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FINERACT-1806: Advanced Charge-off Expense Accounting - "Advanced Accounting Rule" takes priority
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-9
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5 files changed

+196
-9
lines changed

‎fineract-accounting/src/main/java/org/apache/fineract/accounting/producttoaccountmapping/domain/ProductToGLAccountMappingRepository.java‎

Lines changed: 3 additions & 0 deletions
Original file line numberDiff line numberDiff line change
@@ -65,4 +65,7 @@ List<ProductToGLAccountMapping> findAllPenaltyToIncomeAccountMappings(@Param("pr
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@Query("select mapping from ProductToGLAccountMapping mapping where mapping.productId =:productId and mapping.productType =:productType and mapping.chargeOffReasonId is not NULL")
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List<ProductToGLAccountMapping> findAllChargesOffReasonsMappings(@Param("productId") Long productId,
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@Param("productType") int productType);
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@Query("select mapping from ProductToGLAccountMapping mapping where mapping.chargeOffReasonId =:chargeOffReasonId")
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ProductToGLAccountMapping findChargesOffReasonMappingById(@Param("chargeOffReasonId") Integer chargeOffReasonId);
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}

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

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Original file line numberDiff line numberDiff line change
@@ -45,4 +45,5 @@ public class LoanDTO {
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private boolean markedAsChargeOff;
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@Setter
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private boolean markedAsFraud;
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private Integer chargeOffReasonCodeValue;
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}

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

Lines changed: 7 additions & 1 deletion
Original file line numberDiff line numberDiff line change
@@ -112,6 +112,7 @@ public LoanDTO populateLoanDtoFromMap(final Map<String, Object> accountingBridge
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boolean isAccountTransfer = (Boolean) accountingBridgeData.get("isAccountTransfer");
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boolean isLoanMarkedAsChargeOff = (Boolean) accountingBridgeData.get("isChargeOff");
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boolean isLoanMarkedAsFraud = (Boolean) accountingBridgeData.get("isFraud");
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final Integer chargeOffReasonCodeValue = (Integer) accountingBridgeData.get("chargeOffReasonCodeValue");
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@SuppressWarnings("unchecked")
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final List<Map<String, Object>> newTransactionsMap = (List<Map<String, Object>>) accountingBridgeData.get("newLoanTransactions");
@@ -172,7 +173,12 @@ public LoanDTO populateLoanDtoFromMap(final Map<String, Object> accountingBridge
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}
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return new LoanDTO(loanId, loanProductId, officeId, currencyCode, cashBasedAccountingEnabled, upfrontAccrualBasedAccountingEnabled,
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periodicAccrualBasedAccountingEnabled, newLoanTransactions, isLoanMarkedAsChargeOff, isLoanMarkedAsFraud);
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periodicAccrualBasedAccountingEnabled, newLoanTransactions, isLoanMarkedAsChargeOff, isLoanMarkedAsFraud,
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chargeOffReasonCodeValue);
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}
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public ProductToGLAccountMapping getChargeOffMappingByCodeValue(Integer chargeOffReasonCodeValue) {
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return accountMappingRepository.findChargesOffReasonMappingById(chargeOffReasonCodeValue);
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}
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public SavingsDTO populateSavingsDtoFromMap(final Map<String, Object> accountingBridgeData, final boolean cashBasedAccountingEnabled,

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

Lines changed: 21 additions & 8 deletions
Original file line numberDiff line numberDiff line change
@@ -34,6 +34,7 @@
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import org.apache.fineract.accounting.journalentry.data.GLAccountBalanceHolder;
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import org.apache.fineract.accounting.journalentry.data.LoanDTO;
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import org.apache.fineract.accounting.journalentry.data.LoanTransactionDTO;
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import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMapping;
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import org.apache.fineract.infrastructure.core.service.MathUtil;
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import org.apache.fineract.organisation.office.domain.Office;
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import org.apache.fineract.portfolio.loanaccount.data.LoanTransactionEnumData;
@@ -227,14 +228,26 @@ private void createJournalEntriesForChargeOff(LoanDTO loanDTO, LoanTransactionDT
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final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
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final boolean isReversal = loanTransactionDTO.isReversed();
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GLAccountBalanceHolder glAccountBalanceHolder = new GLAccountBalanceHolder();
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// principal payment
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if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
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if (isMarkedFraud) {
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populateCreditDebitMaps(loanProductId, principalAmount, paymentTypeId, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
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AccrualAccountsForLoan.CHARGE_OFF_FRAUD_EXPENSE.getValue(), glAccountBalanceHolder);
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} else {
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populateCreditDebitMaps(loanProductId, principalAmount, paymentTypeId, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
237-
AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), glAccountBalanceHolder);
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// need to fetch if there are account mappings (always one)
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Integer chargeOffReasonCodeValue = loanDTO.getChargeOffReasonCodeValue();
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ProductToGLAccountMapping mapping = helper.getChargeOffMappingByCodeValue(chargeOffReasonCodeValue);
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if (mapping != null) {
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GLAccount accountCredit = this.helper.getLinkedGLAccountForLoanProduct(loanProductId,
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AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), paymentTypeId);
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glAccountBalanceHolder.addToCredit(accountCredit, principalAmount);
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glAccountBalanceHolder.addToDebit(mapping.getGlAccount(), principalAmount);
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} else {
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// principal payment
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if (principalAmount != null && principalAmount.compareTo(BigDecimal.ZERO) > 0) {
244+
if (isMarkedFraud) {
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populateCreditDebitMaps(loanProductId, principalAmount, paymentTypeId, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
246+
AccrualAccountsForLoan.CHARGE_OFF_FRAUD_EXPENSE.getValue(), glAccountBalanceHolder);
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} else {
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populateCreditDebitMaps(loanProductId, principalAmount, paymentTypeId, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
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AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), glAccountBalanceHolder);
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}
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}
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}
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// interest payment

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

Lines changed: 164 additions & 0 deletions
Original file line numberDiff line numberDiff line change
@@ -0,0 +1,164 @@
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/**
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* Licensed to the Apache Software Foundation (ASF) under one
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* or more contributor license agreements. See the NOTICE file
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* distributed with this work for additional information
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* regarding copyright ownership. The ASF licenses this file
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* to you under the Apache License, Version 2.0 (the
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* "License"); you may not use this file except in compliance
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* with the License. You may obtain a copy of the License at
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*
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* http://www.apache.org/licenses/LICENSE-2.0
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*
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* Unless required by applicable law or agreed to in writing,
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* software distributed under the License is distributed on an
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* "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
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* KIND, either express or implied. See the License for the
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* specific language governing permissions and limitations
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* under the License.
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*/
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package org.apache.fineract.accounting.journalentry;
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import static org.mockito.Mockito.mock;
22+
import static org.mockito.Mockito.times;
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import static org.mockito.Mockito.verify;
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import static org.mockito.Mockito.when;
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import java.math.BigDecimal;
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import java.time.LocalDate;
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import java.time.ZoneId;
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import java.util.Collections;
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import java.util.List;
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import org.apache.fineract.accounting.closure.domain.GLClosure;
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import org.apache.fineract.accounting.common.AccountingConstants.AccrualAccountsForLoan;
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import org.apache.fineract.accounting.glaccount.domain.GLAccount;
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import org.apache.fineract.accounting.journalentry.data.LoanDTO;
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import org.apache.fineract.accounting.journalentry.data.LoanTransactionDTO;
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import org.apache.fineract.accounting.journalentry.service.AccountingProcessorHelper;
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import org.apache.fineract.accounting.journalentry.service.AccrualBasedAccountingProcessorForLoan;
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import org.apache.fineract.accounting.producttoaccountmapping.domain.ProductToGLAccountMapping;
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import org.apache.fineract.organisation.office.domain.Office;
40+
import org.apache.fineract.portfolio.loanaccount.data.LoanTransactionEnumData;
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import org.junit.jupiter.api.BeforeEach;
42+
import org.junit.jupiter.api.Test;
43+
import org.junit.jupiter.api.extension.ExtendWith;
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import org.mockito.InjectMocks;
45+
import org.mockito.Mock;
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import org.mockito.junit.jupiter.MockitoExtension;
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@ExtendWith(MockitoExtension.class)
49+
class CreateJournalEntriesForChargeOffLoanTest {
50+
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private static final Integer chargeOffReasons = 15;
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@Mock
54+
private AccountingProcessorHelper helper;
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@InjectMocks
56+
private AccrualBasedAccountingProcessorForLoan processor;
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private LoanDTO loanDTO;
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@BeforeEach
60+
void setUp() {
61+
Office office = Office.headOffice("Main Office", LocalDate.now(ZoneId.systemDefault()), null);
62+
when(helper.getOfficeById(1L)).thenReturn(office);
63+
64+
GLClosure mockClosure = mock(GLClosure.class);
65+
when(helper.getLatestClosureByBranch(1L)).thenReturn(mockClosure);
66+
67+
LoanTransactionEnumData transactionType = mock(LoanTransactionEnumData.class);
68+
when(transactionType.isChargeoff()).thenReturn(true);
69+
70+
LoanTransactionDTO loanTransactionDTO = new LoanTransactionDTO(1L, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()),
71+
transactionType, new BigDecimal("500.00"), new BigDecimal("500.00"), null, null, null, null, false, Collections.emptyList(),
72+
Collections.emptyList(), false, "", null, null, null, null);
73+
74+
loanDTO = new LoanDTO(1L, 1L, 1L, "USD", false, true, true, List.of(loanTransactionDTO), false, false, chargeOffReasons);
75+
}
76+
77+
@Test
78+
void shouldCreateJournalEntriesForChargeOff() {
79+
GLAccount chargeOffGLAccount = new GLAccount();
80+
chargeOffGLAccount.setId(15L);
81+
chargeOffGLAccount.setName("Charge-Off Account");
82+
chargeOffGLAccount.setGlCode("12345");
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84+
ProductToGLAccountMapping chargeToGLAccountMapper = new ProductToGLAccountMapping();
85+
chargeToGLAccountMapper.setGlAccount(chargeOffGLAccount);
86+
87+
when(helper.getChargeOffMappingByCodeValue(chargeOffReasons)).thenReturn(chargeToGLAccountMapper);
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89+
GLAccount loanPortfolioGLAccount = new GLAccount();
90+
loanPortfolioGLAccount.setId(20L);
91+
loanPortfolioGLAccount.setName("Loan Portfolio Account");
92+
loanPortfolioGLAccount.setGlCode("54321");
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94+
when(helper.getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L))
95+
.thenReturn(loanPortfolioGLAccount);
96+
97+
processor.createJournalEntriesForLoan(loanDTO);
98+
99+
verify(helper, times(1)).getChargeOffMappingByCodeValue(chargeOffReasons);
100+
verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L);
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verify(helper, times(1)).createCreditJournalEntryOrReversalForLoan(helper.getOfficeById(1L), "USD",
102+
AccrualAccountsForLoan.LOAN_PORTFOLIO, 1L, null, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()),
103+
new BigDecimal("500.00"), false);
104+
verify(helper, times(1)).createDebitJournalEntryOrReversalForLoan(helper.getOfficeById(1L), "USD",
105+
AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), 1L, null, 1L, "txn-123", LocalDate.now(ZoneId.systemDefault()),
106+
new BigDecimal("500.00"), false);
107+
}
108+
109+
@Test
110+
void shouldCreateJournalEntriesForChargeOffWithFraud() {
111+
loanDTO.setMarkedAsFraud(true);
112+
113+
when(helper.getChargeOffMappingByCodeValue(chargeOffReasons)).thenReturn(null);
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115+
GLAccount loanPortfolioGLAccount = new GLAccount();
116+
loanPortfolioGLAccount.setId(20L);
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loanPortfolioGLAccount.setName("Loan Portfolio Account");
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loanPortfolioGLAccount.setGlCode("54321");
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120+
GLAccount fraudExpenseGLAccount = new GLAccount();
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fraudExpenseGLAccount.setId(30L);
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fraudExpenseGLAccount.setName("Fraud Expense Account");
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fraudExpenseGLAccount.setGlCode("98765");
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when(helper.getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L))
126+
.thenReturn(loanPortfolioGLAccount);
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128+
when(helper.getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.CHARGE_OFF_FRAUD_EXPENSE.getValue(), 1L))
129+
.thenReturn(fraudExpenseGLAccount);
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131+
processor.createJournalEntriesForLoan(loanDTO);
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133+
verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L);
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verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.CHARGE_OFF_FRAUD_EXPENSE.getValue(), 1L);
135+
}
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@Test
138+
void shouldCreateJournalEntriesForChargeOffWithoutFraud() {
139+
loanDTO.setMarkedAsFraud(false);
140+
141+
when(helper.getChargeOffMappingByCodeValue(chargeOffReasons)).thenReturn(null);
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GLAccount loanPortfolioGLAccount = new GLAccount();
144+
loanPortfolioGLAccount.setId(20L);
145+
loanPortfolioGLAccount.setName("Loan Portfolio Account");
146+
loanPortfolioGLAccount.setGlCode("54321");
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148+
GLAccount expenseGLAccount = new GLAccount();
149+
expenseGLAccount.setId(40L);
150+
expenseGLAccount.setName("Expense Account");
151+
expenseGLAccount.setGlCode("67890");
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when(helper.getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L))
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.thenReturn(loanPortfolioGLAccount);
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when(helper.getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), 1L))
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.thenReturn(expenseGLAccount);
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159+
processor.createJournalEntriesForLoan(loanDTO);
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verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(), 1L);
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verify(helper, times(1)).getLinkedGLAccountForLoanProduct(1L, AccrualAccountsForLoan.CHARGE_OFF_EXPENSE.getValue(), 1L);
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}
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}

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