Setting Up Your Company
Setting up your company in Udyot ERP is your first step toward organised, IRD-compliant books. Entering your PAN/VAT details, fiscal year, and opening balances correctly ensures your Trial Balance ties before your first transaction — saving hours of reconciliation later. This guide walks you through the full setup process for any Nepali business entity.
Before you begin
Have the following ready:
- Your PAN number (and VAT registration number if you are registered)
- Business address
- Your fiscal year start date — in Nepal this is typically 1 Shrawan of the current Bikram Sambat year
- Opening balances for cash, bank accounts, fixed assets, loans, and receivables/payables as of that date
- Opening stock quantities and per-unit cost (NPR) for each inventory item you hold
Step 1 — Create the company in Udyot ERP
- Click the company switcher at the top of any page, then choose New Company.
- Fill in your company name, PAN number, VAT registration number (leave blank if not VAT-registered), and business address.
- Set the fiscal year start date to 1 Shrawan of the current BS year. Udyot uses the BS calendar natively, so you can enter dates in Bikram Sambat format throughout.
- Upload your company logo (optional — appears on printed invoices and statements).
- Click Save.
The moment you save, Udyot automatically seeds everything you need to start bookkeeping:
- 29 NFRS-aligned account groups — the full hierarchy from Assets through Equity, Liabilities, Income, and Expenses
- 19 default ledgers — Cash, Profit & Loss A/c, VAT Output (13%), VAT Input (13%), TDS Payable, TDS Receivable, Sales Account, Purchase Account, Capital A/c, and 11 common expense ledgers
- 19 voucher types — Sales, Purchase, Payment, Receipt, Journal, Contra, Credit Note, Debit Note, Delivery Note, Receipt Note, Stock Journal, and more
- Nepal VAT at the standard 13% rate and TDS covering 9 sections under the Income Tax Act 2058
- NPR as the default currency, a default warehouse named Main Location, and standard units of measure
You do not need to create any of the above manually. Your Chart of Accounts is ready to use from the first save.
Step 2 — Add any extra ledgers your business needs
The 19 seeded ledgers cover the basics. For accounts specific to your business, go to Masters → Ledgers → New and create:
- Bank accounts — one ledger per bank account, under the Bank Accounts group
- Fixed assets — Vehicle, Furniture & Fixtures, Office Equipment, under Fixed Assets
- Loan accounts — under Secured Loans or Unsecured Loans
- Party ledgers — individual customer or supplier accounts under Sundry Debtors or Sundry Creditors
- Any other income or expense lines your business tracks separately
For each ledger, set its opening balance — the amount in that account on your fiscal year start date. The ledger form shows a live Debit vs Credit running total so you can confirm balance before saving.
Step 3 — Add your opening stock (if you hold inventory)
If your business maintains inventory, go to Masters → Stock Items → New for each product. For each item set:
- Item name, unit of measure, stock group, and HS code (required on IRD e-invoices for VAT-registered businesses)
- Opening quantity — units on hand as of your fiscal year start date
- Opening rate — your cost per unit in NPR (for example, NPR 1,500 per bag)
- Selling rate and purchase rate for default pricing
When you save a stock item with an opening quantity greater than zero, Udyot automatically posts the opening accounting entry (Debit Stock-in-Hand, Credit Capital A/c). You do not need to create this entry manually — it is part of Udyot’s perpetual inventory approach.
Step 4 — Set the Capital A/c opening balance
Edit the Capital A/c ledger and set its opening balance to your non-inventory equity: cash + bank balances + fixed assets + receivables, minus loans and payables. Do not include opening stock — Udyot already credited Capital A/c for that in Step 3. Adding it again will double-count equity and unbalance your Trial Balance.
Migrating from Tally? Tally’s convention includes stock in Capital — leave that portion out here.
Step 5 — Verify the Trial Balance
Go to Reports → Trial Balance and set the date to your fiscal year start date in BS. Total Debits and total Credits must match — the Diff column should show zero. If there is a gap, review ledger openings in Step 2 and the Capital A/c balance in Step 4 before recording any transactions.
Optional accounting settings
Once the Trial Balance is balanced, configure these under Company → Settings:
- Perpetual Inventory — keeps the Stock-in-Hand ledger on your Balance Sheet updated in real time on every purchase, sale, and adjustment. Recommended for any business that holds inventory. See Perpetual Inventory and COGS.
- Cost Centres — tag income and expenses to departments or projects and run a profitability report per cost centre.
- Module Management — enable or disable individual modules (Inventory, Manufacturing, HR & Payroll, CRM) to keep the interface focused on what your business actually uses. See Module Management.
Entity-type notes
- Sole Proprietorship / Partnership: The seeded Capital A/c is correct. No extra setup needed.
- Private Limited Company: If you need a strict NFRS equity split (Share Capital / Share Premium / Retained Earnings), create those ledgers under Capital Account group and post a one-time reclassification Journal entry after Step 5. At year-end, select Retained Earnings as the closing account in Tax & Compliance → Period Closing.
- NGO / Section 8: Rename Capital A/c to “Capital Fund” to match standard NGO chart-of-accounts convention.
VAT and TDS: no manual setup required
Nepal’s 13% VAT rate and all nine TDS sections under the Income Tax Act 2058 are seeded automatically — no manual rate configuration needed. The correct tax is applied when you raise a sales invoice or payment voucher based on the ledger and party setup. See Nepal VAT Overview and TDS — Tax Deducted at Source.