[Kmymoney-devel] [kmymoney4] [Bug 325793] New: loan payment calculated using wrong currency when currencies of loan and payment account differ

[Igor Šuljić]

https://bugs.kde.org/show_bug.cgi?id=325793

            Bug ID: 325793
           Summary: loan payment calculated using wrong currency when
                    currencies of loan and payment account differ
    Classification: Unclassified
           Product: kmymoney4
           Version: 4.6.3
          Platform: openSUSE RPMs
                OS: Linux
            Status: UNCONFIRMED
          Severity: major
          Priority: NOR
         Component: general
          Assignee: kmymoney-devel at kde.org
          Reporter: igor.suljic at mail.inet.hr

As a new user I am trying to import an old loan that is partly already payed
off. Initial amount is 8500 €, the contracted interest rate is 10,98% variable,
recalculated monthly (though, so far, it didn't change at all, and explanation
is beyond my financial competences). The currently unpaid amount is 3208,02 €,
with 19 monthly transfers of 184,73 € left. Transfers include interest. The
bank is calculating the loan in euro, and actually handling it in local
currency, croatian kuna in this case.
So I entered both the loan and the monthly payment amount using euros, but the
checking account that is charged with transfers is using the other currency,
croatian kuna. That is because the bank is converting the transfer into kunas
(using its own exchange rate ;-)) and charging the account accordingly. The
wizard correctly calculates the loan, as can be seen from the attached
screenshot (loanwiz.png), but in the balances view the transfer is reported as
184,73 kunas, not euros (the other attachment, balances.png) and accordingly
deducted from the checking balance. When I try to edit the transfer, there is
no option of changing the currency, and if I try to change the transfer amount
to some 1407,64 kunas, that is currently 184,73€, the wizard reports error and
recalculates the number of payment terms to 2.

Reproducible: Always

Steps to Reproduce:
1. Have a checking account using currency other than euro (croatian kuna, HRK
in my case).
2. Create a new loan account with the same institution as the checking account
(wizard step 1).
3. Make it in euros with opening date few years ago (10.05.2010 in my case),
opening balance of 8500 €, and accept online quoted conversion rate, it is
pretty exact in my case (wizard step 2).
4. You are borrowing, the payee is the same institution holding your checking
account, you have already made some payments and want to start with this year's
payments, so the balance before start of recording is less than the opening
balance (3208,02 € in my case). Both, the payment frequency, and the interest
compound frequency are monthly. Due date of the first payment recorded is
within one month in the future (the last day of the current month in my case).
The interest rate is variable, it is changing monthly, and the next change is
one month after the first recorded payment, though all this proved to be
insubstantial in my case. The bug was exactly reproducible with fixed interest
rate. (wizard step 3).
5. The interest rate is calculated when the payment is due, and the rate is
high (10,89 in my case, remember, this is wild East, the banks are italian,
austrian, german, french, the legislation and corruption local). It is unclear
what are the loan amount and number of terms to be entered here, the initial or
the remaining ones. Nevertheless, the outcome is the same, so enter the
remaining ones, that are suggested (wizard step 4).
6. There are no additional fees. Note the correct periodical payment rate and
currency shown. (wizard step 5).
7. Add some category, and make sure it is euro. At this point, even before you
enter the institution, when you walk back through the wizard, you'll notice
that the loan currency in the step 2 is changed to local currency (kunas), and
you have lost the institution in both, step 1 and step 3. That seems to be OK,
as you can change back all of these, and come back to the step  6 of the wizard
to complete it with always the same, and the only institution you have so far.
However, if you already have the category created, and complete this step, then
all your previous data are retained, and you can go on.
8. In recapitulation everything is OK, currencies correct. So finish the wizard
in step 7.
9. Now take a look at the application's Home page. Your loan is there in the
Liabilities and Assets Summary table, right as it should be, but in the next
table, Payments, there is your payment scheduled in local currency (kunas), and
in the euro amount (now it is 184,73 HRK, not 184,73 € that converts to 1407,64
HRK), therefore not converted. The incorrect amount is then correctly deducted
from the assets.
Actual Results:  
Scheduled transfer of monthly loan payment is not converted, but simply
relabeled from loan to payment currency.

Expected Results:  
The transfer is supposed to either be converted into local currency, and then
deducted from the assets, or reported in correct currency (euro) and then
converted during deduction, as is the case with the loan principal and net
worth.

May be related to bug 316070.
I will try adding euro subaccount to the main checking account. Depending of
the result, the application could prove unusable for me.

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