The library expects the following: 1) When item is lost, fines stop accruing, lost item fee is charged. 2) Patron returns item. Lost item fee is waived, but all of the fines that have acrued (up to the cost of the book) are *not* forgiven. Fines system preferences are set as follows: RefundLostItemFeeOnReturn [refund] lost item fees charged to a borrower when the lost item is returned. WhenLostChargeReplacementFee [charge] the replacement price when a patron loses an item. WhenLostForgiveFine [Don't Forgive] the fines on an item when it is lost. When a lost, the lost item fee is being charged. On return, the lost item fee is being returned, but the fines *are* being fogiven -- we can see an accountlines entry with account type 'FFOR'. To reproduce: 1) Set the system prefrences as above. 2) Check out an item. Allow it to accrue fines. 3) Mark the item as longoverdue (lost) -- replacement price should be charged. 4) Check the item in -- replacement price should be refunded, and is. -- fine should *not* be forgiven, but is.