A Share Transfer is the Issue, Transfer, or Purchase of Company shares from one party to another.

At times, you might need to alter your company’s share configuration by introducing new shareholders or adjusting the distribution of shares among existing shareholders. A share transfer refers to the process of moving existing shares from one individual to another, either through sale or gift.

When establishing a new shareholder, shares must first be issued to them. Subsequently, a folio number becomes visible, enabling further transfers using that shareholder.

To access the Share Transfer list, go to:

Home > Accounting > Share Management > Share Transfer

1. How to create a Share Transfer

1. Go to the Share Transfer list and click on New.
2. Select the Transfer Type, for first ever Shareholder transaction this will be ‘Issue’.
3. Set a date for the transfer.
4. Select the From and To Shareholders.
5. Select the from and to Folio Numbers.
6. Set the Liability and Asset accounts.
7. Select the share type whether Preference or Equity (more share types can be added if needed).
8. Select the number of shares to be transferred.
9. Select the From and To number of shares. For example 1 to 3,000.
10. Set the rate of one share, the amount will be calculated based on the number of shares.
11. Save and Submit.

After submitting, a Journal Entry can be created to update the ledger using the Create Journal Entry button.

Note: Before you can Purchase or Transfer shares between shareholders, shares need to be issued.

1.1 Terminology

Transfer Types:

• Issue: Shares are being issued to an existing shareholder by the company.
• Purchase: The company is repurchasing shares from an existing shareholder.
• Transfer: Shares are being transferred from one shareholder to another.

Folio Number: This unique identifier is used to distinguish a shareholder and their transactions.

Share Type: In BizCentric, the default options are Preference and Equity. These categories denote the type of share; additional types can be added based on your company’s structure.

2. Related Topics

1. Shareholder
2. Share Reports