NOTICE: As of 7/11/2008, this documentation is currently outdated and is being updated to reflect the current status of v1.1.

Background

Data entry errors by the system users can result in following scenarios:

• In the system, loan account can be created and disbursed to a wrong client/group. Payments can also be recorded against the incorrect client.
• A loan account of the incorrect product instance can be created and disbursed to the customer

Such errors are normally identified after the loan has been disbursed and a couple of repayments have been recorded against the incorrect client/group. The system, at present, does not allow adjustment of loan disbursal and restricts adjustment of multiple repayments. This feature will allow adjustment of disbursal and repayments of all installments together.

Feature summary

To rectify the data entry errors mentioned above, system should allow reversal of loan disbursal and change the loan account status to ‘cancelled’ with the flag "Loan reversed". If some payments have already been made, system should reverse the payments as well, along with the reversal of loan disbursal. If several payments have already been collected, system user can use the feature “redo loan” (??) to recreate a loan and historical payments.

FEATURE DESCRIPTION

Primary Flow

1. User: clicks on “Undo loan disbursal” link on the Admin page.
2. User Enters in Loan Acct ID and clicks “Find”
3. System makes the following validations:
   • Account id is that of a loan account in “Active in good standing” or “Active in bad standing state”.
   • Account is in user’s data scope.
   • User has permission to perform this action.
4. System: displays the account search result page and the account and client/group information is displayed in the following manner:
5. User: enters the notes and previews and submits.
6. System: following actions are required
7. Reverse all the financial transactions done till date on the account.
8. Log an entry in account activity with description = ‘disbursal adjusted’ and the amount = loan amount
9. Log payment adjustment entries for the payments reversed.
10. Notes specified by the user should be used both as account notes and adjustment notes
11. In transaction history, the entries should also have related transaction Ids. (Not transaction ids—those should be unique, but another ID—same payment ID??)
12. All appropriate counters (like loan cycle, etc) should be decremented-- and this loan shouldn't couldn't be included in any reports as to "# of loans disbursed", etc. For portfolio reporting purposes, it should be as if this loan didn't exist.
13. Loan account should be moved to cancelled state, marked with the reason flag "reversed". This reason flag should not appear as an option when user is manually cancelling a loan.
14. Users should, however, be able to report on "reversed' loans.

Alternate flows

1. User searches for an account id which does not exist or which is not a loan account id- An error should be thrown
2. User searches for an account which is not in active in good/bad standing state

Additional information

• User should be allowed to adjust disbursal only if he/she has permission to do so. For this purpose, an additional permission should be added to the permission list in loan transaction section.
• User should be allowed to adjust loan account in his/her data scope only.
• For a loan account to be adjusted, it should be in Active in good standing or Active in bad standing states only.

Open issues

To redo the loan disbursal to the correct client, a new loan account has to be created and disbursed. Payments have to be recorded in the system since these payments have actually been received but were recorded against the incorrect client/group. For this purpose, system should allow backdated loan disbursals. Currently, loan disbursal date can be between last meeting date and current date. Should there be a limit to how much in the past can the loan be disbursed?

UI Screens

UI screens for this feature are located ??!!??

-- Main.emilytucker - 08 Mar 2005