diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
index 8448fa1..140dc06 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanChargeback.feature
@@ -2160,8 +2160,8 @@
       |    |      | 01 January 2024  |                  | 500.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |       |             |
       | 1  | 0    | 01 January 2024  | 04 January 2024  | 375.0           | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 125.0 | 0.0         |
       | 2  | 15   | 16 January 2024  | 16 January 2024  | 250.0           | 125.0         | 0.0      | 0.0  | 3.0       | 128.0 | 128.0 | 0.0        | 0.0   | 0.0         |
-      | 3  | 15   | 31 January 2024  | 31 January 2024  | 128.0           | 250.0         | 0.0      | 0.0  | 3.0       | 253.0 | 253.0 | 0.0        | 0.0   | 0.0         |
-      | 4  | 15   | 15 February 2024 | 15 February 2024 | 3.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
+      | 3  | 15   | 31 January 2024  | 31 January 2024  | 125.0           | 250.0         | 0.0      | 0.0  | 3.0       | 253.0 | 253.0 | 0.0        | 0.0   | 0.0         |
+      | 4  | 15   | 15 February 2024 | 15 February 2024 | 0.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
       | 625.0         | 0.0      | 0.0  | 6.0       | 631.0 | 631.0 | 0.0        | 125.0 | 0.0         |
@@ -2200,8 +2200,8 @@
       |    |      | 01 January 2024  |                  | 500.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |       |             |
       | 1  | 0    | 01 January 2024  | 04 January 2024  | 375.0           | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 125.0 | 0.0         |
       | 2  | 15   | 16 January 2024  | 16 January 2024  | 250.0           | 125.0         | 0.0      | 0.0  | 3.0       | 128.0 | 128.0 | 0.0        | 0.0   | 0.0         |
-      | 3  | 15   | 31 January 2024  | 15 February 2024 | 128.0           | 175.0         | 0.0      | 0.0  | 3.0       | 178.0 | 178.0 | 0.0        | 3.0   | 0.0         |
-      | 4  | 15   | 15 February 2024 | 15 February 2024 | 3.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
+      | 3  | 15   | 31 January 2024  | 15 February 2024 | 125.0           | 175.0         | 0.0      | 0.0  | 3.0       | 178.0 | 178.0 | 0.0        | 3.0   | 0.0         |
+      | 4  | 15   | 15 February 2024 | 15 February 2024 | 0.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
       | 550.0         | 0.0      | 0.0  | 6.0       | 556.0 | 556.0 | 0.0        | 128.0 | 0.0         |
@@ -2242,8 +2242,8 @@
       |    |      | 01 January 2024  |                  | 500.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |       |             |
       | 1  | 0    | 01 January 2024  | 04 January 2024  | 375.0           | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 125.0 | 0.0         |
       | 2  | 15   | 16 January 2024  | 31 January 2024  | 250.0           | 125.0         | 0.0      | 4.0  | 3.0       | 132.0 | 132.0 | 0.0        | 7.0   | 0.0         |
-      | 3  | 15   | 31 January 2024  | 15 February 2024 | 132.0           | 168.0         | 0.0      | 4.0  | 3.0       | 175.0 | 175.0 | 0.0        | 57.0  | 0.0         |
-      | 4  | 15   | 15 February 2024 | 15 February 2024 | 7.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
+      | 3  | 15   | 31 January 2024  | 15 February 2024 | 125.0           | 168.0         | 0.0      | 4.0  | 3.0       | 175.0 | 175.0 | 0.0        | 57.0  | 0.0         |
+      | 4  | 15   | 15 February 2024 | 15 February 2024 | 0.0             | 125.0         | 0.0      | 0.0  | 0.0       | 125.0 | 125.0 | 0.0        | 0.0   | 0.0         |
     Then Loan Repayment schedule has the following data in Total row:
       | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
       | 543.0         | 0.0      | 8.0  | 6.0       | 557.0 | 557.0 | 0.0        | 189.0 | 0.0         |
@@ -2844,3 +2844,131 @@
       | LIABILITY | 145023       | Suspense/Clearing account |       | 280.0  |
       | EXPENSE   | 744007       | Credit Loss/Bad Debt      | 250.0 |        |
       | INCOME    | 404008       | Fee Charge Off            | 30.0  |        |
+
+  @TestRailId:C3111 @creditAllocation @AdvancedPaymentAllocationChargeback @AdvancedPaymentAllocation
+  Scenario: Verify chargeback function for advanced payment allocation - credit allocation accounting entries UC10: chargeback on overpaid loan
+    When Admin sets the business date to "01 January 2024"
+    When Admin creates a client with random data
+    When Admin creates a fully customized loan with the following data:
+      | LoanProduct                                                                             | submitted on date | with Principal | ANNUAL interest rate % | interest type | interest calculation period | amortization type  | loanTermFrequency | loanTermFrequencyType | repaymentEvery | repaymentFrequencyType | numberOfRepayments | graceOnPrincipalPayment | graceOnInterestPayment | interest free period | Payment strategy            |
+      | PIN4_DOWNPAYMENT_ADV_PMT_ALLOC_PROG_SCHEDULE_HOR_INST_LVL_DELINQUENCY_CREDIT_ALLOCATION | 01 January 2024   | 100            | 0                      | FLAT          | SAME_AS_REPAYMENT_PERIOD    | EQUAL_INSTALLMENTS | 3                 | MONTHS                | 1              | MONTHS                 | 3                  | 0                       | 0                      | 0                    | ADVANCED_PAYMENT_ALLOCATION |
+    And Admin successfully approves the loan on "01 January 2024" with "100" amount and expected disbursement date on "01 January 2024"
+    When Admin successfully disburse the loan on "01 January 2024" with "100" EUR transaction amount
+    Then Loan Repayment schedule has 4 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |       |             |
+      | 1  | 0    | 01 January 2024  |                  | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+      | 2  | 31   | 01 February 2024 |                  | 50.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+      | 3  | 29   | 01 March 2024    |                  | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+      | 4  | 31   | 01 April 2024    |                  | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
+      | 01 January 2024  | Disbursement     | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        |
+    When Admin adds "LOAN_NSF_FEE" due date charge with "05 January 2024" due date and 5 EUR transaction amount
+    Then Loan Repayment schedule has 4 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   | 0.0   |            |       |             |
+      | 1  | 0    | 01 January 2024  |                  | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+      | 2  | 31   | 01 February 2024 |                  | 50.0            |  25.0         | 0.0      | 0.0  | 5.0       | 30.0  | 0.0   | 0.0        | 0.0   | 30.0        |
+      | 3  | 29   | 01 March 2024    |                  | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+      | 4  | 31   | 01 April 2024    |                  | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 0.0   | 0.0        | 0.0   | 25.0        |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
+      | 01 January 2024  | Disbursement     | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        |
+    When Admin sets the business date to "01 February 2024"
+    And Customer makes "AUTOPAY" repayment on "01 February 2024" with 105 EUR transaction amount
+    Then Loan Repayment schedule has 4 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   |  0.0  |            |       |             |
+      | 1  | 0    | 01 January 2024  | 01 February 2024 | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  |  0.0       | 25.0  | 0.0         |
+      | 2  | 31   | 01 February 2024 | 01 February 2024 | 50.0            |  25.0         | 0.0      | 0.0  | 5.0       | 30.0  | 30.0  |  0.0       | 0.0   | 0.0         |
+      | 3  | 29   | 01 March 2024    | 01 February 2024 | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 4  | 31   | 01 April 2024    | 01 February 2024 | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type | Amount | Principal | Interest | Fees | Penalties | Loan Balance |
+      | 01 January 2024  | Disbursement     | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        |
+      | 01 February 2024 | Repayment        | 105.0  | 100.0     | 0.0      | 0.0  | 5.0       | 0.0          |
+      | 01 February 2024 | Accrual          | 5.0    | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          |
+    Then Loan has 0 outstanding amount
+    Then Loan status will be "CLOSED_OBLIGATIONS_MET"
+    When Admin sets the business date to "01 March 2024"
+    When Admin makes "MERCHANT_ISSUED_REFUND" transaction with "AUTOPAY" payment type on "19 January 2024" with 10 EUR transaction amount
+    Then Loan Repayment schedule has 4 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   |  0.0  |            |       |             |
+      | 1  | 0    | 01 January 2024  | 01 February 2024 | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  |  0.0       | 25.0  | 0.0         |
+      | 2  | 31   | 01 February 2024 | 01 February 2024 | 50.0            |  25.0         | 0.0      | 0.0  | 5.0       | 30.0  | 30.0  |  0.0       | 0.0   | 0.0         |
+      | 3  | 29   | 01 March 2024    | 01 February 2024 | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 4  | 31   | 01 April 2024    | 01 February 2024 | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
+      | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
+      | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  |  0.0      | 90.0         | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
+      | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+    Then Loan has 0 outstanding amount
+    Then Loan has 10 overpaid amount
+    Then Loan status will be "OVERPAID"
+    When Admin sets the business date to "15 April 2024"
+    And Admin makes "REPAYMENT_ADJUSTMENT_CHARGEBACK" chargeback with 7 EUR transaction amount for Payment nr. 1
+    Then Loan Transactions tab has a "DISBURSEMENT" transaction with date "01 January 2024" which has the following Journal entries:
+      | Type      | Account code | Account name              | Debit  | Credit |
+      | ASSET     | 112601       | Loans Receivable          | 100.0  |        |
+      | LIABILITY | 145023       | Suspense/Clearing account |        | 100.0  |
+    Then Loan Transactions tab has a "MERCHANT_ISSUED_REFUND" transaction with date "19 January 2024" which has the following Journal entries:
+      | Type      | Account code | Account name              | Debit | Credit |
+      | ASSET     | 112601       | Loans Receivable          |       | 10.0   |
+      | LIABILITY | 145023       | Suspense/Clearing account | 10.0  |        |
+    Then Loan Transactions tab has a "REPAYMENT" transaction with date "01 February 2024" which has the following Journal entries:
+      | Type      | Account code | Account name              | Debit | Credit |
+      | ASSET     | 112601       | Loans Receivable          |       | 90.0   |
+      | ASSET     | 112603       | Interest/Fee Receivable   |       | 5.0    |
+      | LIABILITY | l1           | Overpayment account       |       | 10.0   |
+      | LIABILITY | 145023       | Suspense/Clearing account | 105.0 |        |
+    Then Loan Repayment schedule has 5 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   |  0.0  |            |       |             |
+      | 1  | 0    | 01 January 2024  | 01 February 2024 | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  |  0.0       | 25.0  | 0.0         |
+      | 2  | 31   | 01 February 2024 | 01 February 2024 | 50.0            |  25.0         | 0.0      | 0.0  | 5.0       | 30.0  | 30.0  |  0.0       | 0.0   | 0.0         |
+      | 3  | 29   | 01 March 2024    | 01 February 2024 | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 4  | 31   | 01 April 2024    | 01 February 2024 | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 5  | 14   | 15 April 2024    | 15 April 2024    | 0.0             |  2.0          | 0.0      | 0.0  | 5.0       | 7.0   | 7.0   | 0.0        | 0.0   | 0.0         |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
+      | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
+      | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  | 0.0       | 90.0         | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
+      | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+      | 15 April 2024    | Chargeback               | 7.0    | 2.0       | 0.0      | 0.0  | 5.0       | 0.0          | 7.0         |
+    Then Loan Transactions tab has a "CHARGEBACK" transaction with date "15 April 2024" which has the following Journal entries:
+      | Type      | Account code | Account name              | Debit | Credit |
+      | LIABILITY | l1           | Overpayment account       |  7.0  |        |
+      | LIABILITY | 145023       | Suspense/Clearing account |       | 7.0    |
+    Then Loan has 0 outstanding amount
+    Then Loan has 3 overpaid amount
+    Then Loan status will be "OVERPAID"
+    When Admin sets the business date to "16 April 2024"
+    When Admin makes "REPAYMENT_ADJUSTMENT_REFUND" chargeback with 7 EUR transaction amount for Payment nr. 1
+    Then Loan Repayment schedule has 5 periods, with the following data for periods:
+      | Nr | Days | Date             | Paid date        | Balance of loan | Principal due | Interest | Fees | Penalties | Due   | Paid  | In advance | Late  | Outstanding |
+      |    |      | 01 January 2024  |                  | 100.0           |               |          | 0.0  |           | 0.0   |  0.0  |            |       |             |
+      | 1  | 0    | 01 January 2024  | 01 February 2024 | 75.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  |  0.0       | 25.0  | 0.0         |
+      | 2  | 31   | 01 February 2024 | 01 February 2024 | 50.0            |  25.0         | 0.0      | 0.0  | 5.0       | 30.0  | 30.0  |  0.0       | 0.0   | 0.0         |
+      | 3  | 29   | 01 March 2024    | 01 February 2024 | 25.0            |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 4  | 31   | 01 April 2024    | 01 February 2024 | 0.0             |  25.0         | 0.0      | 0.0  | 0.0       | 25.0  | 25.0  | 25.0       | 0.0   | 0.0         |
+      | 5  | 15   | 16 April 2024    |                  | 0.0             |  9.0          | 0.0      | 0.0  | 5.0       | 14.0  | 10.0  | 0.0        | 0.0   | 4.0         |
+    Then Loan Transactions tab has the following data:
+      | Transaction date | Transaction Type         | Amount | Principal | Interest | Fees | Penalties | Loan Balance | Overpayment |
+      | 01 January 2024  | Disbursement             | 100.0  | 0.0       | 0.0      | 0.0  | 0.0       | 100.0        | 0.0         |
+      | 19 January 2024  | Merchant Issued Refund   | 10.0   | 10.0      | 0.0      | 0.0  | 0.0       | 90.0         | 0.0         |
+      | 01 February 2024 | Repayment                | 105.0  | 90.0      | 0.0      | 0.0  | 5.0       | 0.0          | 10.0        |
+      | 01 February 2024 | Accrual                  |  5.0   | 0.0       | 0.0      | 0.0  | 5.0       | 0.0          | 0.0         |
+      | 15 April 2024    | Chargeback               | 7.0    | 2.0       | 0.0      | 0.0  | 5.0       | 0.0          | 7.0         |
+      | 16 April 2024    | Chargeback               | 7.0    | 7.0       | 0.0      | 0.0  | 0.0       | 4.0          | 3.0         |
+    Then Loan Transactions tab has a "CHARGEBACK" transaction with date "16 April 2024" which has the following Journal entries:
+      | Type      | Account code | Account name              | Debit | Credit |
+      | LIABILITY | l1           | Overpayment account       |  3.0  |        |
+      | ASSET     | 112601       | Loans Receivable          |  4.0  |        |
+      | LIABILITY | 145023       | Suspense/Clearing account |       | 7.0    |
+    Then Loan has 4 outstanding amount
+    Then Loan status will be "ACTIVE"
diff --git a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
index e5266b1..6c07e94 100644
--- a/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
+++ b/fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
@@ -134,6 +134,7 @@
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModel;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModelPeriod;
 import org.apache.fineract.portfolio.loanproduct.domain.AmortizationMethod;
+import org.apache.fineract.portfolio.loanproduct.domain.CreditAllocationTransactionType;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestCalculationPeriodMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestRecalculationCompoundingMethod;
@@ -712,7 +713,7 @@
         ChangedTransactionDetail changedTransactionDetail = null;
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategyCode);
-        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
         changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                 allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
         for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
@@ -875,7 +876,7 @@
              * Consider removing this block of code or logically completing it for the future by getting the list of
              * affected Transactions
              ***/
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
         }
@@ -943,7 +944,7 @@
              * Consider removing this block of code or logically completing it for the future by getting the list of
              * affected Transactions
              ***/
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
         } else {
@@ -1137,7 +1138,7 @@
              * Consider removing this block of code or logically completing it for the future by getting the list of
              * affected Transactions
              */
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
         } else {
@@ -2696,7 +2697,7 @@
     private ChangedTransactionDetail reprocessTransactionForDisbursement() {
         ChangedTransactionDetail changedTransactionDetail = null;
         if (this.loanProduct.isMultiDisburseLoan()) {
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             if (!allNonContraTransactionsPostDisbursement.isEmpty()) {
                 final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                         .determineProcessor(this.transactionProcessingStrategyCode);
@@ -3369,7 +3370,7 @@
             if (this.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
                 regenerateRepaymentScheduleWithInterestRecalculation(scheduleGeneratorDTO);
             }
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
             for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
@@ -3429,12 +3430,12 @@
         return incomePostTransactions;
     }
 
-    private List<LoanTransaction> retrieveListOfTransactionsPostDisbursement() {
+    public List<LoanTransaction> retrieveListOfTransactionsForReprocessing() {
         final List<LoanTransaction> repaymentsOrWaivers = new ArrayList<>();
         List<LoanTransaction> trans = getLoanTransactions();
         for (final LoanTransaction transaction : trans) {
-            if (transaction.isNotReversed() && (transaction.isChargeOff() || transaction.isReAge() || transaction.isReAmortize()
-                    || !transaction.isNonMonetaryTransaction())) {
+            if (transaction.isNotReversed() && !transaction.isAccrual() && (transaction.isChargeOff() || transaction.isReAge()
+                    || transaction.isReAmortize() || !transaction.isNonMonetaryTransaction())) {
                 repaymentsOrWaivers.add(transaction);
             }
         }
@@ -3818,7 +3819,7 @@
         loanLifecycleStateMachine.transition(LoanEvent.WRITE_OFF_OUTSTANDING_UNDO, this);
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategyCode);
-        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
         if (this.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
             regenerateRepaymentScheduleWithInterestRecalculation(scheduleGeneratorDTO);
         }
@@ -3868,10 +3869,15 @@
             }
             if (loanTransaction.isRefund() || loanTransaction.isRefundForActiveLoan()) {
                 totalPaidInRepayments = totalPaidInRepayments.minus(loanTransaction.getAmount(currency));
-            } else if (loanTransaction.isCreditBalanceRefund() || loanTransaction.isChargeback()) {
+            } else if (loanTransaction.isCreditBalanceRefund()) {
                 if (loanTransaction.getPrincipalPortion(currency).isZero()) {
                     totalPaidInRepayments = totalPaidInRepayments.minus(loanTransaction.getOverPaymentPortion(currency));
                 }
+            } else if (loanTransaction.isChargeback()) {
+                if (loanTransaction.getPrincipalPortion(currency).isZero() && getCreditAllocationRules().stream()
+                        .filter(car -> car.getTransactionType().equals(CreditAllocationTransactionType.CHARGEBACK)).findAny().isEmpty()) {
+                    totalPaidInRepayments = totalPaidInRepayments.minus(loanTransaction.getOverPaymentPortion(currency));
+                }
             }
         }
 
@@ -3972,7 +3978,7 @@
             if (this.repaymentScheduleDetail().isInterestRecalculationEnabled()) {
                 regenerateRepaymentScheduleWithInterestRecalculation(scheduleGeneratorDTO);
             }
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
             for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
@@ -5420,7 +5426,7 @@
 
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategyCode);
-        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
         ChangedTransactionDetail changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(
                 getDisbursementDate(), allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(),
                 getActiveCharges());
@@ -5574,7 +5580,7 @@
     public ChangedTransactionDetail processTransactions() {
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategyCode);
-        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
         ChangedTransactionDetail changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(
                 getDisbursementDate(), allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(),
                 getActiveCharges());
@@ -5818,7 +5824,7 @@
     public void processPostDisbursementTransactions() {
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = this.transactionProcessorFactory
                 .determineProcessor(this.transactionProcessingStrategyCode);
-        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+        final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
         final List<LoanTransaction> copyTransactions = new ArrayList<>();
         if (!allNonContraTransactionsPostDisbursement.isEmpty()) {
             for (LoanTransaction loanTransaction : allNonContraTransactionsPostDisbursement) {
@@ -6428,7 +6434,7 @@
             loanRepaymentScheduleTransactionProcessor.processLatestTransaction(loanTransaction, new TransactionCtx(getCurrency(),
                     getRepaymentScheduleInstallments(), getActiveCharges(), new MoneyHolder(getTotalOverpaidAsMoney())));
         } else {
-            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsPostDisbursement();
+            final List<LoanTransaction> allNonContraTransactionsPostDisbursement = retrieveListOfTransactionsForReprocessing();
             changedTransactionDetail = loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(getDisbursementDate(),
                     allNonContraTransactionsPostDisbursement, getCurrency(), getRepaymentScheduleInstallments(), getActiveCharges());
             for (final Map.Entry<Long, LoanTransaction> mapEntry : changedTransactionDetail.getNewTransactionMappings().entrySet()) {
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 e1f12c3..2e08300 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
@@ -356,6 +356,7 @@
                                     (ctx.getInstallments().size() + 1), pastDueDate, transactionDate, zeroMoney.getAmount(),
                                     zeroMoney.getAmount(), zeroMoney.getAmount(), zeroMoney.getAmount(), false, null);
                             recognizeAmountsAfterChargeback(ctx.getCurrency(), transactionDate, installment, chargebackAllocation);
+                            installment.markAsAdditional();
                             loan.addLoanRepaymentScheduleInstallment(installment);
                         }
                     }
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformServiceImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformServiceImpl.java
index ef43af8..02f6cd7 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformServiceImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanReadPlatformServiceImpl.java
@@ -1159,7 +1159,7 @@
                     + " ls.fee_charges_amount as feeChargesDue, ls.fee_charges_completed_derived as feeChargesPaid, ls.fee_charges_waived_derived as feeChargesWaived, ls.fee_charges_writtenoff_derived as feeChargesWrittenOff, "
                     + " ls.penalty_charges_amount as penaltyChargesDue, ls.penalty_charges_completed_derived as penaltyChargesPaid, ls.penalty_charges_waived_derived as penaltyChargesWaived, "
                     + " ls.penalty_charges_writtenoff_derived as penaltyChargesWrittenOff, ls.total_paid_in_advance_derived as totalPaidInAdvanceForPeriod, "
-                    + " ls.total_paid_late_derived as totalPaidLateForPeriod, (coalesce(ls.credits_amount,0) + coalesce(ls.credited_fee,0) + coalesce(ls.credited_penalty,0)) as totalCredits, ls.is_down_payment isDownPayment "
+                    + " ls.total_paid_late_derived as totalPaidLateForPeriod, ls.credits_amount as principalCredits, ls.credited_fee as feeCredits, ls.credited_penalty as penaltyCredits, ls.is_down_payment isDownPayment "
                     + " from m_loan_repayment_schedule ls ";
         }
 
@@ -1230,9 +1230,11 @@
                         disbursementChargeAmount, waivedChargeAmount, periods);
 
                 // Add the Charge back or Credits to the initial amount to avoid negative balance
-                final BigDecimal credits = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "totalCredits");
-
-                this.outstandingLoanPrincipalBalance = this.outstandingLoanPrincipalBalance.add(credits);
+                final BigDecimal principalCredits = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "principalCredits");
+                final BigDecimal feeCredits = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "feeCredits");
+                final BigDecimal penaltyCredits = JdbcSupport.getBigDecimalDefaultToZeroIfNull(rs, "penaltyCredits");
+                final BigDecimal credits = principalCredits.add(feeCredits).add(penaltyCredits);
+                this.outstandingLoanPrincipalBalance = this.outstandingLoanPrincipalBalance.add(principalCredits);
 
                 totalPrincipalDisbursed = totalPrincipalDisbursed.add(disbursedAmount);
 
@@ -1305,6 +1307,7 @@
                 totalPaidInAdvance = totalPaidInAdvance.plus(totalPaidInAdvanceForPeriod);
                 totalPaidLate = totalPaidLate.plus(totalPaidLateForPeriod);
                 totalOutstanding = totalOutstanding.plus(totalOutstandingForPeriod);
+                totalCredits = totalCredits.add(credits);
 
                 if (fromDate == null) {
                     fromDate = this.lastDueDate;
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reaging/LoanReAgingServiceImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reaging/LoanReAgingServiceImpl.java
index 4db6b7e..33909fa 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reaging/LoanReAgingServiceImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reaging/LoanReAgingServiceImpl.java
@@ -44,7 +44,6 @@
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
-import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionComparator;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionType;
 import org.apache.fineract.portfolio.loanaccount.domain.reaging.LoanReAgeParameter;
@@ -181,8 +180,7 @@
     }
 
     private void reProcessLoanTransactions(Loan loan) {
-        final List<LoanTransaction> filteredTransactions = loan.getLoanTransactions().stream().filter(LoanTransaction::isNotReversed)
-                .filter(t -> t.isChargeOff() || !t.isNonMonetaryTransaction()).sorted(LoanTransactionComparator.INSTANCE).toList();
+        final List<LoanTransaction> filteredTransactions = loan.retrieveListOfTransactionsForReprocessing();
 
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = loanRepaymentScheduleTransactionProcessorFactory
                 .determineProcessor(loan.transactionProcessingStrategy());
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reamortization/LoanReAmortizationServiceImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reamortization/LoanReAmortizationServiceImpl.java
index b12af75..880b856 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reamortization/LoanReAmortizationServiceImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reamortization/LoanReAmortizationServiceImpl.java
@@ -22,7 +22,6 @@
 
 import java.math.BigDecimal;
 import java.time.LocalDate;
-import java.util.ArrayList;
 import java.util.Comparator;
 import java.util.LinkedHashMap;
 import java.util.List;
@@ -44,7 +43,6 @@
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
-import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionComparator;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionType;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.LoanRepaymentScheduleTransactionProcessor;
@@ -135,18 +133,11 @@
     }
 
     private void reProcessLoanTransactions(Loan loan) {
-        final List<LoanTransaction> repaymentsOrWaivers = new ArrayList<>();
-        List<LoanTransaction> trans = loan.getLoanTransactions();
-        for (final LoanTransaction transaction : trans) {
-            if (transaction.isNotReversed() && (transaction.isChargeOff() || !transaction.isNonMonetaryTransaction())) {
-                repaymentsOrWaivers.add(transaction);
-            }
-        }
-        repaymentsOrWaivers.sort(LoanTransactionComparator.INSTANCE);
+        final List<LoanTransaction> filteredTransactions = loan.retrieveListOfTransactionsForReprocessing();
 
         final LoanRepaymentScheduleTransactionProcessor loanRepaymentScheduleTransactionProcessor = loanRepaymentScheduleTransactionProcessorFactory
                 .determineProcessor(loan.transactionProcessingStrategy());
-        loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(loan.getDisbursementDate(), repaymentsOrWaivers,
+        loanRepaymentScheduleTransactionProcessor.reprocessLoanTransactions(loan.getDisbursementDate(), filteredTransactions,
                 loan.getCurrency(), loan.getRepaymentScheduleInstallments(), loan.getActiveCharges());
     }