What is a Group?
- In Tally Prime, a "group" is a category of accounts. Similar types of accounts are kept in a group. The main purpose of this is to categorize financial information properly.
Example:
Both 'Cash' and 'Bank' accounts come under the group 'Current Assets'.
Importance of Groups in Tally Prime
- With the help of groups, business financial transactions can be presented systematically. Using these categories, we can get information instantly.
Why use groups?
- Easy categories
- Fast reporting
- Suitable data for tax filing
- Analysis of expenses/income
Predefined groups in Tally Prime
- Tally Prime has 28 predefined groups. Some of the important groups are as follows:
Group Name Type
- Capital Account Capital
- Loans (Liability) Liability
- Sundry Debtors Asset
- Purchase Accounts Expense
- Sales Accounts Income
What is Primary Group?
- These are groups that directly represent the main category. Example: Capital Account, Current Liabilities.
What is a secondary group?
- These are subgroups that fall under the main group. Example: Duties & Taxes (under Current Liabilities).
Group Creation Process
Steps:
- Gateway of Tally > Accounts Info > Groups > Create
- Enter a name
- Under: Select the main group
- Fill in the applicable settings
- Accept
Things to be taken care of while creating a group
- Give a suitable name
- Select the appropriate ‘Under’ group
- Avoid duplicate groups
- Understand the Business Structure
Difference between main group and sub-group
| Subject | Main Group | Sub-group |
|---|---|---|
| Location | At the top level | Within the main group |
| Use | For broad category | For specific category |
| Example | Current Assets | Bank Accounts |
Example while creating a new group
- Suppose we want to create a group named “Digital Marketing Expenses”:
- Name: Digital Marketing Expenses
- Under: Indirect Expenses
- Nature: Expense
- Accept
Classification of Groups
In Tally, groups are mainly classified into 2 categories:
- Capital Nature
- Revenue Nature
Revenue and Capital Nature Groups
- Capital Group Revenue Group
- Fixed Assets Indirect Expenses
- Capital A/c Direct Incomes
- Loans Indirect Incomes
Real Estate and Liabilities Groups
- Fixed Assets:
- Office Building
- Machinery
- Liabilities:
- Loans
Creditors
Expenses and Income Groups
- Direct Expenses: Raw Material, Labour
- Indirect Expenses: Rent, Advertising
- Direct Income: Sales
- Indirect Income: Commission Received
What are Stock Groups?
- Stock groups are used to group similar items together. This makes stock management easier.
Benefits of creating stock groups
- Categorizing items
- Easier reporting
- Clear stock values
Use of groups in reporting
- Group wise trial balance
- Group wise profit and loss
- Group wise expense analysis
Group wise report in Tally
- Gateway of Tally > Display > Account Books > Group Summary
Analysis with the help of groups
- Which area has more expenses?
- Which income is stable?
- Which loan is more?
Importance of Groups for GST
- GST Classifiable Accounts
- Tax Liability Track
- Input/Output Reports
How to change groups
- Gateway of Tally > Accounts Info > Groups > Alter
- Make necessary changes and ‘Accept’
Process to delete a group
- Can be deleted only if it is not used in the account
- Gateway of Tally > Accounts Info > Groups > Delete
Group wise comparison
- Comparison of the same business over different periods
- Control over increase/decrease in expenses
Group management by industry
- Industry major groups
- Production Direct Expenses, Finished Goods
- Services Indirect Expenses, Income
- Retail Purchases, Sales, Stock
Conclusion
Groups in Tally Prime are a very essential feature. Using them, you can keep your accounting system disciplined, fast and consistent. Proper grouping makes the analysis of financial reports more effective.
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