Multi-currency in tally is useful when you are dealing in foreign exchange transactions and you need to enter both the currencies in tally.
There is a special feature called multi-currency in tally with which you can create different currencies and set exchange rates for them in tally.
We are going to look at it and many more options in this post.
What you will learn in this post
- How to enable multi-currency in tally
- How to create different currencies in tally
- How to alter a currency in tally
- Set different rates of exchange for currencies in tally
- Create a foreign currency purchase entry in tally
- Pass a foreign currency sales entry in tally
Introduction to Multi-Currency in Tally ERP 9
The basic use of multi-currency in tally is to record foreign currency transactions in tally.
Whether you purchase from outside India or sell outside India, there will be foreign currency involved in that transaction.
You can easily record that in tally with the help of multi-currency option in tally.
Using multi-currency in tally, you can define different currencies and set the exchange rates.
You can also set different buying and selling exchange rates in tally.
Let’s start step by step and I’ll show you everything about multi-currency in tally.
How to enable Multi-Currency in Tally ERP 9
In order to use multi-currency in our transactions in tally, we need to enable the option of multi-currency in tally.
Because, by default this option is not enabled as it considered an advanced option.
Let’s enable multi-currency in tally.
- From Gateway of Tally, go to Accounting Features.
- Now, under the General options, 4th option is to enable multi-currency in tally.
- Type Yes, against that option and press CTRL+A to save it.
Let’s go ahead and create some currencies in tally. 😉
How to Create Different Currencies in Tally – $ and ¥
Now that we have enabled multi-currency in tally, we can create different currencies in tally.
We will create 2 different currencies in tally i.e. US Dollar – $ and Japanese Yen – ¥.
Let’s create the currencies in tally step by step.
- From Gateway of Tally, go to Accounts Info.
- Now, select Currencies. It is also called the currency master in Tally ERP 9.
- Then, select Create.
- In symbol option, type the US Dollar symbol by pressing Shift + 4 on your keyboard.
- In formal name, type USD which is short for US Dollar.
- Keep the number of decimal places to 2.
- You can set Yes or No for option to show amount in millions depending upon how you see the amount in dollars. I will keep it to Yes.
- Select Yes against the option to suffix symbol to amount so that we can see $ after the amount in dollars.
- In the option Add space between amount and symbol, select No.
- Type Cent/s in the option – word representing amount after decimal.
- Put it 2 for the option of no. of decimal places for amounts in words.
- Press Enter 2 times to the save the currency.
Look at the image below to better understand what you have to exactly do in tally.
Congratulations! You have successfully created USD – $ in Tally.
In the similar way, we can create Japanese Yen – ¥.
The differences would be only in the names.
Symbol for Japanese Yen is ¥. You can type it in tally by pressing ALT + 0165. Formal name will be JPY.
Words representing amounts after decimal will be Sen/s because 100 Sens equals 1 Japanese Yen.
It is similar to 100 Paise = 1 Rupee.
Look at the image below to have a better look.
We have created 2 foreign currencies in tally named USD – $ and JPY – ¥. Now, we will look at editing or altering them.
How to Alter a Currency in Tally ERP 9
For some reason, you want to alter the currency we just created. It is very easy to alter a currency in tally.
Let me show you.
- While you are in the Currencies menu, select Alter.
- Now, from the list of currencies, select the currency that you want to alter.
You can now alter the options in the currencies as you like. Yes, it is that easy to alter the currencies in tally.
Now, we will set different rates of exchanges for the currencies that we have created in tally.
Set different Rates of Exchange for Currencies in Tally ERP 9
We have already created 2 different currencies in tally. But, we have not yet set the exchange rates for both the currencies.
Our base currency is Rupees – ₹. We will set the exchange rate of $ and ¥ against the value of rupees.
For our example, we will take the following exchange rates for USD.
|Particulars||USD - $||Rupee - ₹|
And for JPY, we will take the following exchange rates.
|T-Shirt||Rate per T-Shirt||Total Amount|
|Black T-Shirt||₹80 per t-shirt||₹80 x 20 = ₹1,600|
|White T-Shirt||₹90 per t-shirt||₹90 x 30 = ₹2,700|
|Grey T-Shirt||₹100 per t-shirt||₹100 x 50 = ₹5,000|
Now, that we have the exchange rates with us, we can easily set them in tally for both the currencies.
- In the Currencies menu, select the option Rates of Exchange.
- First option you will see is date. The rate that we will fix will be applied from that date. So, select the date on or after which you want the rates of exchange. I have selected 01-01-2019.
- After the date, just fill up the rates in different columns according to the tables above.
- Save the options.
Congratulations! You have successfully set exchange rates for different currencies in tally.
If you have noticed, when you were altering the currency, there was a table for rates of exchange.
In alteration of currency there, you can individually set the rates of exchange for individual currencies.
But, what we have done now is we have defined multi-currency alteration in tally.
We have created currencies and defined the exchange rates as well. Now, we will create a foreign exchange transaction in tally.
Create a Foreign Currency Purchase Entry in Tally ERP 9
Creating a foreign exchange transaction in tally is as simple as creating a simple purchase entry in tally.
I’ll show how you can pass a dollar purchase entry in tally.
We have created USD – $ and we are going to use it.
Example – 1
Let’s take an example. We are buying 10 keyboards from John from United States. The price of the keyboards is $100 per keyboard.
To pass the purchase entry of the above transaction you need the following ledgers and stock items in tally.
- Ledger of John – under Sundry Creditors
- Ledger of Imports – under Purchase Accounts
- Stock Item for product – Keyboard
After you have created all the above required ledgers and stock items in tally, we can pass the foreign currency purchase entry in tally.
Here is a step by step explanation with the required images.
- From Gateway of Tally, go to Accounting Vouchers.
- Select Purchase Voucher or press F9 which is the shortcut for purchase voucher in tally. – link
- Type in the appropriate date and supplier invoice number.
- In Party A/c name – select John from the list of ledger accounts. – link
- In the option – Name of Item – select Keyboard from the list of stock items.
- Now, in item allocations, quantity will be 10 rate will be $100 per unit.
- You have to specifically write $ and then 100 so that tally can pick up another currency and calculate it that way.
- A small window will now open up in which tally will ask you about the rate of exchange.
By default, there will be the buying rate which we have set but if your exchange rate is different, you can enter it in that window.
- After that press Enter and you will see 1,000$ with calculation into Rupees at the rate that we have entered.
- Press Enter again and you will see a grey window for accounting details in which you have to enter the purchase ledger in tally.
Select Imports which is the purchase ledger that we have created for this example.
- Press Enter a few times and save everything.
Congratulations! You have successfully passed foreign currency purchase entry in tally. You can use the same method to create a foreign currency sales entry in tally.
We will see how you can do that right now.
Pass a Foreign Currency Sales Entry in Tally ERP 9
We have purchased 10 keyboards at $100 per keyboard. We are going to pass a sales entry in tally of exporting them to Japan.
In other words, we are going to pass a foreign currency sales entry in tally with an example.
Example – 2
We will export 5 keyboards to Shizuka (doraemon fan) at ¥15,000 Yens per keyboard. We will sell them at the selling rate of Yen which we have already set.
For this example, we need to create two more ledgers. They are:
- Ledger of Shizuka – under Sundry Debtors
- Ledger of Exports – under Sales Accounts
Once the ledgers are created, we can easily pass the sales entry in foreign currency in tally.
Here is a step by step explanation:
- From Gateway of Tally, go to Accounting Vouchers.
- Select Sales voucher from the right hand side or press F8.
- Type in appropriate date and press Enter.
- In the option – Name of Item, select Keyboard from the list of stock items in tally.
- Now, in item allocations, quantity will be 5 rate will be ¥15,000 per unit.
- You have to specifically write ¥ (press ALT + 0165) and then 15,000 so that tally can pick up another currency and calculate it that way.
- A small window will now open up in which tally will ask you about the rate of exchange.By default, there will be the selling rate which we have set but if your exchange rate is different, you can enter it in that window.
- After that press Enter and you will see ¥15,000 with calculation into Rupees at the rate that we have entered.
- Press Enter again and you will see a grey window for accounting details in which you have to enter the sales ledger in tally.
Select Exports which is the sales ledger that we have created for this example.
- Press Enter a few times and save everything.
Congratulations! We have successfully pass a foreign currency sales entry in tally.
Multi-Currency in Tally ERP 9 with GST – Convert $ to ₹
After going through this post, you will now be able to easily pass any multi-currency transaction in tally – be it sales, purchase or any other.
The 2 important things of this post here are:
- Creating different currencies and setting exchange rates
- Typing the currency symbol i.e. $ or ¥ before amount in the purchase and sales entries.
The purpose of purchase and sales entries was that you learn both imports and exports.
If you want to enter GST or import duties, just enter the GST ledgers and you will have GST added in your invoice as well.
Still, if you have any doubts or questions or suggestions, please comment down below and I will try my best to help you.