Investment Portfolio

How to use Investment Portfolio in ERPNext

Add Investment Segment and Category

Start by adding an "Investment Segment" and an "Investment Category".

Configure Investment Accounts

In the Investment Portfolio Accounts section, specify which default accounts will be used for the company's investment portfolios. The investment charges account is used to debit broking fees, the bank account is used to deduct or credit the investment amount, the capital account is typically a demat account used to house stock holdings, and the investment income account is used to credit capital profits.

Fill Portfolio Investment Form

Fill in the basic information, such as Segment, Category, Script (investment name), and Date of Investment in the Portfolio Investment Form.

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 Investment Portfolio, check the "Is Existing" box and then link the Journal Voucher of entry in the Entry Section. Once submitted, your investment portfolio entry status will change to "Holding."

Exit Process of Investment Portfolio in ERPNext

Provide Exit Details

When you want to sell or exit an investment in the Investment Portfolio app, you will need to give exit details against the invested or partially exited investment portfolio.

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

Once you've filled in all the exit details, you can click on "Create Exit JV" (Journal Voucher). This action triggers the system to automatically create a journal entry. In this journal entry, the app will debit the bank account and investment charges, and credit the capital account and income account.

Update Investment Portfolio

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

You can also exit your investment partially at various dates and repeat this exit process against the same investment.
The status of the investment will be updated as"Exited"or "Partially Exited" based on the remaining quantity of the investment you hold.
This process helps you add and manage your investments, and it automatically records your financial transactions.