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.
To define rates of exchange
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)
Selling rate is your selling rate (as opposed to bank's selling rate) used for receipt voucher entry where you receive foreign exchange.
This is the rate obtained from your banker or also available in the daily newspaper. Once the Selling Rate is specified in the Rates of Exchange menu, while entering a foreign exchange transaction, the rates are defaulted automatically. However, you can alter the rate as required.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is no standard rate.
5. Enter the Buying Rate (your buying rate)
Buying Rate is your buying rate (as opposed to bank's buying rate) used in payment vouchers.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is no standard 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.
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