FINERACT-2455: Working Capital - Transaction Type - Discount Fee Amortization

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

@@ -13,6 +13,7 @@ Feature: Working Capital COB Job
       | WC_DELINQUENCY_RANGE_SCHEDULE      | 2     |
       | WC_LOAN_DELINQUENCY_CLASSIFICATION | 3     |
       | WC_BREACH_SCHEDULE                 | 4     |
+      | WC_DISCOUNT_FEE_AMORTIZATION       | 5     |
     Then Admin verifies scheduler job "WC_COB" has display name "Working Capital Loan COB"
     Then Admin verifies scheduler job "WC_COB" has active status "false"
 

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

@@ -77,6 +77,7 @@ public enum LoanTransactionType {
     BUY_DOWN_FEE_AMORTIZATION(42, "loanTransactionType.buyDownFeeAmortization"), //
     BUY_DOWN_FEE_AMORTIZATION_ADJUSTMENT(43, "loanTransactionType.buyDownFeeAmortizationAdjustment"), //
     DISCOUNT_FEE(44, "loanTransactionType.discountFee"), //
+    DISCOUNT_FEE_AMORTIZATION(45, "loanTransactionType.discountFeeAmortization"), //
     ;
 
     private final Integer value;
@@ -137,6 +138,7 @@ public static LoanTransactionType fromInt(final Integer transactionType) {
             case 42 -> LoanTransactionType.BUY_DOWN_FEE_AMORTIZATION;
             case 43 -> LoanTransactionType.BUY_DOWN_FEE_AMORTIZATION_ADJUSTMENT;
             case 44 -> LoanTransactionType.DISCOUNT_FEE;
+            case 45 -> LoanTransactionType.DISCOUNT_FEE_AMORTIZATION;
             default -> LoanTransactionType.INVALID;
         };
     }
@@ -273,4 +275,8 @@ public boolean isBuyDownFee() {
     public boolean isBuyDownFeeAdjustment() {
         return this == LoanTransactionType.BUY_DOWN_FEE_ADJUSTMENT;
     }
+
+    public boolean isDiscountFeeAmortization() {
+        return this == LoanTransactionType.DISCOUNT_FEE_AMORTIZATION;
+    }
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/service/LoanEnumerations.java

@@ -350,6 +350,9 @@ public static LoanTransactionEnumData transactionType(final LoanTransactionType
                         LoanTransactionType.BUY_DOWN_FEE_AMORTIZATION_ADJUSTMENT.getCode(), "Buy Down Fee Amortization Adjustment");
             case DISCOUNT_FEE -> new LoanTransactionEnumData(LoanTransactionType.DISCOUNT_FEE.getValue().longValue(),
                     LoanTransactionType.DISCOUNT_FEE.getCode(), "Discount Fee");
+            case DISCOUNT_FEE_AMORTIZATION ->
+                new LoanTransactionEnumData(LoanTransactionType.DISCOUNT_FEE_AMORTIZATION.getValue().longValue(),
+                        LoanTransactionType.DISCOUNT_FEE_AMORTIZATION.getCode(), "Discount Fee Amortization");
         };
     }
 

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

@@ -164,6 +164,34 @@ private void postFundSourceDebit(final Office office, final Long productId, fina
         }
     }
 
+    @Override
+    public void postJournalEntriesForDiscountFeeAmortization(final WorkingCapitalLoan loan, final WorkingCapitalLoanTransaction txn,
+            final boolean isChargedOff) {
+        final Office office = loan.getClient().getOffice();
+        final Long productId = loan.getLoanProduct().getId();
+        final String currencyCode = loan.getLoanProductRelatedDetails().getCurrency().getCode();
+        final LocalDate transactionDate = txn.getTransactionDate();
+        final Long loanId = loan.getId();
+        final Long txnId = txn.getId();
+        final BigDecimal amount = txn.getTransactionAmount();
+
+        helper.checkForBranchClosures(helper.getLatestClosureByBranch(office.getId()), transactionDate);
+
+        if (MathUtil.isGreaterThanZero(amount)) {
+            final GLAccount deferredIncomeAccount = helper.getLinkedGLAccountForWorkingCapitalLoanProduct(productId,
+                    CashAccountsForLoan.DEFERRED_INCOME_LIABILITY.getValue(), null);
+            helper.createDebitJournalEntryForWorkingCapitalLoan(office, currencyCode, deferredIncomeAccount, loanId, txnId, transactionDate,
+                    amount, null);
+
+            final CashAccountsForLoan creditAccountType = isChargedOff ? CashAccountsForLoan.CHARGE_OFF_EXPENSE
+                    : CashAccountsForLoan.INCOME_FROM_DISCOUNT_FEE;
+            final GLAccount creditAccount = helper.getLinkedGLAccountForWorkingCapitalLoanProduct(productId, creditAccountType.getValue(),
+                    null);
+            helper.createCreditJournalEntryForWorkingCapitalLoan(office, currencyCode, creditAccount, loanId, txnId, transactionDate,
+                    amount, null);
+        }
+    }
+
     private Long extractPaymentTypeId(final WorkingCapitalLoanTransaction txn) {
         if (txn.getPaymentDetail() != null && txn.getPaymentDetail().getPaymentType() != null) {
             return txn.getPaymentDetail().getPaymentType().getId();

fineract-working-capital-loan/src/main/java/org/apache/fineract/cob/workingcapitalloan/businessstep/DiscountFeeAmortizationBusinessStep.java

@@ -0,0 +1,61 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.cob.workingcapitalloan.businessstep;
+
+import java.time.LocalDate;
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.infrastructure.core.service.DateUtils;
+import org.apache.fineract.infrastructure.core.service.MathUtil;
+import org.apache.fineract.portfolio.workingcapitalloan.domain.WorkingCapitalLoan;
+import org.apache.fineract.portfolio.workingcapitalloan.service.WorkingCapitalLoanDiscountFeeAmortizationService;
+import org.springframework.stereotype.Component;
+
+@Slf4j
+@RequiredArgsConstructor
+@Component
+public class DiscountFeeAmortizationBusinessStep extends WorkingCapitalLoanCOBBusinessStep {
+
+    private final WorkingCapitalLoanDiscountFeeAmortizationService discountFeeAmortizationService;
+
+    @Override
+    public WorkingCapitalLoan execute(final WorkingCapitalLoan input) {
+        if (input.getLoanProductRelatedDetails() == null
+                || !MathUtil.isGreaterThanZero(input.getLoanProductRelatedDetails().getDiscount())) {
+            log.debug("Skipping discount fee amortization for WC loan {} - no discount fee", input.getId());
+            return input;
+        }
+
+        final LocalDate businessDate = DateUtils.getBusinessLocalDate();
+
+        discountFeeAmortizationService.processDiscountFeeAmortization(input, businessDate);
+
+        return input;
+    }
+
+    @Override
+    public String getEnumStyledName() {
+        return "WC_DISCOUNT_FEE_AMORTIZATION";
+    }
+
+    @Override
+    public String getHumanReadableName() {
+        return "WC Discount Fee Amortization";
+    }
+}

fineract-working-capital-loan/src/main/java/org/apache/fineract/portfolio/workingcapitalloan/accounting/WorkingCapitalLoanAccountingProcessor.java

@@ -28,4 +28,6 @@ void postJournalEntriesForRepayment(WorkingCapitalLoan loan, WorkingCapitalLoanT
             WorkingCapitalLoanTransactionAllocation allocation, boolean isChargedOff);
 
     void postReversalJournalEntries(WorkingCapitalLoan loan, WorkingCapitalLoanTransaction txn);
+
+    void postJournalEntriesForDiscountFeeAmortization(WorkingCapitalLoan loan, WorkingCapitalLoanTransaction txn, boolean isChargedOff);
 }

fineract-working-capital-loan/src/main/java/org/apache/fineract/portfolio/workingcapitalloan/domain/WorkingCapitalLoanTransaction.java

@@ -139,6 +139,13 @@ public static WorkingCapitalLoanTransaction creditBalanceRefund(final WorkingCap
         return txn;
     }
 
+    public static WorkingCapitalLoanTransaction discountFeeAmortization(final WorkingCapitalLoan loan, final BigDecimal amount,
+            final LocalDate transactionDate, final ExternalId externalId) {
+        final WorkingCapitalLoanTransaction txn = new WorkingCapitalLoanTransaction();
+        txn.initialize(loan, LoanTransactionType.DISCOUNT_FEE_AMORTIZATION, transactionDate, amount, null, null, externalId);
+        return txn;
+    }
+
     public static WorkingCapitalLoanTransaction discountFee(final WorkingCapitalLoan loan, final ExternalId externalId,
             final BigDecimal amount, final LocalDate transactionDate, final CodeValue classification, final PaymentDetail paymentDetail) {
         WorkingCapitalLoanTransaction transaction = new WorkingCapitalLoanTransaction();

fineract-working-capital-loan/src/main/java/org/apache/fineract/portfolio/workingcapitalloan/service/WorkingCapitalLoanDiscountFeeAmortizationService.java

@@ -0,0 +1,27 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.workingcapitalloan.service;
+
+import java.time.LocalDate;
+import org.apache.fineract.portfolio.workingcapitalloan.domain.WorkingCapitalLoan;
+
+public interface WorkingCapitalLoanDiscountFeeAmortizationService {
+
+    void processDiscountFeeAmortization(WorkingCapitalLoan loan, LocalDate transactionDate);
+}

fineract-working-capital-loan/src/main/java/org/apache/fineract/portfolio/workingcapitalloan/service/WorkingCapitalLoanDiscountFeeAmortizationServiceImpl.java

@@ -0,0 +1,83 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.workingcapitalloan.service;
+
+import java.math.BigDecimal;
+import java.time.LocalDate;
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.apache.fineract.infrastructure.core.service.ExternalIdFactory;
+import org.apache.fineract.infrastructure.core.service.MathUtil;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionType;
+import org.apache.fineract.portfolio.workingcapitalloan.accounting.WorkingCapitalLoanAccountingProcessor;
+import org.apache.fineract.portfolio.workingcapitalloan.domain.WorkingCapitalLoan;
+import org.apache.fineract.portfolio.workingcapitalloan.domain.WorkingCapitalLoanBalance;
+import org.apache.fineract.portfolio.workingcapitalloan.domain.WorkingCapitalLoanTransaction;
+import org.apache.fineract.portfolio.workingcapitalloan.repository.WorkingCapitalLoanTransactionRepository;
+import org.springframework.stereotype.Service;
+import org.springframework.transaction.annotation.Transactional;
+
+@Service
+@RequiredArgsConstructor
+@Slf4j
+public class WorkingCapitalLoanDiscountFeeAmortizationServiceImpl implements WorkingCapitalLoanDiscountFeeAmortizationService {
+
+    private final WorkingCapitalLoanTransactionRepository transactionRepository;
+    private final WorkingCapitalLoanAccountingProcessor accountingProcessor;
+    private final ExternalIdFactory externalIdFactory;
+
+    @Override
+    @Transactional
+    public void processDiscountFeeAmortization(final WorkingCapitalLoan loan, final LocalDate transactionDate) {
+        final WorkingCapitalLoanBalance balance = loan.getBalance();
+        if (balance == null) {
+            log.debug("Skipping discount fee amortization for WC loan [{}] - no balance", loan.getId());
+            return;
+        }
+
+        final BigDecimal currentRealizedIncome = MathUtil.nullToZero(balance.getRealizedIncome());
+        if (MathUtil.isZero(currentRealizedIncome)) {
+            log.debug("Skipping discount fee amortization for WC loan [{}] - no realized income", loan.getId());
+            return;
+        }
+
+        final BigDecimal alreadyAmortized = calculateAlreadyAmortizedAmount(loan);
+        final BigDecimal amortizationAmount = currentRealizedIncome.subtract(alreadyAmortized);
+
+        if (!MathUtil.isGreaterThanZero(amortizationAmount)) {
+            log.debug("Skipping discount fee amortization for WC loan [{}] - no new amount to amortize", loan.getId());
+            return;
+        }
+
+        final WorkingCapitalLoanTransaction amortizationTxn = WorkingCapitalLoanTransaction.discountFeeAmortization(loan,
+                amortizationAmount, transactionDate, externalIdFactory.create());
+        transactionRepository.saveAndFlush(amortizationTxn);
+        loan.getTransactions().add(amortizationTxn);
+
+        accountingProcessor.postJournalEntriesForDiscountFeeAmortization(loan, amortizationTxn, false);
+
+        log.debug("Posted discount fee amortization of {} for WC loan [{}]", amortizationAmount, loan.getId());
+    }
+
+    private BigDecimal calculateAlreadyAmortizedAmount(final WorkingCapitalLoan loan) {
+        return loan.getTransactions().stream()
+                .filter(txn -> txn.getTypeOf() == LoanTransactionType.DISCOUNT_FEE_AMORTIZATION && !txn.isReversed())
+                .map(WorkingCapitalLoanTransaction::getTransactionAmount).reduce(BigDecimal.ZERO, BigDecimal::add);
+    }
+}

fineract-working-capital-loan/src/main/java/org/apache/fineract/portfolio/workingcapitalloan/service/WorkingCapitalLoanWritePlatformServiceImpl.java

@@ -880,7 +880,8 @@ private void ensureUndoDisbursalAllowed(final WorkingCapitalLoan loan) {
             if (txn.isReversed()) {
                 continue;
             }
-            if (txn.getTypeOf() != LoanTransactionType.DISBURSEMENT && txn.getTypeOf() != LoanTransactionType.DISCOUNT_FEE) {
+            if (txn.getTypeOf() != LoanTransactionType.DISBURSEMENT && txn.getTypeOf() != LoanTransactionType.DISCOUNT_FEE
+                    && txn.getTypeOf() != LoanTransactionType.DISCOUNT_FEE_AMORTIZATION) {
                 throw new PlatformApiDataValidationException("validation.msg.wc.loan.undo.disbursal.not.allowed",
                         "Undo disbursal is not allowed when there are other monetary transactions on the loan", "loanId");
             }

fineract-working-capital-loan/src/main/resources/db/changelog/tenant/module/workingcapitalloan/module-changelog-master.xml

@@ -58,4 +58,5 @@
   <include relativeToChangelogFile="true" file="parts/0034_wc_loan_discount_transaction.xml"/>
   <include relativeToChangelogFile="true" file="parts/0035_wc_loan_discount_proposed_approved.xml"/>
   <include relativeToChangelogFile="true" file="parts/0036_wc_loan_period_payment_rate_change.xml"/>
+  <include relativeToChangelogFile="true" file="parts/0037_discount_fee_amortization_business_step.xml"/>
 </databaseChangeLog>

fineract-working-capital-loan/src/main/resources/db/changelog/tenant/module/workingcapitalloan/parts/0037_discount_fee_amortization_business_step.xml

@@ -0,0 +1,39 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+
+    <changeSet author="fineract" id="wcl-0037-1">
+        <insert tableName="m_batch_business_steps">
+            <column name="job_name" value="WORKING_CAPITAL_LOAN_CLOSE_OF_BUSINESS"/>
+            <column name="step_name" value="WC_DISCOUNT_FEE_AMORTIZATION"/>
+            <column name="step_order" value="5"/>
+        </insert>
+        <rollback>
+            <delete tableName="m_batch_business_steps">
+                <where>step_name='WC_DISCOUNT_FEE_AMORTIZATION'</where>
+            </delete>
+        </rollback>
+    </changeSet>
+
+</databaseChangeLog>

integration-tests/src/test/java/org/apache/fineract/integrationtests/client/feign/helpers/FeignWorkingCapitalLoanHelper.java

@@ -24,7 +24,12 @@
 import org.apache.fineract.client.feign.FineractFeignClient;
 import org.apache.fineract.client.feign.util.CallFailedRuntimeException;
 import org.apache.fineract.client.models.CommandProcessingResult;
+import org.apache.fineract.client.models.GetWorkingCapitalLoanTransactionIdResponse;
+import org.apache.fineract.client.models.GetWorkingCapitalLoanTransactionsResponse;
 import org.apache.fineract.client.models.GetWorkingCapitalLoansLoanIdResponse;
+import org.apache.fineract.client.models.InlineJobRequest;
+import org.apache.fineract.client.models.PostWorkingCapitalLoanTransactionsRequest;
+import org.apache.fineract.client.models.PostWorkingCapitalLoanTransactionsResponse;
 import org.apache.fineract.client.models.PostWorkingCapitalLoansLoanIdRequest;
 import org.apache.fineract.client.models.PostWorkingCapitalLoansLoanIdResponse;
 import org.apache.fineract.client.models.PostWorkingCapitalLoansRequest;
@@ -97,4 +102,43 @@ public CallFailedRuntimeException updateRateExpectingError(Long loanId, PutWorki
     public List<WorkingCapitalLoanPeriodPaymentRateChangeData> getRateChangeHistory(Long loanId) {
         return ok(() -> fineractClient.workingCapitalLoans().getWorkingCapitalLoanRateChangeHistoryById(loanId));
     }
+
+    public Long makeRepayment(Long loanId, PostWorkingCapitalLoanTransactionsRequest request) {
+        PostWorkingCapitalLoanTransactionsResponse response = ok(() -> fineractClient.workingCapitalLoanTransactions()
+                .executeWorkingCapitalLoanTransactionById(loanId, "repayment", request));
+        return response.getResourceId();
+    }
+
+    public List<GetWorkingCapitalLoanTransactionIdResponse> getTransactions(Long loanId) {
+        GetWorkingCapitalLoanTransactionsResponse response = ok(
+                () -> fineractClient.workingCapitalLoanTransactions().retrieveWorkingCapitalLoanTransactionsById(loanId));
+        return response.getContent() != null ? response.getContent() : List.of();
+    }
+
+    public void executeInlineWCCOB(Long loanId) {
+        ok(() -> fineractClient.inlineJob().executeInlineJob("WC_LOAN_COB", new InlineJobRequest().addLoanIdsItem(loanId)));
+    }
+
+    /**
+     * Best-effort cleanup: attempts undo disbursal, undo approval, and delete in sequence. Each step is independent —
+     * failures are silently ignored so the remaining steps still run.
+     */
+    public void cleanupLoan(Long loanId) {
+        if (loanId == null) {
+            return;
+        }
+        final PostWorkingCapitalLoansLoanIdRequest emptyRequest = new PostWorkingCapitalLoansLoanIdRequest().locale("en")
+                .dateFormat("dd MMMM yyyy");
+        tryQuietly(() -> undoDisbursal(loanId, emptyRequest));
+        tryQuietly(() -> undoApproval(loanId, emptyRequest));
+        tryQuietly(() -> delete(loanId));
+    }
+
+    private static void tryQuietly(Runnable action) {
+        try {
+            action.run();
+        } catch (final CallFailedRuntimeException ignored) {
+            // best-effort cleanup
+        }
+    }
 }