How to Record Multi-Currency Transactions in Tally Prime?
Tally makes it easy to manage Multi-Currency, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.
Many Organizations have transactions in more than one currency. Such transactions have to be recorded either in the base (home) currency or in the foreign currency. If the transactions are recorded in home currency, the rate at which the foreign currency is exchanged should be recorded as well. At times you need to record the transaction in the foreign currency itself when you maintain the balance of the concerned account in foreign currency.
Tally. ERP 9 uses the term base currency for the currency in which your account books are kept. Foreign Exchange is used interchangeably with foreign currency. The base currency is specified while creating the company.
The Balance Sheet and Profit & Loss Account of the company is maintained in the base currency. Conversion of foreign currency account balances is done as per rules set by you.
Multicurrency is used in foreign exchange transaction.
Table of Content for recording multi-currency in tally
- Currency Creation
- Ledger Creation
- Voucher Class Creation
- Purchase/Sales Voucher
- Payment/Receipt Voucher
- Journal Voucher for adjustment
1) How to Activate and Create Currency in tally prime?
Gateway of Tally —-> Create —–>Show more —-> Show inactive —-> Currency —-> Create New
2) Create following ledger: –
- Forex Profit (Indirect Income)
- Forex Loss (Indirect Loss)
3) Creating Journal Voucher Class: –
Gateway of tally ——>Alter——> Voucher Types——>Journal Voucher
- Name of Class: – Forex Profit
- Use class for forex gain/loss adjustment: – Yes
- Ledger name: – Forex profit
