Shareholder Module 💸💰🤑

Hello Community,


We at ERPNext are constantly working hard to bring the latest and the greatest features for you. So here we are here again, presenting Share Management!



A shareholder is any person, company or other institution that owns at least one share of a company’s stock. Because shareholders are a company’s owners, they reap the benefits of the company’s successes in the form of increased stock valuation. If the company does poorly, however, shareholders can lose money if the price of its stock declines.

A shareholder is uniquely identified by the Shareholder ID. Normally this ID is a naming series, starting with SH-. Also as soon as the Shareholder makes even a single transaction, a Folio number is allocated to the holder. This also is a unique to the Shareholder.

You can directly create your Shareholders via

Accounts > Shareholder

A Shareholder can avail the features (operations) in the Share Transfer process.

Note: Shareholders are separate from Contacts and Addresses. A Shareholder can
have multiple Contacts and Addresses.

Shareholder Transfer

There may be times when you want to change the share structure of your company; either by adding a new shareholder or by changing the existing proportion of shares between shareholders. A share transfer is the process of transferring existing shares from one person to another; either by sale or gift.

You can directly create your Shareholders via

Accounts > Share Transfer

Share Balance

This is a report view which gives the list of all the shares held by a given Shareholder and its value

Accounts > Share Balance

Share Ledger

This is a report view which gives the list of all the transactions made by a given Shareholder

Accounts > Share Ledger

It’ll be soon merged into the develop branch So, requesting the community to take a look at it, test it out, and report any bugs. Comments and criticism always welcome :blush:


Interesting and very good feature…Keep up the good work man.

Great feature !

Will the shareholder have an account in erpnext to access the shareholder transfer and view share ledger ?


Excellent work! Well done @codingCoffee Ameya


Hi, this looks a nice feature for larger companies…In my understanding, unless the company is listed on a stock exchange, the value of the company is linked to balance sheet (equity)…did you make this link?? or will be done in future??

This will be very useful for a module I am planning to work on which involves Generated Economic Value

Please watch this video:

EVA Based management

@revant_one and i had discussed this at some point last year. It did involve consolidated statements, but consolidated statements require shareholder module for proper calculation of non-controlling, minority interest, and controlling interest.

I do have a proposal to work based on the Taxonomy for IFRS for Small and Medium Business.

Why should only the big boys be able to do proper accounting? I believe everyone should have access to the possibility of doing proper accounting in their business venture early on. It allows for easier pivoting for any entrepeneur, because you can estimate the value of a company and sell it, or merge it, etc. and it should be as easy as buying something from the market. The faster this can be done in an economy, the faster can broke companies can come up and be rescued, or liquidated. This frees up money and resources faster to be used elsewhere they are needed.


Interesting video. I studied EVA in my management accounting course but never thought this way.
How is this shareholder module and EVA linked? I feel EVA is about measuring value created by all the involved and not only Shareholders

I feel IFRS compliance is more to do with standardization across the board and it creates additional rigidity, which may not be desired by many SMB.

I agree that IFRS compliance can add rigidity. Thus it is not a FORCED option or alternative. However, for the Value generation module hat I am planning on preparing, a basic mapping of accounts needs to occur, so that the module can properly estimate generated economic value. However, you are right and the Economic Value Generation module (to be made yet) could use an alternate form where the accounts needed are specified one by one without IFRS, to maintain desired flexibility.

The link to shareholders has to do with the fact that you can then, without further calculations, create a financial report to shareholders, with all these calculations, on a per-share-basis. Then you can aggregate all the data to create tailored shareholder reports with correct information, without having to process the data on an excel.

Having this module could enable the most powerful of all reports in any business: For those who desire to do so, an economic value added leaderboard, where employees can sense the direction of the company, and feel ownership of the business, where a reduction in generated economic value or Delta EVA from one period to the next, makes them keenly aware of the status of the business. A bonus scheme based on this has shown amazing results in performance for companies. This can greatly improve morale, or affect it accordingly so that action is taken. The way you do this is that for every monetary unit of economic value added generated or lost form one period to the next, you can drill down to find out which item was the major contributor to this. This then is the issue that is tackled by the organization, and eveyrbody is in the same page when it comes to business performance: All petty issues are set aside with the goal of shoring up the company. After further study, I have concluded that EVA or similar measures are the desired focus, because if you focus on sales targets, you will do great there, but might oversee cost control And then, even if you oversee cost control and sales properly, you might still oversee capital management such as loan repayments, dividends, all important components of a business. Thus, a business which is aligned with controlling its sales, costs, expenses, debt cost, equity cost will perform much better. It will also attract investment money. If you incentivize on this, the results are clear.

I personally heard from Mr. Stern the success case of Mr. Goizueta when they implemented this in Coca Cola Femsa circa 1997, where the stock market value skyrocketed. As you know, market value of the stock depends on the free cash flows to the firm once all the obligations above are complied with. Caveat emptor: Clearly, Something happened at KOF since 2013 that the stock dropped in price. Aside form this case I also heard and saw many cases with data, for smaller businesses, thow were the ones who benefitted the most from such management practice. One that comes to mind is the Tata group. I have seen other small to medium businesses here operate under those principles and they have excelled. The “revolutionary idea” behind EVA: Keep proper finances and accounting, and never forget ALL your employees, i.e. stay humble and treat everyone humanely.

I am including a link to a great book by Mr. Stern on how they have implemented EVA in several businesses, and how they have succeeded. It is a short but fun and enlightening read.

The EVA Challenge: Implementing Value-Added Change in an Organization
by Joel M. Stern et al.

As an addition, I use EVA as a tool to help “win” the soccer game as per Mr. Fred Kofman’s advice. I had the privilege of meeting with him a couple of times, and he changed my mind completely.

Part 1 of 3
Part 2 of 3
Part 3 of 3

I believe that ERPNext aims to resolve the problem of “losing teams” such as Rushabh has put forth in his blog posts. Thus, our job is to provide the tools to help companies (teams) win. If they win, ERPNext and the community wins. :trophy::1st_place_medal:


Thanks for sharing. I’ll read it.

@Tropicalrambler Alain, I really admire your energy and level of interest in diverse domain. Could you please become my personal coach :blush:

100% Agree.

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Hi @Tropicalrambler, follow this out of general interest, and watched the footage of Stern at the UoG.
Interesting thoughts…
A quick google search “eva economic value in erp” shows that there quite some academic literature…but NO Erpsystem is listed …Maybe ERPEXT would be one of the first ones…

Stern and other practioners and business schools must have ideas how to implement EVA in ERP. Maybe is is an idea to contact them and see if they are interested to implement the concepts in Erpnext…just some thoughts

Can share allocation/transfer be opened up for a Member (of Non Profit Module) also, and not just to a Share holder ?

Is Share holder a Party Type ? If not can it be made party Type to do accounting transactions through a JE.

Hmmm… While I agree with this statement (because I’m all about ease of use), we can’t afford to get left behind. Standardization is a very good thing for any business, whether SMB or Blue Chip, and I think what we need to concentrate on is how to make those standards ‘easy’ for SMBs to implement

Consider that just a few years ago, ERPs were considered too complex, rigid, and expensive for SMBs… but here we are! :grinning: ERPNext makes it ‘easy’ for SMBs to deploy and use an ERP. I think the same approach could be used for standards like IFRS where a lot of these things could come ‘pre-packaged’ and maybe also optional for those who still prefer not to use them


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Good point. But I think we are too small to influence changes in IFRS. At this Foundation, I guess we would be able to make changes to only ERPNext.

I’m optimistic on IFRS adoption becoming simple activity and it soon be like “accounting standard for everyone”


I apologize for my extremely late reply. I bumped into Mr. Stern earlier this yea rin person while he was giving one of his lectures at Universidad Francisco Marroquin’s Business School. I brought the topic up and he mentioned that nobody he knew had managed to do this yet for ERP’s. He specified that it would be great to have a working model, and he would be very interested in overseeing it’s functionality once complete. I am finishing up AgriNext basic stuff to link crop cycles, and once done I jump right into this custom app. Will test it, and once done testing I will propose it to be merged on the core. It will be a public stand alone app though, so those interested in testing can do so.


In a multi-company setup, it seems a shareholder can only hold shares of one company. Is that correct? How can this be done in e a multi-company setup (e.g. if Person A holds shares in company B & C)?
Also, how can it be implemented if company A is a shareholder in company B (and potentially company C, D … = e.g. a holding structure)? If I understand the module correctly, the current module does not allow such a structure?