you know that Tally.ERP 9’s multi-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.
the advent of globalization, using multi-currency has become a necessity for
companies involved in International Trade business. Starting from transactions
to viewing of reports, multicurrency support is required. And most importantly,
adjusting Forex Gain/Loss is one crucial activity to generate an accurate
Profit/Loss account statement. Handling these processes with a rate of exchange
that fluctuates regularly is quite a challenge. However, Tally.ERP 9 provides a
comprehensive multi-currency support that allows recording of transactions in
multi-currency, specifying the rate of exchange and automatic calculation of
Forex Gain/Loss with extremely simplified adjustment for the same.
can define unlimited currencies (US dollars, Singapore dollars etc.), specify
whether to view the currencies either in Lakhs or Millions and use
multi-currency concurrently. For example, your company’s balance sheet in India
can be viewed by your business partner in Japan in Yen.
use Multi-Currency in Tally.ERP 9:
to Gateway of Tally > F11: Accounting Features
Set ‘Allow Multi-Currency’ to ‘ Yes’
Accept the screen
The base currency of the company is specified during the company creation.
9 allows creating unlimited currencies each with their own specified symbol. To
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 screen
you can create other currencies using the keyboard shortcuts listed below:
Euro ‘€’ (Alt + 0128),
Japanese Yen ‘¥’ (Alt + 0165)
Pound Sterling ‘£’ (Alt + 156)
For more currency symbols, you can refer to the ‘Character Map’ located at
‘Start > All Programs > Accessories > System Tools’ on your Windows
Currencies and Defining Rates of Exchange
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.
Standard rate is the current rate in the market. Selling rate is the rate at
which your bank will buy the currency from you. Buying Rate is the rate at
which you will buy currency from the bank.
specify the rate of exchange for more than one currency with specific dates:
Go to Gateway of Tally > Accounts Info. > Currencies > Rates of
the ‘Multi-Currency Alteration’ screen:
Enter ‘Date’ (applicable date for exchange rate)
Enter ‘Standard Rate’, ‘Selling Rate’ and ‘Buying Rate’ > Accept the screen
Foreign Currency in Voucher Entry
pass transactions using multiple currencies, let’s consider a service provider
‘ABC Company’ that delivers a service for $5000 to ‘XYZ Company’. The rate of
exchange during this transaction is Rs. 55/$.
create a Sales Voucher for this transaction:
to Gateway of Tally > Accounting Vouchers > F8: Sales (Select ‘As
Select ‘XYZ Company’ in ‘Party’s A/c Name:’ and then ‘Service Charges’ under
‘Particulars’ and enter ‘$5000’ in ‘Amount’ > Accept the default selling
rate on ‘Rate of Exchange’ screen.
completed Sales Voucher screen is shown below:
Receipt for the Payment
the payment is made for the service, say the exchange rate has gone up to Rs.
55.50/$. 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 ‘$5000’
Enter the rate of exchange for both ledgers as ’55.50’
Accept the Screen.
completed Voucher is shown below:
to change in the rate of exchange Rs.55.50/$ 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 Sheet
adjust this unadjusted value, let’s alter a Journal voucher type as follows:
Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter >
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 screen