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17.     Multi Currency in Tally.ERP 9

Did you know that Tally.ERP 9s 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.

 

With 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,  multi- currency 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  imulti-currency, specifying the rate of exchange and automatic calculation of Forex Gain/Loss with extremely simplified adjustment for the same.

Users 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 companys balance sheet in India can be viewed by your business partner in Japan in Yen.

To use Multi-Currency in Tally.ERP 9:

 

Go to Gateway of Tally > F11: Accounting Features

 

Set ‘Allow Multi-Currency to Yes’ Accept the screen

 

Multi Currency in Tally.ERP 9

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Note: The base currency of the company is specified during the company creation.

 

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:

Settin ‘No’   t ‘Show   Amount in Millions’   wil display   the   currency   in Lakhs.

Multi Currency in Tally.ERP 9Accept the screen


 

 

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Similarly, you can create other currencies using the keyboard shortcuts listed below: Euro €’ (Alt + 0128),

Japanese Yen ¥’ (Alt + 0165) Pound Sterling £’ (Alt + 156)

 

Note:  For more currency  symbols,  you can refer  to the  Character Map located  at  Start >  All

Programs > Accessories > System Tools on your Windows PC.

 

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      reference  to see the changes in rate of exchange.

Multi Currency in Tally.ERP 9

 

 

 

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Note:  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.

 

To specify the rate of exchange for more than one currency with specific dates:

Go to Gateway of Tally > Accounts Info. > Currencies > Rates of Exchange

 

On the Multi-Currency Alteration’ screen:

 

Enter ‘Date’ (applicable date for exchange rate)

 

Enter ‘Standard Rate, ‘Selling Rate’ and ‘Buying Rate’ > Accept the screen

 

Multi Currency in Tally.ERP 9

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Using Foreign Currency in Voucher Entry

 

To pass transactions using multiple currencies, lets 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 ‘Partys A/c Name: and then ‘Service Charges’ under ‘Particulars’

and enter $5000’ in ‘Amount > Accept the default selling rate on ‘Rate of Exchange’ screen.

 

 

Multi Currency in Tally.ERP 9

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The completed Sales Voucher screen is shown below:

 

Multi Currency in Tally.ERP 9

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Accounting Receipt for the Payment

 

When the payment is made for the service, say the exchange rate has gone up to Rs. 55.50/$. Lets 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 as55.50’ Accept the Screen.

Multi Currency in Tally.ERP 9

 

 

 

 

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The completed Voucher is shown below:

 

Multi Currency in Tally.ERP 9
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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 Sheet

 

Multi Currency in Tally.ERP 9
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To adjust this unadjusted value, lets 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 screen

 

Multi Currency in Tally.ERP 9
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Now, lets pass the Journal entry as follows:

 

Multi Currency in Tally.ERP 9
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Hence, handling transactions in currencies other than the base (home) currency is now extremely simple with the versatile multicurrency support of Tally.ERP 9.

 
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