Wrong Principal Outstanding Derived Resulting Incorrect Penalty/Late Profit on Islamic Financing Loan (Doc ID 2726953.1)

Last updated on JUNE 06, 2024

Applies to:

Symptoms

ACTUAL BEHAVIOR
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After maturity of Islamic Financing loan contract bank expected that system should calculated the late profit with the outstanding amount of principal against the component LATE_PROFIT. The SDE used for principal outstanding is PRINCIPAL_SCHODUE, but this SDE is deriving/resulting in full amount financed instead of the outstanding at the time of maturity. As a result a higher LATE_PROFIT is calculated

EXPECTED BEHAVIOR
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The LATE_PROFIT should be calculated on correct Principal outstanding and not on the total financed amount.

STEPS
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The issue can be reproduced at will with the following steps:
1. Verify the LATE_PROFIT calculation and accrual of a matured loan where Principal is outstanding.

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, customer will be charged more.

Changes

Cause

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