Merge pull request #5729

FINERACT-2197: Fix FEB_29_PERIOD_ONLY strategy for cross-year repayment periods

Author: adamsaghy

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculator.java

@@ -1280,12 +1280,15 @@ private void calculateRateFactorForPeriods(final List<RepaymentPeriod> repayment
     }
 
     private boolean isPeriodContainsFeb29(final LocalDate repaymentPeriodFromDate, final LocalDate repaymentPeriodDueDate) {
-        if (repaymentPeriodFromDate.isLeapYear()) {
-            final LocalDate leapDay = LocalDate.of(repaymentPeriodFromDate.getYear(), 2, 29);
-            return DateUtils.isDateInRangeFromExclusiveToInclusive(leapDay, repaymentPeriodFromDate, repaymentPeriodDueDate);
-        } else {
-            return false;
+        for (int year = repaymentPeriodFromDate.getYear(); year <= repaymentPeriodDueDate.getYear(); year++) {
+            if (Year.isLeap(year)) {
+                final LocalDate leapDay = LocalDate.of(year, 2, 29);
+                if (DateUtils.isDateInRangeFromExclusiveToInclusive(leapDay, repaymentPeriodFromDate, repaymentPeriodDueDate)) {
+                    return true;
+                }
+            }
         }
+        return false;
     }
 
     private Integer numberOfDaysFeb29PeriodOnly(final LocalDate repaymentPeriodFromDate, final LocalDate repaymentPeriodDueDate) {

fineract-progressive-loan/src/test/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculatorTest.java

@@ -3174,6 +3174,59 @@ public void test_leap_year_only_actual_for_loan_S5() {
             checkPeriod(interestSchedule, 5, 867.65, 10.03, 857.62, 0.00, false);
         }
 
+        /**
+         * Cross-year edge case: quarterly repayment period spans from non-leap year (2023) into leap year (2024) and
+         * contains Feb 29. With FEB_29_PERIOD_ONLY strategy, this period should use 366 days (same as FULL_LEAP_YEAR)
+         * because Feb 29 falls within the period.
+         */
+        @Test
+        public void test_feb29_period_only_cross_year_quarterly_period_containing_feb29() {
+            final List<LoanScheduleModelRepaymentPeriod> expectedRepaymentPeriods = List.of(
+                    periodData(LocalDate.of(2023, 9, 1), LocalDate.of(2023, 12, 1)),
+                    periodData(LocalDate.of(2023, 12, 1), LocalDate.of(2024, 3, 1)),
+                    periodData(LocalDate.of(2024, 3, 1), LocalDate.of(2024, 6, 1)),
+                    periodData(LocalDate.of(2024, 6, 1), LocalDate.of(2024, 9, 1)));
+
+            final BigDecimal interestRate = BigDecimal.valueOf(12.0);
+            final Integer installmentAmountInMultiplesOf = null;
+
+            // Schedule with FEB_29_PERIOD_ONLY
+            Mockito.when(loanProductRelatedDetail.getAnnualNominalInterestRate()).thenReturn(interestRate);
+            Mockito.when(loanProductRelatedDetail.getDaysInYearType()).thenReturn(DaysInYearType.ACTUAL.getValue());
+            Mockito.when(loanProductRelatedDetail.getDaysInYearCustomStrategy())
+                    .thenReturn(DaysInYearCustomStrategyType.FEB_29_PERIOD_ONLY);
+            Mockito.when(loanProductRelatedDetail.getDaysInMonthType()).thenReturn(DaysInMonthType.ACTUAL.getValue());
+            Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
+            Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(3);
+            Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+            Mockito.when(loanProductRelatedDetail.isAllowFullTermForTranche()).thenReturn(false);
+
+            final ProgressiveLoanInterestScheduleModel feb29Schedule = emiCalculator.generatePeriodInterestScheduleModel(
+                    expectedRepaymentPeriods, loanProductRelatedDetail, installmentAmountInMultiplesOf, mc);
+            emiCalculator.addDisbursement(feb29Schedule, LocalDate.of(2023, 9, 1), toMoney(10000.0));
+
+            // Schedule with FULL_LEAP_YEAR
+            Mockito.when(loanProductRelatedDetail.getDaysInYearCustomStrategy()).thenReturn(DaysInYearCustomStrategyType.FULL_LEAP_YEAR);
+
+            final ProgressiveLoanInterestScheduleModel fullLeapSchedule = emiCalculator.generatePeriodInterestScheduleModel(
+                    expectedRepaymentPeriods, loanProductRelatedDetail, installmentAmountInMultiplesOf, mc);
+            emiCalculator.addDisbursement(fullLeapSchedule, LocalDate.of(2023, 9, 1), toMoney(10000.0));
+
+            // Period 1 (Dec 1, 2023 → Mar 1, 2024) contains Feb 29, 2024.
+            // Both strategies should use 366 days for this period, so interest should match.
+            final RepaymentPeriod feb29Period1 = feb29Schedule.repaymentPeriods().get(1);
+            final RepaymentPeriod fullLeapPeriod1 = fullLeapSchedule.repaymentPeriods().get(1);
+            Assertions.assertEquals(toDouble(fullLeapPeriod1.getDueInterest()), toDouble(feb29Period1.getDueInterest()),
+                    "Cross-year period containing Feb 29 should use 366 days for both strategies");
+
+            // Period 2 (Mar 1, 2024 → Jun 1, 2024) does NOT contain Feb 29.
+            // FEB_29_PERIOD_ONLY should use 365 days, FULL_LEAP_YEAR should use 366 days.
+            final RepaymentPeriod feb29Period2 = feb29Schedule.repaymentPeriods().get(2);
+            final RepaymentPeriod fullLeapPeriod2 = fullLeapSchedule.repaymentPeriods().get(2);
+            Assertions.assertNotEquals(toDouble(fullLeapPeriod2.getDueInterest()), toDouble(feb29Period2.getDueInterest()),
+                    "Period without Feb 29 should differ between strategies (365 vs 366 days)");
+        }
+
         @Test
         public void test_leap_year_only_actual_no_effect_on_360_loan() {
             final List<LoanScheduleModelRepaymentPeriod> expectedRepaymentPeriods = List.of(