diff --git a/selling/page/selling_home/selling_home.js b/selling/page/selling_home/selling_home.js
index 682978b..7d0162d 100644
--- a/selling/page/selling_home/selling_home.js
+++ b/selling/page/selling_home/selling_home.js
@@ -165,6 +165,10 @@
 				"label":wn._("Item-wise Sales History"),
 				route: "query-report/Item-wise Sales History",
 			},
+			{
+				"label":wn._("Territory Target Variance (Item Group-Wise)"),
+				route: "query-report/Territory Target Variance (Item Group-Wise)",
+			},
 		]
 	}
 ]
diff --git "a/selling/report/territory_target_variance_\050item_group_wise\051/__init__.py" "b/selling/report/territory_target_variance_\050item_group_wise\051/__init__.py"
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ "b/selling/report/territory_target_variance_\050item_group_wise\051/__init__.py"
diff --git "a/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.js" "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.js"
new file mode 100644
index 0000000..58718a4
--- /dev/null
+++ "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.js"
@@ -0,0 +1,25 @@
+wn.query_reports["Territory Target Variance (Item Group-Wise)"] = {
+	"filters": [
+		{
+			fieldname: "fiscal_year",
+			label: "Fiscal Year",
+			fieldtype: "Link",
+			options: "Fiscal Year",
+			default: sys_defaults.fiscal_year
+		},
+		{
+			fieldname: "period",
+			label: "Period",
+			fieldtype: "Select",
+			options: "Monthly\nQuarterly\nHalf-Yearly\nYearly",
+			default: "Monthly"
+		},
+		{
+			fieldname: "target_on",
+			label: "Target On",
+			fieldtype: "Select",
+			options: "Quantity\nAmount",
+			default: "Quantity"
+		},
+	]
+}
\ No newline at end of file
diff --git "a/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.py" "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.py"
new file mode 100644
index 0000000..790c6f0
--- /dev/null
+++ "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.py"
@@ -0,0 +1,89 @@
+# ERPNext - web based ERP (http://erpnext.com)
+# Copyright (C) 2012 Web Notes Technologies Pvt Ltd
+# 
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+# 
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+# 
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+from __future__ import unicode_literals
+import webnotes
+import calendar
+from webnotes import msgprint
+from webnotes.utils import cint, cstr, add_months
+
+def execute(filters=None):
+	if not filters: filters = {}
+	
+	columns = get_columns(filters)
+
+	data = []
+	
+	return columns, data
+	
+def get_columns(filters):
+	"""return columns based on filters"""
+	
+	if not filters.get("period"):
+		msgprint("Please select the Period", raise_exception=1)
+
+	mo = cint(cstr(webnotes.conn.get_value("Fiscal Year", filters["fiscal_year"], "year_start_date")).split("-")[1])
+	period_months = []
+	if (filters["period"] == "Monthly" or "Yearly"):
+		for x in range(0,12):
+			period_months.append(mo)
+			if (mo!=12):
+				mo += 1
+			else:
+				mo = 1
+
+	columns = ["Territory:Link/Territory:80"] + ["Item Group:Link/Item Group:80"]
+
+	period = []
+
+	if (filters["period"] == "Monthly" or "Yearly"):
+		for i in (0,12):
+			period.append("Target (" + "i" + ")::80")
+			period.append("Achieved (" + "i" + ")::80")
+			period.append("Variance (" + "i" + ")::80")
+
+	columns = columns + [(p) for p in period] + \
+		["Total Target::80"] + ["Total Achieved::80"] + ["Total Variance::80"]
+
+	return columns
+
+def get_conditions(filters):
+	conditions = ""
+	
+	if filters.get("fiscal_year"):
+		conditions += " and posting_date <= '%s'" % filters["fiscal_year"]
+	else:
+		webnotes.msgprint("Please enter Fiscal Year", raise_exception=1)
+	
+	if filters.get("target_on"):
+		conditions += " and posting_date <= '%s'" % filters["target_on"]
+	else:
+		webnotes.msgprint("Please select Target On", raise_exception=1)
+
+	return conditions
+
+
+#get territory details
+def get_territory_details(filters):
+	conditions = get_conditions(filters)
+	return webnotes.conn.sql("""select item_code, batch_no, warehouse, 
+		posting_date, actual_qty 
+		from `tabStock Ledger Entry` 
+		where ifnull(is_cancelled, 'No') = 'No' %s order by item_code, warehouse""" %
+		conditions, as_dict=1)
+
+def get_month_abbr(month_number):
+	return 0
\ No newline at end of file
diff --git "a/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.txt" "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.txt"
new file mode 100644
index 0000000..7fff64a
--- /dev/null
+++ "b/selling/report/territory_target_variance_\050item_group_wise\051/territory_target_variance_\050item_group_wise\051.txt"
@@ -0,0 +1,21 @@
+[
+ {
+  "creation": "2013-06-07 15:13:13", 
+  "docstatus": 0, 
+  "modified": "2013-06-07 15:13:13", 
+  "modified_by": "Administrator", 
+  "owner": "Administrator"
+ }, 
+ {
+  "doctype": "Report", 
+  "is_standard": "Yes", 
+  "name": "__common__", 
+  "ref_doctype": "Sales Order", 
+  "report_name": "Territory Target Variance (Item Group-Wise)", 
+  "report_type": "Script Report"
+ }, 
+ {
+  "doctype": "Report", 
+  "name": "Territory Target Variance (Item Group-Wise)"
+ }
+]
\ No newline at end of file