Share Type
Overview
Share Type – Business Overview
Share Type is used in Dafater to define and manage the different categories of shares that your organization issues, holds, or accounts for. It provides a clear business classification for shares so that ownership, capital structure, and financial reporting are handled consistently and transparently.
What Share Type Is Used For
In daily business operations, Share Type helps you: - Classify shares into meaningful categories (such as ordinary shares, preference shares, or other ownership classes defined by your business). - Ensure consistency when recording share-related transactions in accounting and ownership records. - Support accurate reporting of equity, shareholder rights, and financial position.
By clearly defining share categories, decision-makers can better understand ownership structure and capital composition.
Prerequisites and Setup Requirements
Before using Share Type, you should: - Have a clear understanding of the different share categories your business uses or plans to issue. - Align share categories with legal, regulatory, or internal governance requirements. - Ensure accounting and finance teams agree on how each share category will be treated in financial records.
This setup is usually done once and reviewed only when ownership structures change.
Typical Workflow and Business Fit
Define Share Types
At the start, finance or management defines each Share Type to reflect how ownership is structured.Use in Share-Related Records
When shares are issued, transferred, or reported, the relevant Share Type is selected to ensure correct classification.Reporting and Analysis
Share Type enables clear reporting on equity structure, helping management, auditors, and stakeholders understand the business’s ownership makeup.
This workflow ensures consistency from initial setup through ongoing financial and ownership reporting.
Key Business Scenarios Where Share Type Is Essential
- Company Formation or Restructuring
When defining initial ownership or changing capital structure. - Issuing New Shares
To clearly identify the category of shares being issued. - Financial Reporting and Audits
To present accurate equity breakdowns and ownership details. - Investor and Stakeholder Communication
To clearly explain different rights, values, or privileges attached to shares.
Important Considerations for Users
- Clarity and Simplicity: Use clear, business-friendly names for each Share Type to avoid confusion.
- Consistency: Once in use, avoid unnecessary changes, as they can affect historical records and reporting.
- Governance Alignment: Ensure Share Types reflect legal and shareholder agreements.
- Periodic Review: Revisit Share Types if your business structure or ownership model evolves.
In summary, Share Type is a foundational business document in Dafater that supports clear ownership classification, accurate financial reporting, and informed decision-making around equity and capital structure.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| title | Title | Data | ✓ | - | Name identifying the share category used in Dafater |
| description | Description | Long Text | - | Detailed explanation of share type purpose, rights, and business rules |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ||
| Sales User | ✓ | ✓ | ✓ | ✓ | ||
| Sales Master Manager | ✓ | ✓ | ✓ | ✓ | ||
| Accounts User | ✓ | ✓ | ✓ | ✓ | ||
| Sales Manager | ✓ | ✓ | ✓ | ✓ | ||
| Accounts Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Share Transfer | Linked from | Accounts |