After learning how to create a company in Tally, the next important step to take is the Tally groups. This tutorial will teach you everything you need to know about groups in Tally ERP 9.
Table of Contents
What are Groups in Tally ERP 9
The end goal of Accounting and bookkeeping is a set of financial statements. But the starting point is the Chart Of Accounts.
The chart of accounts is the road map of a business’ financial transactions. After all, you can’t record a transaction if you don’t know where to put it.
Essentially, this Chart Of Accounts list all the accounts of a business, organized in a specific order, with each account having a description that includes the account type as well as the type of transactions that it should contain.
Groups in Tally works in the same fashion. They are used to group accounts or ledgers of the same nature. In this way, you can maintain orderly ledger accounts which become very helpful at the time of producing financial reports.
You, therefore, need to pay more attention to your company’s groups – set it up wrongly and you’ll have problems later.
Pre-Defined Groups in Tally.ERP 9
Beginners will be relieved to know that you don’t have to create groups from scratch in Tally.ERP 9. You are already presented with a ready-made group of ledger accounts for your company. You can either add more groups or modify the pre-defined groups to suit your business.
Tally packed you with 28 pre-defined groups, out of which 15 are primary groups and 13 are sub-groups. The table below is a list of the primary groups as well as the subgroups.
|The 15 primary Groups||The 13 Sub Groups|
|Branch / Divisions||Bank Accounts|
|Capital Account||Bank OD Account|
|Current Liabilities||Deposits (Asset)|
|Direct Expenses||Duties & Taxes|
|Direct Incomes||Loans & Advances (Asset)|
|Indirect Expenses||Reserves & Surplus|
|Indirect Incomes||Secured Loans|
|Loans (Liability)||Sundry Creditors|
|Misc. Expenses (ASSET)||Sundry Debtors|
The table below also shows how the subgroups are classified under the 15 primary groups:
|Pre-defined Sub Groups||Primary Groups|
|Bank Accounts||Under||Current Asset|
|Bank OD A/c||Under||Loans (Liability)|
|Deposits (Asset)||Under||Current Asset|
|Duties & Taxes||Under||Current Liabilities|
|Reserves and Surplus||Under||Capital Account|
|Secured Loans||Under||Loans (Liability)|
|Sundry Creditors||Under||Current Liabilities|
|Sundry Debtors||Under||Current Assets|
|Unsecured Loans||Under||Loans (Liability)|
|Loans and Advances (Asset)||Under||Current Assets|
You can display the pre-defined groups to see how the groups and subgroups are arranged. Go to Gateway of Tally → Accounts Info. → Groups → Display (under multiple Groups).
How to Create Groups in Tally
Tally doesn’t know the nature of your business, and for that single reason, the pre-defined groups may not be sufficient for you. That’s why you may need to create more additional groups to categorize your ledgers.
When you navigate to the Tally Groups menu, you’ll see the menu categorized into Single Group and Multiple Groups.
What’s the difference between Single Groups and Multiple Groups?
Under the Single Group, you can Create, Display, and Alter individual groups one after the other.
But with the Multiple Groups, you have the chance to Create, Display and Alter many groups at the same time.
Creating a single Group
To create a single group, follow the steps below:
- Go to Gateway of Tally and select Accounts Info.
- The Accounts Info menu appears. Select Groups.
- The Groups menu appears. Select Create under the Single Group option.
- The Group Creation screen appears. Enter the Name of the Group. For example Buildings.
- Further, specify the category under which this group should fall. For example Fixed Assets.
- Now press Ctrl+A to save this group. Alternatively, click on Accept at the lower part of the group creation screen. Or press Enter several times to accept changes.
You can create as many groups as you want using the above procedures.
Creating a Multiple Group in Tally ERP 9
Under the Single Group creation, you can only create one group at a time. But under the multiple Group creation, you can create as many groups as you please, all on one screen.
To create multiple groups, follow the steps below:
- Go to Gateway of Tally → Accounts Info. → Groups → Create (under multiple Groups).
- The multiple group creation screen appears. You can choose to create the groups all under the same primary groups or under different groups. To create under different groups, select All Items in the Under Group But if you specify any other than All Items in the Under Group field, the column Under column will be filled automatically and the cursor will always skip this column.
- Now type the group names and further specify the groups you want to put them under.
- Press Ctrl+A to save the groups you just created.
Creating a Primary Group in Tally ERP 9
You can also create a new primary group but only if the Allow Advance Entries In Masters option is set to yes in the F12: Configure settings.
To set this option to Yes, whilst in the Gateway of Tally, press F12 or click the F12: Configure button in the right Button Bar.
The configuration menu appears, select Accts/Inventory Info. Under the Inventory section, Set Allow Advance Entries In Masters to Yes and press Ctrl+A to save.
With this settings, you can now select the Primary option to create a new primary group.
Displaying groups in Tally ERP 9
After creating groups for your company, you may want to display them for a review.
Tally allows you two options to display your company groups: using single group mode and multiple group mode.
When you display under single group mode, you’ll be able to view only one group at a time. But when you display groups under the multiple group mode, you’ll be able to view all the groups, all on one screen.
- To display a group under single mode, go to Gateway of Tally → Accounts Info. → Groups → Display (under single Group). Below is a display of a group (called Bank Accounts) using the single display.
- To display groups under the multiple group mode, go to Gateway of Tally → Accounts Info. → Groups → Display (Under the multiple groups). Below is a display of multiple groups using the multiple group display.
NOTE: You cannot make any changes to your groups whilst in the display mode. To make any changes you’ll have to use the Group Alter which is discussed in the next section.
Altering Groups in Tally ERP 9
After creating all the groups for your company, you realized that the names you assigned to certain groups are misspelled whilst others are put under the wrong categories. Tally ERP 9 provides you the option to make changes to your groups. You can change your group name as well as the group under which they fall.
You can also decide to Alter groups under multiple group mode or under single group mode.
To Alter a group or groups, follow the steps below:
- Go to Gateway of Tally → Accounts Info. → Groups → Alter. The Alter under multiple groups will allow you to make changes to several groups on the same screen. But selecting Alter option under the single group will only let you make changes to one group at a time.
- Select the group you wish to Alter from the list of groups. When altering multiple groups, make all the necessary alterations and press Ctrl+A to accept the changes.
Deleting Groups in Tally ERP 9
If you think a group is not well fit for your company, you can delete it for good. To delete a group in tally just follow below steps:
- Go to Gateway of Tally → Accounts Info. → Groups → Alter (Under the single group)
- Select the group you wish to delete.
- Press Alt+D to delete group
- Press enter to confirm.
- Press Escape to go back to the Gateway of Tally.