From 3ccba53de2c34783c5ad6435fd7d79777fe95588 Mon Sep 17 00:00:00 2001
From: Andrii Kulminskyi <kulminsky@gmail.com>
Date: Thu, 31 Oct 2024 12:51:59 +0200
Subject: [PATCH] FINERACT-1981: When paying down payment, that should not be
 reflected on the InterestModel

---
 .../impl/AdvancedPaymentScheduleTransactionProcessor.java   | 6 ++++++
 1 file changed, 6 insertions(+)

diff --git a/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java b/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
index 6fa0875e3a..9f63571c0d 100644
--- a/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
+++ b/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
@@ -1560,6 +1560,12 @@ private Money handlingPaymentAllocationForInterestBearingProgressiveLoan(LoanTra
         paidPortion = processPaymentAllocation(paymentAllocationType, installment, loanTransaction, transactionAmountUnprocessed,
                 loanTransactionToRepaymentScheduleMapping, charges, balances, LoanRepaymentScheduleInstallment.PaymentAction.PAY);
 
+        if (installment.isDownPayment() || installment.getDueDate().isAfter(ctx.getModel().getMaturityDate())) {
+            // Skip interest and principal payment processing for down payment period or periods after loan maturity
+            // date
+            return paidPortion;
+        }
+
         if (PRINCIPAL.equals(paymentAllocationType.getAllocationType())) {
             emiCalculator.payPrincipal(model, installment.getDueDate(), payDate, paidPortion);
             updateRepaymentPeriods(loanTransaction, ctx, model);