Multi-Currency in Tally Prime

In your business, when you need to do transactions in more than one currency, you can create multiple currencies in Tally Prime. You will need to use foreign currencies in your transactions based on the currency in which your customers want the invoice, the geographical location in which the transaction is carried out, or other such reasons. In Tally Prime, you can define the base currency at the time of Company creation. Base currency is the primary currency used in all the transactions, unless you create other currencies and use those in the transactions, based on your business need. Multi-currency in Tally Prime enables you to record vouchers in a foreign currency and view reports in a specific currency as needed. 

Moreover, you can define exchange rates for a specific currency with respect to the base currency, and also calculate forex gain or loss.

You can provide opening balance for ledger accounts in any currency created in TallyPrime. 

You can also change the base currency and alter or delete other currencies created in TallyPrime, as per your requirement. 

Transactions in Foreign Currency

Based on the currency in which your customer requires invoices, international trading, or other reasons, you may need to record transactions in a foreign currency in TallyPrime. You can create foreign currency in TallyPrime, using which you can record transactions, define forex rates, and calculate forex gain or loss, as needed.

Create currency 

Like any other master, you can create a currency master in TallyPrime and use it while recording transactions and also view reports. 

1. Press Alt+G (Go To) > Create Master > Currency > and press Enter.
   Alternatively, Gateway of Tally > Create > Currency > and press Enter.
   The Currency Creation screen appears.
   

   When only the base currency is available, you will be prompted to create a new currency or alter the existing currency. Select Create or press C to create a new currency.

2. Specify the currency details.
   1. Symbol: Enter the currency symbol.
      This symbol appears in your transactions.
   2. Formal name: Enter the name of the currency accepted globally.
      For example, enter US Dollars to distinguish different currencies having the same symbol.
      If you have two companies (ABC & XYZ) in TallyPrime, then you can set different currencies for both the companies. 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, which helps when you compare the books of accounts for both the 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).
      

      You cannot assign a duplicate Formal name for a currency.

3. Number of decimal places: Enter the number of decimal places, based on the practice you follow in your business. 
4. Set the option Show amounts in millions to Yes or No, as needed.
5. Suffix symbol to amount: Yes.
   This ensures that the symbol appears after the amount.
6. Add space between amount and symbol: Yes.
7. Specify details for the word representing amount after decimal.
   1. Enter the Word representing amount after decimal, for example, Paise.
   2. Enter the No. of decimal places for amounts in words.
      This number should be equal to or lesser than the number specified in Number of decimal places field.
      
8. Accept the screen. As always, you can press Ctrl+A to save.

Define forex rate

In TallyPrime, you need to define forex rate for a particular currency based on the rate of exchange on a specific date. You can also define forex rates for multiple dates based on the variation in the rate of exchange. It enables you to calculate forex gain or loss for transactions in which the sales order/purchase order and sales invoice/payment voucher are recorded at different points in time. TallyPrime also gives you the flexibility to change the rate of exchange while recording a transaction. 

From the Currency Alteration screen, follow the steps given below.

1. In the Rate of Exchangesection, provide the standard rate details.
   1. Date: Enter the date at which the rate of exchange is applicable.
   2. Specified Rate: Standard rate (optional) is used to calculate variances from the actual transaction rates. 
2. In the Rate of Exchange section, provide the forex rate details:
   1. Under Selling, enter the Date, the Last Voucher Rate and the Specified Rate applicable as per the supply done on that date.
   2. Under Buying, enter the Date, the Last Voucher Rate and the Specified Rateapplicable as per the purchase done on that date. 

      A sample image of the Currency Alteration screen with the defined rates of exchange appears, as shown below: 

      

3. Accept the screen. As always, you can press Ctrl+A to save.

For currencies that have been used in transactions, the Last Voucher Rate appears for reference. Moreover, you can specify rates for multiple dates, as needed. 

Define forex rates of multiple Currencies (Multi-Masters)

There may be more than one currencies in TallyPrime for which you want to define forex rates. You can do so using Chart of Accounts.

1. Press Alt+G (Go To) > type or select Chart of Accounts and press Enter > type or select Currencies and press Enter.
   Alternatively, Gateway of Tally > Chart of Accounts > type or select Currencies and press Enter.
   Chart of Accounts with List of Currencies appears.
2. Press Alt+H (Multi-Masters) > Rate of Exchange and press Enter.
3. Provide the details of forex rates.
   1. Std Rate: Enter the standard rate of exchange.
   2. Selling Rate: Enter the rate used while selling.
   3. Buying Rate: Enter the rate used while creating buying.
      
4. Accept the screen. As always, you can press Ctrl+A to save.

Record transactions with multi-currency

Once you create the currency in TallyPrime, you can record transaction using the same. In the transaction, you can either retain the rate of exchange, if defined in the master, or can change, as needed.

Record sales invoice with multi-currency

You may be selling goods or services to a customer based in a country other than India. And the customer may need an invoice in the currency of that country. In cases wherein the base currency and the currency of the sales transaction are different, you will need to create sales invoice with the foreign currency.

1. While recording a sales invoice, provide the stock item details and press Enter.
   If you have already created the Rate of Exchange, the Forex Rate of Exchange screen appears.
2. Provide the Rate of Exchange details.
   1. Enter the Rate of the item in the required foreign currency.
      
   2. Press Enter to view the Rate of Exchange screen, as shown below.
   3. Enter the latest Rate of Exchange.
   4. Press Ctrl+A to save the Forex Rate of Exchange screen.
      A sample sales invoice with the foreign currency appears as shown below.
      
3. Provide other details, as needed, and press Ctrl+A to save the sales invoice. 

Record purchase voucher with multi-currency

You may be purchasing goods or services from a vendor based in a country other than India. And the vendor may be expecting payments to be made in that country’s currency. In cases wherein the base currency and the currency of the purchase transaction are different, you will need to create purchase voucher with the foreign currency.

1. While recording a purchase invoice, provide the item details and press Enter.
   If you have already created the Rate of Exchange, the Forex Rate of Exchange screen appears.
2. Provide the Rate of Exchange details.
   1. Enter the Rate of the item in the foreign currency.
   2. Press Enter to view the Rate of Exchange screen, as shown below.
      
   3. Enter the latest Rate of Exchange.
   4. Accept the screen or press Ctrl+A to save the Forex Rate of Exchange screen.
      A sample purchase voucher with the foreign currency appears as shown below.
      
3. Provide other details, as needed, and press Ctrl+A to save the purchase invoice.