FINERACT-2042 Credit Allocation for Principal and Interest components

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

@@ -61,6 +61,8 @@ import org.apache.fineract.client.models.PostLoansLoanIdChargesResponse;
 import org.apache.fineract.client.models.PostLoansLoanIdRequest;
 import org.apache.fineract.client.models.PostLoansLoanIdResponse;
 import org.apache.fineract.client.models.PostLoansLoanIdTransactionsRequest;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdTransactionsTransactionIdRequest;
 import org.apache.fineract.client.models.PostLoansRequest;
 import org.apache.fineract.client.models.PostLoansResponse;
 import org.apache.fineract.client.util.CallFailedRuntimeException;
@@ -335,7 +337,7 @@ public abstract class BaseLoanIntegrationTest {
                         && Objects.equals(item.getPenaltyChargesPortion(), tr.penaltyPortion) //
                         && Objects.equals(item.getUnrecognizedIncomePortion(), tr.unrecognizedPortion) //
                 );
-                Assertions.assertTrue(found, "Required transaction  not found: " + tr);
+                Assertions.assertTrue(found, "Required transaction not found: " + tr);
             });
         }
     }
@@ -414,6 +416,14 @@ public abstract class BaseLoanIntegrationTest {
                             "%d. installment's fee charges due is different, expected: %.2f, actual: %.2f".formatted(i, feeAmount, feeDue));
                 }
 
+                Double penaltyAmount = installments[i].penaltyAmount;
+                Double penaltyDue = period.getPenaltyChargesDue();
+                if (penaltyAmount != null) {
+                    Assertions.assertEquals(penaltyAmount, penaltyDue,
+                            "%d. installment's penalty charges due is different, expected: %.2f, actual: %.2f".formatted(i, penaltyAmount,
+                                    penaltyDue));
+                }
+
                 Double outstandingAmount = installments[i].totalOutstandingAmount;
                 Double totalOutstanding = period.getTotalOutstandingForPeriod();
                 if (outstandingAmount != null) {
@@ -497,10 +507,17 @@ public abstract class BaseLoanIntegrationTest {
         return applyAndApproveLoan(clientId, loanProductId, loanDisbursementDate, amount, 1);
     }
 
-    protected void addRepaymentForLoan(Long loanId, Double amount, String date) {
+    protected Long addRepaymentForLoan(Long loanId, Double amount, String date) {
         String firstRepaymentUUID = UUID.randomUUID().toString();
-        loanTransactionHelper.makeLoanRepayment(loanId, new PostLoansLoanIdTransactionsRequest().dateFormat(DATETIME_PATTERN)
-                .transactionDate(date).locale("en").transactionAmount(amount).externalId(firstRepaymentUUID));
+        PostLoansLoanIdTransactionsResponse response = loanTransactionHelper.makeLoanRepayment(loanId,
+                new PostLoansLoanIdTransactionsRequest().dateFormat(DATETIME_PATTERN).transactionDate(date).locale("en")
+                        .transactionAmount(amount).externalId(firstRepaymentUUID));
+        return response.getResourceId();
+    }
+
+    protected void addChargebackForLoan(Long loanId, Long transactionId, Double amount) {
+        loanTransactionHelper.chargebackLoanTransaction(loanId, transactionId,
+                new PostLoansLoanIdTransactionsTransactionIdRequest().locale("en").transactionAmount(amount).paymentTypeId(1L));
     }
 
     protected PostChargesResponse createCharge(Double amount) {
@@ -538,17 +555,22 @@ public abstract class BaseLoanIntegrationTest {
     }
 
     protected Installment installment(double principalAmount, Boolean completed, String dueDate) {
-        return new Installment(principalAmount, null, null, null, completed, dueDate);
+        return new Installment(principalAmount, null, null, null, null, completed, dueDate);
     }
 
     protected Installment installment(double principalAmount, double interestAmount, double totalOutstandingAmount, Boolean completed,
             String dueDate) {
-        return new Installment(principalAmount, interestAmount, null, totalOutstandingAmount, completed, dueDate);
+        return new Installment(principalAmount, interestAmount, null, null, totalOutstandingAmount, completed, dueDate);
     }
 
     protected Installment installment(double principalAmount, double interestAmount, double feeAmount, double totalOutstandingAmount,
             Boolean completed, String dueDate) {
-        return new Installment(principalAmount, interestAmount, feeAmount, totalOutstandingAmount, completed, dueDate);
+        return new Installment(principalAmount, interestAmount, feeAmount, null, totalOutstandingAmount, completed, dueDate);
+    }
+
+    protected Installment installment(double principalAmount, double interestAmount, double feeAmount, double penaltyAmount,
+            double totalOutstandingAmount, Boolean completed, String dueDate) {
+        return new Installment(principalAmount, interestAmount, feeAmount, penaltyAmount, totalOutstandingAmount, completed, dueDate);
     }
 
     protected BatchRequestBuilder batchRequest() {
@@ -655,6 +677,7 @@ public abstract class BaseLoanIntegrationTest {
         Double principalAmount;
         Double interestAmount;
         Double feeAmount;
+        Double penaltyAmount;
         Double totalOutstandingAmount;
         Boolean completed;
         String dueDate;

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

@@ -0,0 +1,418 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.integrationtests;
+
+import java.math.BigDecimal;
+import java.util.Arrays;
+import java.util.List;
+import java.util.concurrent.atomic.AtomicInteger;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.client.models.AdvancedPaymentData;
+import org.apache.fineract.client.models.CreditAllocationData;
+import org.apache.fineract.client.models.CreditAllocationOrder;
+import org.apache.fineract.client.models.PaymentAllocationOrder;
+import org.apache.fineract.client.models.PostLoanProductsRequest;
+import org.apache.fineract.client.models.PostLoanProductsResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdResponse;
+import org.apache.fineract.client.models.PostLoansRequest;
+import org.apache.fineract.client.models.PostLoansResponse;
+import org.apache.fineract.integrationtests.common.ClientHelper;
+import org.apache.fineract.integrationtests.common.loans.LoanTestLifecycleExtension;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
+import org.apache.fineract.portfolio.loanproduct.domain.PaymentAllocationType;
+import org.jetbrains.annotations.Nullable;
+import org.junit.jupiter.api.Disabled;
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.extension.ExtendWith;
+
+@Slf4j
+@ExtendWith(LoanTestLifecycleExtension.class)
+public class LoanChargebackWithCreditAllocationsIntegrationTests extends BaseLoanIntegrationTest {
+
+    @Test
+    public void createLoanWithCreditAllocationAndChargebackPenaltyFeeInterestAndPrincipal() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(charbackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 20 penalty + 50 fee + 0 interest + 30
+                                                                       // principal
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 1037.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 50, 20, 30.0, false, "01 February 2023"), // TODO: we still need to add the
+                                                                                    // fee and the penalty to the
+                                                                                    // outstanding
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+        });
+    }
+
+    @Test
+    public void createLoanWithCreditAllocationAndChargebackPenaltyFeeInterestAndPrincipalOnNPlusOneInstallment() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(charbackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date + and make a full repayment for the first installment
+            updateBusinessDate("20 January 2023");
+            addRepaymentForLoan(loanId, 313.0, "20 January 2023");
+
+            // Update Business Date + and make a full repayment for the second installment
+            updateBusinessDate("20 February 2023");
+            addRepaymentForLoan(loanId, 313.0, "20 February 2023");
+
+            // Update Business Date + and make a full repayment for the third installment
+            updateBusinessDate("20 March 2023");
+            addRepaymentForLoan(loanId, 313.0, "20 March 2023");
+
+            // Add some charges Update Business Date + and make a full repayment for the fourth installment
+            updateBusinessDate("20 April 2023");
+            addCharge(loanId, false, 50, "20 April 2023");
+            addCharge(loanId, true, 20, "20 April 2023");
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 381.0, "20 April 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 50, 20, 0.0, true, "01 May 2023") //
+            );
+
+            // Let's move over the maturity date and chargeback some money
+            updateBusinessDate("02 May 2023");
+
+            // Add Chargeback, 20 penalty + 50 fee + 0 interest + 30 principal
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0);
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(313.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(313.0, "Repayment", "20 February 2023", 624.0, 313.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(313.0, "Repayment", "20 March 2023", 311.0, 313.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(381.0, "Repayment", "20 April 2023", 0.0, 311.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(70.0, "Accrual", "20 April 2023", 0.0, 0.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "02 May 2023", 100.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 0.0, true, "01 April 2023"), //
+                    installment(311.0, 0, 50, 20, 0.0, true, "01 May 2023"), //
+                    installment(30.0, 0, 0, 0, 30.0, false, "02 May 2023") // TODO: fee and penalty must be added here
+                                                                           // after chargeback
+            );
+        });
+    }
+
+    @Test
+    @Disabled
+    public void createLoanWithCreditAllocationAndChargebackReverseReplayWithBackdatedPayment() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(charbackAllocation("PENALTY", "FEE", "INTEREST", "PRINCIPAL"));
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "15 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            updateBusinessDate("21 January 2023");
+
+            // Add Chargeback20 penalty + 50 fee + 0 interest + 30 principal
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0);
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 1037.0, 30.0, 0.0, 50.0, 20.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(343.0, 0, 50, 20, 30.0, false, "01 February 2023"), // TODO: we still need to add the
+                    // fee and the penalty to the
+                    // outstanding
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // let's add a backdated repayment on 19th of January reverse replaying the chargeback
+            addRepaymentForLoan(loanId, 200.0, "19 January 2023");
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(200.0, "Repayment", "19 January 2023", 1120.0, 130.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 737.0, 383.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "21 January 2023", 937.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+        });
+    }
+
+    @Test
+    public void createLoanWithCreditAllocationAndChargebackPrincipalInterestFeePenalty() {
+        runAt("01 January 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProduct(charbackAllocation("PRINCIPAL", "INTEREST", "FEE", "PENALTY"));
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId);
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1250.0), "01 January 2023");
+
+            // Add Charges
+            Long feeId = addCharge(loanId, false, 50, "15 January 2023");
+            Long penaltyId = addCharge(loanId, true, 20, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 383.0, false, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Update Business Date
+            updateBusinessDate("20 January 2023");
+
+            // Add Repayment
+            Long repaymentTransaction = addRepaymentForLoan(loanId, 383.0, "20 January 2023");
+
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(313.0, 0, 50, 20, 0.0, true, "01 February 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+
+            // Add Chargeback
+            addChargebackForLoan(loanId, repaymentTransaction, 100.0); // 100 principal, 0 interest, 0 fee 0 penalty
+
+            verifyTransactions(loanId, //
+                    transaction(1250.0, "Disbursement", "01 January 2023", 1250.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0), //
+                    transaction(383.0, "Repayment", "20 January 2023", 937.0, 313.0, 0.0, 50.0, 20.0, 0.0, 0.0), //
+                    transaction(100.0, "Chargeback", "20 January 2023", 1037.0, 100.0, 0.0, 0.0, 0.0, 0.0, 0.0) //
+            );
+
+            // Verify Repayment Schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 January 2023"), //
+                    installment(413.0, 0, 50, 20, 100.0, false, "01 February 2023"), // TODO: we still need to add the
+                    // fee and the penalty to the
+                    // outstanding
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 March 2023"), //
+                    installment(313.0, 0, 0, 0, 313.0, false, "01 April 2023"), //
+                    installment(311.0, 0, 0, 0, 311.0, false, "01 May 2023") //
+            );
+        });
+    }
+
+    @Nullable
+    private Long applyAndApproveLoan(Long clientId, Long loanProductId) {
+        PostLoansRequest applicationRequest = applyLoanRequest(clientId, loanProductId, "01 January 2023", 1250.0, 4)//
+                .repaymentEvery(1)//
+                .loanTermFrequency(4)//
+                .repaymentFrequencyType(RepaymentFrequencyType.MONTHS)//
+                .loanTermFrequencyType(RepaymentFrequencyType.MONTHS)//
+                .transactionProcessingStrategyCode("advanced-payment-allocation-strategy");
+
+        PostLoansResponse postLoansResponse = loanTransactionHelper.applyLoan(applicationRequest);
+
+        PostLoansLoanIdResponse approvedLoanResult = loanTransactionHelper.approveLoan(postLoansResponse.getResourceId(),
+                approveLoanRequest(1250.0, "01 January 2023"));
+
+        Long loanId = approvedLoanResult.getLoanId();
+        return loanId;
+    }
+
+    public Long createLoanProduct(CreditAllocationData... creditAllocationData) {
+        PostLoanProductsRequest postLoanProductsRequest = loanProductWithAdvancedPaymentAllocationWith4Installments(creditAllocationData);
+        PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(postLoanProductsRequest);
+        return loanProductResponse.getResourceId();
+    }
+
+    private PostLoanProductsRequest loanProductWithAdvancedPaymentAllocationWith4Installments(
+            CreditAllocationData... creditAllocationData) {
+        return createOnePeriod30DaysLongNoInterestPeriodicAccrualProduct().numberOfRepayments(4)//
+                .repaymentEvery(1)//
+                .repaymentFrequencyType(RepaymentFrequencyType.MONTHS.longValue())//
+                .loanScheduleType(LoanScheduleType.PROGRESSIVE.toString()) //
+                .loanScheduleProcessingType(LoanScheduleProcessingType.VERTICAL.toString()) //
+                .transactionProcessingStrategyCode("advanced-payment-allocation-strategy")
+                .paymentAllocation(List.of(createDefaultPaymentAllocation(), createRepaymentPaymentAllocation()))
+                .creditAllocation(Arrays.asList(creditAllocationData));
+    }
+
+    private AdvancedPaymentData createDefaultPaymentAllocation() {
+        AdvancedPaymentData advancedPaymentData = new AdvancedPaymentData();
+        advancedPaymentData.setTransactionType("DEFAULT");
+        advancedPaymentData.setFutureInstallmentAllocationRule("NEXT_INSTALLMENT");
+
+        List<PaymentAllocationOrder> paymentAllocationOrders = getPaymentAllocationOrder(PaymentAllocationType.PAST_DUE_PENALTY,
+                PaymentAllocationType.PAST_DUE_FEE, PaymentAllocationType.PAST_DUE_PRINCIPAL, PaymentAllocationType.PAST_DUE_INTEREST,
+                PaymentAllocationType.DUE_PENALTY, PaymentAllocationType.DUE_FEE, PaymentAllocationType.DUE_PRINCIPAL,
+                PaymentAllocationType.DUE_INTEREST, PaymentAllocationType.IN_ADVANCE_PENALTY, PaymentAllocationType.IN_ADVANCE_FEE,
+                PaymentAllocationType.IN_ADVANCE_PRINCIPAL, PaymentAllocationType.IN_ADVANCE_INTEREST);
+
+        advancedPaymentData.setPaymentAllocationOrder(paymentAllocationOrders);
+        return advancedPaymentData;
+    }
+
+    private AdvancedPaymentData createRepaymentPaymentAllocation() {
+        AdvancedPaymentData advancedPaymentData = new AdvancedPaymentData();
+        advancedPaymentData.setTransactionType("REPAYMENT");
+        advancedPaymentData.setFutureInstallmentAllocationRule("NEXT_INSTALLMENT");
+
+        List<PaymentAllocationOrder> paymentAllocationOrders = getPaymentAllocationOrder(PaymentAllocationType.PAST_DUE_PENALTY,
+                PaymentAllocationType.PAST_DUE_FEE, PaymentAllocationType.PAST_DUE_INTEREST, PaymentAllocationType.PAST_DUE_PRINCIPAL,
+                PaymentAllocationType.DUE_PENALTY, PaymentAllocationType.DUE_FEE, PaymentAllocationType.DUE_INTEREST,
+                PaymentAllocationType.DUE_PRINCIPAL, PaymentAllocationType.IN_ADVANCE_PENALTY, PaymentAllocationType.IN_ADVANCE_FEE,
+                PaymentAllocationType.IN_ADVANCE_PRINCIPAL, PaymentAllocationType.IN_ADVANCE_INTEREST);
+
+        advancedPaymentData.setPaymentAllocationOrder(paymentAllocationOrders);
+        return advancedPaymentData;
+    }
+
+    private CreditAllocationData charbackAllocation(String... allocationRules) {
+        CreditAllocationData creditAllocationData = new CreditAllocationData();
+        creditAllocationData.setTransactionType("CHARGEBACK");
+        creditAllocationData.setCreditAllocationOrder(createCreditAllocationOrders(allocationRules));
+        return creditAllocationData;
+    }
+
+    public List<CreditAllocationOrder> createCreditAllocationOrders(String... allocationRule) {
+        AtomicInteger integer = new AtomicInteger(1);
+        return Arrays.stream(allocationRule).map(allocation -> {
+            CreditAllocationOrder creditAllocationOrder = new CreditAllocationOrder();
+            creditAllocationOrder.setCreditAllocationRule(allocation);
+            creditAllocationOrder.setOrder(integer.getAndIncrement());
+            return creditAllocationOrder;
+        }).toList();
+    }
+
+    private List<PaymentAllocationOrder> getPaymentAllocationOrder(PaymentAllocationType... paymentAllocationTypes) {
+        AtomicInteger integer = new AtomicInteger(1);
+        return Arrays.stream(paymentAllocationTypes).map(pat -> {
+            PaymentAllocationOrder paymentAllocationOrder = new PaymentAllocationOrder();
+            paymentAllocationOrder.setPaymentAllocationRule(pat.name());
+            paymentAllocationOrder.setOrder(integer.getAndIncrement());
+            return paymentAllocationOrder;
+        }).toList();
+    }
+
+}

integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanTransactionHelper.java

@@ -744,6 +744,11 @@ public class LoanTransactionHelper extends IntegrationTest {
         return ok(fineract().loanTransactions.adjustLoanTransaction1(loanId, transactionExternalId, request, "undo"));
     }
 
+    public PostLoansLoanIdTransactionsResponse chargebackLoanTransaction(final Long loanId, final Long transactionId,
+            final PostLoansLoanIdTransactionsTransactionIdRequest request) {
+        return ok(fineract().loanTransactions.adjustLoanTransaction(loanId, transactionId, request, "chargeback"));
+    }
+
     public PostLoansLoanIdTransactionsResponse chargebackLoanTransaction(final String loanExternalId, final Long transactionId,
             final PostLoansLoanIdTransactionsTransactionIdRequest request) {
         return ok(fineract().loanTransactions.adjustLoanTransaction2(loanExternalId, transactionId, request, "chargeback"));