What is a Group Company in Tally / Tally.ERP9?

What is a Group Company in Tally / Tally.ERP9?



The term Group Company, is self explanatory that grouping / clubbing more than one company in to the Group. But why one should group the Companies and when it is needed. We will better understand with an example. "ABC Co. Ltd." running a business in India in 4 Locations, say Bangalore, Hyderabad, Mumbai & Delhi and the user in Tally has created 4 Individual companies, say "ABC Co. Ltd.-BLR", "ABC Co. Ltd.-HYD", "ABC Co. Ltd.-MUM" & "ABC Co. Ltd.-DLH". Now the management of "ABC Co. Ltd." wants to Consolidate / Group all 4 Companies to know the financial status of the company and to arrive whether they are in "Profit" or "Loss" as a whole. So the user in Tally, can Create a Group Company Instantly and report the requested reports to management.

Group company may require to meet the purpose of Shareholders / Owners, Management, Bankers / Lenders, Government, Tax Authorities, who are interested in consolidated Financial Statements. 

For still better more understanding, Mr.Luke an Individual who is running multiple business in different sectors in different Name and Style, wants to file IT Returns as an Individual, so he wants to know what is the profit he made for a particular Financial Year from all his business. So if he is maintaining books in Tally, he can club all individual companies and create a Group Company Instantly, without affecting financial data of Individual companies and arrive his accurate profit figure and file his IT returns timely without any delay.


Note:- Group Company is used only for Generating Consolidated Reports, data entry has to be done in respective individual companies only and not in group company.

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