Creating party type list and finance book

Hi everyone I have two question regarding erpnext party type.

I’ve created a creditor doctype for loan from third party, but I don’t have any idea how to make creditor doctype to be included as a party type doctype. Just like image above there is no button to make a new party type. the first question is how can we make a new party type?.

The second question is about the works of finance book. Is it right to see the finance book as a book that contain some sort of journal entry from one date to another date (like one year transaction)?

But I see the NEW button.

A lender is not classified as Creditor unless you are in the business of financing/money lending. From the accounting point, Lender falls part of Loans sections (Secured or Unsecured) and Creditor as part of Current Liabilities. The reporting position in financial statements is prescribed in the accounting standards. So, Instead of making Lender as a creditor, create COA child under loans and tag them while passing JE for money coming in & money going out.

If you worried about the report, maybe because of many lenders. you could create a lender group in COA and then keep adding a child into them. I guess this way you would be able to pull report at Parent COA level.

I guess finance book is new feature getting added into v11, in which different rate of depreciation and some expenses which are different between Books as per Companies Act and Income Tax Act. So, it’s more like a filter to generate two parallel financials from the same accounting entries.
@Pawan maybe you could clarify on Finance book, please


Hmm that’s new to me, there is no “new” button last night. I just open the computer this morning and just take the screenshot not knowing there’s a change. Well anyway that’s my mistake.

If I’m not mistaken by your answer, you suggest to make a new account loan on COA, and if I have many lenders it would be good to make a new group under the loan with the name of the parties?

About the finance book is to make a seperate income statement per companies?

You correctly understood.

I think what you say is correct in terms of scenario from depreciation being different in different books and that is the primary scenario for finance book. You can also set finance book at company level for defaulting.


Currently, Finance Book is added to Journal entries only. Is there a workaround for Purchase Invoices to be included as well? The reason is that there are purchases that are not eligible to be declared as expenses as per tax regulations.

is new party type creation only done by admin ?? because i have not see any option to create new party type? i am not an admin user.