FINERACT-2326: Loan contract termination same disbursement date

Author: Jose Alberto Hernandez

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

@@ -146,6 +146,7 @@ public enum DefaultLoanProduct implements LoanProduct {
     LP2_ADV_PYMNT_ZERO_INTEREST_CHARGE_OFF_DELINQUENT_REASON_INTEREST_RECALC_CAPITALIZED_INCOME, //
     LP2_ADV_PYMNT_360_30_INTEREST_RECALCULATION_ZERO_INTEREST_CHARGE_OFF_ACCRUAL_ACTIVITY, //
     LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION, //
+    LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION, //
     LP2_ADV_PYMNT_INTEREST_DAILY_RECALC_EMI_360_30_MULTIDISB_OVER_APPLIED_PERCENTAGE_CAPITALIZED_INCOME, //
     LP2_ADV_PYMNT_INTEREST_DAILY_RECALC_EMI_360_30_MULTIDISB_OVER_APPLIED_FLAT_CAPITALIZED_INCOME, //
     LP2_ADV_PYMNT_INTEREST_DAILY_RECALC_EMI_360_30_APPROVED_OVER_APPLIED_PERCENTAGE_CAPITALIZED_INCOME, //

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

@@ -4058,6 +4058,39 @@ public void initialize() throws Exception {
                 TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_CUSTOM_PMT_ALLOC_PROGRESSIVE_INTEREST_DAILY_EMI_360_30_INTEREST_RECALCULATION_DAILY,
                 responseLoanProductsResponseAdvCustomPaymentAllocationProgressiveLoanInterestDailyEmi36030InterestRecalculationDaily);
 
+        // LP2 with progressive loan schedule + horizontal + interest EMI + 360/30 + multidisbursement +
+        // contract termination with interest recognition
+        // (LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION)
+        final String name148 = DefaultLoanProduct.LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION
+                .getName();
+
+        final PostLoanProductsRequest loanProductsRequestAdvCustomContractTerminationProgressiveLoanScheduleIntRecalcRecog = loanProductsRequestFactory
+                .defaultLoanProductsRequestLP2InterestDailyRecalculation()//
+                .interestRecognitionOnDisbursementDate(true) //
+                .name(name148)//
+                .paymentAllocation(List.of(//
+                        createPaymentAllocation("DEFAULT", "NEXT_INSTALLMENT",
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PENALTY, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_FEE, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_INTEREST, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.PAST_DUE_PRINCIPAL, //
+                                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_PRINCIPAL, //
+                                LoanProductPaymentAllocationRule.AllocationTypesEnum.IN_ADVANCE_INTEREST), //
+                        createPaymentAllocation("GOODWILL_CREDIT", "LAST_INSTALLMENT"), //
+                        createPaymentAllocation("MERCHANT_ISSUED_REFUND", "REAMORTIZATION"), //
+                        createPaymentAllocation("PAYOUT_REFUND", "NEXT_INSTALLMENT")));//
+        final Response<PostLoanProductsResponse> responseLoanProductsRequestAdvCustomContractTerminationProgressiveLoanScheduleIntRecalcRecog = loanProductsApi
+                .createLoanProduct(loanProductsRequestAdvCustomContractTerminationProgressiveLoanScheduleIntRecalcRecog).execute();
+        TestContext.INSTANCE.set(
+                TestContextKey.DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION,
+                responseLoanProductsRequestAdvCustomContractTerminationProgressiveLoanScheduleIntRecalcRecog);
+
         // (LP1_WITH_OVERRIDES) - Loan product with all attribute overrides ENABLED
         final String nameWithOverrides = DefaultLoanProduct.LP1_WITH_OVERRIDES.getName();
         final PostLoanProductsRequest loanProductsRequestWithOverrides = loanProductsRequestFactory.defaultLoanProductsRequestLP1() //

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

@@ -258,6 +258,7 @@ public abstract class TestContextKey {
     public static final String LOAN_INTEREST_REFUND_RESPONSE = "loanInterestRefundResponse";
     public static final String INTEREST_PAUSE_VARIATION_ID = "interestPauseVariationId";
     public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationContractTermination";
+    public static final String DEFAULT_LOAN_PRODUCT_CREATE_RESPONSE_LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION = "loanProductCreateResponseLP2AdvancedPaymentInterestDailyInterestRecalculationContractTerminationIntRecognition";
     public static final String LOAN_CONTRACT_TERMINATION_RESPONSE = "loanContractTerminationResponse";
     public static final String LOAN_UNDO_CONTRACT_TERMINATION_RESPONSE = "loanUndoContractTerminationResponse";
     public static final String LOAN_BUY_DOWN_FEE_RESPONSE = "loanBuyDownFeeResponse";

fineract-e2e-tests-runner/src/test/resources/features/LoanContractTermination.feature

@@ -1317,3 +1317,47 @@ Feature: Contract Termination
       | 31 March 2024    | Accrual Adjustment   | 0.15   | 0.0       | 0.15     | 0.0  | 0.0       | 0.0          | false    | false    |
       | 31 March 2024    | Contract Termination | 57.37  | 57.05     | 0.32     | 0.0  | 0.0       | 0.0          | true     | true     |
     And Global configuration "is-principal-compounding-disabled-for-overdue-loans" is disabled
+
+  @TestRailId:C4133
+  Scenario: Contract termination on disbursement date
+    When Admin sets the business date to "01 January 2025"
+    And Admin creates a client with random data
+    And Admin creates a fully customized loan with the following data:
+      | LoanProduct                                                              | submitted on date | with Principal | ANNUAL interest rate % | interest type     | interest calculation period | amortization type  | loanTermFrequency | loanTermFrequencyType | repaymentEvery | repaymentFrequencyType | numberOfRepayments | graceOnPrincipalPayment | graceOnInterestPayment | interest free period | Payment strategy            |
+      | LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION | 01 January 2025   | 100            | 7                      | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 4                 | MONTHS                | 1              | MONTHS                 | 4                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "01 January 2025" with "100" amount and expected disbursement date on "01 January 2025"
+    And Admin successfully disburse the loan on "01 January 2025" with "100" EUR transaction amount
+    And Admin successfully terminates loan contract
+    Then Loan Repayment schedule has 1 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid | In advance | Late | Outstanding |
+      |    |      | 01 January 2025  |           | 100.0           |               |          | 0.0  |           | 0.0   | 0.0  |            |      |             |
+      | 1  | 0    | 01 January 2025  |           |   0.0           | 100.0         | 0.0      | 0.0  | 0.0       | 100.0 | 0.0  | 0.0        | 0.0  | 100.0       |
+    And Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due    | Paid | In advance | Late | Outstanding |
+      | 100.0         | 0.0      | 0.0  | 0.0       | 100.0  | 0.0  | 0.0        | 0.0  | 100.0       |
+    And Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type     | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted | Replayed |
+      | 01 January 2025  | Disbursement         | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | false    | false    |
+      | 01 January 2025  | Contract Termination | 100.0  | 100.0     | 0.0      | 0.0  | 0.0       | 0.0          | false    | false    |
+
+  @TestRailId:C4134
+  Scenario: Contract termination on disbursement date with interest recognition
+    When Admin sets the business date to "01 January 2025"
+    And Admin creates a client with random data
+    And Admin creates a fully customized loan with the following data:
+      | LoanProduct                                                                              | submitted on date | with Principal | ANNUAL interest rate % | interest type     | interest calculation period | amortization type  | loanTermFrequency | loanTermFrequencyType | repaymentEvery | repaymentFrequencyType | numberOfRepayments | graceOnPrincipalPayment | graceOnInterestPayment | interest free period | Payment strategy            |
+      | LP2_ADV_PYMNT_INTEREST_DAILY_INTEREST_RECALCULATION_CONTRACT_TERMINATION_INT_RECOGNITION | 01 January 2025   | 100            | 7                      | DECLINING_BALANCE | DAILY                       | EQUAL_INSTALLMENTS | 4                 | MONTHS                | 1              | MONTHS                 | 4                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "01 January 2025" with "100" amount and expected disbursement date on "01 January 2025"
+    And Admin successfully disburse the loan on "01 January 2025" with "100" EUR transaction amount
+    And Admin successfully terminates loan contract
+    Then Loan Repayment schedule has 1 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid | In advance | Late | Outstanding |
+      |    |      | 01 January 2025  |           | 100.0           |               |          | 0.0  |           | 0.0   | 0.0  |            |      |             |
+      | 1  | 0    | 01 January 2025  |           |   0.0           | 100.0         | 0.0      | 0.0  | 0.0       | 100.0 | 0.0  | 0.0        | 0.0  | 100.0       |
+    And Loan Repayment schedule has the following data in Total row:
+      | Principal due | Interest | Fees | Penalties | Due    | Paid | In advance | Late | Outstanding |
+      | 100.0         | 0.0      | 0.0  | 0.0       | 100.0  | 0.0  | 0.0        | 0.0  | 100.0       |
+    And Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type     | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Reverted | Replayed |
+      | 01 January 2025  | Disbursement         | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | false    | false    |
+      | 01 January 2025  | Contract Termination | 100.0  | 100.0     | 0.0      | 0.0  | 0.0       | 0.0          | false    | false    |

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java

@@ -1410,10 +1410,17 @@ public void addLoanRepaymentScheduleInstallment(final LoanRepaymentScheduleInsta
      * @param date
      * @return a schedule installment is related to the provided date
      **/
-    public LoanRepaymentScheduleInstallment getRelatedRepaymentScheduleInstallment(LocalDate date) {
-        return getRepaymentScheduleInstallment(
-                e -> (e.isFirstNormalInstallment() && DateUtils.isDateInRangeInclusive(date, e.getFromDate(), e.getDueDate()))
-                        || DateUtils.isDateInRangeFromExclusiveToInclusive(date, e.getFromDate(), e.getDueDate()));
+    public LoanRepaymentScheduleInstallment getRelatedRepaymentScheduleInstallment(final LocalDate date) {
+        return getRepaymentScheduleInstallment(e -> (DateUtils.isDateInRangeFromExclusiveToInclusive(date, e.getFromDate(), e.getDueDate())
+                || (e.isFirstNormalInstallment(getRepaymentScheduleInstallments())
+                        && DateUtils.isDateInRangeInclusive(date, e.getFromDate(), e.getDueDate()))));
+    }
+
+    public List<LoanRepaymentScheduleInstallment> getInstallmentsUpToTransactionDate(final LocalDate transactionDate) {
+        return getRepaymentScheduleInstallments().stream()
+                .filter(i -> (transactionDate.isAfter(i.getFromDate())
+                        || (i.isFirstNormalInstallment(getRepaymentScheduleInstallments()) && !transactionDate.isBefore(i.getFromDate()))))
+                .collect(Collectors.toCollection(ArrayList::new));
     }
 
     public LoanRepaymentScheduleInstallment fetchRepaymentScheduleInstallment(final Integer installmentNumber) {

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanRepaymentScheduleInstallment.java

@@ -1216,8 +1216,7 @@ private BigDecimal setScaleAndDefaultToNullIfZero(final BigDecimal value) {
         return value.setScale(6, MoneyHelper.getRoundingMode());
     }
 
-    public boolean isFirstNormalInstallment() {
-        return loan.getRepaymentScheduleInstallments().stream().filter(rp -> !rp.isDownPayment()).findFirst().stream()
-                .anyMatch(rp -> rp.equals(this));
+    public boolean isFirstNormalInstallment(List<LoanRepaymentScheduleInstallment> installments) {
+        return installments.stream().filter(rp -> !rp.isDownPayment()).findFirst().stream().anyMatch(rp -> rp.equals(this));
     }
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/LoanApplicationTerms.java

@@ -2255,4 +2255,8 @@ public void updateVariationDays(final long daysToAdd) {
         this.variationDays += daysToAdd;
     }
 
+    public boolean isInterestRecognitionOnDisbursementDate() {
+        return this.interestRecognitionOnDisbursementDate;
+    }
+
 }

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

@@ -1861,10 +1861,10 @@ private void handleAccelerateMaturityDate(final LoanTransaction loanTransaction,
         final Loan loan = loanTransaction.getLoan();
         final LoanRepaymentScheduleInstallment currentInstallment = loan.getRelatedRepaymentScheduleInstallment(transactionDate);
 
-        if (!installments.isEmpty() && transactionDate.isBefore(loan.getMaturityDate())) {
+        if (!installments.isEmpty() && transactionDate.isBefore(loan.getMaturityDate()) && currentInstallment != null) {
             if (currentInstallment.isNotFullyPaidOff()) {
                 if (transactionCtx instanceof ProgressiveTransactionCtx progressiveTransactionCtx
-                        && loanTransaction.getLoan().isInterestBearingAndInterestRecalculationEnabled()) {
+                        && loan.isInterestBearingAndInterestRecalculationEnabled()) {
                     final BigDecimal interestOutstanding = currentInstallment.getInterestOutstanding(loan.getCurrency()).getAmount();
                     final BigDecimal newInterest = emiCalculator.getPeriodInterestTillDate(progressiveTransactionCtx.getModel(),
                             currentInstallment.getDueDate(), transactionDate, true).getAmount();
@@ -1918,9 +1918,8 @@ private void handleAccelerateMaturityDate(final LoanTransaction loanTransaction,
                         MathUtil.nullToZero(currentInstallment.getTotalPaidInAdvance()).add(futureTotalPaidInAdvance));
             }
 
-            final List<LoanRepaymentScheduleInstallment> installmentsUpToTransactionDate = installments.stream()
-                    .filter(installment -> transactionDate.isAfter(installment.getFromDate()))
-                    .collect(Collectors.toCollection(ArrayList::new));
+            final List<LoanRepaymentScheduleInstallment> installmentsUpToTransactionDate = loan
+                    .getInstallmentsUpToTransactionDate(transactionDate);
 
             final List<LoanTransaction> transactionsToBeReprocessed = loan.getLoanTransactions().stream()
                     .filter(transaction -> transaction.getTransactionDate().isBefore(transactionDate))

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

@@ -115,7 +115,8 @@ public ChangedTransactionDetail reprocessLoanTransactions(String transactionProc
         if (loanRepaymentScheduleTransactionProcessor instanceof AdvancedPaymentScheduleTransactionProcessor advancedProcessor) {
             LocalDate currentDate = DateUtils.getBusinessLocalDate();
             Pair<ChangedTransactionDetail, ProgressiveLoanInterestScheduleModel> result = advancedProcessor
-                    .reprocessProgressiveLoanTransactions(disbursementDate, currentDate, loanTransactions, currency, installments, charges);
+                    .reprocessProgressiveLoanTransactions(disbursementDate, currentDate, loanTransactions, currency, installments,
+                            charges);
             if (!TransactionSynchronizationManager.isCurrentTransactionReadOnly()) {
                 modelRepository.writeInterestScheduleModel(getLoan(loanTransactions, installments, charges), result.getRight());
             }

integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanContractTerminationTest.java

@@ -18,13 +18,17 @@
  */
 package org.apache.fineract.integrationtests;
 
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
 import java.math.BigDecimal;
 import java.util.concurrent.atomic.AtomicReference;
+import org.apache.fineract.client.models.GetLoansLoanIdResponse;
 import org.apache.fineract.client.models.PostClientsResponse;
 import org.apache.fineract.client.models.PostLoanProductsResponse;
 import org.apache.fineract.client.models.PostLoansLoanIdRequest;
 import org.apache.fineract.client.util.CallFailedRuntimeException;
 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.loans.LoanProductTestBuilder;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -118,4 +122,31 @@ public void testNegativeLoanContractTerminationInNoProgressiveLoan() {
         });
     }
 
+    @Test
+    public void testLoanContractTerminationSameDisbursementDate() {
+        final PostClientsResponse client = clientHelper.createClient(ClientHelper.defaultClientCreationRequest());
+        final GlobalConfigurationHelper globalConfigurationHelper = new GlobalConfigurationHelper();
+
+        runAt("1 January 2024", () -> {
+
+            PostLoanProductsResponse loanProductsResponse = loanProductHelper
+                    .createLoanProduct(create4IProgressive().interestRecognitionOnDisbursementDate(false));
+            Long loanId = applyAndApproveProgressiveLoan(client.getClientId(), loanProductsResponse.getResourceId(), "1 January 2024",
+                    500.0, 7.0, 6, (request) -> request.interestRecognitionOnDisbursementDate(false));
+
+            disburseLoan(loanId, BigDecimal.valueOf(100), "1 January 2024");
+
+            loanTransactionHelper.moveLoanState(loanId,
+                    new PostLoansLoanIdRequest().note("Contract Termination Test").externalId(Utils.randomStringGenerator("", 20)),
+                    "contractTermination");
+
+            verifyTransactions(loanId, //
+                    transaction(100.0, "Disbursement", "01 January 2024"), //
+                    transaction(100.0, "Contract Termination", "01 January 2024"));
+
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            assertEquals(BigDecimal.ZERO.stripTrailingZeros(), loanDetails.getSummary().getInterestCharged().stripTrailingZeros());
+        });
+    }
+
 }