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FINERACT-2040: CBR journal entries when loan is charged off fix
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@taskain7 @adamsaghy
taskain7 authored and adamsaghy committed Jan 18, 2024
1 parent cbe8f02 commit 583d73e
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Showing 2 changed files with 125 additions and 2 deletions.
29 changes: 27 additions & 2 deletions ...ache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java
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Original file line number Diff line number Diff line change
Expand Up @@ -1074,10 +1074,17 @@ private void createJournalEntriesForRefund(final LoanDTO loanDTO, final LoanTran

private void createJournalEntriesForCreditBalanceRefund(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
final Office office) {
final boolean isMarkedChargeOff = loanDTO.isMarkedAsChargeOff();
createJournalEntriesForLoanCreditBalanceRefund(loanDTO, loanTransactionDTO, office, isMarkedChargeOff);
}

private void createJournalEntriesForLoanCreditBalanceRefund(final LoanDTO loanDTO, final LoanTransactionDTO loanTransactionDTO,
final Office office, boolean isMarkedChargeOff) {
// loan properties
final Long loanProductId = loanDTO.getLoanProductId();
final Long loanId = loanDTO.getLoanId();
final String currencyCode = loanDTO.getCurrencyCode();
final boolean isMarkedFraud = loanDTO.isMarkedAsFraud();

// transaction properties
final String transactionId = loanTransactionDTO.getTransactionId();
Expand All @@ -1093,11 +1100,13 @@ private void createJournalEntriesForCreditBalanceRefund(final LoanDTO loanDTO, f

if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
totalAmount = totalAmount.add(principalAmount);
journalAmountHolders.add(new JournalAmountHolder(AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), principalAmount));
journalAmountHolders
.add(new JournalAmountHolder(determineAccrualAccount(isMarkedChargeOff, isMarkedFraud, false), principalAmount));
}
if (overpaymentAmount != null && overpaymentAmount.compareTo(BigDecimal.ZERO) > 0) {
totalAmount = totalAmount.add(overpaymentAmount);
journalAmountHolders.add(new JournalAmountHolder(AccrualAccountsForLoan.OVERPAYMENT.getValue(), overpaymentAmount));
journalAmountHolders
.add(new JournalAmountHolder(determineAccrualAccount(isMarkedChargeOff, isMarkedFraud, true), overpaymentAmount));
}

JournalAmountHolder totalAmountHolder = new JournalAmountHolder(AccrualAccountsForLoan.FUND_SOURCE.getValue(), totalAmount);
Expand All @@ -1106,6 +1115,22 @@ private void createJournalEntriesForCreditBalanceRefund(final LoanDTO loanDTO, f

}

private Integer determineAccrualAccount(boolean isMarkedChargeOff, boolean isMarkedFraud, boolean isOverpayment) {
if (isMarkedChargeOff) {
if (isMarkedFraud) {
return AccrualAccountsForLoan.CHARGE_OFF_FRAUD_EXPENSE.getValue();
} else {
return AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue();
}
} else {
if (isOverpayment) {
return AccrualAccountsForLoan.OVERPAYMENT.getValue();
} else {
return AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue();
}
}
}

private void createJournalEntriesForRefundForActiveLoan(LoanDTO loanDTO, LoanTransactionDTO loanTransactionDTO, Office office) {
// TODO Auto-generated method stub
// loan properties
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98 changes: 98 additions & 0 deletions .../src/test/java/org/apache/fineract/integrationtests/LoanTransactionReverseReplayTest.java
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Original file line number Diff line number Diff line change
Expand Up @@ -19,6 +19,7 @@
package org.apache.fineract.integrationtests;

import static org.junit.jupiter.api.Assertions.assertEquals;
import static org.junit.jupiter.api.Assertions.assertNotNull;
import static org.junit.jupiter.api.Assertions.assertTrue;

import io.restassured.builder.RequestSpecBuilder;
Expand All @@ -29,6 +30,7 @@
import java.time.LocalDate;
import java.time.format.DateTimeFormatter;
import java.time.format.DateTimeFormatterBuilder;
import java.util.ArrayList;
import java.util.HashMap;
import java.util.List;
import java.util.UUID;
Expand All @@ -43,11 +45,15 @@
import org.apache.fineract.integrationtests.common.ClientHelper;
import org.apache.fineract.integrationtests.common.GlobalConfigurationHelper;
import org.apache.fineract.integrationtests.common.Utils;
import org.apache.fineract.integrationtests.common.accounting.Account;
import org.apache.fineract.integrationtests.common.accounting.AccountHelper;
import org.apache.fineract.integrationtests.common.accounting.JournalEntryHelper;
import org.apache.fineract.integrationtests.common.charges.ChargesHelper;
import org.apache.fineract.integrationtests.common.loans.LoanApplicationTestBuilder;
import org.apache.fineract.integrationtests.common.loans.LoanProductTestBuilder;
import org.apache.fineract.integrationtests.common.loans.LoanTestLifecycleExtension;
import org.apache.fineract.integrationtests.common.loans.LoanTransactionHelper;
import org.apache.fineract.integrationtests.common.system.CodeHelper;
import org.apache.fineract.integrationtests.inlinecob.InlineLoanCOBHelper;
import org.junit.jupiter.api.BeforeEach;
import org.junit.jupiter.api.Test;
Expand All @@ -64,6 +70,8 @@ public class LoanTransactionReverseReplayTest {
private ClientHelper clientHelper;
private LoanTransactionHelper loanTransactionHelper;
private InlineLoanCOBHelper inlineLoanCOBHelper;
private JournalEntryHelper journalEntryHelper;
private AccountHelper accountHelper;

@BeforeEach
public void setup() {
Expand All @@ -75,6 +83,8 @@ public void setup() {
loanTransactionHelper = new LoanTransactionHelper(requestSpec, responseSpec);
clientHelper = new ClientHelper(requestSpec, responseSpec);
inlineLoanCOBHelper = new InlineLoanCOBHelper(requestSpec, responseSpec);
journalEntryHelper = new JournalEntryHelper(requestSpec, responseSpec);
accountHelper = new AccountHelper(requestSpec, responseSpec);
}

/**
Expand Down Expand Up @@ -219,6 +229,94 @@ public void loanTransactionReverseReplayWithAdditionalInstallmentAndChargesSched
}
}

@Test
public void loanTransactionReverseReplayWithChargeOffAndCBR() {
try {
GlobalConfigurationHelper.updateIsBusinessDateEnabled(requestSpec, responseSpec, Boolean.TRUE);
businessDateHelper.updateBusinessDate(new BusinessDateRequest().type(BusinessDateType.BUSINESS_DATE.getName())
.date("04 October 2022").dateFormat(DATE_PATTERN).locale("en"));

final Account assetAccount = accountHelper.createAssetAccount();
final Account assetFeeAndPenaltyAccount = accountHelper.createAssetAccount();
final Account incomeAccount = accountHelper.createIncomeAccount();
final Account expenseAccount = accountHelper.createExpenseAccount();
final Account overpaymentAccount = accountHelper.createLiabilityAccount();

// Loan ExternalId
String loanExternalIdStr = UUID.randomUUID().toString();

// Client and Loan account creation

final Integer clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId().intValue();
final String loanProductJSON = new LoanProductTestBuilder().withPrincipal("1000").withRepaymentTypeAsMonth()
.withRepaymentAfterEvery("1").withNumberOfRepayments("1").withRepaymentTypeAsMonth().withinterestRatePerPeriod("0")
.withInterestRateFrequencyTypeAsMonths().withAmortizationTypeAsEqualPrincipalPayment().withInterestTypeAsFlat()
.withAccountingRulePeriodicAccrual(new Account[] { assetAccount, incomeAccount, expenseAccount, overpaymentAccount })
.withDaysInMonth("30").withDaysInYear("365").withMoratorium("0", "0")
.withFeeAndPenaltyAssetAccount(assetFeeAndPenaltyAccount).build(null);
final Integer loanProductID = loanTransactionHelper.getLoanProductId(loanProductJSON);

final Integer loanId = createLoanAccount(clientId, loanProductID.longValue(), loanExternalIdStr);

// set loan as chargeoff
String randomText = Utils.randomStringGenerator("en", 5) + Utils.randomNumberGenerator(6)
+ Utils.randomStringGenerator("is", 5);
Integer chargeOffReasonId = CodeHelper.createChargeOffCodeValue(requestSpec, responseSpec, randomText, 1);
String transactionExternalId = UUID.randomUUID().toString();
PostLoansLoanIdTransactionsResponse chargeOffResponse = loanTransactionHelper.chargeOffLoan(loanId.longValue(),
new PostLoansLoanIdTransactionsRequest().transactionDate("03 October 2022").locale("en").dateFormat("dd MMMM yyyy")
.externalId(transactionExternalId).chargeOffReasonId((long) chargeOffReasonId));

final PostLoansLoanIdTransactionsResponse repaymentTransaction = loanTransactionHelper.makeLoanRepayment(loanExternalIdStr,
new PostLoansLoanIdTransactionsRequest().dateFormat(DATE_PATTERN).transactionDate("03 October 2022").locale("en")
.transactionAmount(1500.0));

inlineLoanCOBHelper.executeInlineCOB(List.of(loanId.longValue()));

businessDateHelper.updateBusinessDate(new BusinessDateRequest().type(BusinessDateType.BUSINESS_DATE.getName())
.date("05 October 2022").dateFormat(DATE_PATTERN).locale("en"));

PostLoansLoanIdTransactionsResponse cbrTransactionResponse = loanTransactionHelper.makeCreditBalanceRefund(loanExternalIdStr,
new PostLoansLoanIdTransactionsRequest().dateFormat(DATE_PATTERN).transactionDate("05 October 2022").locale("en")
.transactionAmount(500.0));

businessDateHelper.updateBusinessDate(new BusinessDateRequest().type(BusinessDateType.BUSINESS_DATE.getName())
.date("06 October 2022").dateFormat(DATE_PATTERN).locale("en"));

loanTransactionHelper.reverseLoanTransaction(loanExternalIdStr, repaymentTransaction.getResourceId(),
new PostLoansLoanIdTransactionsTransactionIdRequest().transactionDate("06 October 2022").locale("en")
.dateFormat(DATE_PATTERN).transactionAmount(0.0));

inlineLoanCOBHelper.executeInlineCOB(List.of(loanId.longValue()));
GetLoansLoanIdResponse loansLoanIdResponse = loanTransactionHelper.getLoanDetails(loanExternalIdStr);
int lastTransactionIndex = loansLoanIdResponse.getTransactions().size() - 1;
assertEquals(500.0, loansLoanIdResponse.getTransactions().get(lastTransactionIndex).getAmount());

ArrayList<HashMap> journalEntriesForCBR = journalEntryHelper
.getJournalEntriesByTransactionId("L" + cbrTransactionResponse.getResourceId().toString());
ArrayList<HashMap> journalEntriesForChargeOff = journalEntryHelper
.getJournalEntriesByTransactionId("L" + chargeOffResponse.getResourceId().toString());
assertNotNull(journalEntriesForCBR);
assertNotNull(journalEntriesForChargeOff);

String expenseGlAccountCode = (String) journalEntriesForChargeOff.get(0).get("glAccountCode");
String assetGlAccountCode = (String) journalEntriesForChargeOff.get(1).get("glAccountCode");

List<HashMap> cbrExpenseJournalEntries = journalEntriesForCBR.stream() //
.filter(journalEntry -> expenseGlAccountCode.equals(journalEntry.get("glAccountCode"))) //
.toList();

List<HashMap> cbrAssetJournalEntries = journalEntriesForCBR.stream() //
.filter(journalEntry -> assetGlAccountCode.equals(journalEntry.get("glAccountCode"))) //
.toList();

assertEquals(2, cbrExpenseJournalEntries.size());
assertEquals(2, cbrAssetJournalEntries.size());
} finally {
GlobalConfigurationHelper.updateIsBusinessDateEnabled(requestSpec, responseSpec, Boolean.FALSE);
}
}

private GetLoanProductsProductIdResponse createLoanProduct(final LoanTransactionHelper loanTransactionHelper) {
final HashMap<String, Object> loanProductMap = new LoanProductTestBuilder().build(null, null);
final Integer loanProductId = loanTransactionHelper.getLoanProductId(Utils.convertToJson(loanProductMap));
Expand Down

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