I have the following directory structure:
application
tests
main.py
main.py
application/main.py contains some functions.
First of all you need to make your directories into packages, by adding __init__.py files:
application
tests
__init__.py
main.py
__init__.py
main.py
Then you should make sure that the directory above application is on sys.path. There are many ways to do that, like making the application infto a package and installing it, or just executing things in the right folder etc.
Then your imports will work.