Party Type
The kinds of party a payment can be against: Customer, Supplier, Employee, Shareholder. Each maps to an account type.
In detail
Party Type is the list of kinds of party a transaction can be against and the account type each one uses: Customer with Receivable, Supplier with Payable, Employee with Payable, Shareholder with Equity. The list is shipped with BRAccount and rarely changes; it exists so that Payment Entries and Journal Entries can carry a Party Type and a Party and the system knows which account the party belongs to. It posts nothing. In practice you choose Customer or Supplier dozens of times a day, Employee for salary advances and expense claims, and Shareholder when paying a dividend, which also carries 5% TDS.
How to record it in BRAccount
- 01On a Payment Entry or Journal Entry row choose Party Type, then pick the Party.
- 02For a dividend choose Shareholder and the shareholder record, with a TDS Payable row at 5%.
- 03Open Invoicing > Party Type to read which account type each type maps to.
- 04Add a new Party Type only if a custom doctype needs a ledger balance per record.
When to use it
Rarely edited; pick a Party Type on Payment and Journal Entries.
Example from the demo books
Party Type Shareholder is used when paying dividends.