diff --git a/erpnext/accounts/doctype/account/account.py b/erpnext/accounts/doctype/account/account.py
index d8d3881..64d2798 100644
--- a/erpnext/accounts/doctype/account/account.py
+++ b/erpnext/accounts/doctype/account/account.py
@@ -223,9 +223,9 @@
 				throw(_("Account ") + new +_(" does not exists"))
 				
 			val = list(webnotes.conn.get_value("Account", new_account, 
-				["group_or_ledger", "debit_or_credit", "is_pl_account"]))
+				["group_or_ledger", "debit_or_credit", "is_pl_account", "company"]))
 			
-			if val != [self.doc.group_or_ledger, self.doc.debit_or_credit, self.doc.is_pl_account]:
+			if val != [self.doc.group_or_ledger, self.doc.debit_or_credit, self.doc.is_pl_account, self.doc.company]:
 				throw(_("""Merging is only possible if following \
 					properties are same in both records.
 					Group or Ledger, Debit or Credit, Is PL Account"""))
diff --git a/erpnext/patches/june_2013/p07_taxes_price_list_for_territory.py b/erpnext/patches/june_2013/p07_taxes_price_list_for_territory.py
index 4a224e3..f5d7009 100644
--- a/erpnext/patches/june_2013/p07_taxes_price_list_for_territory.py
+++ b/erpnext/patches/june_2013/p07_taxes_price_list_for_territory.py
@@ -9,7 +9,7 @@
 	webnotes.reload_doc("accounts", "doctype", "sales_taxes_and_charges_master")
 	webnotes.reload_doc("accounts", "doctype", "shipping_rule")
 	
-	from erpnext.setup.utils import get_root_of
+	from webnotes.utils.nestedset import get_root_of
 	root_territory = get_root_of("Territory")
 	
 	for parenttype in ["Sales Taxes and Charges Master", "Price List", "Shipping Rule"]:
diff --git a/erpnext/setup/doctype/item_group/test_item_group.py b/erpnext/setup/doctype/item_group/test_item_group.py
index 04640b7..0ad846d 100644
--- a/erpnext/setup/doctype/item_group/test_item_group.py
+++ b/erpnext/setup/doctype/item_group/test_item_group.py
@@ -1,6 +1,12 @@
 # Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
 # License: GNU General Public License v3. See license.txt
 
+from __future__ import unicode_literals
+import unittest
+import webnotes
+from webnotes.utils.nestedset import NestedSetRecursionError, NestedSetMultipleRootsError, \
+	rebuild_tree, get_ancestors_of
+
 test_records = [
 	[{
 		"doctype": "Item Group",
@@ -14,4 +20,199 @@
 		"parent_item_group": "All Item Groups",
 		"is_group": "No"
 	}],
-]
\ No newline at end of file
+	[{
+		"doctype": "Item Group",
+		"item_group_name": "_Test Item Group A",
+		"parent_item_group": "All Item Groups",
+		"is_group": "Yes"
+	}],
+	[{
+		"doctype": "Item Group",
+		"item_group_name": "_Test Item Group B",
+		"parent_item_group": "All Item Groups",
+		"is_group": "Yes"
+	}],
+		[{
+			"doctype": "Item Group",
+			"item_group_name": "_Test Item Group B - 1",
+			"parent_item_group": "_Test Item Group B",
+			"is_group": "Yes"
+		}],
+		[{
+			"doctype": "Item Group",
+			"item_group_name": "_Test Item Group B - 2",
+			"parent_item_group": "_Test Item Group B",
+			"is_group": "Yes"
+		}],
+		[{
+			"doctype": "Item Group",
+			"item_group_name": "_Test Item Group B - 3",
+			"parent_item_group": "_Test Item Group B",
+			"is_group": "No"
+		}],
+	[{
+		"doctype": "Item Group",
+		"item_group_name": "_Test Item Group C",
+		"parent_item_group": "All Item Groups",
+		"is_group": "Yes"
+	}],
+		[{
+			"doctype": "Item Group",
+			"item_group_name": "_Test Item Group C - 1",
+			"parent_item_group": "_Test Item Group C",
+			"is_group": "Yes"
+		}],
+		[{
+			"doctype": "Item Group",
+			"item_group_name": "_Test Item Group C - 2",
+			"parent_item_group": "_Test Item Group C",
+			"is_group": "Yes"
+		}],
+	[{
+		"doctype": "Item Group",
+		"item_group_name": "_Test Item Group D",
+		"parent_item_group": "All Item Groups",
+		"is_group": "Yes"
+	}],
+]
+
+class TestItem(unittest.TestCase):
+	def test_basic_tree(self, records=None):
+		min_lft = 1
+		max_rgt = webnotes.conn.sql("select max(rgt) from `tabItem Group`")[0][0]
+		
+		if not records:
+			records = test_records[2:]
+		
+		for item_group in records:
+			item_group = item_group[0]
+			lft, rgt, parent_item_group = webnotes.conn.get_value("Item Group", item_group["item_group_name"], 
+				["lft", "rgt", "parent_item_group"])
+			
+			if parent_item_group:
+				parent_lft, parent_rgt = webnotes.conn.get_value("Item Group", parent_item_group,
+					["lft", "rgt"])
+			else:
+				# root
+				parent_lft = min_lft - 1
+				parent_rgt = max_rgt + 1
+			
+			self.assertTrue(lft)
+			self.assertTrue(rgt)
+			self.assertTrue(lft < rgt)
+			self.assertTrue(parent_lft < parent_rgt)
+			self.assertTrue(lft > parent_lft)
+			self.assertTrue(rgt < parent_rgt)
+			self.assertTrue(lft >= min_lft)
+			self.assertTrue(rgt <= max_rgt)
+			
+			children = webnotes.conn.sql("""select count(name) from `tabItem Group`
+				where lft>%s and rgt<%s""", (lft, rgt))[0][0]
+			self.assertTrue(rgt == (lft + 1 + (2 * children)))
+			
+	def test_recursion(self):
+		group_b = webnotes.bean("Item Group", "_Test Item Group B")
+		group_b.doc.parent_item_group = "_Test Item Group B - 3"
+		self.assertRaises(NestedSetRecursionError, group_b.save)
+	
+	def test_rebuild_tree(self):
+		rebuild_tree("Item Group", "parent_item_group")
+		self.test_basic_tree()
+		
+	def move_it_back(self):
+		group_b = webnotes.bean("Item Group", "_Test Item Group B")
+		group_b.doc.parent_item_group = "All Item Groups"
+		group_b.save()
+		self.test_basic_tree()
+		
+	def test_move_group_into_another(self):
+		previous_lft_rgt = self.get_lft_rgt(get_ancestors_of("Item Group", "_Test Item Group B"))
+		
+		# put B under C
+		group_b = webnotes.bean("Item Group", "_Test Item Group B")
+		group_b.doc.parent_item_group = "_Test Item Group C"
+		group_b.save()
+		self.test_basic_tree()
+		
+		# TODO check rgt of old parent and new parent
+		# check_ancestors_rgt(previous_lft_rgt, "_Test Item Group C", pass)
+		
+		self.move_it_back()
+		
+	def check_ancestors_rgt(self, previous_lft_rgt, new_parent, increment):
+		if new_parent in previous_lft_rgt:
+			pass
+		else:
+			pass
+		
+	def get_lft_rgt(self, item_groups):
+		item_groups = webnotes.conn.sql("""select name, lft, rgt from `tabItem Group`
+			where name in ({})""".format(", ".join(["%s"*len(item_groups)])), tuple(item_groups), as_dict=True)
+		
+		out = {}
+		for item_group in item_groups:
+			out[item_group.name] = item_group
+		
+		return out
+		
+	def test_move_group_into_root(self):
+		group_b = webnotes.bean("Item Group", "_Test Item Group B")
+		group_b.doc.parent_item_group = ""
+		self.assertRaises(NestedSetMultipleRootsError, group_b.save)
+
+		# trick! works because it hasn't been rolled back :D
+		self.test_basic_tree()
+		
+		# TODO check rgt of old parent and new parent
+		
+		self.move_it_back()
+		
+	def test_move_leaf_into_another_group(self):
+		group_b_3 = webnotes.bean("Item Group", "_Test Item Group B - 3")
+		group_b_3.doc.parent_item_group = "_Test Item Group C"
+		group_b_3.save()
+		self.test_basic_tree()
+		
+		# TODO check rgt of old parent and new parent
+		
+		# move it back
+		group_b_3 = webnotes.bean("Item Group", "_Test Item Group B - 3")
+		group_b_3.doc.parent_item_group = "_Test Item Group B"
+		group_b_3.save()
+		self.test_basic_tree()
+		
+	def test_delete_leaf(self):
+		# for checking later
+		parent_item_group = webnotes.conn.get_value("Item Group", "_Test Item Group B - 3", "parent_item_group")
+		rgt = webnotes.conn.get_value("Item Group", parent_item_group, "rgt")
+		
+		webnotes.delete_doc("Item Group", "_Test Item Group B - 3")
+		records_to_test = test_records[2:]
+		del records_to_test[4]
+		self.test_basic_tree(records=records_to_test)
+		
+		# TODO rgt of all ancestors should reduce by 2
+		new_rgt = webnotes.conn.get_value("Item Group", parent_item_group, "rgt")
+		self.assertEquals(new_rgt, rgt - 2)
+		
+		# insert it back
+		webnotes.bean(copy=test_records[6]).insert()
+		self.test_basic_tree()
+		
+	def test_delete_group(self):
+		# TODO cannot delete group with child, but can delete leaf
+		pass
+		
+	def test_merge_groups(self):
+		pass
+		
+	def test_merge_leaves(self):
+		pass
+		
+	def test_merge_leaf_into_group(self):
+		# should raise exception
+		pass
+		
+	def test_merge_group_into_leaf(self):
+		# should raise exception
+		pass
\ No newline at end of file
diff --git a/erpnext/setup/page/setup_wizard/setup_wizard.py b/erpnext/setup/page/setup_wizard/setup_wizard.py
index 47e22df..52c7f5c 100644
--- a/erpnext/setup/page/setup_wizard/setup_wizard.py
+++ b/erpnext/setup/page/setup_wizard/setup_wizard.py
@@ -344,7 +344,7 @@
 			
 def create_territories():
 	"""create two default territories, one for home country and one named Rest of the World"""
-	from erpnext.setup.utils import get_root_of
+	from webnotes.utils.nestedset import get_root_of
 	country = webnotes.conn.get_value("Control Panel", None, "country")
 	root_territory = get_root_of("Territory")
 	for name in (country, "Rest Of The World"):