Investment Portfolio Management in ERPNext

How to Use ERPNext Investment Portfolio

Add Investment Segment and Category

Begin your ERPNext portfolio setup by creating an "Investment Segment" and "Investment Category" to classify your investments effectively.

Configure Investment Accounts

In the ERPNext Investment Management module, define default accounts under the Investment Portfolio Accounts section. This includes your bank, capital, charges, and income accounts. These settings streamline portfolio tracking and automate journal entries for investment transactions.

Fill Portfolio Investment Form

Enter key details such as Segment, Category, Script (investment name), and Investment Date in the Portfolio Investment Form. This lays the foundation for accurate ERPNext portfolio tracking.

Enter Investment Details

In the Entry section, provide essential details like quantity (stock or fund quantity purchased), entry price (the price at which you bought it), entry charges (charges like brokerage, taxes, etc. for entry), and total cost of ownership (total amount after entry charges). If you would like to provide charges to calculate the total cost of ownership, click the check box "Set Entry Charges Manually." Otherwise, the system will calculate charges based on the "total cost of ownership." Default accounts for investment accounting entry will be picked up automatically from the company, but you can still change them here for specific transactions. After you've entered everything, submit the information. The system will create a journal entry that credits your Bank Account and debits your Capital Account and Investment Charges. If you already have an existing ERPNext Investment Portfolio, check the "Is Existing" box and then link the Journal Voucher of entry in the Entry Section. Once submitted, your ERPNext investment portfolio entry status will change to "Holding."

Exit Process of Investment Portfolio in ERPNext

Provide Exit Details

To sell or exit assets tracked via ERPNext Investment Portfolio Tracking, enter details against the corresponding portfolio record—whether partial or full exit.

Fill Exit Form

In the Exit section, provide details like Exit Quantity (Sold quantity), Exit Price (the price at which you sold it), Exit Charges (Charges like brokerage, taxes, etc. for exit), Net Exit Amount (Total Amount after exit charges). If you like to provide charges to calculate the total cost of ownership, click the check box "Set Exit Charges Manually." Otherwise, the system will calculate charges based on the "Net Exit Amount."

Create Exit Journal Voucher

Click "Create Exit JV" to automatically generate a journal entry. ERPNext will debit the bank and investment charges accounts while crediting capital and income accounts, keeping your investment records in sync.

Update Investment Portfolio

After you've submitted the journal entry, it will be added to the Investment Portfolio in the Investment Portfolio Segment table.

Once submitted, the exit transaction appears in the ERPNext Investment Portfolio Segment table. You can perform multiple partial exits as needed.
The system updates the investment status as "Exited" or "Partially Exited" based on remaining quantity.
This feature ensures end-to-end ERPNext portfolio tracking with automatic financial journal entries.