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Create Account for Forex Gain or Loss

Exchange rates fluctuate constantly due to global economic changes. If you sell goods or services or purchase at one rate and receive or pay money later at a different rate, your business may incur a forex gain or loss.

Example:
Your base currency is INR, and you sell items worth $100 when the exchange rate is ₹90 per USD (₹9,000).
If the customer pays later when the rate is ₹91 per USD, the amount becomes ₹9,100—resulting in a forex gain of ₹100.

In TallyPrime, such differences appear as Unadjusted Forex Gain/Loss in the Balance Sheet. As per accounting standards, you must record a transaction to account for these gains or losses. TallyPrime makes this process simple and accurate.

National Handicrafts exported woven carpets when the exchange rate was 90 INR per USD. When they received the payment, exchange rate increased to 91 INR/USD.

Before you begin | Prerequisites

• Create a ledger for forex gain or loss under Indirect Expenses or Indirect Income.

Create Journal Voucher Class (if required) using the forex gain or loss ledger. You can create multiple Journal Voucher Class for different currencies.

Create Journal Voucher for Forex Gain or Loss

1. Press Alt+G (Go To) > Alter Master > type or select Voucher Type> select Journal and press Enter.
2. Specify a Voucher Class name.
   For example, Forex Gain Or Loss.
3. Use Class for Forex Gain/Loss Adjustments: Yes.
4. Select Forex Gain Or Loss ledger.
   
5. Press Ctrl+A to save.

Create Journal Voucher for Forex Gain or Loss Using a Voucher Class

1. Press Alt+G (Go To) > type or select Create Voucher > press F7 (Journal).
2. Select the Voucher Class created for forex gain or loss.
   TallyPrime will display all the ledgers created to account for forex gain or loss.
   
3. Select the required ledger and enter the amount.
   
4. Press Ctrl+A to save.

The adjusted amount will not be displayed in the Balance sheet as it gets transferred to Profit and Loss Account.

If the currency of the ledger and the base currency are same, then the bill-wise details will appear only for those masters while adjusting the Forex Gain or Loss.