diff --git a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
index c258ef1..8ca79d2 100644
--- a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
+++ b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
@@ -49,6 +49,7 @@
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.CreocoreLoanRepaymentScheduleTransactionProcessor;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.HeavensFamilyLoanRepaymentScheduleTransactionProcessor;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.InterestPrincipalPenaltyFeesOrderLoanRepaymentScheduleTransactionProcessor;
+import org.springframework.util.CollectionUtils;
 
 /**
  * Abstract implementation of {@link LoanRepaymentScheduleTransactionProcessor} which is more convenient for concrete
@@ -78,6 +79,7 @@
                 }
             }
         }
+        addChargeOnlyRepaymentInstallmentIfRequired(charges, installments);
 
         for (final LoanRepaymentScheduleInstallment currentInstallment : installments) {
             currentInstallment.resetDerivedComponents();
@@ -871,4 +873,44 @@
 
         return latestPaidCharge;
     }
+
+    protected void addChargeOnlyRepaymentInstallmentIfRequired(Set<LoanCharge> charges,
+            List<LoanRepaymentScheduleInstallment> installments) {
+        if (!CollectionUtils.isEmpty(charges) && !CollectionUtils.isEmpty(installments)) {
+            LoanRepaymentScheduleInstallment latestRepaymentScheduleInstalment = installments.get(installments.size() - 1);
+            LocalDate installmentDueDate = null;
+
+            LoanCharge latestCharge = getLatestLoanChargeWithSpecificDueDate(charges);
+            if (latestCharge != null
+                    && DateUtils.isAfter(latestCharge.getEffectiveDueDate(), latestRepaymentScheduleInstalment.getDueDate())) {
+                installmentDueDate = latestCharge.getEffectiveDueDate();
+            }
+
+            if (installmentDueDate != null) {
+                if (latestRepaymentScheduleInstalment.isAdditional()) {
+                    latestRepaymentScheduleInstalment.updateDueDate(installmentDueDate);
+                } else {
+                    Loan loan = latestCharge.getLoan();
+                    final LoanRepaymentScheduleInstallment installment = new LoanRepaymentScheduleInstallment(loan,
+                            (installments.size() + 1), latestRepaymentScheduleInstalment.getDueDate(), installmentDueDate, BigDecimal.ZERO,
+                            BigDecimal.ZERO, BigDecimal.ZERO, BigDecimal.ZERO, false, null);
+                    installment.markAsAdditional();
+                    loan.addLoanRepaymentScheduleInstallment(installment);
+
+                }
+            }
+        }
+    }
+
+    private LoanCharge getLatestLoanChargeWithSpecificDueDate(Set<LoanCharge> charges) {
+        LoanCharge latestCharge = null;
+        List<LoanCharge> chargesWithSpecificDueDate = new ArrayList<>();
+        chargesWithSpecificDueDate.addAll(charges.stream().filter(charge -> charge.isSpecifiedDueDate()).toList());
+        if (!CollectionUtils.isEmpty(chargesWithSpecificDueDate)) {
+            Collections.sort(chargesWithSpecificDueDate,
+                    (charge1, charge2) -> DateUtils.compare(charge1.getEffectiveDueDate(), charge2.getEffectiveDueDate()));
+            latestCharge = chargesWithSpecificDueDate.get(chargesWithSpecificDueDate.size() - 1);
+        }
+        return latestCharge;
+    }
 }
diff --git a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
index 2cf9b36..295b354 100644
--- a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
+++ b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/impl/AdvancedPaymentScheduleTransactionProcessor.java
@@ -126,6 +126,8 @@
             }
         }
 
+        addChargeOnlyRepaymentInstallmentIfRequired(charges, installments);
+
         for (final LoanRepaymentScheduleInstallment currentInstallment : installments) {
             currentInstallment.resetBalances();
             currentInstallment.updateDerivedFields(currency, disbursementDate);
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanRepaymentScheduleForChargesAfterMaturityTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanRepaymentScheduleForChargesAfterMaturityTest.java
new file mode 100644
index 0000000..0159ed5
--- /dev/null
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanRepaymentScheduleForChargesAfterMaturityTest.java
@@ -0,0 +1,341 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.integrationtests;
+
+import static org.junit.jupiter.api.Assertions.assertNotNull;
+
+import java.math.BigDecimal;
+import org.apache.fineract.client.models.GetLoanProductsProductIdResponse;
+import org.apache.fineract.client.models.PostLoanProductsRequest;
+import org.apache.fineract.client.models.PostLoanProductsResponse;
+import org.apache.fineract.integrationtests.common.ClientHelper;
+import org.apache.fineract.integrationtests.common.LoanRescheduleRequestHelper;
+import org.apache.fineract.integrationtests.common.loans.LoanRescheduleRequestTestBuilder;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
+import org.junit.jupiter.api.Test;
+
+public class LoanRepaymentScheduleForChargesAfterMaturityTest extends BaseLoanIntegrationTest {
+
+    private final LoanRescheduleRequestHelper loanRescheduleRequestHelper = new LoanRescheduleRequestHelper(this.requestSpec,
+            this.responseSpec);
+
+    @Test
+    public void loanNPlusOneInstallmentIsRetainedAfterLoanRescheduleTest() {
+        runAt("03 March 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProductWithMultiDisbursalAndRepayments();
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId, "01 March 2023", 1500.0, 4, req -> {
+                req.setRepaymentEvery(15);
+                req.setLoanTermFrequency(60);
+            });
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1000.00), "01 March 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023")//
+            );
+
+            // add charge with due date after loan maturity date
+            Long loanChargeId = addCharge(loanId, false, 50, "23 May 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "23 May 2023")//
+            );
+
+            // reschedule installment date
+            String requestJSON = new LoanRescheduleRequestTestBuilder().updateGraceOnInterest(null).updateGraceOnPrincipal(null)
+                    .updateExtraTerms(null).updateNewInterestRate(null).updateRescheduleFromDate("15 April 2023")
+                    .updateAdjustedDueDate("30 April 2023").updateSubmittedOnDate("03 March 2023").updateRescheduleReasonId("1")
+                    .build(loanId.toString());
+
+            Integer loanRescheduleRequest = loanRescheduleRequestHelper.createLoanRescheduleRequest(requestJSON);
+            requestJSON = new LoanRescheduleRequestTestBuilder().updateSubmittedOnDate("03 March 2023")
+                    .getApproveLoanRescheduleRequestJSON();
+            Integer approveLoanRescheduleRequest = loanRescheduleRequestHelper.approveLoanRescheduleRequest(loanRescheduleRequest,
+                    requestJSON);
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(250.0, false, "15 May 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "23 May 2023")//
+            );
+
+        });
+    }
+
+    @Test
+    public void loanNPlusOneInstallmentIsAdjustedAfterRescheduleIfDateFallBeforeMaturityDateTest() {
+        runAt("03 March 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProductWithMultiDisbursalAndRepayments();
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId, "01 March 2023", 1500.0, 4, req -> {
+                req.setRepaymentEvery(15);
+                req.setLoanTermFrequency(60);
+            });
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1000.00), "01 March 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023")//
+            );
+
+            // add charge with due date after loan maturity date but date which is with in installment date after
+            // reschedule
+            Long loanChargeId = addCharge(loanId, false, 50, "13 May 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "13 May 2023")//
+            );
+
+            // reschedule installment date
+            String requestJSON = new LoanRescheduleRequestTestBuilder().updateGraceOnInterest(null).updateGraceOnPrincipal(null)
+                    .updateExtraTerms(null).updateNewInterestRate(null).updateRescheduleFromDate("15 April 2023")
+                    .updateAdjustedDueDate("30 April 2023").updateSubmittedOnDate("03 March 2023").updateRescheduleReasonId("1")
+                    .build(loanId.toString());
+
+            Integer loanRescheduleRequest = loanRescheduleRequestHelper.createLoanRescheduleRequest(requestJSON);
+            requestJSON = new LoanRescheduleRequestTestBuilder().updateSubmittedOnDate("03 March 2023")
+                    .getApproveLoanRescheduleRequestJSON();
+            Integer approveLoanRescheduleRequest = loanRescheduleRequestHelper.approveLoanRescheduleRequest(loanRescheduleRequest,
+                    requestJSON);
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(250.0, 0.0, 50.0, 300.0, false, "15 May 2023")//
+            );
+
+        });
+    }
+
+    @Test
+    public void loanNPlusOneInstallmentIsRetainedAfterLoanRescheduleForAdvancedPaymentAllocationTest() {
+        runAt("03 March 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProductWithMultiDisbursalAndRepaymentsWithAdvancedPaymentAllocationStrategy();
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId, "01 March 2023", 1500.0, 4, req -> {
+                req.setRepaymentEvery(15);
+                req.setLoanTermFrequency(60);
+                req.setTransactionProcessingStrategyCode("advanced-payment-allocation-strategy");
+                req.setLoanScheduleProcessingType(LoanScheduleType.PROGRESSIVE.toString());
+                req.setLoanScheduleProcessingType(LoanScheduleProcessingType.HORIZONTAL.toString());
+            });
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1000.00), "01 March 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023")//
+            );
+
+            // add charge with due date after loan maturity date
+            Long loanChargeId = addCharge(loanId, false, 50, "23 May 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "23 May 2023")//
+            );
+
+            // reschedule installment date
+            String requestJSON = new LoanRescheduleRequestTestBuilder().updateGraceOnInterest(null).updateGraceOnPrincipal(null)
+                    .updateExtraTerms(null).updateNewInterestRate(null).updateRescheduleFromDate("15 April 2023")
+                    .updateAdjustedDueDate("30 April 2023").updateSubmittedOnDate("03 March 2023").updateRescheduleReasonId("1")
+                    .build(loanId.toString());
+
+            Integer loanRescheduleRequest = loanRescheduleRequestHelper.createLoanRescheduleRequest(requestJSON);
+            requestJSON = new LoanRescheduleRequestTestBuilder().updateSubmittedOnDate("03 March 2023")
+                    .getApproveLoanRescheduleRequestJSON();
+            Integer approveLoanRescheduleRequest = loanRescheduleRequestHelper.approveLoanRescheduleRequest(loanRescheduleRequest,
+                    requestJSON);
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(250.0, false, "15 May 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "23 May 2023")//
+            );
+
+        });
+    }
+
+    @Test
+    public void loanNPlusOneInstallmentIsAdjustedAfterRescheduleIfDateFallBeforeMaturityDateForAdvancedPaymentAllocationTest() {
+        runAt("03 March 2023", () -> {
+            // Create Client
+            Long clientId = clientHelper.createClient(ClientHelper.defaultClientCreationRequest()).getClientId();
+            // Create Loan Product
+            Long loanProductId = createLoanProductWithMultiDisbursalAndRepaymentsWithAdvancedPaymentAllocationStrategy();
+
+            // Apply and Approve Loan
+            Long loanId = applyAndApproveLoan(clientId, loanProductId, "01 March 2023", 1500.0, 4, req -> {
+                req.setRepaymentEvery(15);
+                req.setLoanTermFrequency(60);
+                req.setTransactionProcessingStrategyCode("advanced-payment-allocation-strategy");
+            });
+
+            // Disburse Loan
+            disburseLoan(loanId, BigDecimal.valueOf(1000.00), "01 March 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023")//
+            );
+
+            // add charge with due date after loan maturity date but date which is with in installment date after
+            // reschedule
+            Long loanChargeId = addCharge(loanId, false, 50, "13 May 2023");
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "15 April 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(0.0, 0.0, 50.0, 50.0, false, "13 May 2023")//
+            );
+
+            // reschedule installment date
+            String requestJSON = new LoanRescheduleRequestTestBuilder().updateGraceOnInterest(null).updateGraceOnPrincipal(null)
+                    .updateExtraTerms(null).updateNewInterestRate(null).updateRescheduleFromDate("15 April 2023")
+                    .updateAdjustedDueDate("30 April 2023").updateSubmittedOnDate("03 March 2023").updateRescheduleReasonId("1")
+                    .build(loanId.toString());
+
+            Integer loanRescheduleRequest = loanRescheduleRequestHelper.createLoanRescheduleRequest(requestJSON);
+            requestJSON = new LoanRescheduleRequestTestBuilder().updateSubmittedOnDate("03 March 2023")
+                    .getApproveLoanRescheduleRequestJSON();
+            Integer approveLoanRescheduleRequest = loanRescheduleRequestHelper.approveLoanRescheduleRequest(loanRescheduleRequest,
+                    requestJSON);
+
+            // verify repayment schedule
+            verifyRepaymentSchedule(loanId, //
+                    installment(0, null, "01 March 2023"), //
+                    installment(250.0, false, "16 March 2023"), //
+                    installment(250.0, false, "31 March 2023"), //
+                    installment(250.0, false, "30 April 2023"), //
+                    installment(250.0, 0.0, 50.0, 300.0, false, "15 May 2023")//
+            );
+
+        });
+    }
+
+    private Long createLoanProductWithMultiDisbursalAndRepayments() {
+        boolean multiDisburseEnabled = true;
+        PostLoanProductsRequest product = createOnePeriod30DaysLongNoInterestPeriodicAccrualProduct();
+        product.setMultiDisburseLoan(multiDisburseEnabled);
+        product.setNumberOfRepayments(4);
+        product.setRepaymentEvery(15);
+
+        if (!multiDisburseEnabled) {
+            product.disallowExpectedDisbursements(null);
+            product.setAllowApprovedDisbursedAmountsOverApplied(null);
+            product.overAppliedCalculationType(null);
+            product.overAppliedNumber(null);
+        }
+
+        PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(product);
+        GetLoanProductsProductIdResponse getLoanProductsProductIdResponse = loanProductHelper
+                .retrieveLoanProductById(loanProductResponse.getResourceId());
+        assertNotNull(getLoanProductsProductIdResponse);
+        return loanProductResponse.getResourceId();
+
+    }
+
+    private Long createLoanProductWithMultiDisbursalAndRepaymentsWithAdvancedPaymentAllocationStrategy() {
+        boolean multiDisburseEnabled = true;
+        PostLoanProductsRequest product = createOnePeriod30DaysLongNoInterestPeriodicAccrualProductWithAdvancedPaymentAllocation();
+        product.setMultiDisburseLoan(multiDisburseEnabled);
+        product.setNumberOfRepayments(4);
+        product.setRepaymentEvery(15);
+
+        if (!multiDisburseEnabled) {
+            product.disallowExpectedDisbursements(null);
+            product.setAllowApprovedDisbursedAmountsOverApplied(null);
+            product.overAppliedCalculationType(null);
+            product.overAppliedNumber(null);
+        }
+
+        PostLoanProductsResponse loanProductResponse = loanProductHelper.createLoanProduct(product);
+        GetLoanProductsProductIdResponse getLoanProductsProductIdResponse = loanProductHelper
+                .retrieveLoanProductById(loanProductResponse.getResourceId());
+        assertNotNull(getLoanProductsProductIdResponse);
+        return loanProductResponse.getResourceId();
+    }
+}