Learning Account Groups in Tally Prime

Account Groups in Tally Prime

Account Groups in Tally Prime are collection of ledgers of the similar nature. Account groups are helpful in maintaining and determining the hierarchy of Ledger Accounts. Groups are particularly helpful in creating compliant reports.

At the highest level, accounts are classified into Capital or Revenue – and more specifically into Assets, Liabilities, Income and Expenditure.

TallyPrime provides you with 28 pre-defined Groups. Of these 15 are Primary Groups and 13 are Sub-Groups. You can also create your own groups, either as Sub-groups or Primary groups.

Account Groups in tally prime can be sub-classified to an unlimited level to give a virtual accounting tree. The lowest level would be the Ledger Account.

Tally prime passes Voucher entries using ledgers. You can create the required chart of accounts. The Ledger accounts are grouped under the required Groups at the time of creating the chart of accounts but same can be altered at any time.

Pre-Defined Groups

There are twenty eight(28) pre-defined groups in Tally Prime. These groups are a part of the chart of accounts for most organizations. For example, Purchase Accounts is a pre-defined group. All Purchase ledgers can be classified under this group.

List of Primary and Sub-groups-

Primary Groups Sub-Groups
Branch / Divisions Bank Accounts
Capital Account Bank OD A/c
Current Assets Cash-in-hand
Current Liabilities Deposits (Asset)
Direct Expenses Duties & Taxes
Direct Incomes Loans & Advances (Asset)
Fixed Assets Provisions
Indirect Expenses Reserves & Surplus
Indirect Incomes Secured Loans
Investments Stock-in-hand
Loans (Liability) Sundry Creditors
Misc. Expenses (ASSET) Sundry Debtors
Purchase Accounts Unsecured Loans
Sales Accounts
Suspense A/c

Out of total fifteen primary groups, nine primary groups appear in the balance sheets that are capital in nature and six primary groups appear under Profit & Loss account which are revenue in nature.

The sub-groups that form a part of the balance sheet are:

Pre-defined Subgroups Under Group
Bank Accounts Current Assets
Bank OD A/c Loans (Liability)
Cash-in-hand Current Assets
Deposits Current Assets
Duties & Taxes Current Liabilities
Loans & Advances Current Assets
Provisions Current Liabilities
Reserves & Surplus Capital Account
Secured Loans Loans (Liability)
Stock-in-hand Current Assets
Sundry Creditors Current Liabilities
Sundry Debtors Current Assets
Unsecured Loans Loans (Liability)

PS: Primary groups cannot be deleted.

Default Groups

There are a number of default Groups that can be used for various accounts.

The details information of Groups accounts are given below:

Capital Account

Capital Account is used to record the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share Capital, Partners’ Capital A/c, Proprietor’s Capital Account and so on.

Reserves and Surplus [Retained Earnings]

Also called retained earnings, it contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so on.

Current Assets

Current Assets record the assets that do not belong either to Bank Accounts or to Cash-in-Hand sub-groups.

  • Bank Accounts: Current account, savings account, short term deposit accounts and so on.
  • Cash-in hand: TallyPrime automatically creates Cash A/c in this group. You can open more than one cash account, if necessary.
  • Deposits (Asset): Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company.
  • Loans & Advances (Asset): All the loans given by the company and advances of a non-trading nature like – advance against salary or for purchase of Fixed Assets.
  • Stock-in-hand: This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods.

The balance control depends on whether you have selected Integrated Account-cum-Inventory option while creating the company

    • Integrated Accounts with Inventory: When This option set to Yes, it brings the stock/inventory balance figures from the inventory records and provides a drill down to the Stock registers from the Balance Sheet.

While passing transactions, data is directly passed to  Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock. You can’t change the closing balance of an account under this group, directly.

    • Non-integrated Accounts with Inventory: If Integrated Account with Inventory option is set to No, it ignores the inventory books figures and picks up manually entered closing stock balances from the ledger account created.

This feature provides the facility to maintain accounts  and inventory separately.

  • Sundry Debtors: All the customer accounts to whom sales have been made on credit basis or amount is due to receive.

Current Liabilities

Current Liabilities includes the Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry Creditors

  • Duties and Taxes: Duties and Taxes contain all tax accounts like GST, VAT, CENVAT, Excise.
  • Provisions: Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions.
  • Sundry Creditors: Trade creditors are grouped under sub-group.

Investments

All investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts are grouped here. It enables you to view the total investments made by the company.

Loans (Liability)

Loans that a company owes, typically long-terms loans.

  • Bank OD Accounts [Bank OCC Accounts]: TallyPrime provides you with distinct types of Bank Accounts such as Overdraft Account.
  • Bank OCC A/c: Over Cash Credit Account,  used to record the company’s overdraft accounts with banks. For example, Bill Discounted A/c’s and Hypothecation A/c’s etc.
  • Secured Loans: Term loans or other long/medium term loans, which are obtained against security of some asset.
  • Unsecured Loans: Loans obtained without any security. Example: Loans from Directors/partners or outside parties.

Suspense Account

Now a days, many companies use a Suspense Ledger to track the money paid or recovered, the nature of which is not known yet.

The most common example is money paid for Traveling Advance whose details will be known only upon submission of the Travelling Allowance bill.

Some companies may prefer to open such accounts under Suspense Account.

  • Loans and Advances (Asset) group: The Suspense Account is a Balance Sheet item. Any expense account even if it has ‘suspense’ in its name, it should be opened under Revenue group like Indirect Expenses and not under Suspense Account group.

Miscellaneous Expenses (Asset)

This group is typically used for legal disclosure requirements such as Schedule VI of the Indian Companies Act. It should hold incorporation and pre-operative expenses.

Companies would write off a permissible portion of the account every year. A balance remains to an extent that cannot be written off in Profit & Loss Account.

TallyPrime does not show loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss Account balance is displayed separately in the Balance Sheet.

Branch/Divisions

This includes the ledger accounts of all the company’s branches, divisions, affiliates, sister concerns, subsidiaries and so on.

Sales Account

Sales accounts can be classified based on Tax slabs or type of sales. This also becomes a simple mechanism for preparation of Tax returns.

For example,

  • Domestic Sales
  • Export Sales

Now under Domestic Sales open the following ledgers:

  • Sales (28%)
  • Sales (18%)
  • Sales (12%)
  • Sales (5%)
  • Sales (exempt)

Sales Returns Account can be created under the group Domestic Sales to view your net sales after returns.

Purchase Account

Purchase Accounts are grouped under Purchase Group. Purchases can be Local Purchase or Inter State Purchase. The GST slab for Purchase Account can be 5%, 12%, 18% or 28%.

Direct Income [Income Direct]

These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under Sales Accounts. accounts like  sales of equipment can be grouped under this group.

Indirect Income [Income Indirect]

These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.

Direct Expenses [Expenses Direct]

These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

Indirect Expenses [Expenses Indirect]

The expenses incurred to operate a business such as expenses met to sale a product, service  or customer such discount paid.

Profit & Loss Account

Profit & Loss Account is a reserved primary account in TallyPrime. You can use this account to pass adjustment entries through journal vouchers. For example, transfer of profit or loss account to Capital or Reserve account.

Create, Alter, Delete Account Groups in Tally Prime

Single group or multiple groups in TallyPrime can be created, altered, deleted and configured as per requirement.

Create account groups one-by-one

  1. From Gateway of Tally > Create > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > Create Master > type or select Group and press Enter.
  2. Enter the Name of the group.
  3. Enter the Alias name, if required.
  4. In the field Under, from the List of Groups displayed, select the parent group under which the group has to be classified. For example, Indirect Expenses.

The Group Creation screen appears as shown below:

  1. Accept the screen. As always, you can press Ctrl+A to save.

View account groups one-by-one

  1. Gateway of Tally > Chart of Accounts > Group > and press Enter. Alternatively, press Alt+G (Go To) > type or select Chart of Accounts > Group > and press Enter.
  2. Select the name of the group required from the List of Groups The Group Alteration (Secondary) screen appears as shown below:

Alter a Group

The details entered in a group can be modified when required.

  1. Gateway of Tally > Alter > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > Alter Master > type or select Group and press
  2. Select the name of the group required from the List of Groups
  3. Make the necessary changes in the Group Alteration
  4. Accept the screen. As always, you can press Ctrl+A to save.

Create Multiple Account Groups in one-go

You can create, edit or delete multiple groups in TallyPrime.

  1. Gateway of Tally > Chart of Accounts > Group > and press Enter. Alternatively, press Alt+G (Go To) > type or select Chart of Accounts > Group > and press Enter.
  2. Press Alt+H (Multi-Masters) > select Multi Create.
  3. Select the group category in the field Under Group.
  4. Enter the Name of Group. The screen appears as shown below:
  5. Select All Items in the field Under Group to create multiple groups of different categories.

Note: You can add any number of sub-groups to an already created or selected group. The sub-groups inherits the characteristics of the parent groups.

A new group created under primary will not be reflected in reports until you pass masters/transactions for that group.

Alter Multiple Groups

  1. Gateway of Tally > Chart of Accounts > Group > and press Enter. Alternatively, press Alt+G (Go To) > type or select Chart of Accounts > Group > and press Enter.
  2. Press Alt+H (Multi-Masters) > select Multi Alter
  3. Change the details as required and press Ctrl+A to save changes.

Delete an Account Group

Groups can be deleted from the alteration screen.

  1. At the Gateway of Tally > Alter > type or select Group and press Enter. Or, press Alt+G (Go To) > Alter Master > type or select Group and press Enter.
  2. Select the group from the List of Groups.
  3. Press Alt+D.
  4. Click Yes to confirm deletion of the group.

Note: A group cannot be deleted if:

  • The group has sub-groups.
  • The group has ledgers classified under it.
  • The group is a predefined master.

Manage Groups in Multiple Companies

You can manage groups in multiple companies by copying masters.

Copying masters in groups from multiple companies helps to:

  • Maintain the same group structure and ledgers for businesses with subsidiaries or branches.
  • Maintain uniformity of reports in all companies.
  • Consolidate accounts across branches.
  • Avoid re-creating masters in other companies.

Copy a Single Group to another company

When copying a group from one company to another, the source company and the destination company have to be selected.

  1. From Gateway of Tally > Press Alt+K (Company)> Select > Source Company.
  2. Gateway of Tally > Alter > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > Alter Master > type or select Group and press
  3. Select a group from the List of Groups.
  4. Press F3 (Company) to switch over to the destination company.
  5. Accept the screen. As always, you can press Ctrl+A to save.

Note: If the parent of the group does not exist, you will not be able to accept the screen without selecting a parent in the destination company.

Copy Multiple Groups

  1. Gateway of Tally > Press Alt+K (Company)> Select > Source Company.
  2. Gateway of Tally > Alter > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > type or select Chart of Accounts > Group > and press Enter.
  3. Press Alt+H (Multi-Masters) > select Multi Alter and Press Enter.
  4. Select a group or All Items from the list.
  5. Press F3 (Company) to switch over to the destination company.
  6. Accept the screen. As always, you can press Ctrl+A to save.

The process of copying  masters is possible only if the books of accounts are maintained on the same computer.

Other masters like ledgers, cost categories and cost centres etc. can be copies  in the same way.

Another approach to copy information /data from one company to another is through exporting or importing data.

Configure Advanced Options for Groups

You can configure additional group information such as:

  • Sub-ledger creation of groups
  • Net debit/credit balances for reporting
  • Used for Calculations
  • Method to allocate purchase invoice

Advanced configurations

  1. Gateway of Tally > Create > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > Create Master > type or select Group and press Enter.
  2. Press F12:Configure.
  3. Set Show more configurations to Yes, to see all configurations of group.The group creation screen with advanced options is displayed as shown below:

In the Group Creation screen

  1. Enter a name for the group.
  2. Enter a group category. If a group is created under Primary you must select from asset, expenses, income or liability.
  3. Select the Nature of Group.
  4. Select Yes for the option Group behaves like sub-ledger to allow groups to act as a sub ledger.
    • When the option Group behaves like sub-ledgeris set to Yes, the ledgers grouped under the same is not displayed in detailed mode, as shown below:
    • When the option Group behaves like sub-ledger is set to No, all the ledgers that are grouped is displayed in detailed mode:
  5. Set Net Debit/Credit Balances for Reporting to Yes to display net debit or credit balance in the report (whichever is higher).
  6. Set Used for Calculation (e.g. taxes, discounts)to Yes if ledgers under this group have percentages for discounts or taxes to be used in invoice entry.
  7. Select Method to Allocate when used in Purchase Invoice from the List of Allocation Methods to allocate the expense of the item in the ratio of the quantity or value.
  8. Set Set/Alter GST Details to Yes to provide GST details at group level.
  9. Set Position Index in Report to decide where this group will be displayed in report.
  10. Accept the screen. As always, you can press Ctrl+A to save.

Group Behaves as a Sub-Ledger

When the option Group behaves like Sub-Ledger is set to Yes for a certain group, the group behaves like a controlling account for the ledgers under it. This also means that only the net balance and not individual ledger balances will be displayed in the reports.

Note: This is useful for groups such as Sundry Debtors and Sundry Creditors (which are pre-set to Yes), which can have a large number of ledgers under them, and can be exploded during display to show ledger balances.

Set the group to act as a sub-ledger

  1. Gateway of Tally > Alter > type or select Group and press Enter. Alternatively, press Alt+G (Go To) > Alter Master > type or select Group and press
  2. Set the option Group behaves like a Sub-Ledger to Yes, as shown below:
  3. Accept the screen. As always, you can press Ctrl+A to save.

View the group in the Reports

  1. Gateway of Tally > Display More Reports > Trial Balance.
    Alternatively, press Alt+G (Go To) > type or select Trial Balance > and press Enter.
  2. Press F12 (Configure) > set Expand all levels in detailed format to Yes in the Configuration screen, as shown below:
  3. Accept the screen. As always, you can press Ctrl+A to save.
    After configuration, the Trial Balance appears as shown below:

Similarly, setting Group behave like sub-ledger to No will show all ledger under that group in the report.  

Displaying Group Summary

The group summary statement shows the closing balances of the accounts of a selected group for a specified period up to the current date. The default view is that of sub-groups within a group.

  1. Gateway of Tally > Display More Reports > Accounts Books > Group Summary and press Enter. Alternatively, press Alt+G (Go To) > type or select Group Summary and press Enter.
  2. Select group Indirect Expenses, and press Enter.
    The Group Summary screen is displayed as shown:

Displaying Group Vouchers

Group Vouchers is a list of all vouchers having at least one ledger account entry belonging to the selected group. This statement is useful when you want to list all transactions for a particular group.

  1. Gateway of Tally > Display More Reports > Accounts Books > Group Vouchers and press Enter.
    Alternatively, press Alt+G (Go To) > type or select Group Vouchers and press Enter.
  2. Select Group Name e.g. Current Assets and Press Enter.
  3. Press F2 (Period) to change the period, if required.

Including post-dated transactions

To include Post Dated transactions in reports, Press Alt+F8 (Include Post-dated). The voucher number of these transactions will have the prefix (Post-Dated).

TallyPrime installation setup files can be downloaded  from the Tally Solutions website.

Account Groups in Tally Prime is a fundamental module to be understood. Single and multiple account groups can be created, altered and deleted has been discussed in details over here. Please, like and share .

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TallyPrime Download and Installation                      Charts of Accounts in Tally Prime

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