Did you know that Tally.ERP 9’s TallyPrimemulti-currency feature can fulfill all your foreign trade business requirements right from passing transactions to adjusting Forex Gain/Loss? Whatever your requirement, you can get just what you need to run a hassle-free business in more than one currency.transactions in multi-currencyNote:
Creating Currencies
Tally.ERP 9 allows creating unlimited currencies each with their own specified symbol. To do this:Go to Gateway of Tally > Accounts Info. > Currencies > Create• Enter the required details as shown below:• Setting ‘No’ to ‘Show Amounts in Millions’ will display the currency in Lakhs.• Accept the screenSimilarly, you can create other currencies using the keyboard shortcuts listed below:• Euro ‘€’ (Alt + 0128),• Japanese Yen ‘¥’ (Alt + 0165)• Pound Sterling ‘£’ (Alt + 156)Note:
Altering Currencies and Defining Rates of Exchange
To alter the currency:• Go to Gateway of Tally > Accounts Info. > Currencies > Alter Here you can you can specify different rate of exchanges for different date and also use the screen as a reference to see the changes in rate of exchange.Note:To specify the rate of exchange for more than one currency with specific dates:• Go to Gateway of Tally > Accounts Info. > Currencies > Rates of ExchangeOn the ‘Multi-Currency Alteration’ screen:• Enter ‘Date’ (applicable date for exchange rate)• Enter ‘Standard Rate’, ‘Selling Rate’ and ‘Buying Rate’ > Accept the screen
Using Foreign Currency in Voucher Entry
To pass transactions using multiple currencies, let’s consider a service provider ‘ABC Company’ that delivers a service for $5000 to ‘XYZ Company’. The rate of exchange during this transaction is Rs. 55/$.To create a Sales Voucher for this transaction:• Go to Gateway of Tally > Accounting Vouchers > F8: Sales (Select ‘As Invoice’)• Select ‘XYZ Company’ in ‘Party’s A/c Name:’ and then ‘Service Charges’ under ‘Particulars’ and enter ‘$5000’ in ‘Amount’ > Accept the default selling rate on ‘Rate of Exchange’ screen.The completed Sales Voucher screen is shown below:
Accounting Receipt for the Payment
When the payment is made for the service, say the exchange rate has gone up to Rs. 55.50/$. Let’s pass the receipt voucher as shown below:• Go to Gateway of Tally > Accounting Vouchers > F6: Receipt• Credit the ‘XYZ Company’ and debit the ‘Bank’ with ‘$5000’• Enter the rate of exchange for both ledgers as ’55.50’• Accept the Screen.The completed Voucher is shown below:
Adjusting Forex Gain/Loss
Due to change in the rate of exchange Rs.55.50/$ during receipt against the selling rate of Rs.55 /$, the unadjusted Forex Gain/Loss will be displayed in Balance Sheet. To view this: • Go to Gateway of Tally > Balance SheetTo adjust this unadjusted value, let’s alter a Journal voucher type as follows:• Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter > Journal• Enter ‘Forex Gain /Loss’ in ‘Name of Class’• Set ‘Yes’ to ‘Use Class for Forex Gain/Loss Adjustments?’• Select ‘Forex Gain/Loss’ in ‘Ledger Name’• Accept the screenNow, let’s pass the Journal entry as follows:Hence, handling transactions in currencies other than the base (home) currency is now extremely simple with the versatile multicurrency support of Tally.ERP 9.
