FINERACT-2148: Fix and add tests when interestRecalculation = false and zero interest charge-off behaviour

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

@@ -74,6 +74,7 @@ public enum DefaultLoanProduct implements LoanProduct {
     LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_IR_DAILY_TILL_PRECLOSE_LAST_INSTALLMENT_STRATEGY, //
     LP2_ADV_PYMNT_INTEREST_DAILY_EMI_ACTUAL_ACTUAL_INTEREST_REFUND_INTEREST_RECALCULATION, //
     LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR, //
+    LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR, //
     ;
 
     @Override

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

@@ -1094,17 +1094,56 @@ public class LoanProductGlobalInitializerStep implements FineractGlobalInitializ
         final String name51 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR
                 .getName();
 
-        final PostLoanProductsRequest loanProductsRequestAdvCustomZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsRequestFactory
+        final PostLoanProductsRequest loanProductsRequestAdvInterestRecalculationZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsRequestFactory
                 .defaultLoanProductsRequestLP2InterestDailyRecalculation()//
                 .name(name51)//
                 .paymentAllocation(List.of(//
                         createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT")))
                 .chargeOffBehaviour("ZERO_INTEREST");//
-        final Response<PostLoanProductsResponse> responseLoanProductsRequestAdvCustomZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsApi
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestAdvInterestRecalculationZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsApi
-                .createLoanProduct(loanProductsRequestAdvCustomZeroInterestChargeOffBehaviourProgressiveLoanSchedule).execute();
+                .createLoanProduct(loanProductsRequestAdvInterestRecalculationZeroInterestChargeOffBehaviourProgressiveLoanSchedule)
+                .execute();
         TestContext.INSTANCE.set(
                 TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR,
-                responseLoanProductsRequestAdvCustomZeroInterestChargeOffBehaviourProgressiveLoanSchedule);
+                responseLoanProductsRequestAdvInterestRecalculationZeroInterestChargeOffBehaviourProgressiveLoanSchedule);
+
+        // LP2 + zero-interest chargeOff behaviour + progressive loan schedule + horizontal
+        // (LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR)
+        final String name52 = DefaultLoanProduct.LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR.getName();
+
+        final PostLoanProductsRequest loanProductsRequestAdvZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2()//
+                .name(name52)//
+                .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",
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_FEE, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_FEE, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.DUE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_FEE,
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_PRINCIPAL), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")))//
+                .chargeOffBehaviour("ZERO_INTEREST");//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestAdvZeroInterestChargeOffBehaviourProgressiveLoanSchedule = loanProductsApi
+                .createLoanProduct(loanProductsRequestAdvZeroInterestChargeOffBehaviourProgressiveLoanSchedule).execute();
+        TestContext.INSTANCE.set(TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR,
+                responseLoanProductsRequestAdvZeroInterestChargeOffBehaviourProgressiveLoanSchedule);
     }
 
     public static AdvancedPaymentData createPaymentAllocation(String transactionType, String futureInstallmentAllocationRule,

fineract-e2e-tests-core/src/test/java/org/apache/fineract/test/stepdef/loan/LoanStepDef.java

@@ -20,6 +20,7 @@ package org.apache.fineract.test.stepdef.loan;
 
 import static org.apache.fineract.test.data.TransactionProcessingStrategyCode.ADVANCED_PAYMENT_ALLOCATION;
 import static org.apache.fineract.test.data.loanproduct.DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR;
+import static org.apache.fineract.test.data.loanproduct.DefaultLoanProduct.LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR;
 import static org.assertj.core.api.Assertions.assertThat;
 import static org.awaitility.Awaitility.await;
 import static org.junit.Assert.assertNotNull;
@@ -2767,13 +2768,25 @@ public class LoanStepDef extends AbstractStepDef {
         eventCheckHelper.createLoanEventCheck(response);
     }
 
-    @When("Admin creates a new zero charge-off Loan with date: {string}")
+    @When("Admin creates a new zero charge-off Loan with interest recalculation and date: {string}")
     public void createLoanWithInterestRecalculationAndZeroChargeOffBehaviour(final String date) throws IOException {
+        createLoanWithZeroChargeOffBehaviour(date, true);
+    }
+
+    @When("Admin creates a new zero charge-off Loan without interest recalculation and with date: {string}")
+    public void createLoanWithoutInterestRecalculationAndZeroChargeOffBehaviour(final String date) throws IOException {
+        createLoanWithZeroChargeOffBehaviour(date, false);
+    }
+
+    private void createLoanWithZeroChargeOffBehaviour(final String date, final boolean isInterestRecalculation) throws IOException {
         final Response<PostClientsResponse> clientResponse = testContext().get(TestContextKey.CLIENT_CREATE_RESPONSE);
         final Long clientId = clientResponse.body().getClientId();
 
-        final DefaultLoanProduct product = DefaultLoanProduct
+        final DefaultLoanProduct product = isInterestRecalculation
-                .valueOf(LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR.getName());
+                ? DefaultLoanProduct
+                        .valueOf(LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR.getName())
+                : DefaultLoanProduct.valueOf(LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR.getName());
+
         final Long loanProductId = loanProductResolver.resolve(product);
 
         final PostLoansRequest loansRequest = loanRequestFactory.defaultLoansRequest(clientId).productId(loanProductId)
@@ -2785,7 +2798,8 @@ public class LoanStepDef extends AbstractStepDef {
                 .interestRateFrequencyType(3)//
                 .interestRatePerPeriod(new BigDecimal(7))//
                 .interestType(InterestType.DECLINING_BALANCE.value)//
-                .interestCalculationPeriodType(InterestCalculationPeriodTime.DAILY.value)//
+                .interestCalculationPeriodType(isInterestRecalculation ? InterestCalculationPeriodTime.DAILY.value
+                        : InterestCalculationPeriodTime.SAME_AS_REPAYMENT_PERIOD.value)//
                 .transactionProcessingStrategyCode(ADVANCED_PAYMENT_ALLOCATION.value);
 
         final Response<PostLoansResponse> response = loansApi.calculateLoanScheduleOrSubmitLoanApplication(loansRequest, "").execute();

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

@@ -105,6 +105,7 @@ public abstract class TestContextKey {
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_DAILY_TILL_PRECLOSE_WHOLE_TERM = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmi36030InterestRecalculationSameAsRepTillPreCloseWholeTerm";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_EMI_ACTUAL_ACTUAL_INTEREST_REFUND_INTEREST_RECALCULATION = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyEmiActualActualInterestRefundFInterestRecalculation";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationZeroInterestChargeOffBehaviour";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_BEHAVIOUR = "loanProductCreateResponseLP2AdvancedPaymentZeroInterestChargeOffBehaviour";
     public static final String CHARGE_FOR_LOAN_PERCENT_LATE_CREATE_RESPONSE = "ChargeForLoanPercentLateCreateResponse";
     public static final String CHARGE_FOR_LOAN_PERCENT_LATE_AMOUNT_PLUS_INTEREST_CREATE_RESPONSE = "ChargeForLoanPercentLateAmountPlusInterestCreateResponse";
     public static final String CHARGE_FOR_LOAN_PERCENT_PROCESSING_CREATE_RESPONSE = "ChargeForLoanPercentProcessingCreateResponse";

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java

@@ -1171,11 +1171,10 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
     }
 
     private void handleChargeOff(final LoanTransaction loanTransaction, final TransactionCtx transactionCtx) {
-        if (transactionCtx instanceof ProgressiveTransactionCtx progressiveTransactionCtx) {
+        if (loanTransaction.getLoan().isProgressiveSchedule()) {
             if (LoanChargeOffBehaviour.ZERO_INTEREST.equals(loanTransaction.getLoan().getLoanProductRelatedDetail().getChargeOffBehaviour())
                     && !loanTransaction.isReversed()) {
-                handleZeroInterestChargeOff(loanTransaction, progressiveTransactionCtx);
+                handleZeroInterestChargeOff(loanTransaction, transactionCtx);
-                progressiveTransactionCtx.setChargedOff(true);
             }
         }
 
@@ -1198,13 +1197,13 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
         loanTransaction.updateComponentsAndTotal(principalPortion, interestPortion, feeChargesPortion, penaltychargesPortion);
     }
 
-    private void handleZeroInterestChargeOff(final LoanTransaction loanTransaction,
+    private void handleZeroInterestChargeOff(final LoanTransaction loanTransaction, final TransactionCtx transactionCtx) {
-            final ProgressiveTransactionCtx progressiveTransactionCtx) {
         final LocalDate transactionDate = loanTransaction.getTransactionDate();
-        final List<LoanRepaymentScheduleInstallment> installments = progressiveTransactionCtx.getInstallments();
+        final List<LoanRepaymentScheduleInstallment> installments = transactionCtx.getInstallments();
 
         if (!installments.isEmpty()) {
-            if (loanTransaction.getLoan().isInterestRecalculationEnabled()) {
+            if (transactionCtx instanceof ProgressiveTransactionCtx progressiveTransactionCtx
+                    && loanTransaction.getLoan().isInterestRecalculationEnabled()) {
                 installments.stream().filter(installment -> !installment.getFromDate().isAfter(transactionDate)
                         && installment.getDueDate().isAfter(transactionDate)).forEach(installment -> {
                             final BigDecimal newInterest = emiCalculator.getPeriodInterestTillDate(progressiveTransactionCtx.getModel(),
@@ -1213,40 +1212,53 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
                             installment.updatePrincipal(MathUtil.nullToZero(installment.getPrincipal()).add(interestRemoved));
                             installment.updateInterestCharged(newInterest);
                         });
+                progressiveTransactionCtx.setChargedOff(true);
             } else {
-                calculatePartialPeriodInterest(progressiveTransactionCtx, transactionDate);
+                calculatePartialPeriodInterest(transactionCtx, transactionDate);
             }
 
-            installments.stream().filter(installment -> installment.getFromDate().isAfter(transactionDate)).forEach(installment -> {
+            final MonetaryCurrency currency = loanTransaction.getLoan().getCurrency();
-                installment.updatePrincipal(MathUtil.nullToZero(installment.getPrincipal()).add(installment.getInterestCharged()));
-                installment.updateInterestCharged(BigDecimal.ZERO);
-            });
 
-            final BigDecimal totalInstallmentsPrincipal = installments.stream().map(LoanRepaymentScheduleInstallment::getPrincipal)
+            installments.stream()
-                    .reduce(ZERO, BigDecimal::add);
+                    .filter(installment -> installment.getFromDate().isAfter(transactionDate) && !installment.isObligationsMet())
-            final Money amountToEditLastInstallment = loanTransaction.getLoan().getPrincipal().minus(totalInstallmentsPrincipal);
+                    .forEach(installment -> {
-            final int lastInstallmentIndex = installments.size() - 1;
+                        final BigDecimal interestOutstanding = installment.getInterestOutstanding(currency).getAmount();
-            installments.get(lastInstallmentIndex)
+                        final BigDecimal updatedInterestCharged = installment.getInterestCharged(currency).getAmount()
-                    .updatePrincipal(installments.get(lastInstallmentIndex).getPrincipal().add(amountToEditLastInstallment.getAmount()));
+                                .subtract(interestOutstanding);
+
+                        if (interestOutstanding.compareTo(BigDecimal.ZERO) > 0) {
+                            final BigDecimal newPrincipal = installment.getPrincipal(currency).getAmount().add(interestOutstanding);
+
+                            installment.updatePrincipal(newPrincipal);
+                            installment.updateInterestCharged(updatedInterestCharged);
+                        }
+                    });
+
+            final Money amountToEditLastInstallment = loanTransaction.getLoan().getPrincipal().minus(installments.stream()
+                    .filter(i -> !i.isAdditional()).map(LoanRepaymentScheduleInstallment::getPrincipal).reduce(ZERO, BigDecimal::add));
+
+            if (amountToEditLastInstallment.getAmount().signum() != 0) {
+                installments.stream().filter(i -> !i.isAdditional() && !i.isObligationsMet()).reduce((first, second) -> second)
+                        .ifPresent(last -> last.updatePrincipal(last.getPrincipal().add(amountToEditLastInstallment.getAmount())));
+            }
         }
     }
 
-    private void calculatePartialPeriodInterest(final ProgressiveTransactionCtx progressiveTransactionCtx, final LocalDate chargeOffDate) {
+    private void calculatePartialPeriodInterest(final TransactionCtx transactionCtx, final LocalDate chargeOffDate) {
-        progressiveTransactionCtx.getInstallments().stream()
+        transactionCtx.getInstallments().stream()
                 .filter(installment -> !installment.getFromDate().isAfter(chargeOffDate) && installment.getDueDate().isAfter(chargeOffDate))
                 .forEach(installment -> {
-                    final BigDecimal totalInterest = installment.getInterestOutstanding(progressiveTransactionCtx.getCurrency())
+                    final BigDecimal totalInterest = installment.getInterestOutstanding(transactionCtx.getCurrency()).getAmount();
-                            .getAmount();
                     final long totalDaysInPeriod = ChronoUnit.DAYS.between(installment.getFromDate(), installment.getDueDate());
                     final long daysTillChargeOff = ChronoUnit.DAYS.between(installment.getFromDate(), chargeOffDate);
 
-                    final BigDecimal interestTillChargeOff = totalInterest
+                    final MathContext mc = MoneyHelper.getMathContext();
-                            .divide(BigDecimal.valueOf(totalDaysInPeriod), MoneyHelper.getMathContext())
+                    final Money interestTillChargeOff = Money.of(transactionCtx.getCurrency(), totalInterest
-                            .multiply(BigDecimal.valueOf(daysTillChargeOff));
+                            .divide(BigDecimal.valueOf(totalDaysInPeriod), mc).multiply(BigDecimal.valueOf(daysTillChargeOff), mc), mc);
 
-                    final BigDecimal interestRemoved = totalInterest.subtract(interestTillChargeOff);
+                    final BigDecimal interestRemoved = totalInterest.subtract(interestTillChargeOff.getAmount());
                     installment.updatePrincipal(MathUtil.nullToZero(installment.getPrincipal()).add(interestRemoved));
-                    installment.updateInterestCharged(interestTillChargeOff);
+                    installment.updateInterestCharged(interestTillChargeOff.getAmount());
                 });
     }