(A) Exchange rate of USD on trading date : 1 USD = 74

10000$ * 74

Rs. 7,40,000

(B) Exchange rate of USD on receipt date : 1 USD = 69

10000$*69

Rs. 6,90,000

Forex Loss

Rs.   50,000

Step 1

Follow the direction: Gateway of Tally > F11 Features. > F1 Accounting features

Step 2

In Accounting feature screen Enable  Allow multi-currency: Yes

Step 3

Press enter and save the screen.

Direction

Go to Gateway of Tally > Accounts Info > Currencies > Create

Details to enter

·       Symbol: Enter the symbol of currencies

·       Number of decimal places: Generally we keep this to two decimal places

·       Amounts to show in Millions: If you set to yes 10,00000.00 will be shown as 1 Million.

·       Is Symbol suffixed to amounts:  Yes, then amount will we displayed as $, £,¥ etc., (Viz., US dollar/Pounds, Yen etc.,)

·       Add space between Amount and symbol: If set yes, Tally will put a space in between amount and symbol like $  10000

·       Word used to print a decimal portion of the amount: For example, the decimal portion of USD is cents.

Direction

Go to Gateway of Tally > Accounts Info. > Currencies > Alter

Details to enter

In this screen, we can define a different exchange rate for different dates. Before doing that we must know some terms of currencies used in Tally.ERP 9 for better understanding of the rate of exchange.

Understanding terms of currencies

·       Standard Rate: Standard rate is the current rate of currency prevailing in the market.

·       Rate on the date of sale: Selling rate is the rate of the currency in which you are selling currency to your banker.

·       Rate on the date of purchase: Buying rate is the rate at which you are buying currency from the bank.

Direction

Gateway of Tally > Accounts Info > Ledger > Create

Steps to follow

To maintain Multi-currency in Tally ERP 9, we have to create a party ledger with foreign currency by selecting the required currency in the currency ledger field.

To create sales ledger

Follow: Gateway of Tally > Accounts Info > Ledger > Create

To create bank ledger

Follow: Gateway of Tally > Accounts Info > Ledger > Create

Note: Select the currency of bank account, one can choose INR or USD in which they are dealing with the bank.

To create a sales voucher

Gateway of Tally > Accounting Voucher > Sales

To change the date of transaction

Choose the date by pressing F2 and enter date 01-11-2018

To create party ledger

Gateway of Tally > Accounts Info > Ledger > Create

To create a sales ledger

Sales Name of the ledger we have created. Since it’s an export sale we can create sales ledger in the name of Export sales under sales accounts.

To enter other particulars

Enter Name of item (Selecting from the Inventory item if any created) and following it, enter quantity and rate particulars.

To feed the forex exchange rate

·       Press enter, When the cursor is on ‘No’ field, (next to rate field)

·       Now press enter again Forex rate of exchange column will be displayed.

·       In the rate of exchange field feed the currency rate on the date of transaction (in the given example it is 74$)

To save the voucher

Press “Enter” and save the voucher.

To create a receipt voucher

Gateway of Tally > Accounting Voucher > Receipt.

To select a Bank account

Select the bank account from the list of ledgers in which we are going to receive dollars.

To fill up particulars and amount column

In the particulars, column enters Party name from whom we are receiving a dollar. (In the given example ABC INC.)

In the amount field type, exactly $10,000 and press enter the Forex rate exchange screen will open.

Enter the rate of exchange in the rate of exchange field on the date of transaction (30.11.2018) in the given Case it is 69$

To save the voucher

Press Enter and save the voucher

(A) Exchange rate of USD on selling date: 1 USD = INR 74

10000$ * 74

Rs. 7,40,000

(B) Exchange rate of USD on receipt date: 1 USD = INR 69

10000$ * 69

Rs. 6,90,000

Forex Loss

Rs.   50,000