diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
index 1dcc7971e..3474c6a3c 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
@@ -5,6 +5,7 @@
  */
 package org.mifosplatform.portfolio.loanaccount.domain.transactionprocessor;
 
+import java.util.HashSet;
 import java.util.List;
 import java.util.Set;
 
@@ -142,15 +143,18 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
             installmentIndex++;
         }
 
+        Set<LoanCharge> loanFees = extractFeeCharges(charges);
+        Set<LoanCharge> loanPenalties = extractPenaltyCharges(charges);
+
         if (loanTransaction.isNotWaiver()) {
             Money feeCharges = loanTransaction.getFeeChargesPortion(currency);
             if (feeCharges.isGreaterThanZero()) {
-                updateFeeChargesPaidAmountBy(loanTransaction, feeCharges, charges);
+                updateFeeChargesPaidAmountBy(loanTransaction, feeCharges, loanFees);
             }
 
             Money penaltyCharges = loanTransaction.getPenaltyChargesPortion(currency);
             if (penaltyCharges.isGreaterThanZero()) {
-                updatePenaltyChargesPaidAmountBy(loanTransaction, penaltyCharges, charges);
+                updatePenaltyChargesPaidAmountBy(loanTransaction, penaltyCharges, loanPenalties);
             }
         }
 
@@ -159,6 +163,26 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
         }
     }
 
+    private Set<LoanCharge> extractFeeCharges(Set<LoanCharge> loanCharges) {
+        final Set<LoanCharge> feeCharges = new HashSet<LoanCharge>();
+        for (LoanCharge loanCharge : loanCharges) {
+            if (loanCharge.isFeeCharge()) {
+                feeCharges.add(loanCharge);
+            }
+        }
+        return feeCharges;
+    }
+
+    private Set<LoanCharge> extractPenaltyCharges(Set<LoanCharge> loanCharges) {
+        final Set<LoanCharge> penaltyCharges = new HashSet<LoanCharge>();
+        for (LoanCharge loanCharge : loanCharges) {
+            if (loanCharge.isPenaltyCharge()) {
+                penaltyCharges.add(loanCharge);
+            }
+        }
+        return penaltyCharges;
+    }
+
     private void updateFeeChargesPaidAmountBy(final LoanTransaction loanTransaction, final Money feeCharges, final Set<LoanCharge> charges) {
 
         Money amountRemaining = feeCharges;
@@ -185,7 +209,7 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
         for (LoanCharge loanCharge : charges) {
             if (!loanCharge.isDueAtDisbursement()) {
 
-                if (loanCharge.isPenaltyCharge() && amountRemaining.isGreaterThanZero()) {
+                if (loanCharge.isPenaltyCharge() && loanCharge.isNotFullyPaid() && amountRemaining.isGreaterThanZero()) {
                     final LoanCharge unpaidCharge = findEarliestUnpaidChargeFromUnOrderedSet(charges);
                     Money amountPaidTowardsCharge = unpaidCharge.updatePaidAmountBy(amountRemaining);
                     if (!amountPaidTowardsCharge.isZero()) {
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/api/LoanProductsApiResource.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/api/LoanProductsApiResource.java
index 971624337..fcdf05d18 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/api/LoanProductsApiResource.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/api/LoanProductsApiResource.java
@@ -171,7 +171,7 @@ public class LoanProductsApiResource {
             paymentChannelToFundSourceMappings = accountMappingReadPlatformService
                     .fetchPaymentTypeToFundSourceMappingsForLoanProduct(productId);
             feeToGLAccountMappings = accountMappingReadPlatformService.fetchFeeToIncomeAccountMappingsForLoanProduct(productId);
-            penaltyToGLAccountMappings = accountMappingReadPlatformService.fetchFeeToIncomeAccountMappingsForLoanProduct(productId);
+            penaltyToGLAccountMappings = accountMappingReadPlatformService.fetchPenaltyToIncomeAccountMappingsForLoanProduct(productId);
             loanProduct = LoanProductData.withAccountingDetails(loanProduct, accountingMappings, paymentChannelToFundSourceMappings,
                     feeToGLAccountMappings, penaltyToGLAccountMappings);
         }
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
index c1e1b18df..b62914bb2 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
@@ -516,14 +516,16 @@ public final class LoanProductDataValidator {
                 int i = 0;
                 do {
                     final JsonObject jsonObject = paymentChannelMappingArray.get(i).getAsJsonObject();
-                    final Long paymentTypeId = jsonObject.get(LOAN_PRODUCT_ACCOUNTING_PARAMS.PAYMENT_TYPE.getValue()).getAsLong();
-                    final Long paymentSpecificFundAccountId = jsonObject.get(LOAN_PRODUCT_ACCOUNTING_PARAMS.FUND_SOURCE.getValue())
-                            .getAsLong();
+                    final Long paymentTypeId = fromApiJsonHelper.extractLongNamed(LOAN_PRODUCT_ACCOUNTING_PARAMS.PAYMENT_TYPE.getValue(),
+                            jsonObject);
+                    final Long paymentSpecificFundAccountId = fromApiJsonHelper.extractLongNamed(
+                            LOAN_PRODUCT_ACCOUNTING_PARAMS.FUND_SOURCE.getValue(), jsonObject);
+
                     baseDataValidator
                             .reset()
                             .parameter(
                                     LOAN_PRODUCT_ACCOUNTING_PARAMS.PAYMENT_CHANNEL_FUND_SOURCE_MAPPING.getValue() + "[" + i + "]."
-                                            + LOAN_PRODUCT_ACCOUNTING_PARAMS.PAYMENT_TYPE.toString()).value(paymentTypeId).notNull()
+                                            + LOAN_PRODUCT_ACCOUNTING_PARAMS.PAYMENT_TYPE.getValue()).value(paymentTypeId).notNull()
                             .integerGreaterThanZero();
                     baseDataValidator
                             .reset()
@@ -558,10 +560,12 @@ public final class LoanProductDataValidator {
                 int i = 0;
                 do {
                     final JsonObject jsonObject = chargeToIncomeAccountMappingArray.get(i).getAsJsonObject();
-                    final Long chargeId = jsonObject.get(LOAN_PRODUCT_ACCOUNTING_PARAMS.CHARGE_ID.getValue()).getAsLong();
-                    final Long incomeAccountId = jsonObject.get(LOAN_PRODUCT_ACCOUNTING_PARAMS.INCOME_ACCOUNT_ID.getValue()).getAsLong();
+                    final Long chargeId = fromApiJsonHelper.extractLongNamed(LOAN_PRODUCT_ACCOUNTING_PARAMS.CHARGE_ID.getValue(),
+                            jsonObject);
+                    final Long incomeAccountId = fromApiJsonHelper.extractLongNamed(
+                            LOAN_PRODUCT_ACCOUNTING_PARAMS.INCOME_ACCOUNT_ID.getValue(), jsonObject);
                     baseDataValidator.reset()
-                            .parameter(parameterName + "[" + i + "]." + LOAN_PRODUCT_ACCOUNTING_PARAMS.CHARGE_ID.toString())
+                            .parameter(parameterName + "[" + i + "]." + LOAN_PRODUCT_ACCOUNTING_PARAMS.CHARGE_ID.getValue())
                             .value(chargeId).notNull().integerGreaterThanZero();
                     baseDataValidator.reset()
                             .parameter(parameterName + "[" + i + "]." + LOAN_PRODUCT_ACCOUNTING_PARAMS.INCOME_ACCOUNT_ID.getValue())