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Organization ABC estimates that 1% of loans amount that is $ 1000 will never comeback. So this $ 1000 is ABC organization's loan loss reserve and it records this amount as negative number on the asset portion of its balance sheet. If and when organization ABC decides to write all or a portion of a loan off, it will remove the loan from its asset balance and also remove the amount of the write-off from the loan loss reserve.
Requirements/User Stories
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| Name | Datatype | Length | Remarks |
|---|---|---|---|
| id | BIGINT | 20 | PRIMARY KEY and AUTOINCREMENT |
| currency_code | BIGINT | 20 | FOREIGN KEY m_currency.id |
| office_id | BIGINT | 20 | FOREIGN KEY m_office.id |
| product_id | BIGINT | 20 | FOREIGN KEY m_product_loan.id |
| category_id | BIGINT | 20 | FOREIGN KEY m_provision_category.id |
| overdue_in_days | BIGINT | 20 | DEFAULT 0 |
| amount_to_be_reserved | BIGINT | 20 | DEFAULT 0 |
| created_by | BIGINT | 20 | FOREIGN KEY m_appuser.id |
| created_on | DATE | NOT NULL | |
| modified_by | BIGINT | 20 | FOREIGN KEY m_appuser.id |
| modified_on | DATE |
Whenever the provision calculation is done, system is going to make an entry in the 'provision_history' table. The structure of the table is shown below
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