Credit Balance Refund loan transaction

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

@@ -80,6 +80,11 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
                 createJournalEntriesForRefund(loanDTO, loanTransactionDTO, office);
             }
 
+            /** Logic for Credit Balance Refunds **/
+            else if (loanTransactionDTO.getTransactionType().isCreditBalanceRefund()) {
+                createJournalEntriesForCreditBalanceRefund(loanDTO, loanTransactionDTO, office);
+            }
+
             /** Handle Write Offs, waivers and their reversals **/
             else if ((loanTransactionDTO.getTransactionType().isWriteOff() || loanTransactionDTO.getTransactionType().isWaiveInterest()
                     || loanTransactionDTO.getTransactionType().isWaiveCharges())) {
@@ -397,6 +402,25 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
     }
 
+    private void createJournalEntriesForCreditBalanceRefund(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
+            final Office office) {
+        // loan properties
+        final Long loanProductId = loanDTO.getLoanProductId();
+        final Long loanId = loanDTO.getLoanId();
+        final String currencyCode = loanDTO.getCurrencyCode();
+
+        // transaction properties
+        final String transactionId = loanTransactionDTO.getTransactionId();
+        final Date transactionDate = loanTransactionDTO.getTransactionDate();
+        final BigDecimal refundAmount = loanTransactionDTO.getAmount();
+        final boolean isReversal = loanTransactionDTO.isReversed();
+        final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
+
+        this.helper.createAccrualBasedJournalEntriesAndReversalsForLoan(office, currencyCode,
+                AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), AccrualAccountsForLoan.OVERPAYMENT.getValue(), loanProductId,
+                paymentTypeId, loanId, transactionId, transactionDate, refundAmount, isReversal);
+    }
+
     private void createJournalEntriesForRefundForActiveLoan(LoanDTO loanDTO, LoanTransactionDTO loanTransactionDTO, Office office) {
         // TODO Auto-generated method stub
         // loan properties

fineract-provider/src/main/java/org/apache/fineract/commands/service/CommandWrapperBuilder.java

@@ -878,6 +878,15 @@ public class CommandWrapperBuilder {
         return this;
     }
 
+    public CommandWrapperBuilder creditBalanceRefund(final Long loanId) {
+        this.actionName = "CREDITBALANCEREFUND";
+        this.entityName = "LOAN";
+        this.entityId = null;
+        this.loanId = loanId;
+        this.href = "/loans/" + loanId + "/transactions?command=creditBalanceRefund";
+        return this;
+    }
+
     public CommandWrapperBuilder undoWaiveChargeTransaction(final Long loanId, final Long transactionId) {
         this.actionName = "UNDO";
         this.entityName = "WAIVECHARGE";

fineract-provider/src/main/java/org/apache/fineract/portfolio/common/BusinessEventNotificationConstants.java

@@ -55,6 +55,7 @@ public class BusinessEventNotificationConstants {
         LOAN_INTEREST_RECALCULATION("loan_interest_recalculation"), //
         LOAN_REFUND("loan_refund"), //
         LOAN_FORECLOSURE("loan_foreclosure"), //
+        LOAN_CREDIT_BALANCE_REFUND("loan_credit_balance_refund"), //
         LOAN_CREATE("loan_create"), //
         LOAN_PRODUCT_CREATE("loan_product_create"), //
         SAVINGS_ACTIVATE("savings_activated"), //

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoanTransactionsApiResource.java

@@ -164,6 +164,8 @@ public class LoanTransactionsApiResource {
                         DateUtils.getDateTimeZoneOfTenant());
             }
             transactionData = this.loanReadPlatformService.retrieveLoanForeclosureTemplate(loanId, transactionDate);
+        } else if (is(commandParam, "creditBalanceRefund")) {
+            transactionData = this.loanReadPlatformService.retrieveCreditBalanceRefundTemplate(loanId);
         } else {
             throw new UnrecognizedQueryParamException("command", commandParam);
         }
@@ -239,6 +241,9 @@ public class LoanTransactionsApiResource {
         } else if (is(commandParam, "foreclosure")) {
             final CommandWrapper commandRequest = builder.loanForeclosure(loanId).build();
             result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
+        } else if (is(commandParam, "creditBalanceRefund")) {
+            final CommandWrapper commandRequest = builder.creditBalanceRefund(loanId).build();
+            result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
         }
 
         if (result == null) {

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/data/LoanTransactionEnumData.java

@@ -44,6 +44,7 @@ public class LoanTransactionEnumData {
     private final boolean chargePayment;
     private final boolean refund;
     private final boolean refundForActiveLoans;
+    private final boolean creditBalanceRefund;
 
     public LoanTransactionEnumData(final Long id, final String code, final String value) {
         this.id = id;
@@ -65,6 +66,7 @@ public class LoanTransactionEnumData {
         this.refund = Long.valueOf(16).equals(this.id);
         this.chargePayment = Long.valueOf(17).equals(this.id);
         this.refundForActiveLoans = Long.valueOf(18).equals(this.id);
+        this.creditBalanceRefund = Long.valueOf(20).equals(this.id);
     }
 
     public Long id() {
@@ -152,4 +154,8 @@ public class LoanTransactionEnumData {
         return this.refundForActiveLoans;
     }
 
+    public boolean isCreditBalanceRefund() {
+        return this.creditBalanceRefund;
+    }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/DefaultLoanLifecycleStateMachine.java

@@ -106,6 +106,8 @@ public class DefaultLoanLifecycleStateMachine implements LoanLifecycleStateMachi
             break;
             case WRITE_OFF_OUTSTANDING_UNDO:
             break;
+            case LOAN_CREDIT_BALANCE_REFUND:
+            break;
             default:
             break;
         }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java

@@ -3615,10 +3615,11 @@ public class Loan extends AbstractPersistableCustom {
         validateActivityNotBeforeClientOrGroupTransferDate(LoanEvent.LOAN_REPAYMENT_OR_WAIVER,
                 transactionForAdjustment.getTransactionDate());
 
-        if (transactionForAdjustment.isNotRepayment() && transactionForAdjustment.isNotWaiver()) {
-            final String errorMessage = "Only transactions of type repayment or waiver can be adjusted.";
-            throw new InvalidLoanTransactionTypeException("transaction", "adjustment.is.only.allowed.to.repayment.or.waiver.transaction",
-                    errorMessage);
+        if (transactionForAdjustment.isNotRepayment() && transactionForAdjustment.isNotWaiver()
+                && transactionForAdjustment.isNotCreditBalanceRefund()) {
+            final String errorMessage = "Only transactions of type repayment, waiver or credit balance refund can be adjusted.";
+            throw new InvalidLoanTransactionTypeException("transaction",
+                    "adjustment.is.only.allowed.to.repayment.or.waiver.or.creditbalancerefund.transactions", errorMessage);
         }
 
         transactionForAdjustment.reverse();
@@ -3698,7 +3699,8 @@ public class Loan extends AbstractPersistableCustom {
         }
 
         for (final LoanTransaction loanTransaction : this.loanTransactions) {
-            if ((loanTransaction.isRefund() || loanTransaction.isRefundForActiveLoan()) && !loanTransaction.isReversed()) {
+            if ((loanTransaction.isRefund() || loanTransaction.isRefundForActiveLoan() || loanTransaction.isCreditBalanceRefund())
+                    && !loanTransaction.isReversed()) {
                 totalPaidInRepayments = totalPaidInRepayments.minus(loanTransaction.getAmount(currency));
             }
         }
@@ -5157,6 +5159,14 @@ public class Loan extends AbstractPersistableCustom {
                     dataValidationErrors.add(error);
                 }
             break;
+            case LOAN_CREDIT_BALANCE_REFUND:
+                if (!status().isOverpaid()) {
+                    final String defaultUserMessage = "Loan Credit Balance Refund is not allowed. Loan Account is not Overpaid.";
+                    final ApiParameterError error = ApiParameterError
+                            .generalError("error.msg.loan.credit.balance.refund.account.is.not.overpaid", defaultUserMessage);
+                    dataValidationErrors.add(error);
+                }
+            break;
             default:
             break;
         }
@@ -6062,6 +6072,40 @@ public class Loan extends AbstractPersistableCustom {
         return this.guaranteeAmountDerived == null ? BigDecimal.ZERO : this.guaranteeAmountDerived;
     }
 
+    public void creditBalanceRefund(LoanTransaction newCreditBalanceRefundTransaction,
+            LoanLifecycleStateMachine defaultLoanLifecycleStateMachine, List<Long> existingTransactionIds,
+            List<Long> existingReversedTransactionIds) {
+        validateAccountStatus(LoanEvent.LOAN_CREDIT_BALANCE_REFUND);
+
+        validateRefundDateIsAfterLastRepayment(newCreditBalanceRefundTransaction.getTransactionDate());
+
+        if (!newCreditBalanceRefundTransaction.isGreaterThanZeroAndLessThanOrEqualTo(this.totalOverpaid)) {
+            final String errorMessage = "Transaction Amount ("
+                    + newCreditBalanceRefundTransaction.getAmount(getCurrency()).getAmount().toString()
+                    + ") must be > zero and <= Overpaid amount (" + this.totalOverpaid.toString() + ").";
+            final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
+            final ApiParameterError error = ApiParameterError.parameterError(
+                    "error.msg.transactionAmount.invalid.must.be.>zero.and<=overpaidamount", errorMessage, "transactionAmount",
+                    newCreditBalanceRefundTransaction.getAmount(getCurrency()));
+            dataValidationErrors.add(error);
+
+            throw new PlatformApiDataValidationException("validation.msg.validation.errors.exist", "Validation errors exist.",
+                    dataValidationErrors);
+        }
+
+        existingTransactionIds.addAll(findExistingTransactionIds());
+        existingReversedTransactionIds.addAll(findExistingReversedTransactionIds());
+
+        this.loanTransactions.add(newCreditBalanceRefundTransaction);
+
+        updateLoanSummaryDerivedFields();
+
+        if (this.totalOverpaid == null || BigDecimal.ZERO.compareTo(this.totalOverpaid) == 0) {
+            this.loanStatus = LoanStatus.CLOSED_OBLIGATIONS_MET.getValue();
+        }
+
+    }
+
     public ChangedTransactionDetail makeRefundForActiveLoan(final LoanTransaction loanTransaction,
             final LoanLifecycleStateMachine loanLifecycleStateMachine, final List<Long> existingTransactionIds,
             final List<Long> existingReversedTransactionIds, final boolean allowTransactionsOnHoliday, final List<Holiday> holidays,
@@ -6179,7 +6223,8 @@ public class Loan extends AbstractPersistableCustom {
 
         LocalDate lastTransactionDate = null;
         for (final LoanTransaction transaction : this.loanTransactions) {
-            if ((transaction.isRepayment() || transaction.isRefundForActiveLoan()) && transaction.isNonZero()) {
+            if ((transaction.isRepayment() || transaction.isRefundForActiveLoan() || transaction.isCreditBalanceRefund())
+                    && transaction.isNonZero() && transaction.isNotReversed()) {
                 lastTransactionDate = transaction.getTransactionDate();
             }
         }
@@ -6841,4 +6886,5 @@ public class Loan extends AbstractPersistableCustom {
     public void adjustNetDisbursalAmount(BigDecimal adjustedAmount) {
         this.netDisbursalAmount = adjustedAmount.subtract(this.deriveSumTotalOfChargesDueAtDisbursement());
     }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainService.java

@@ -78,4 +78,7 @@ public interface LoanAccountDomainService {
     void disableStandingInstructionsLinkedToClosedLoan(Loan loan);
 
     void recalculateAccruals(Loan loan, boolean isInterestCalcualtionHappened);
+
+    CommandProcessingResultBuilder creditBalanceRefund(Long loanId, LocalDate transactionDate, BigDecimal transactionAmount,
+            String noteText, String externalId);
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java

@@ -623,6 +623,41 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
         return user;
     }
 
+    @Override
+    public CommandProcessingResultBuilder creditBalanceRefund(Long loanId, LocalDate transactionDate, BigDecimal transactionAmount,
+            String noteText, String externalId) {
+        final Loan loan = this.loanAccountAssembler.assembleFrom(loanId);
+        this.businessEventNotifierService.notifyBusinessEventToBeExecuted(BusinessEvents.LOAN_CREDIT_BALANCE_REFUND,
+                constructEntityMap(BusinessEntity.LOAN, loan));
+        final List<Long> existingTransactionIds = new ArrayList<>();
+        final List<Long> existingReversedTransactionIds = new ArrayList<>();
+        AppUser currentUser = getAppUserIfPresent();
+
+        final Money refundAmount = Money.of(loan.getCurrency(), transactionAmount);
+        final LoanTransaction newCreditBalanceRefundTransaction = LoanTransaction.creditBalanceRefund(loan, loan.getOffice(), refundAmount,
+                transactionDate, externalId, DateUtils.getLocalDateTimeOfTenant(), currentUser);
+
+        loan.creditBalanceRefund(newCreditBalanceRefundTransaction, defaultLoanLifecycleStateMachine(), existingTransactionIds,
+                existingReversedTransactionIds);
+
+        this.loanTransactionRepository.saveAndFlush(newCreditBalanceRefundTransaction);
+
+        if (StringUtils.isNotBlank(noteText)) {
+            final Note note = Note.loanTransactionNote(loan, newCreditBalanceRefundTransaction, noteText);
+            this.noteRepository.save(note);
+        }
+
+        postJournalEntries(loan, existingTransactionIds, existingReversedTransactionIds, false);
+        recalculateAccruals(loan);
+        this.businessEventNotifierService.notifyBusinessEventWasExecuted(BusinessEvents.LOAN_CREDIT_BALANCE_REFUND,
+                constructEntityMap(BusinessEntity.LOAN_TRANSACTION, newCreditBalanceRefundTransaction));
+
+        return new CommandProcessingResultBuilder().withEntityId(newCreditBalanceRefundTransaction.getId()) //
+                .withOfficeId(loan.getOfficeId()) //
+                .withClientId(loan.getClientId()) //
+                .withGroupId(loan.getGroupId());
+    }
+
     @Override
     public LoanTransaction makeRefundForActiveLoan(Long accountId, CommandProcessingResultBuilder builderResult, LocalDate transactionDate,
             BigDecimal transactionAmount, PaymentDetail paymentDetail, String noteText, String txnExternalId) {
@@ -794,4 +829,5 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
             }
         }
     }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanEvent.java

@@ -43,5 +43,6 @@ public enum LoanEvent {
     LOAN_CLOSED, //
     LOAN_EDIT_MULTI_DISBURSE_DATE, //
     LOAN_REFUND, //
-    LOAN_FORECLOSURE;
+    LOAN_FORECLOSURE, //
+    LOAN_CREDIT_BALANCE_REFUND;
 }

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

@@ -297,6 +297,13 @@ public class LoanTransaction extends AbstractPersistableCustom {
         return applyCharge;
     }
 
+    public static LoanTransaction creditBalanceRefund(final Loan loan, final Office office, final Money amount, final LocalDate paymentDate,
+            final String externalId, final LocalDateTime createdDate, final AppUser appUser) {
+        final PaymentDetail paymentDetail = null;
+        return new LoanTransaction(loan, office, LoanTransactionType.CREDIT_BALANCE_REFUND, paymentDetail, amount.getAmount(), paymentDate,
+                externalId, createdDate, appUser);
+    }
+
     public static LoanTransaction refundForActiveLoan(final Office office, final Money amount, final PaymentDetail paymentDetail,
             final LocalDate paymentDate, final String externalId, final LocalDateTime createdDate, final AppUser appUser) {
         return new LoanTransaction(null, office, LoanTransactionType.REFUND_FOR_ACTIVE_LOAN, paymentDetail, amount.getAmount(), paymentDate,
@@ -573,6 +580,10 @@ public class LoanTransaction extends AbstractPersistableCustom {
         return !isInterestWaiver() && !isChargesWaiver();
     }
 
+    public boolean isNotCreditBalanceRefund() {
+        return !isCreditBalanceRefund();
+    }
+
     public boolean isChargePayment() {
         return getTypeOf().isChargePayment() && isNotReversed();
     }
@@ -616,6 +627,10 @@ public class LoanTransaction extends AbstractPersistableCustom {
         return getAmount(currency).isGreaterThanZero();
     }
 
+    public boolean isGreaterThanZeroAndLessThanOrEqualTo(BigDecimal totalOverpaid) {
+        return isNonZero() && this.amount.compareTo(totalOverpaid) <= 0;
+    }
+
     public boolean isNotZero(final MonetaryCurrency currency) {
         return !getAmount(currency).isZero();
     }
@@ -700,6 +715,10 @@ public class LoanTransaction extends AbstractPersistableCustom {
         return LoanTransactionType.REFUND.equals(getTypeOf()) && isNotReversed();
     }
 
+    public boolean isCreditBalanceRefund() {
+        return LoanTransactionType.CREDIT_BALANCE_REFUND.equals(getTypeOf()) && isNotReversed();
+    }
+
     public void updateExternalId(final String externalId) {
         this.externalId = externalId;
     }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanTransactionType.java

@@ -51,7 +51,8 @@ public enum LoanTransactionType {
     REFUND(16, "loanTransactionType.refund"), //
     CHARGE_PAYMENT(17, "loanTransactionType.chargePayment"), //
     REFUND_FOR_ACTIVE_LOAN(18, "loanTransactionType.refund"), //
-    INCOME_POSTING(19, "loanTransactionType.incomePosting");
+    INCOME_POSTING(19, "loanTransactionType.incomePosting"), //
+    CREDIT_BALANCE_REFUND(20, "loanTransactionType.creditBalanceRefund");
 
     private final Integer value;
     private final String code;
@@ -131,6 +132,9 @@ public enum LoanTransactionType {
             case 19:
                 loanTransactionType = LoanTransactionType.INCOME_POSTING;
             break;
+            case 20:
+                loanTransactionType = LoanTransactionType.CREDIT_BALANCE_REFUND;
+            break;
             default:
                 loanTransactionType = LoanTransactionType.INVALID;
             break;

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/handler/CreditBalanceRefundCommandHandler.java

@@ -0,0 +1,72 @@
+/**
+ * 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.portfolio.loanaccount.handler;
+
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.commands.annotation.CommandType;
+import org.apache.fineract.commands.handler.NewCommandSourceHandler;
+import org.apache.fineract.infrastructure.core.api.JsonCommand;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.infrastructure.core.exception.PlatformDataIntegrityException;
+import org.apache.fineract.portfolio.loanaccount.service.LoanWritePlatformService;
+import org.springframework.dao.DataIntegrityViolationException;
+import org.springframework.orm.jpa.JpaSystemException;
+import org.springframework.stereotype.Service;
+import org.springframework.transaction.annotation.Transactional;
+
+@Slf4j
+@RequiredArgsConstructor
+@Service
+@CommandType(entity = "LOAN", action = "CREDITBALANCEREFUND")
+public class CreditBalanceRefundCommandHandler implements NewCommandSourceHandler {
+
+    private final LoanWritePlatformService writePlatformService;
+
+    @Transactional
+    @Override
+    public CommandProcessingResult processCommand(final JsonCommand command) {
+
+        try {
+            return this.writePlatformService.creditBalanceRefund(command.getLoanId(), command);
+        } catch (final JpaSystemException | DataIntegrityViolationException dve) {
+            handleDataIntegrityIssues(command, dve.getMostSpecificCause(), dve, "loan.creditBalanceRefund", "Credit Balance Refund");
+            return CommandProcessingResult.empty();
+        }
+    }
+
+    private void handleDataIntegrityIssues(final JsonCommand command, final Throwable realCause, final Exception dve, final String msgType,
+            final String msgDescription) {
+
+        if (realCause.getMessage().contains("external_id")) {
+
+            final String externalId = command.stringValueOfParameterNamed("externalId");
+            throw new PlatformDataIntegrityException("error.msg." + msgType + ".duplicate.externalId",
+                    msgDescription + " with externalId `" + externalId + "` already exists", "externalId", externalId);
+        }
+
+        logAsErrorUnexpectedDataIntegrityException(dve);
+        throw new PlatformDataIntegrityException("error.msg.loan.charge.unknown.data.integrity.issue",
+                "Unknown data integrity issue with resource.");
+    }
+
+    private void logAsErrorUnexpectedDataIntegrityException(final Exception dve) {
+        log.error("Error occured.", dve);
+    }
+}

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/serialization/LoanEventApiJsonValidator.java

@@ -529,6 +529,9 @@ public final class LoanEventApiJsonValidator {
         final String note = this.fromApiJsonHelper.extractStringNamed("note", element);
         baseDataValidator.reset().parameter("note").value(note).notExceedingLengthOf(1000);
 
+        final String externalId = this.fromApiJsonHelper.extractStringNamed("externalId", element);
+        baseDataValidator.reset().parameter("externalId").value(externalId).notExceedingLengthOf(100);
+
         validatePaymentDetails(baseDataValidator, element);
         throwExceptionIfValidationWarningsExist(dataValidationErrors);
     }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformService.java

@@ -128,6 +128,8 @@ public interface LoanReadPlatformService {
 
     LoanTransactionData retrieveRefundByCashTemplate(Long loanId);
 
+    LoanTransactionData retrieveCreditBalanceRefundTemplate(Long loanId);
+
     Collection<InterestRatePeriodData> retrieveLoanInterestRatePeriodData(LoanAccountData loan);
 
     Collection<Long> retrieveLoanIdsWithPendingIncomePostingTransactions();

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformServiceImpl.java

@@ -2118,24 +2118,38 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService {
 
     @Override
     public LoanTransactionData retrieveRefundByCashTemplate(Long loanId) {
-        // TODO Auto-generated method stub
         this.context.authenticatedUser();
 
-        // TODO - KW - OPTIMIZE - write simple sql query to fetch back date of
-        // possible next transaction date.
+        final Collection<PaymentTypeData> paymentOptions = this.paymentTypeReadPlatformService.retrieveAllPaymentTypes();
         final Loan loan = this.loanRepositoryWrapper.findOneWithNotFoundDetection(loanId, true);
-        final MonetaryCurrency currency = loan.getCurrency();
+        return retrieveRefundTemplate(loanId, LoanTransactionType.REFUND_FOR_ACTIVE_LOAN, paymentOptions, loan.getCurrency(),
+                retrieveTotalPaidInAdvance(loan.getId()).getPaidInAdvance(), loan.getNetDisbursalAmount());
+    }
+
+    @Override
+    public LoanTransactionData retrieveCreditBalanceRefundTemplate(Long loanId) {
+        this.context.authenticatedUser();
+
+        final Collection<PaymentTypeData> paymentOptions = null;
+        final BigDecimal netDisbursal = null;
+        final Loan loan = this.loanRepositoryWrapper.findOneWithNotFoundDetection(loanId, true);
+        return retrieveRefundTemplate(loanId, LoanTransactionType.CREDIT_BALANCE_REFUND, paymentOptions, loan.getCurrency(),
+                loan.getTotalOverpaid(), netDisbursal);
+
+    }
+
+    private LoanTransactionData retrieveRefundTemplate(Long loanId, LoanTransactionType loanTransactionType,
+            Collection<PaymentTypeData> paymentOptions, MonetaryCurrency currency, BigDecimal transactionAmount, BigDecimal netDisbursal) {
+
         final ApplicationCurrency applicationCurrency = this.applicationCurrencyRepository.findOneWithNotFoundDetection(currency);
 
         final CurrencyData currencyData = applicationCurrency.toData();
 
-        final LocalDate earliestUnpaidInstallmentDate = LocalDate.now(DateUtils.getDateTimeZoneOfTenant());
+        final LocalDate currentDate = LocalDate.now(DateUtils.getDateTimeZoneOfTenant());
 
-        final LoanTransactionEnumData transactionType = LoanEnumerations.transactionType(LoanTransactionType.REFUND_FOR_ACTIVE_LOAN);
-        final Collection<PaymentTypeData> paymentOptions = this.paymentTypeReadPlatformService.retrieveAllPaymentTypes();
-        return new LoanTransactionData(null, null, null, transactionType, null, currencyData, earliestUnpaidInstallmentDate,
-                retrieveTotalPaidInAdvance(loan.getId()).getPaidInAdvance(), null, loan.getNetDisbursalAmount(), null, null, null, null,
-                null, paymentOptions, null, null, null, null, false);
+        final LoanTransactionEnumData transactionType = LoanEnumerations.transactionType(loanTransactionType);
+        return new LoanTransactionData(null, null, null, transactionType, null, currencyData, currentDate, transactionAmount, null,
+                netDisbursal, null, null, null, null, null, paymentOptions, null, null, null, null, false);
     }
 
     @Override

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformService.java

@@ -116,4 +116,6 @@ public interface LoanWritePlatformService {
 
     CommandProcessingResult makeGLIMLoanRepayment(Long loanId, JsonCommand command);
 
+    CommandProcessingResult creditBalanceRefund(Long loanId, JsonCommand command);
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java

@@ -3213,10 +3213,40 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         return installments;
     }
 
+    @Override
+    public CommandProcessingResult creditBalanceRefund(Long loanId, JsonCommand command) {
+        this.loanEventApiJsonValidator.validateNewRefundTransaction(command.json());
+
+        final LocalDate transactionDate = command.localDateValueOfParameterNamed("transactionDate");
+        final BigDecimal transactionAmount = command.bigDecimalValueOfParameterNamed("transactionAmount");
+        final String noteText = command.stringValueOfParameterNamedAllowingNull("note");
+        final String externalId = command.stringValueOfParameterNamedAllowingNull("externalId");
+
+        final Map<String, Object> changes = new LinkedHashMap<>();
+        changes.put("transactionDate", command.stringValueOfParameterNamed("transactionDate"));
+        changes.put("transactionAmount", command.stringValueOfParameterNamed("transactionAmount"));
+        changes.put("locale", command.locale());
+        changes.put("dateFormat", command.dateFormat());
+
+        if (StringUtils.isNotBlank(noteText)) {
+            changes.put("note", noteText);
+        }
+        if (StringUtils.isNotBlank(externalId)) {
+            changes.put("externalId", externalId);
+        }
+
+        final CommandProcessingResultBuilder commandProcessingResultBuilder = this.loanAccountDomainService.creditBalanceRefund(loanId,
+                transactionDate, transactionAmount, noteText, externalId);
+
+        return commandProcessingResultBuilder //
+                .withCommandId(command.commandId()).with(changes) //
+                .build();
+
+    }
+
     @Override
     @Transactional
     public CommandProcessingResult makeLoanRefund(Long loanId, JsonCommand command) {
-        // TODO Auto-generated method stub
 
         this.loanEventApiJsonValidator.validateNewRefundTransaction(command.json());
 
@@ -3400,4 +3430,5 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
         }
 
     }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanproduct/service/LoanEnumerations.java

@@ -411,6 +411,10 @@ public final class LoanEnumerations {
                 optionData = new LoanTransactionEnumData(LoanTransactionType.INCOME_POSTING.getValue().longValue(),
                         LoanTransactionType.INCOME_POSTING.getCode(), "Income Posting");
             break;
+            case CREDIT_BALANCE_REFUND:
+                optionData = new LoanTransactionEnumData(LoanTransactionType.CREDIT_BALANCE_REFUND.getValue().longValue(),
+                        LoanTransactionType.CREDIT_BALANCE_REFUND.getCode(), "Credit Balance Refund");
+            break;
         }
         return optionData;
     }

fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml

@@ -30,4 +30,5 @@
     <include file="parts/0008_loan_charge_add_external_id.xml" relativeToChangelogFile="true"/>
     <include file="parts/0009_hold_reason_savings_account.xml" relativeToChangelogFile="true"/>
     <include file="parts/0010_lien_allowed_on_savings_account_products.xml" relativeToChangelogFile="true"/>
+    <include file="parts/0011_add_credit_balance_refund_permission.xml" relativeToChangelogFile="true"/>
 </databaseChangeLog>

fineract-provider/src/main/resources/db/changelog/tenant/parts/0011_add_credit_balance_refund_permission.xml

@@ -0,0 +1,32 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    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.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.1.xsd">
+    <changeSet author="fineract" id="1">
+        <insert tableName="m_permission">
+            <column name="grouping" value="transaction_loan" />
+            <column name="code" value="CREDITBALANCEREFUND_LOAN" />
+            <column name="entity_name" value="LOAN" />
+            <column name="action_name" value="CREDITBALANCEREFUND" />
+            <column name="can_maker_checker" valueBoolean="false" />
+        </insert>
+    </changeSet>
+</databaseChangeLog>