In this article
Banana Accounting's grouping system is used to totalise the amounts of accounts and groups quickly and easily. The programme gives you maximum flexibility to create as many levels of totalling as you want.
Grouping is a very powerful tool for calculating totals automatically.
Where it is used
- In the Accounts and Categories tables to define the structure of the Balance sheet and the Profit & Loss Statement.
- In the VAT Codes table to group VAT codes
- In the Items table in the Stock Application.
- In the Items table in the Fixed asset register Application.
▶ Video: Grouping and totalling system
How it works
Grouping is always based on two columns:
- The Group column, where group identifiers are indicated, which may be textual or numeric.
- The column Sum In, where for each account or group row the Totalisation Group is indicated.
Each group row is a total row, where:
- Group balances are the sum of the rows that contain the group name in the Sum In column.
- The programme calculates the totals of all columns containing amounts (type Amount), both the predefined ones (Opening, Balance, etc.) and those added manually.
Grouping allows the creation of many levels of totalisation.
The logic of the programme
To understand the logic, let us present an example of a small part of the chart of accounts. For the accounts Cash, Post and Bank we create the Liquidity group:
- In the line below the liquidity accounts, in the Group column, enter the name of the Liquidity group.
- In the Description column, you enter the description of the group.
- In order for the programme to be able to update the balances in the liquidity group, it must be indicated which accounts are to be totalled.
In the Sum In column of the Cash, Post and Bank account, the name of the cash group is entered. The balances of the group are updated immediately.
Using the same logic, we can also group groups. In fact, groups can also be totalled into other groups at a higher level.
Suppose we add a group into which to group and then total the Liquidity group.
- In the line below the Liquidity group, in the Group column, the name of the Assets group is entered.
- In the Description column, you enter the description of the group.
- In order for the programme to be able to update the balances in the Assets group, it must be indicated which groups are to be totalled.
In the Sum In column of the Liquidity group, the name of the Assets group is entered. The group's balances are updated immediately.
Following this logic, it is possible to create a structure with groups and subgroups for the entire chart of accounts, in order to create charts of accounts suitable for any specific country and requirement.
The exact same logic can also be applied for grouping VAT codes in the VAT Codes table, and also for grouping items in the Items table of the Warehouse and Fixed asset register.
Extensive use of the totalisation system
The totalisation system is very flexible:
- Accounts and groups can be added together in a group.
- Title texts can be assigned the group to which they belong.
- Any kind of numbering (numerical and/or letter) can be used.
- Up to 100 totalisation levels can be created.
- Group totalisation is independent of the sequence of rows:
- The total row can be defined before and after the account or group rows.
- The total row can also be defined in a completely detached position from the account and group rows, as in the case of the Accounts Payable / Suppliers ledger.
- The same account cannot be totalled in two Groups at the same time.
- The system is also used to total the Cost Centres and Segments.
The totalisation of amount columns
The calculation procedure totals the columns of type amount.
- The amount columns defined by the system are totalled.
- The amount columns added by the user are totalled.
The calculation sequence
The programme calculates totals as follows:
- Clears the column amounts of the Group rows.
- Adds up the amounts of the Accounts rows in the Group rows (first level of calculation).
- Adds up the balance of the Group rows in the higher level Groups.
Repeats the operation until all levels are calculated.
When a Group is totalled in a lower level Group, an infinite error loop is created.
Error checking and reporting
When creating groupings, the programme checks and reports any errors so that they can be corrected immediately.
When a non-existent group has been indicated in the Sum In column, the programme reports the error 'Group not found'. In this case it is sufficient to:
- Create the group in the Group column.
- Recalculate accounting with the command Check and recalculate accounting
- Recalculate all totals with the command Recalculate totals.
Rename groups
With the Rename command, existing group names can be renamed automatically, without having to manually change the matches in the Group and Sum In columns.
Printouts
When printing the Balance Sheet, Profit and Loss Statement or other reports that contain groupings, the printout shows the order of the groupings as they have been set in the various tables.