FINERACT-2232: Capitalized income - amortization in case of Preclose event

fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/data/LoanDTO.java

@@ -46,4 +46,5 @@ public class LoanDTO {
     @Setter
     private boolean markedAsFraud;
     private Long chargeOffReasonCodeValue;
+    private boolean markedAsWrittenOff;
 }

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

@@ -107,6 +107,7 @@ public class AccountingProcessorHelper {
         boolean isLoanMarkedAsChargeOff = accountingBridgeData.isChargeOff();
         boolean isLoanMarkedAsFraud = accountingBridgeData.isFraud();
         final Long chargeOffReasonCodeValue = accountingBridgeData.getChargeOffReasonCodeValue();
+        final boolean isLoanMarkedAsWrittenOff = accountingBridgeData.isWrittenOff();
         final boolean cashBasedAccountingEnabled = accountingBridgeData.isCashBasedAccountingEnabled();
         final boolean upfrontAccrualBasedAccountingEnabled = accountingBridgeData.isUpfrontAccrualBasedAccountingEnabled();
         final boolean periodicAccrualBasedAccountingEnabled = accountingBridgeData.isPeriodicAccrualBasedAccountingEnabled();
@@ -169,7 +170,7 @@ public class AccountingProcessorHelper {
 
         return new LoanDTO(loanId, loanProductId, officeId, currencyCode, cashBasedAccountingEnabled, upfrontAccrualBasedAccountingEnabled,
                 periodicAccrualBasedAccountingEnabled, newLoanTransactions, isLoanMarkedAsChargeOff, isLoanMarkedAsFraud,
-                chargeOffReasonCodeValue);
+                chargeOffReasonCodeValue, isLoanMarkedAsWrittenOff);
     }
 
     public ProductToGLAccountMapping getChargeOffMappingByCodeValue(Long loanProductId, PortfolioProductType productType,

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

@@ -127,6 +127,10 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
             if (transactionType.isCapitalizedIncome()) {
                 createJournalEntriesForCapitalizedIncome(loanDTO, loanTransactionDTO, office);
             }
+            // Handle Capitalized Income Amortization
+            if (transactionType.isCapitalizedIncomeAmortization()) {
+                createJournalEntriesForCapitalizedIncomeAmortization(loanDTO, loanTransactionDTO, office);
+            }
         }
     }
 
@@ -141,7 +145,7 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
         final BigDecimal principalAmount = loanTransactionDTO.getPrincipal();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
-        GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
+        final GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
 
         if (MathUtil.isGreaterThanZero(principalAmount)) {
             populateCreditDebitMaps(loanProductId, principalAmount, paymentTypeId,
@@ -167,6 +171,53 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         }
     }
 
+    private void createJournalEntriesForCapitalizedIncomeAmortization(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();
+        final boolean isLoanWrittenOff = loanDTO.isMarkedAsWrittenOff();
+
+        // transaction properties
+        final String transactionId = loanTransactionDTO.getTransactionId();
+        final LocalDate transactionDate = loanTransactionDTO.getTransactionDate();
+        final BigDecimal interestAmount = loanTransactionDTO.getInterest();
+        final BigDecimal feesAmount = loanTransactionDTO.getFees();
+        final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
+        final GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
+
+        // interest payment
+        final AccrualAccountsForLoan creditAccountType = isLoanWrittenOff ? AccrualAccountsForLoan.LOSSES_WRITTEN_OFF
+                : AccrualAccountsForLoan.INCOME_FROM_CAPITALIZATION;
+        if (MathUtil.isGreaterThanZero(interestAmount)) {
+            populateCreditDebitMaps(loanProductId, interestAmount, paymentTypeId, creditAccountType.getValue(),
+                    AccrualAccountsForLoan.DEFERRED_INCOME_LIABILITY.getValue(), glAccountBalanceHolder);
+        }
+        // handle fees payment
+        if (MathUtil.isGreaterThanZero(feesAmount)) {
+            populateCreditDebitMaps(loanProductId, feesAmount, paymentTypeId, creditAccountType.getValue(),
+                    AccrualAccountsForLoan.DEFERRED_INCOME_LIABILITY.getValue(), glAccountBalanceHolder);
+        }
+
+        // create credit entries
+        for (Map.Entry<Long, BigDecimal> creditEntry : glAccountBalanceHolder.getCreditBalances().entrySet()) {
+            if (MathUtil.isGreaterThanZero(creditEntry.getValue())) {
+                GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(creditEntry.getKey());
+                this.helper.createCreditJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+                        creditEntry.getValue(), glAccount);
+            }
+        }
+        // create debit entries
+        for (Map.Entry<Long, BigDecimal> debitEntry : glAccountBalanceHolder.getDebitBalances().entrySet()) {
+            if (MathUtil.isGreaterThanZero(debitEntry.getValue())) {
+                GLAccount glAccount = glAccountBalanceHolder.getGlAccountMap().get(debitEntry.getKey());
+                this.helper.createDebitJournalEntryForLoan(office, currencyCode, loanId, transactionId, transactionDate,
+                        debitEntry.getValue(), glAccount);
+            }
+        }
+    }
+
     private void createJournalEntriesForInterestPaymentWaiverOrInterestRefund(LoanDTO loanDTO, LoanTransactionDTO loanTransactionDTO,
             Office office) {
         final Long loanProductId = loanDTO.getLoanProductId();

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

@@ -528,6 +528,7 @@ public class LoanTransactionsApiResource {
             case interestRefund -> LoanTransactionType.INTEREST_REFUND;
             case accrualAdjustment -> LoanTransactionType.ACCRUAL_ADJUSTMENT;
             case capitalizedIncome -> LoanTransactionType.CAPITALIZED_INCOME;
+            case capitalizedIncomeAmortization -> LoanTransactionType.CAPITALIZED_INCOME_AMORTIZATION;
             default ->
                 throw new InvalidLoanTransactionTypeException("transaction", transactionTypeParam.name(), "Unknown transaction type");
         };

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

@@ -722,6 +722,10 @@ final class LoansApiResourceSwagger {
                 public boolean chargeAdjustment;
                 @Schema(example = "false")
                 public boolean chargeoff;
+                @Schema(example = "false")
+                public boolean capitalizedIncome;
+                @Schema(example = "false")
+                public boolean capitalizedIncomeAmortization;
             }
 
             static final class GetLoansLoanIdPaymentDetailData {

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

@@ -440,7 +440,7 @@ public class LoanAccrualsProcessingServiceImpl implements LoanAccrualsProcessing
                     loan.getOfficeId(), loan.getCurrencyCode(), loan.getSummary().getTotalInterestCharged(),
                     loan.isNoneOrCashOrUpfrontAccrualAccountingEnabledOnLoanProduct(),
                     loan.isUpfrontAccrualAccountingEnabledOnLoanProduct(), loan.isPeriodicAccrualAccountingEnabledOnLoanProduct(), false,
-                    false, false, null, newTransactionDTOs);
+                    false, false, null, false, newTransactionDTOs);
             this.journalEntryWritePlatformService.createJournalEntriesForLoan(accountingBridgeData);
         }
     }

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

@@ -0,0 +1,71 @@
+/**
+ * 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.service;
+
+import jakarta.annotation.PostConstruct;
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.infrastructure.event.business.BusinessEventListener;
+import org.apache.fineract.infrastructure.event.business.domain.loan.LoanBalanceChangedBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.LoanCloseBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.service.BusinessEventNotifierService;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanStatus;
+
+@Slf4j
+@RequiredArgsConstructor
+public class LoanCapitalizedIncomeAmortizationEventService {
+
+    private final BusinessEventNotifierService businessEventNotifierService;
+    private final LoanCapitalizedIncomeAmortizationProcessingService loanCapitalizedIncomeAmortizationProcessingService;
+
+    @PostConstruct
+    public void addListeners() {
+        businessEventNotifierService.addPreBusinessEventListener(LoanCloseBusinessEvent.class, new LoanCloseListener());
+        businessEventNotifierService.addPostBusinessEventListener(LoanBalanceChangedBusinessEvent.class, new LoanBalanceChangedListener());
+    }
+
+    private final class LoanCloseListener implements BusinessEventListener<LoanCloseBusinessEvent> {
+
+        @Override
+        public void onBusinessEvent(final LoanCloseBusinessEvent event) {
+            final Loan loan = event.get();
+            final LoanStatus status = loan.getStatus();
+            if (loan.getLoanProductRelatedDetail().isEnableIncomeCapitalization()
+                    && (status.isClosedObligationsMet() || status.isClosedWrittenOff() || status.isOverpaid())) {
+                log.debug("Loan closure on capitalized income amortization for loan {}", loan.getId());
+                loanCapitalizedIncomeAmortizationProcessingService.processCapitalizedIncomeAmortizationOnLoanClosure(loan);
+            }
+        }
+    }
+
+    private final class LoanBalanceChangedListener implements BusinessEventListener<LoanBalanceChangedBusinessEvent> {
+
+        @Override
+        public void onBusinessEvent(final LoanBalanceChangedBusinessEvent event) {
+            final Loan loan = event.get();
+            final LoanStatus status = loan.getStatus();
+            if (loan.getLoanProductRelatedDetail().isEnableIncomeCapitalization()
+                    && (status.isClosedObligationsMet() || status.isClosedWrittenOff() || status.isOverpaid())) {
+                log.debug("Loan balance change on capitalized income amortization for loan {}", loan.getId());
+                loanCapitalizedIncomeAmortizationProcessingService.processCapitalizedIncomeAmortizationOnLoanClosure(loan);
+            }
+        }
+    }
+}

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

@@ -0,0 +1,80 @@
+/**
+ * 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.service;
+
+import java.math.BigDecimal;
+import java.time.LocalDate;
+import lombok.RequiredArgsConstructor;
+import org.apache.fineract.infrastructure.configuration.domain.ConfigurationDomainService;
+import org.apache.fineract.infrastructure.core.domain.ExternalId;
+import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.service.BusinessEventNotifierService;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeBalance;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
+import org.apache.fineract.portfolio.loanaccount.repository.LoanCapitalizedIncomeBalanceRepository;
+import org.jetbrains.annotations.NotNull;
+import org.springframework.stereotype.Component;
+import org.springframework.transaction.annotation.Transactional;
+
+@Component
+@RequiredArgsConstructor
+public class LoanCapitalizedIncomeAmortizationProcessingServiceImpl implements LoanCapitalizedIncomeAmortizationProcessingService {
+
+    private final ConfigurationDomainService configurationDomainService;
+    private final LoanTransactionRepository loanTransactionRepository;
+    private final LoanCapitalizedIncomeBalanceRepository loanCapitalizedIncomeBalanceRepository;
+    private final BusinessEventNotifierService businessEventNotifierService;
+
+    @Override
+    @Transactional
+    public void processCapitalizedIncomeAmortizationOnLoanClosure(@NotNull final Loan loan) {
+        final LocalDate finalAmortizationTransactionDate = getFinalCapitalizedIncomeAmortizationTransactionDate(loan);
+        ExternalId externalId = ExternalId.empty();
+        BigDecimal totalUnrecognizedAmountCapitalizedIncomeAmount = BigDecimal.ZERO;
+
+        final boolean isExternalIdAutoGenerationEnabled = configurationDomainService.isExternalIdAutoGenerationEnabled();
+        if (isExternalIdAutoGenerationEnabled) {
+            externalId = ExternalId.generate();
+        }
+
+        for (LoanCapitalizedIncomeBalance balance : loanCapitalizedIncomeBalanceRepository.findAllByLoanId(loan.getId())) {
+            totalUnrecognizedAmountCapitalizedIncomeAmount = totalUnrecognizedAmountCapitalizedIncomeAmount
+                    .add(balance.getUnrecognizedAmount());
+            balance.setUnrecognizedAmount(BigDecimal.ZERO);
+        }
+
+        final LoanTransaction finalCapitalizedIncomeAmortization = LoanTransaction.capitalizedIncomeAmortization(loan, loan.getOffice(),
+                finalAmortizationTransactionDate, totalUnrecognizedAmountCapitalizedIncomeAmount, externalId);
+        loan.addLoanTransaction(finalCapitalizedIncomeAmortization);
+        loanTransactionRepository.saveAndFlush(finalCapitalizedIncomeAmortization);
+        businessEventNotifierService.notifyPostBusinessEvent(
+                new LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent(finalCapitalizedIncomeAmortization));
+    }
+
+    private LocalDate getFinalCapitalizedIncomeAmortizationTransactionDate(final Loan loan) {
+        return switch (loan.getStatus()) {
+            case CLOSED_OBLIGATIONS_MET -> loan.getClosedOnDate();
+            case OVERPAID -> loan.getOverpaidOnDate();
+            case CLOSED_WRITTEN_OFF -> loan.getWrittenOffOnDate();
+            default -> throw new IllegalStateException("Unexpected value: " + loan.getStatus());
+        };
+    }
+}

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/starter/LoanAccountConfiguration.java

@@ -119,6 +119,8 @@ import org.apache.fineract.portfolio.loanaccount.service.LoanArrearsAgingService
 import org.apache.fineract.portfolio.loanaccount.service.LoanAssembler;
 import org.apache.fineract.portfolio.loanaccount.service.LoanAssemblerImpl;
 import org.apache.fineract.portfolio.loanaccount.service.LoanCalculateRepaymentPastDueService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanCapitalizedIncomeAmortizationEventService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanCapitalizedIncomeAmortizationProcessingService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanChargeAssembler;
 import org.apache.fineract.portfolio.loanaccount.service.LoanChargePaidByReadService;
 import org.apache.fineract.portfolio.loanaccount.service.LoanChargeReadPlatformService;
@@ -505,4 +507,13 @@ public class LoanAccountConfiguration {
         return new LoanAccountServiceImpl(loanRepositoryWrapper, loanTransactionRepository);
     }
 
+    @Bean
+    @ConditionalOnMissingBean(LoanCapitalizedIncomeAmortizationEventService.class)
+    public LoanCapitalizedIncomeAmortizationEventService loanCapitalizedIncomeAmortizationEventService(
+            BusinessEventNotifierService businessEventNotifierService,
+            LoanCapitalizedIncomeAmortizationProcessingService loanCapitalizedIncomeAmortizationProcessingService) {
+        return new LoanCapitalizedIncomeAmortizationEventService(businessEventNotifierService,
+                loanCapitalizedIncomeAmortizationProcessingService);
+    }
+
 }

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

@@ -194,4 +194,5 @@
     <include file="parts/0173_user_change_pwd.xml" relativeToChangelogFile="true" />
     <include file="parts/0174_loan_product_add_capitalized_income_type.xml" relativeToChangelogFile="true" />
     <include file="parts/0175_add_fk_acc_product_mapping.xml" relativeToChangelogFile="true" />
+    <include file="parts/0176_add_capitalized_income_amortization_transaction.xml" relativeToChangelogFile="true" />
 </databaseChangeLog>

fineract-provider/src/main/resources/db/changelog/tenant/parts/0176_add_capitalized_income_amortization_transaction.xml

@@ -0,0 +1,38 @@
+<?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 id="1" author="fineract">
+        <insert tableName="m_external_event_configuration">
+            <column name="type" value="LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent"/>
+            <column name="enabled" valueBoolean="false"/>
+        </insert>
+        <insert tableName="r_enum_value">
+            <column name="enum_name" value="transaction_type_enum"/>
+            <column name="enum_id" valueNumeric="36"/>
+            <column name="enum_message_property" value="Capitalized Income Amortization"/>
+            <column name="enum_value" value="Capitalized Income Amortization"/>
+            <column name="enum_type" valueBoolean="false"/>
+        </insert>
+    </changeSet>
+</databaseChangeLog>

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

@@ -72,7 +72,7 @@ class CreateJournalEntriesForChargeOffLoanTest {
                 transactionType, new BigDecimal("500.00"), new BigDecimal("500.00"), null, null, null, null, false, Collections.emptyList(),
                 Collections.emptyList(), false, "", null, null, null, null);
 
-        loanDTO = new LoanDTO(1L, 1L, 1L, "USD", false, true, true, List.of(loanTransactionDTO), false, false, chargeOffReasonId);
+        loanDTO = new LoanDTO(1L, 1L, 1L, "USD", false, true, true, List.of(loanTransactionDTO), false, false, chargeOffReasonId, false);
     }
 
     @Test

fineract-provider/src/test/java/org/apache/fineract/infrastructure/event/external/service/ExternalEventConfigurationValidationServiceTest.java

@@ -105,7 +105,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanReAmortizeBusinessEvent", "LoanUndoReAmortizeBusinessEvent", "LoanTransactionInterestPaymentWaiverPreBusinessEvent",
                 "LoanTransactionInterestPaymentWaiverPostBusinessEvent", "LoanTransactionAccrualActivityPostBusinessEvent",
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
-                "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent");
+                "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
+                "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));
@@ -191,7 +192,8 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanReAmortizeBusinessEvent", "LoanUndoReAmortizeBusinessEvent", "LoanTransactionInterestPaymentWaiverPreBusinessEvent",
                 "LoanTransactionInterestPaymentWaiverPostBusinessEvent", "LoanTransactionAccrualActivityPostBusinessEvent",
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
-                "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent");
+                "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
+                "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));