Why Groups & Ledgers Matter
Groups decide where a ledger appears in your Balance Sheet or Profit & Loss, while Ledgers hold the actual transaction balances. Clean grouping = clean reports, GST returns, and faster audit.
- Groups are categories (e.g., Current Assets, Sundry Debtors).
- Ledgers are specific accounts (e.g., Customer A, Sales @18%).
- Use Tally’s default 28 primary groups; add sub-groups for clarity.
Key Default Groups You’ll Use Most
| Primary Group | Common Sub-Groups | Example Ledgers |
|---|---|---|
| Current Assets | Bank Accounts, Cash-in-Hand, Loans & Advances | HDFC Bank, Cash, Staff Advance |
| Current Liabilities | Sundry Creditors, Duties & Taxes | Supplier B, GST Output/ Input, TDS Payable |
| Sales Accounts | Local Sales, Interstate Sales, Export Sales | Sales @18%, Sales @5%, Export Sales |
| Purchase Accounts | Local Purchase, Interstate Purchase | Purchase @18%, Purchase @5% |
| Sundry Debtors | Retail Customers, B2B Customers | Customer A, Customer B |
| Sundry Creditors | Local Vendors, Out-of-State Vendors | Supplier A, Supplier B |
| Indirect Expenses | Admin, Selling, Finance Costs | Rent, Bank Charges, Freight Outward |
Avoid placing revenue ledgers under liabilities or vice versa—your P&L and GST reports will go off.
Create Groups (Step-by-Step)
Method 1 — From Masters
- Gateway → Create → Group.
- Enter Group Name (e.g., Local Customers).
- Under: choose parent (e.g., Sundry Debtors).
- Set Nature of Group only for primary groups (else inherit).
- Ctrl + A to save.
Method 2 — On the Fly
- While creating a ledger, in Under field, type a new group name.
- Tally prompts to Create the group instantly.
- Pick parent group and save.
Keep the hierarchy shallow and meaningful (e.g., Sundry Debtors → B2B Customers).
Create Ledgers (Step-by-Step)
Customer Ledger Debtor
- Gateway → Create → Ledger.
- Name: Customer A • Under: Sundry Debtors.
- Enable Bill-wise details (Yes).
- Enter GSTIN & State if registered; set credit period.
- Opening balance (if any) as on books begin date.
Supplier Ledger Creditor
- Name: Supplier B • Under: Sundry Creditors.
- Bill-wise tracking (Yes) • GSTIN/State.
- Set default ledger rounding method if used.
Sales Ledger Revenue
- Name: Sales @18% • Under: Sales Accounts.
- Set GST Applicable = Yes • Tax rate 18% • HSN/SAC if needed.
- Use in F8 Sales vouchers.
Purchase Ledger COGS/Expense
- Name: Purchase @18% • Under: Purchase Accounts.
- GST applicable = Yes • Rate 18%.
- Use in F9 Purchase vouchers.
GST Ledgers Taxes
- Create under Duties & Taxes • Type of duty/tax: GST.
- Output: CGST Output, SGST Output, IGST Output.
- Input: CGST Input, SGST Input, IGST Input.
Bank & Cash
- HDFC Bank → Under: Bank Accounts • Opening balance & account no.
- Cash → Under: Cash-in-Hand.
Sample Setup (Starter Pack)
| Ledger | Under (Group) | Purpose | Voucher Usage |
|---|---|---|---|
| Customer A | Sundry Debtors | Receivables | Sales, Receipt |
| Supplier B | Sundry Creditors | Payables | Purchase, Payment |
| Sales @18% | Sales Accounts | Revenue (taxable) | Sales (F8) |
| Purchase @18% | Purchase Accounts | Purchases (ITC) | Purchase (F9) |
| CGST Output | Duties & Taxes | GST liability | Sales |
| CGST Input | Duties & Taxes | GST credit | Purchase |
| HDFC Bank | Bank Accounts | Bank balance | Payment/Receipt |
| Cash | Cash-in-Hand | Cash balance | Payment/Receipt |
| Round Off | Indirect Expenses/Income | Invoice rounding | Sales/Purchase |
Alter, View & Bulk Create
- Alter any Group/Ledger: Alt + G (Go To) → Chart of Accounts → select → Alt + S to alter.
- Duplicate structure: copy an existing ledger and change only name/GSTIN.
- Import Masters: from Excel/JSON using Tally’s import (helpful for many parties).
Best Practices
- Enable bill-wise tracking for all debtors/creditors.
- Keep separate sales/purchase ledgers by tax rate (e.g., Sales @5%, Sales @12%, Sales @18%).
- For services, use Services Sales/Purchase ledgers with SAC codes.
- Never mix Cash-in-Hand with Bank Accounts or Loans & Advances.
- Name ledgers clearly: “Customer A – Hyderabad (GSTIN …)”.
Troubleshooting (Common Mistakes)
| Issue | Cause | Fix |
|---|---|---|
| Sales not appearing in P&L | Sales ledger under wrong group | Move to Sales Accounts, not Indirect Income |
| GST not auto-calculating | Ledger/item lacks GST config | Set GST Applicable, tax rate, and HSN/SAC |
| Party balances not clearing | Bill-wise disabled | Enable bill-wise on debtor/creditor ledgers |
| Bank not available in vouchers | Group set incorrectly | Ledger must be under Bank Accounts |
| Rounding differences | No Round Off ledger | Create Round Off under Indirect Expenses/Income |
Handy Shortcuts
- Alt + G — Go To (search any report/master)
- Alt + C — Create ledger/group on the fly
- Ctrl + A — Accept/save screen
- Alt + P — Print/email