FINERACT-2107: Interest Refund - Transaction Amount Recalculation

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

@@ -3969,7 +3969,7 @@ Feature: LoanRepayment
       | 15 January 2024  | Merchant Issued Refund | 50.0   | 48.9      | 1.1      | 0.0  | 0.0       | 126.1        | false    |
       | 15 January 2024  | Interest Refund        | 0.29   | 0.29      | 0.0      | 0.0  | 0.0       | 125.81       | false    |
       | 16 January 2024  | Payout Refund          | 50.0   | 49.95     | 0.05     | 0.0  | 0.0       | 75.86        | false    |
-      | 16 January 2024  | Interest Refund        | 0.31   | 0.31      | 0.0      | 0.0  | 0.0       | 75.55        | false    |
+      | 16 January 2024  | Interest Refund        | 0.3   | 0.3      | 0.0      | 0.0  | 0.0       | 75.56        | false    |
     Then In Loan Transactions the "4"th Transaction has relationship type=RELATED with the "3"th Transaction
     Then In Loan Transactions the "6"th Transaction has relationship type=RELATED with the "5"th Transaction
     When Customer undo "1"th "Merchant Issued Refund" transaction made on "15 January 2024"

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

@@ -141,6 +141,7 @@
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProduct;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRelatedDetail;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanRescheduleStrategyMethod;
+import org.apache.fineract.portfolio.loanproduct.domain.LoanSupportedInterestRefundTypes;
 import org.apache.fineract.portfolio.loanproduct.domain.RecalculationFrequencyType;
 import org.apache.fineract.portfolio.loanproduct.domain.RepaymentStartDateType;
 import org.apache.fineract.portfolio.loanproduct.service.LoanEnumerations;
@@ -5452,6 +5453,11 @@ public void handleMaturityDateActivate() {
         }
     }
 
+    public List<LoanTransactionType> getSupportedInterestRefundTransactionTypes() {
+        return getLoanProductRelatedDetail().getSupportedInterestRefundTypes().stream()
+                .map(LoanSupportedInterestRefundTypes::getTransactionType).toList();
+    }
+
     public LoanTransaction getLastUserTransaction() {
         return getLoanTransactions().stream() //
                 .filter(LoanTransaction::isNotReversed) //

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

@@ -1052,6 +1052,10 @@ public boolean isInterestRefund() {
         return getTypeOf().isInterestRefund();
     }
 
+    public void updateAmount(BigDecimal bigDecimal) {
+        this.amount = bigDecimal;
+    }
+
     // TODO missing hashCode(), equals(Object obj), but probably OK as long as
     // this is never stored in a Collection.
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/service/InterestRefundService.java

@@ -18,15 +18,23 @@
  */
 package org.apache.fineract.portfolio.loanaccount.service;
 
-import java.math.BigDecimal;
 import java.time.LocalDate;
+import java.util.List;
+import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
+import org.apache.fineract.organisation.monetary.domain.Money;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.LoanRepaymentScheduleTransactionProcessor;
+import org.springframework.transaction.annotation.Propagation;
+import org.springframework.transaction.annotation.Transactional;
 
 public interface InterestRefundService {
 
     boolean canHandle(Loan loan);
 
-    BigDecimal calculateInterestRefundAmount(Long loanId, BigDecimal relatedRefundTransactionAmount,
-            LocalDate relatedRefundTransactionDate);
+    @Transactional(readOnly = true, propagation = Propagation.REQUIRES_NEW)
+    Money totalInterestByTransactions(LoanRepaymentScheduleTransactionProcessor processor, Long loanId,
+            LocalDate relatedRefundTransactionDate, List<LoanTransaction> newTransactions, List<Long> oldTransactionIds);
 
+    Money getTotalInterestRefunded(List<LoanTransaction> loanTransactions, MonetaryCurrency currency);
 }

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

@@ -57,6 +57,7 @@
 import org.apache.commons.lang3.NotImplementedException;
 import org.apache.commons.lang3.ObjectUtils;
 import org.apache.commons.lang3.tuple.Pair;
+import org.apache.fineract.infrastructure.core.domain.AbstractPersistableCustom;
 import org.apache.fineract.infrastructure.core.service.DateUtils;
 import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
@@ -85,6 +86,7 @@
 import org.apache.fineract.portfolio.loanaccount.loanschedule.data.PeriodDueDetails;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.data.ProgressiveLoanInterestScheduleModel;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
+import org.apache.fineract.portfolio.loanaccount.service.InterestRefundService;
 import org.apache.fineract.portfolio.loanproduct.calc.EMICalculator;
 import org.apache.fineract.portfolio.loanproduct.domain.AllocationType;
 import org.apache.fineract.portfolio.loanproduct.domain.CreditAllocationTransactionType;
@@ -102,6 +104,7 @@ public class AdvancedPaymentScheduleTransactionProcessor extends AbstractLoanRep
     public static final String ADVANCED_PAYMENT_ALLOCATION_STRATEGY_NAME = "Advanced payment allocation strategy";
 
     public final EMICalculator emiCalculator;
+    public final InterestRefundService interestRefundService;
 
     @Override
     public String getCode() {
@@ -196,6 +199,7 @@ public Pair<ChangedTransactionDetail, ProgressiveLoanInterestScheduleModel> repr
                 LoanTransaction transaction = changeOperation.getLoanTransaction().get();
                 processSingleTransaction(transaction, ctx);
                 transaction = getProcessedTransaction(changedTransactionDetail, transaction);
+                ctx.getAlreadyProcessedTransactions().add(transaction);
                 if (transaction.isOverPaid() && transaction.isRepaymentLikeType()) { // TODO CREDIT, DEBIT
                     overpaidTransactions.add(transaction);
                 }
@@ -268,9 +272,10 @@ public void processLatestTransaction(LoanTransaction loanTransaction, Transactio
             case CHARGEBACK -> handleChargeback(loanTransaction, ctx);
             case CREDIT_BALANCE_REFUND ->
                 handleCreditBalanceRefund(loanTransaction, ctx.getCurrency(), ctx.getInstallments(), ctx.getOverpaymentHolder());
-            case INTEREST_REFUND, REPAYMENT, MERCHANT_ISSUED_REFUND, PAYOUT_REFUND, GOODWILL_CREDIT, CHARGE_REFUND, CHARGE_ADJUSTMENT,
-                    DOWN_PAYMENT, WAIVE_INTEREST, RECOVERY_REPAYMENT, INTEREST_PAYMENT_WAIVER ->
+            case REPAYMENT, MERCHANT_ISSUED_REFUND, PAYOUT_REFUND, GOODWILL_CREDIT, CHARGE_REFUND, CHARGE_ADJUSTMENT, DOWN_PAYMENT,
+                    WAIVE_INTEREST, RECOVERY_REPAYMENT, INTEREST_PAYMENT_WAIVER ->
                 handleRepayment(loanTransaction, ctx);
+            case INTEREST_REFUND -> handleInterestRefund(loanTransaction, ctx);
             case CHARGE_OFF -> handleChargeOff(loanTransaction, ctx);
             case CHARGE_PAYMENT -> handleChargePayment(loanTransaction, ctx);
             case WAIVE_CHARGES -> log.debug("WAIVE_CHARGES transaction will not be processed.");
@@ -284,6 +289,25 @@ public void processLatestTransaction(LoanTransaction loanTransaction, Transactio
         }
     }
 
+    private void handleInterestRefund(LoanTransaction loanTransaction, TransactionCtx ctx) {
+
+        if (ctx instanceof ProgressiveTransactionCtx progCtx) {
+            Money interestBeforeRefund = emiCalculator.getSumOfDueInterestsOnDate(progCtx.getModel(), loanTransaction.getDateOf());
+            List<Long> unmodifiedTransactionIds = progCtx.getAlreadyProcessedTransactions().stream().filter(LoanTransaction::isNotReversed)
+                    .map(AbstractPersistableCustom::getId).toList();
+            List<LoanTransaction> modifiedTransactions = new ArrayList<>(progCtx.getAlreadyProcessedTransactions().stream()
+                    .filter(LoanTransaction::isNotReversed).filter(tr -> tr.getId() == null).toList());
+            if (!modifiedTransactions.isEmpty()) {
+                Money interestAfterRefund = interestRefundService.totalInterestByTransactions(this, loanTransaction.getLoan().getId(),
+                        loanTransaction.getDateOf(), modifiedTransactions, unmodifiedTransactionIds);
+                Money newAmount = interestBeforeRefund.minus(progCtx.getSumOfInterestRefundAmount()).minus(interestAfterRefund);
+                loanTransaction.updateAmount(newAmount.getAmount());
+            }
+            progCtx.setSumOfInterestRefundAmount(progCtx.getSumOfInterestRefundAmount().add(loanTransaction.getAmount()));
+        }
+        handleRepayment(loanTransaction, ctx);
+    }
+
     private void handleReAmortization(LoanTransaction loanTransaction, TransactionCtx transactionCtx) {
         LocalDate transactionDate = loanTransaction.getTransactionDate();
         List<LoanRepaymentScheduleInstallment> previousInstallments = transactionCtx.getInstallments().stream() //

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

@@ -19,14 +19,17 @@
 package org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl;
 
 import java.time.LocalDate;
+import java.util.ArrayList;
 import java.util.List;
 import java.util.Set;
 import lombok.Getter;
 import lombok.Setter;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
+import org.apache.fineract.organisation.monetary.domain.Money;
 import org.apache.fineract.portfolio.loanaccount.domain.ChangedTransactionDetail;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanCharge;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleInstallment;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.MoneyHolder;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.TransactionCtx;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.data.ProgressiveLoanInterestScheduleModel;
@@ -37,11 +40,15 @@ public class ProgressiveTransactionCtx extends TransactionCtx {
     private final ProgressiveLoanInterestScheduleModel model;
     @Setter
     private LocalDate lastOverdueBalanceChange = null;
+    private List<LoanTransaction> alreadyProcessedTransactions = new ArrayList<>();
+    @Setter
+    private Money sumOfInterestRefundAmount;
 
     public ProgressiveTransactionCtx(MonetaryCurrency currency, List<LoanRepaymentScheduleInstallment> installments,
             Set<LoanCharge> charges, MoneyHolder overpaymentHolder, ChangedTransactionDetail changedTransactionDetail,
             ProgressiveLoanInterestScheduleModel model) {
         super(currency, installments, charges, overpaymentHolder, changedTransactionDetail);
+        sumOfInterestRefundAmount = model.getZero();
         this.model = model;
     }
 }

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/calc/EMICalculator.java

@@ -62,4 +62,6 @@ Money getOutstandingLoanBalanceOfPeriod(ProgressiveLoanInterestScheduleModel int
             LocalDate targetDate);
 
     OutstandingDetails getOutstandingAmountsTillDate(ProgressiveLoanInterestScheduleModel model, LocalDate targetDate);
+
+    Money getSumOfDueInterestsOnDate(ProgressiveLoanInterestScheduleModel scheduleModel, LocalDate subjectDate);
 }

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculator.java

@@ -716,4 +716,22 @@ public ProgressiveLoanInterestScheduleModel generateModel(LoanProductRelatedDeta
 
         return new ProgressiveLoanInterestScheduleModel(repaymentModels, loanProductRelatedDetail, installmentAmountInMultiplesOf, mc);
     }
+
+    /**
+     * Calculates the sum of due interests on interest periods.
+     *
+     * @param scheduleModel
+     *            schedule model
+     * @param subjectDate
+     *            the date to calculate the interest for.
+     * @return sum of due interests
+     */
+    @Override
+    public Money getSumOfDueInterestsOnDate(ProgressiveLoanInterestScheduleModel scheduleModel, LocalDate subjectDate) {
+        return scheduleModel.repaymentPeriods().stream().map(RepaymentPeriod::getDueDate) //
+                .map(repaymentPeriodDueDate -> getDueAmounts(scheduleModel, repaymentPeriodDueDate, subjectDate) //
+                        .getDueInterest()) //
+                .reduce(scheduleModel.getZero(), Money::add); //
+    }
+
 }

fineract-progressive-loan/src/test/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessorTest.java

@@ -109,7 +109,7 @@ public static void destruct() {
 
     @BeforeEach
     public void setUp() {
-        underTest = new AdvancedPaymentScheduleTransactionProcessor(emiCalculator);
+        underTest = new AdvancedPaymentScheduleTransactionProcessor(emiCalculator, null);
 
         ThreadLocalContextUtil.setTenant(new FineractPlatformTenant(1L, "default", "Default", "Asia/Kolkata", null));
         ThreadLocalContextUtil.setActionContext(ActionContext.DEFAULT);

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java

@@ -34,6 +34,7 @@
 import org.apache.fineract.infrastructure.core.data.ApiParameterError;
 import org.apache.fineract.infrastructure.core.data.CommandProcessingResultBuilder;
 import org.apache.fineract.infrastructure.core.data.DataValidatorBuilder;
+import org.apache.fineract.infrastructure.core.domain.AbstractPersistableCustom;
 import org.apache.fineract.infrastructure.core.domain.ExternalId;
 import org.apache.fineract.infrastructure.core.exception.GeneralPlatformDomainRuleException;
 import org.apache.fineract.infrastructure.core.exception.PlatformApiDataValidationException;
@@ -143,8 +144,8 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
     private final DelinquencyEffectivePauseHelper delinquencyEffectivePauseHelper;
     private final DelinquencyReadPlatformService delinquencyReadPlatformService;
     private final LoanAccrualsProcessingService loanAccrualsProcessingService;
-    private final InterestRefundServiceDelegate interestRefundServiceDelegate;
     private final LoanRepaymentScheduleTransactionProcessorFactory transactionProcessorFactory;
+    private final InterestRefundServiceDelegate interestRefundServiceDelegate;
 
     @Transactional
     @Override
@@ -165,17 +166,26 @@ public void updateLoanCollateralStatus(Set<LoanCollateralManagement> loanCollate
         this.loanCollateralManagementRepository.saveAll(loanCollateralManagementSet);
     }
 
-    private LoanTransaction createInterestRefundLoanTransaction(Loan loan, final LocalDate transactionDate,
-            BigDecimal relatedRefundTransactionAmount) {
+    private LoanTransaction createInterestRefundLoanTransaction(Loan loan, LoanTransaction refundTransaction) {
+
         InterestRefundService interestRefundService = interestRefundServiceDelegate.lookupInterestRefundService(loan);
         if (interestRefundService == null) {
             return null;
         }
-        BigDecimal interestRefundAmount = interestRefundService.calculateInterestRefundAmount(loan.getId(), relatedRefundTransactionAmount,
-                transactionDate);
+
+        Money totalInterest = interestRefundService.totalInterestByTransactions(null, loan.getId(), refundTransaction.getTransactionDate(),
+                List.of(), loan.getLoanTransactions().stream().map(AbstractPersistableCustom::getId).toList());
+        Money previouslyRefundedInterests = interestRefundService.getTotalInterestRefunded(loan.getLoanTransactions(), loan.getCurrency());
+
+        Money newTotalInterest = interestRefundService.totalInterestByTransactions(null, loan.getId(),
+                refundTransaction.getTransactionDate(), List.of(refundTransaction),
+                loan.getLoanTransactions().stream().map(AbstractPersistableCustom::getId).toList());
+        BigDecimal interestRefundAmount = totalInterest.minus(previouslyRefundedInterests).minus(newTotalInterest).getAmount();
+
         final ExternalId txnExternalId = externalIdFactory.create();
         businessEventNotifierService.notifyPreBusinessEvent(new LoanTransactionInterestRefundPreBusinessEvent(loan));
-        return LoanTransaction.interestRefund(loan, interestRefundAmount, transactionDate, txnExternalId);
+        return LoanTransaction.interestRefund(loan, interestRefundAmount, refundTransaction.getDateOf(), txnExternalId);
+
     }
 
     @Transactional
@@ -867,7 +877,7 @@ public Pair<LoanTransaction, LoanTransaction> makeRefund(final Loan loan, final
         LoanTransaction interestRefundTransaction = null;
 
         if (shouldCreateInterestRefundTransaction) {
-            interestRefundTransaction = createInterestRefundLoanTransaction(loan, transactionDate, transactionAmount);
+            interestRefundTransaction = createInterestRefundLoanTransaction(loan, refundTransaction);
             if (interestRefundTransaction != null) {
                 interestRefundTransaction.getLoanTransactionRelations().add(LoanTransactionRelation
                         .linkToTransaction(interestRefundTransaction, refundTransaction, LoanTransactionRelationTypeEnum.RELATED));

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/service/InterestRefundServiceDelegate.java → fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/InterestRefundServiceDelegate.java

@@ -21,12 +21,14 @@
 import java.util.List;
 import lombok.RequiredArgsConstructor;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.springframework.context.annotation.Lazy;
 import org.springframework.stereotype.Service;
 
 @Service
 @RequiredArgsConstructor
 public class InterestRefundServiceDelegate {
 
+    @Lazy
     private final List<InterestRefundService> interestRefundService;
 
     public InterestRefundService lookupInterestRefundService(final Loan loan) {