (loanTransactionDTO.isLoanToLoanTransfer()) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.ASSET_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
         } else if (loanTransactionDTO.isAccountTransfer()) {
-            this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(),
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, FinancialActivity.LIABILITY_TRANSFER.getValue(), loanProductId,
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
         } else {
             if (loanTransactionDTO.getTransactionType().isGoodwillCredit()) {
 
                 // create debit entries
                 for (Map.Entry<Integer, BigDecimal> debitEntry : debitAccountMapForGoodwillCredit.entrySet()) {
-                    this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, debitEntry.getKey().intValue(),
+                    this.helper.createDebitJournalEntryForLoan(office, currencyCode, debitEntry.getKey(), loanProductId, paymentTypeId,
-                            loanProductId, paymentTypeId, loanId, transactionId, transactionDate, debitEntry.getValue(), isReversal);
+                            loanId, transactionId, transactionDate, debitEntry.getValue());
                 }
 
             } else {
-                this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(),
+                this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId,
-                        loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, isReversal);
+                        paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
             }
         }
 
         /**
-         * Charge Refunds (and their reversals) have an extra refund related pair of journal entries in addition to
+         * Charge Refunds have an extra refund related pair of journal entries in addition to those related to the
-         * those related to the repayment above
+         * repayment above
          ***/
         if (totalDebitAmount.compareTo(BigDecimal.ZERO) > 0 && loanTransactionDTO.getTransactionType().isChargeRefund()) {
             Integer incomeAccount = this.helper.getValueForFeeOrPenaltyIncomeAccount(loanTransactionDTO.getChargeRefundChargeType());
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, incomeAccount,
+            this.helper.createJournalEntriesForLoan(office, currencyCode, incomeAccount, CashAccountsForLoan.FUND_SOURCE.getValue(),
-                    CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-                    totalDebitAmount, isReversal);
         }
     }
 
@@ -863,8 +846,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
 
     /**
      * Create a single Debit to fund source and a single credit to "Income from Recovery"
-     *
-     * In case the loan transaction is a reversal, all debits are turned into credits and vice versa
      */
     private void createJournalEntriesForRecoveryRepayments(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
             final Office office) {
@@ -877,12 +858,11 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal amount = loanTransactionDTO.getAmount();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(),
+        this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(),
                 CashAccountsForLoan.INCOME_FROM_RECOVERY.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
-                amount, isReversal);
+                amount);
 
     }
 
@@ -907,18 +887,16 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal principalAmount = loanTransactionDTO.getPrincipal();
-        final boolean isReversal = loanTransactionDTO.isReversed();
-        // final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         if (loanTransactionDTO.getTransactionType().isInitiateTransfer()) {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.TRANSFERS_SUSPENSE.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.TRANSFERS_SUSPENSE.getValue(),
                     CashAccountsForLoan.LOAN_PORTFOLIO.getValue(), loanProductId, null, loanId, transactionId, transactionDate,
-                    principalAmount, isReversal);
+                    principalAmount);
         } else if (loanTransactionDTO.getTransactionType().isApproveTransfer()
                 || loanTransactionDTO.getTransactionType().isWithdrawTransfer()) {
-            this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
+            this.helper.createJournalEntriesForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
                     CashAccountsForLoan.TRANSFERS_SUSPENSE.getValue(), loanProductId, null, loanId, transactionId, transactionDate,
-                    principalAmount, isReversal);
+                    principalAmount);
         }
     }
 
@@ -932,7 +910,6 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         // transaction properties
         final String transactionId = loanTransactionDTO.getTransactionId();
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         BigDecimal overpaymentAmount = loanTransactionDTO.getOverPayment();
@@ -951,8 +928,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         }
 
         JournalAmountHolder totalAmountHolder = new JournalAmountHolder(CashAccountsForLoan.FUND_SOURCE.getValue(), totalAmount);
-        helper.createSplitJournalEntriesAndReversalsForLoan(office, currencyCode, journalAmountHolders, totalAmountHolder, loanProductId,
+        helper.createSplitJournalEntriesForLoan(office, currencyCode, journalAmountHolders, totalAmountHolder, loanProductId, paymentTypeId,
-                paymentTypeId, loanId, transactionId, transactionDate, isReversal);
+                loanId, transactionId, transactionDate);
     }
 
     private void createJournalEntriesForRefundForActiveLoan(LoanDTO loanDTO, LoanTransactionDTO loanTransactionDTO, Office office) {
@@ -969,21 +946,20 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final BigDecimal feesAmount = loanTransactionDTO.getFees();
         final BigDecimal penaltiesAmount = loanTransactionDTO.getPenalties();
         final BigDecimal overPaymentAmount = loanTransactionDTO.getOverPayment();
-        final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
         BigDecimal totalDebitAmount = new BigDecimal(0);
 
         if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(principalAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO, loanProductId,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(), loanProductId,
-                    paymentTypeId, loanId, transactionId, transactionDate, principalAmount, !isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, principalAmount);
         }
 
         if (interestAmount != null && interestAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(interestAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.INTEREST_ON_LOANS,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.INTEREST_ON_LOANS.getValue(),
-                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, interestAmount, !isReversal);
+                    loanProductId, paymentTypeId, loanId, transactionId, transactionDate, interestAmount);
         }
 
         if (feesAmount != null && feesAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -997,9 +973,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
                                 : chargePaymentDTO.getAmount(),
                         chargePaymentDTO.getLoanChargeId()));
             }
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, CashAccountsForLoan.INCOME_FROM_FEES.getValue(),
-                    CashAccountsForLoan.INCOME_FROM_FEES.getValue(), loanProductId, loanId, transactionId, transactionDate, feesAmount,
+                    loanProductId, loanId, transactionId, transactionDate, feesAmount, chargePaymentDTOs);
-                    !isReversal, chargePaymentDTOs);
         }
 
         if (penaltiesAmount != null && penaltiesAmount.compareTo(BigDecimal.ZERO) > 0) {
@@ -1013,20 +988,18 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
                         chargePaymentDTO.getLoanChargeId()));
             }
 
-            this.helper.createCreditJournalEntryOrReversalForLoanCharges(office, currencyCode,
+            this.helper.createDebitJournalEntryForLoanCharges(office, currencyCode, CashAccountsForLoan.INCOME_FROM_PENALTIES.getValue(),
-                    CashAccountsForLoan.INCOME_FROM_PENALTIES.getValue(), loanProductId, loanId, transactionId, transactionDate,
+                    loanProductId, loanId, transactionId, transactionDate, penaltiesAmount, chargePaymentDTOs);
-                    penaltiesAmount, !isReversal, chargePaymentDTOs);
         }
 
         if (overPaymentAmount != null && overPaymentAmount.compareTo(BigDecimal.ZERO) > 0) {
             totalDebitAmount = totalDebitAmount.add(overPaymentAmount);
-            this.helper.createCreditJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT, loanProductId,
+            this.helper.createDebitJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
-                    paymentTypeId, loanId, transactionId, transactionDate, overPaymentAmount, !isReversal);
+                    paymentTypeId, loanId, transactionId, transactionDate, overPaymentAmount);
         }
 
         /*** create a single debit entry (or reversal) for the entire amount **/
-        this.helper.createDebitJournalEntryOrReversalForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(),
+        this.helper.createCreditJournalEntryForLoan(office, currencyCode, CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId,
-                loanProductId, paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount, !isReversal);
+                paymentTypeId, loanId, transactionId, transactionDate, totalDebitAmount);
-
     }
 }

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/JournalEntryWritePlatformService.java

@@ -39,6 +39,8 @@ public interface JournalEntryWritePlatformService {
 
     CommandProcessingResult defineOpeningBalance(JsonCommand command);
 
+    void createJournalEntryForReversedLoanTransaction(LocalDate transactionDate, String loanTransactionId, Long officeId);
+
     String revertProvisioningJournalEntries(LocalDate reversalTransactionDate, Long entityId, Integer entityType);
 
     String createProvisioningJournalEntries(ProvisioningEntry entry);

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/JournalEntryWritePlatformServiceJpaRepositoryImpl.java

@@ -298,6 +298,28 @@ public class JournalEntryWritePlatformServiceJpaRepositoryImpl implements Journa
         return new CommandProcessingResultBuilder().withTransactionId(reversalTransactionId).build();
     }
 
+    @Override
+    public void createJournalEntryForReversedLoanTransaction(final LocalDate transactionDate, final String loanTransactionId,
+            final Long officeId) {
+        final GLClosure latestGLClosure = this.helper.getLatestClosureByBranch(officeId);
+        this.helper.checkForBranchClosures(latestGLClosure, transactionDate);
+        final String transactionId = AccountingProcessorHelper.LOAN_TRANSACTION_IDENTIFIER + loanTransactionId;
+        final List<JournalEntry> journalEntries = this.glJournalEntryRepository.findJournalEntries(transactionId,
+                PortfolioProductType.LOAN.getValue());
+        if (journalEntries == null || journalEntries.isEmpty()) {
+            return;
+        }
+        for (final JournalEntry journalEntry : journalEntries) {
+            final JournalEntry reversalJournalEntry = JournalEntry.createNew(journalEntry.getOffice(), journalEntry.getPaymentDetail(),
+                    journalEntry.getGlAccount(), journalEntry.getCurrencyCode(), transactionId, Boolean.FALSE, transactionDate,
+                    journalEntry.isDebitEntry() ? JournalEntryType.CREDIT : JournalEntryType.DEBIT, journalEntry.getAmount(),
+                    journalEntry.getDescription(), journalEntry.getEntityType(), journalEntry.getEntityId(),
+                    journalEntry.getReferenceNumber(), journalEntry.getLoanTransactionId(), journalEntry.getSavingsTransactionId(),
+                    journalEntry.getClientTransactionId(), journalEntry.getShareTransactionId());
+            helper.persistJournalEntry(reversalJournalEntry);
+        }
+    }
+
     public String revertJournalEntry(final List<JournalEntry> journalEntries, String reversalComment) {
         final Long officeId = journalEntries.get(0).getOffice().getId();
         final String reversalTransactionId = generateTransactionId(officeId);

fineract-provider/src/test/java/org/apache/fineract/accounting/journalentry/CreateJournalEntriesForChargeOffLoanTest.java

@@ -99,12 +99,11 @@ class CreateJournalEntriesForChargeOffLoanTest {
 
         verify(helper, times(1)).getChargeOffMappingByCodeValue(1L, PortfolioProductType.LOAN, chargeOffReasonId);
         verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L);
-        verify(helper, times(1)).createCreditJournalEntryOrReversalForLoan(helper.getOfficeById(1L), "USD",
+        verify(helper, times(1)).createCreditJournalEntryForLoan(helper.getOfficeById(1L), "USD", AccrualAccountsForLoan.LOAN_PORTFOLIO, 1L,
-                AccrualAccountsForLoan.LOAN_PORTFOLIO, 1L, null, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()),
+                null, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()), new BigDecimal("500.00"));
-                new BigDecimal("500.00"), false);
+        verify(helper, times(1)).createDebitJournalEntryForLoan(helper.getOfficeById(1L), "USD",
-        verify(helper, times(1)).createDebitJournalEntryOrReversalForLoan(helper.getOfficeById(1L), "USD",
                 AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), 1L, null, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()),
-                new BigDecimal("500.00"), false);
+                new BigDecimal("500.00"));
     }
 
     @Test