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.
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Select Base Currency while creating a company
Define Rates of Exchange for 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. Tally.ERP 9 makes it easy to manage multiple currencies, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.
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.
Base currency information for the company can be defined during company creation.
Note: At time of installing Tally.ERP 9, if the c ountry is India/SAARC , the Currency Symbol is by default set as ₹ in the Company master otherwise if the Country Selection is opted as International (Others) , the Currency Symbol is by default set as £ in the Company master.
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. You can create multiple currencies as per your business needs. Enable the Multi-Currency feature to view and enter transactions in multiple currencies.
1. Go to Gateway of Tally .
2. Click F11:Features > F1: Accounting Features.
3. Set the option Enable multi-currency to Yes
4. Press Ctrl+A to save.
You can create a currency and use it as your base or foreign currency. You can set preferences like currency symbol and decimal places accordingly when creating or altering a currency.
1. Go to Gateway of Tally > Accounts Info. > Currencies > Create .
2. Enter the currency Symbol field. This symbol appears in your reports, wherever applicable.
Note: Use ASCII Special Characters with [Alt] key combination, if your keyboard does not have the symbol. Utilities like Character Map ( Start > All Programs > Accessories > System Tools ) in Windows show the key combination for most symbols. This might be different on some notebook computers. Refer to the computer's user manual or the vendor.
3. Enter the name of the currency in Formal name . For example, US Dollars to distinguish different currencies having the same symbol. For example, you have two companies ( ABC & XYZ ) in Tally.ERP 9. ABC and XYZ have different set of currencies. ABC uses symbol $ for Australian Dollars and XYZ uses the symbol $ for U.S. Dollars . The formal name distinguishes two different currencies with the same symbol, when you compare Books of Accounts of the two companies.The company that is loaded first retains the original symbol for display purposes. The other company's currency symbol will be prefixed with the first letter/first few letters (to make it unique) of the formal name. Here, if ABC is loaded first then the symbol $ is for Australian Dollars and in XYZ (loaded next) the symbol $ is prefixed with the letter U (first letter of its formal name).
Note: You cannot assign a duplicate Formal Name for a currency in Tally.ERP 9.
4. Enter the number of decimal places for the currency in Number of decimal places . E.g. Currencies with 2 decimal places like paisa and currencies with three decimal places like dinar. There are currencies that do not have decimal places, e.g., Vietnamese Dong.
5. Tally.ERP 9 has two formats for displaying an amount, viz., in millions and in lakhs. 1000000 (one followed by six zeroes) in millions format would appear as 1,000,000 and lakhs would appear as 10,00,000.
6. Select the required parameter in Show amounts in millions field. If you select No , the amounts will appear in Lakhs, by default.
Note: You can always specify the appearance of numbers in specific reports, e.g. In Profit & Loss Account display, click F12: Configure to change scale factors for values.
7. Set Suffix symbol to amount to Yes for the symbol to appear after the amount.
8. Set Add space between amount and symbol? to Yes to apply a space between amounts and symbol.
9. Enter the s ymbol for decimal portion of currency in Word representing amount after decimal field. Eg., Ps. for Paise.
10. Enter the number of decimal places for printing the amounts in words in No. of decimal places for amounts in words field. This number should be equal to or lesser than the number specified in Number of decimal places field.
You can modify or delete a currency master in the alteration mode of the currency master. The rate of exchange can also be altered from here.
1. Go to Gateway of Tally > Accounts Info. > Currencies > Alter .
2. Select a Currency from the List of Currencies list
3. In the Currency Alteration screen, modify details as required. For more information refer Creating a Currency .
Note: At any given date, when the rate of exchange is available in both Last Voucher Date and Specified Rate fields in the currency master, it will consider the rate available in the Last Voucher Rate field only.
In a remote connection, if the Formal Name defined in a ledger while passing a transaction is not the same as defined in the company selected, an error message is displayed.
For example, Must use currency “$” for ledger "Sales" .
Foreign exchange variations occur every day with different selling and buying rates. You can record the rate of currency applicable for a particular date and use it in transactions. The standard rate, selling rate, and buying rate can be updated from the Multi-Currency Alteration screen. Tally.ERP 9 automatically calculates Forex Gain or Loss for foreign exchange transactions using the rates specified in the Multi-Currency Alteration screen.
1. Go to Gateway of Tally > Accounts Info > Currencies > Rates of Exchange .
The Multi-Currency Alteration screen appears as shown below:
2. Enter the date for which the exchange rate is applicable
3. Enter the Standard Rate (optional) which is used to calculate variances from the actual transaction rates
4. Enter the Selling Rate (your selling rate)
5. Enter the Buying Rate (your buying rate)
6. Press Enter to save the Multi-Currency Alteration screen.
Note: For currencies that have been used in transactions, the Last Voucher Rate is displayed for reference.
1. Go to Gateway of Tally > Accounts Info. > Currencies > Alter .
2. Select a currency from the Currencies list (displayed, if there is more than 1 currency).
3. Press Alt+D in the Currency Alteration screen to delete.
Note: You cannot delete a currency if it is used in a transaction.
