How to Configure Multi-Currency Entries in Tally Prime

If your company engages in international trade, you will receive invoices and make payments in currencies other than the Indian Rupee (INR). Tally Prime's multi-currency module allows you to record these entries, maintain foreign currency accounts, and adjust exchange rate differences.

Step 1: Enable & Create Foreign Currencies

To add currencies (e.g. US Dollar, Euro):

1. Go to Gateway of Tally > Create.
2. Select Currency under Accounting Masters.
3. Tally will prompt: Create New Currency? Select Create New.
4. Enter the details:
   • Symbol: `$` (for USD) or `€` (for EUR).
   • Formal Name: `US Dollar` or `Euro`.
   • Decimal Places: Set to `2`.
5. Press Ctrl+A to save.

Step 2: Defining Exchange Rates

Before recording vouchers, you must configure daily or monthly exchange rates:

1. Go to Gateway of Tally > Alter > Rates of Exchange.
2. Specify the conversion rate against your base currency (INR) for different dates:
   • Std. Rate (Standard Rate): Used for general calculation.
   • Selling Rate: Used for sales invoices.
   • Buying Rate: Used for purchase invoices.
3. Save the rates. Tally will apply these figures during voucher entry.

Step 3: Recording Multi-Currency Vouchers

During invoice creation:

1. Create a sales invoice (F8). Select the customer ledger.
2. In the amount field, enter the currency symbol followed by the amount (e.g., $1500).
3. Tally will display a popup asking you to confirm the exchange rate (e.g., `$1 = 83.50 INR`).
4. Confirm the rate. Tally will record the transaction in USD but post the base value in INR to your reports.

Step 4: Reconciling Forex Gain & Loss

If you issue an invoice at an exchange rate of `$1 = 83.00` but receive the payment when the rate shifts to `$1 = 83.50`, you have a forex gain. You must adjust this:

1. Create a ledger called "Foreign Exchange Gain/Loss A/c" under Indirect Expenses (or Indirect Incomes).
2. Go to Vouchers > F7 (Journal).
3. Debit the Bank and credit the customer, allocating the difference amount to the Forex Gain/Loss ledger.

TrulyInvoice: Core INR Accounting Automation

TrulyInvoice is optimized for INR currency transactions and Indian GST compliance. To maintain perfect balance in multi-currency operations:

• GST-Compliant Ingestion: Automatically extracts domestic tax values and item line parameters from your local supplier invoices.
• Secure Local Integration: Syncs entries to Tally Prime over a secure Port 9000 connector at a flat rate of **plans starting at ₹399/month**, eliminating manual typing.
• Manual Forex Allocations: Post your main INR receipts or payments via TrulyInvoice, and perform standard currency adjustment entries in Tally to account for foreign exchange fluctuations.

Frequently Asked Questions