diff --git a/addons/account/data/data_account_type.xml b/addons/account/data/data_account_type.xml
index ca4676f05f0..54ab23e605f 100644
--- a/addons/account/data/data_account_type.xml
+++ b/addons/account/data/data_account_type.xml
@@ -69,6 +69,7 @@
         </record>
         <record model="account.account.type" id="data_unaffected_earnings">
           <field name="name">Current Year Earnings</field>
+          <field name="internal_group">equity</field>
           <field name="include_initial_balance" eval="True"/>
         </record>
         <record model="account.account.type" id="data_account_type_other_income">
diff --git a/addons/account/models/account.py b/addons/account/models/account.py
index 143ca388763..2d6ef5f10f5 100644
--- a/addons/account/models/account.py
+++ b/addons/account/models/account.py
@@ -41,7 +41,8 @@ class AccountAccountType(models.Model):
         ('expense', 'Expense'),
         ('off_balance', 'Off Balance'),
     ], string="Internal Group",
-       help="The 'Internal Group' is used to filter accounts based on the internal group set on the account type.")
+        required=True,
+        help="The 'Internal Group' is used to filter accounts based on the internal group set on the account type.")
     note = fields.Text(string='Description')
 
 
diff --git a/addons/account/static/src/js/account_selection.js b/addons/account/static/src/js/account_selection.js
new file mode 100644
index 00000000000..c000d5b6fd1
--- /dev/null
+++ b/addons/account/static/src/js/account_selection.js
@@ -0,0 +1,72 @@
+odoo.define('account.hierarchy.selection', function (require) {
+"use strict";
+
+    var core = require('web.core');
+    var relational_fields = require('web.relational_fields');
+    var _t = core._t;
+    var registry = require('web.field_registry');
+
+
+    var FieldSelection = relational_fields.FieldSelection;
+
+    var qweb = core.qweb;
+
+    var HierarchySelection = FieldSelection.extend({
+        _renderEdit: function () {
+            var self = this;
+            var prom = Promise.resolve()
+            if (!self.hierarchy_groups) {
+                prom = this._rpc({
+                    model: 'account.account.type',
+                    method: 'read',
+                    args: [
+                        _.filter(_.map(this.values, v => v[0]), v => typeof v == 'number'),
+                        ['internal_group'],
+                    ],
+                }).then(function(arg) {
+                    self.hierarchy_groups = [
+                        {
+                            'name': _('Balance Sheet'),
+                            'children': [
+                                {'name': _t('Assets'), 'ids': _.map(_.filter(arg, v => v['internal_group'] == 'asset'), v => v['id'])},
+                                {'name': _t('Liabilities'), 'ids': _.map(_.filter(arg, v => v['internal_group'] == 'liability' || v['internal_group'] == 'equity'), v => v['id'])},
+                            ]
+                        },
+                        {'name': _t('Profit & Loss'), 'ids': _.map(_.filter(arg, v => v['internal_group'] == 'income' || v['internal_group'] == 'expense'), v => v['id'])},
+                        {'name': _t('Other'), 'ids': _.map(_.filter(arg, v => !['asset', 'liability', 'equity', 'income', 'expense'].includes(v['internal_group'])), v => v['id'])},
+                    ]
+                });
+            }
+
+            Promise.resolve(prom).then(function() {
+                self.$el.empty();
+                self._addHierarchy(self.$el, self.hierarchy_groups, 0);
+                var value = self.value;
+                if (self.field.type === 'many2one' && value) {
+                    value = value.data.id;
+                }
+                self.$el.val(JSON.stringify(value));
+            });
+        },
+        _addHierarchy: function(el, group, level) {
+            var self = this;
+            _.each(group, function(item) {
+                var optgroup = $('<optgroup/>').attr(({
+                    'label': $('<div/>').html('&nbsp;&nbsp;'.repeat(3 * level) + item['name']).text(),
+                }))
+                _.each(item['ids'], function(id) {
+                    var value = _.find(self.values, v => v[0] == id)
+                    optgroup.append($('<option/>', {
+                        value: JSON.stringify(value[0]),
+                        text: value[1],
+                    }));
+                })
+                el.append(optgroup)
+                if (item['children']) {
+                    self._addHierarchy(el, item['children'], level + 1);
+                }
+            })
+        }
+    });
+    registry.add("account_hierarchy_selection", HierarchySelection);
+});
diff --git a/addons/account/views/account.xml b/addons/account/views/account.xml
index 2e02a3f5753..4bfc5afe7cc 100644
--- a/addons/account/views/account.xml
+++ b/addons/account/views/account.xml
@@ -30,6 +30,7 @@
             <script type="text/javascript" src="/account/static/src/js/section_and_note_fields_backend.js"></script>
             <script type="text/javascript" src="/account/static/src/js/tours/account.js"></script>
             <script type="text/javascript" src="/account/static/src/js/bills_tree_upload.js"/>
+            <script type="text/javascript" src="/account/static/src/js/account_selection.js"/>
         </xpath>
     </template>
 
diff --git a/addons/account/views/account_view.xml b/addons/account/views/account_view.xml
index 9c72ff247b4..bf519c193c1 100644
--- a/addons/account/views/account_view.xml
+++ b/addons/account/views/account_view.xml
@@ -15,7 +15,7 @@
                            <group>
                              <field name="code" placeholder="code"/>
                              <field name="name"/>
-                             <field name="user_type_id" widget="selection"/>
+                             <field name="user_type_id" widget="account_hierarchy_selection"/>
                              <field name="tax_ids" widget="many2many_tags" domain="[('company_id','=',company_id)]" attrs="{'invisible': [('internal_group', '=', 'off_balance')]}"/>
                              <field name="tag_ids" widget="many2many_tags" domain="[('applicability', '!=', 'taxes')]" context="{'default_applicability': 'accounts'}" options="{'no_create_edit': True}"/>
                              <field name="group_id"/>
@@ -1397,7 +1397,7 @@ action = model.setting_init_bank_account_action()
                         <field name="name"/>
                         <field name="code"/>
                         <newline/>
-                        <field name="user_type_id" widget="selection"/>
+                        <field name="user_type_id" widget="account_hierarchy_selection"/>
                         <field name="currency_id" options="{'no_create': True}" groups="base.group_multi_currency"/>
                         <field name="tag_ids" domain="[('applicability', '!=', 'taxes')]" widget="many2many_tags" context="{'default_applicability': 'accounts'}"/>
                         <field name="reconcile"/>
diff --git a/addons/point_of_sale/tests/common.py b/addons/point_of_sale/tests/common.py
index dd2a2666fcd..98e5eda1125 100644
--- a/addons/point_of_sale/tests/common.py
+++ b/addons/point_of_sale/tests/common.py
@@ -132,7 +132,8 @@ class TestPoSCommon(TransactionCase):
         self.other_receivable_account = self.env['account.account'].create({
             'name': 'Other Receivable',
             'code': 'RCV00' ,
-            'user_type_id': self.env['account.account.type'].create({'name': 'RCV type', 'type': 'receivable'}).id,
+            'user_type_id': self.env['account.account.type'].create({'name': 'RCV type', 'type': 'receivable', 'internal_group': 'asset'}).id,
+            'internal_group': 'asset',
             'reconcile': True,
         })
 
diff --git a/addons/sale_mrp/tests/test_sale_mrp_flow.py b/addons/sale_mrp/tests/test_sale_mrp_flow.py
index ecd7f4c4380..07e5f596146 100644
--- a/addons/sale_mrp/tests/test_sale_mrp_flow.py
+++ b/addons/sale_mrp/tests/test_sale_mrp_flow.py
@@ -572,7 +572,7 @@ class TestSaleMrpFlow(common.SavepointCase):
         self.company.anglo_saxon_accounting = True
         self.partner = self.env.ref('base.res_partner_1')
         self.category = self.env.ref('product.product_category_1').copy({'name': 'Test category','property_valuation': 'real_time', 'property_cost_method': 'fifo'})
-        account_type = self.env['account.account.type'].create({'name': 'RCV type', 'type': 'other'})
+        account_type = self.env['account.account.type'].create({'name': 'RCV type', 'type': 'other', 'internal_group': 'asset'})
         self.account_receiv = self.env['account.account'].create({'name': 'Receivable', 'code': 'RCV00' , 'user_type_id': account_type.id, 'reconcile': True})
         account_expense = self.env['account.account'].create({'name': 'Expense', 'code': 'EXP00' , 'user_type_id': account_type.id, 'reconcile': True})
         account_output = self.env['account.account'].create({'name': 'Output', 'code': 'OUT00' , 'user_type_id': account_type.id, 'reconcile': True})
diff --git a/addons/stock_landed_costs/tests/common.py b/addons/stock_landed_costs/tests/common.py
index 5c9fb50676e..ac14bb6745e 100644
--- a/addons/stock_landed_costs/tests/common.py
+++ b/addons/stock_landed_costs/tests/common.py
@@ -35,7 +35,8 @@ class TestStockLandedCostsCommon(AccountingTestCase):
             'code': "X1101",
             'user_type_id': self.env['account.account.type'].create({
                     'name': 'Expenses',
-                    'type': 'other'}).id,
+                    'type': 'other',
+                    'internal_group': 'liability'}).id,
             'reconcile': True})
         self.expenses_journal = self.env['account.journal'].create({
             'name': 'Expenses - Test',