Period Closing Voucher why Closing Account Head should be liability?

Hello Guys! :smile:

I tried to test the Period Closing Voucher there a field Closing Account Head and you can only select Liabilities account. Why should it be Liability Account? I think the account should be an Equity under Retained Earnings ? Did I miss something?

Maybe @nabinhait has some wisdom to share on this? :smile:

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@ccfiel Yes, you are right, it should be either Liability / Equity. Actually earlier there was no root_type called “Equity”, we have recently added that. And we should allow both root_type because in many countries, Equity comes as a part of Liabilities. Can you send a PR?

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@ccfiel I think it should have option for both. A year ago, Equity was allowed only under Liabilities because of the 4 root account limit.

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@nabinhait @anand I will submit a PR today and include Equity. :smile:

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@ccfiel thanks! We totally missed this :worried:

@nabinhait @anand as I was about to change the code. Equity is already there :blush: my bad. I just need to type the first few letters of the equity account. I made a PR just changing the note “The account head under Liability, in which Profit/Loss will be booked” to “The account head under Liability or Equity, in which Profit/Loss will be booked”. PR link https://github.com/frappe/erpnext/pull/4603

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No issue, thanks for the PR.

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