[Mifos-developer] Repayment Capacity calculation
Lukasz Chudy
While I was testing Cash Flow and Variable Installments functionality
I've found that Repayment Capacity is calculating differently in Mifos
than it can be calculated using the formula in the specification.
Formula: Repayment Capacity=[(Total revenues-Total expenses)+Loan
Amount]*100 / Sum of Installments amount
REPRO (can be reproduced on test server http://ci.mifos.org:8085/mifos):
1. Login to Mifos.
2. Define Loan product with Variable Installments and Cash Flow options
enabled (set Repayment Capacity=600) or use already defined product on
test server: 'variable installment loan'.
3. Create a new Loan account using that Loan product.
4. On 'Enter Loan information' page enter loan amount = 1000, set
interest rate = 10 and Number of installments = 10.
5. On Cash Flow page fill every 'Expense' field with value: "1000" and
every 'Revenue' field with value '1100'. Set Total Capital = 50000 and
Total Liability = 1000.
6. Click 'Continue' button.
7. On the next page, click 'Validate' button.
8. Validation message appears: "Repayment Capacity of the client is
225.02 % which should be greater than the required value of 600.0 %"
which is good but when calculating Repayment Capacity using above
formula, result is different.
- There are 5 fields with 'Expense' and 5 with 'Revenue' so Total
revenues is '5500' and Total expenses is '5000'.
- Loan amount is '1000'.
- There are 10 installments: 8 with total amount '101', one with amount
'102' and one with amount '201' (because of fee with amount '100'), so
the sum of installments is '1111'.
When I enter those numbers into the formula:
[(5500-5000)+1000]*100 / 1111 = 135.013
So Repayment Capacity from formula is '135.013' and from Mifos is '225.02'.
Am I doing something wrong or is it a calculation bug in Mifos?
Thanks,
Lukasz
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Keith Woodlock
Might be worthwhile doing the same test on 2.1, i think there was some
changes to how it was calculated and maybe the specs are wrong or
maybe latest code is wrong.