written by | March 8, 2022

Everything about Multi-Currency in Tally.ERP 9

Tally is one of the most popular accounting software. Knowledge of Tally is one of the basic requirements for almost all accounting jobs in India. Tally is used for the maintenance of business records and the preparation of financial statements. It is an accounting software used for the completion of various accounting tasks speedily and with perfection. It offers comprehensive business functionalities such as accounting, finance, inventory, sales, purchase, point of sales, manufacturing, costing, job costing, payroll, and branch management along with compliance capabilities for TDS, TCS and GST as well. It is primarily designed to compile, and store accounting records electronically. However, its various services have expanded further. These range from entering day to day transactions, maintenance of inventory records, generating various reports, preparing budgets, financial management tools like cash flow, fund flow, auto calculation, and embedded audit tools as well. 

Did you know? Tally.ERP9 provides an educational mode in which you can learn Tally without a licence fee but you can't change the date in that mode; it is set by default as 1 April.  

Defining multi-currency in Tally.ERP 9

Tally.ERP 9 provides many valuable facilities related to accounting and its management. Multi-currency in Tally is a very easy and effective application in maintaining accounts. This type of application is time-effective for accounting professionals who are able to execute their respective functions in a seamless manner. This has spurred an increase in the usage of Tally in today's business environment. Globalisation has paved the path for innumerable business and trade operations between all the countries of the world. Such transactions are made in distinct currencies. This makes it imperative to have them recorded either in their own home currency or in the foreign currency. The base currency is the currency in which you maintain your books of accounts. Tally supports the recording of all transactions in multi-currencies, with accurate details about the rate of exchange, and also enables an automatic calculation of gain or loss that takes place. It thus eases the entire process of the various financial operations during business deals and transactions.

Also read: All About Creating A Company In Tally.ERP 9

 Advantages of multi-currency:

  •  You can create as many foreign currencies as required.
  •  You can pass transactions in multi-currencies.
  •  Tally automatically calculates the forex gain /loss
  •  You can see reports like balance sheet and profit and loss account etc. in multi-currency. 

Did you know? The balance sheet as well as the profit and loss account of a company is always maintained in the base currency.

Activating multi-currency in Tally.ERP 9

 Given below are the details of activating multi-currency in Tally.ERP 9:


Gateway of Tally > F11 Features. > F1 Accounting features


In Accounting feature screen Enable Allow multi-currency: Yes


Press enter and save the screen.

How multi-currency features are used in Tally.ERP 9 

Step 1: Creating Currencies

  • The first step in this is of Creating Currencies.
  • Go to Gateway of Tally – Accounts Info – Currencies and then click on Create.  
  • You now enter the details as indicated:
  • Enter the symbol of the said currency with at least two decimal places
  • Amount that indicates Millions: You set it to- 10,00000.00. This will reflect as 1 million.
  • Symbol of currency suffixed to amount: Say yes. The amount will be showcased in the respective currency symbols like that of pounds, dollars, yen etc.
  • Add a space between the symbol and the said amount – when you set this to ‘yes’, Tally will automatically create a space between amount and symbol e.g. $ 50000

Step 2. Defining rate of exchange:

  • You can alter the currency to define the rates of currency exchange on different dates. This is done in the following manner:
  • Go to Gateway of Tally – Accounts info – Currencies – Alter
  • You now enter the details as indicated:
  • You can state a different exchange rate for different dates. However, you need to be familiar with a few terms of currencies that are used in Tally ERP.9 to get a better idea of the rate of exchange.
  • How to understand the terms of currencies:
  • Standard rate – Is the current prevailing rate of currency in the market
  • Rate on the date of sale – Is the rate of the currency in which you sell it to your Banker
  • Rate on date of purchase – Is the buying rate which you buy it at from the Bank

Also read: All About Tally.ERP 9's Cost Centre

Step 3. Understanding Forex gain or loss:

Let's understand what is Forex gain or forex loss with the help of the following example:

Example: On 1 June 2021,  KBC house sold goods of $500 to a foreign company ABC Store. The exchange rate of 1 June 2021 was 70 for 1 USD. On 20 June 2021, KBC House received $500 in their bank account and the exchange rate was 75 for 1 USD on that day.

The calculations will be performed in this way:

Selling value on 1-5-2021

500 X 70 = 35000

Receiving value on 20-5-2021

500 X 75 = 37500

Forex gain

37500 - 35000 = 2500 

In the same way if the exchange rate decreases the Seller will experience Forex loss. 

Step 4. How rates of exchange are defined

Step 1

Go to Gateway of Tally > Accounts info. > Currencies >  Rate of Exchange

Step 2

Multi-currency alteration screen appears.

Step 3

Enter the date for which the exchange rate is applicable.

Step 4

Enter the standard rate. The standard rate is the current rate of currency in the market.

Step 5

Enter the Selling rate. It is the rate at which your bank will buy the currency for you.

Step 6

Enter the buying rate. It is the rate at which you will buy currency from the bank.

Step 7

Press Y or Enter to accept the screen.  

Step 5. How to alter currencies:

You can modify or delete a currency master in the alteration mode and also change the rate of exchange in the following manner:

Step 1

Go to Gateway of Tally and then click on Accounts info. and after that select the option of Currencies and at last click, on Alter

Step 2

List of currencies menu appears, click the desired currency say $ to be altered 

Step 3

Currency alteration screen appears make the desired changes

Step 4 

Press Ctrl+A to save 

Step 6. Creating a party ledger with foreign currency

For maintaining multi-currencies you will have to create a party ledger with the said foreign currency. This is done as follows:

Step 1

Go to Gateway of Tally > accounting vouchers > Accounts info. > Ledger > Create (under the head single group)

Step 2

Ledger Creation Screen appears.

Step 3

Enter the name of the ledger Example ABC Store Account under the Name option

Step 4

Click the group under which the ledger will be created beside the under option. Example Sunday Debtors.

Step 5 

Set Currency of Ledger as $ (USD).

Step 6

Press Y or Enter to save the ledger. 

Also read: All About Banking Entry In Tally ERP 9

Step 7. Creating a Sales ledger and a Bank Account Ledger:

You can create a sales ledger and a bank ledger in the following manner:

To create sales ledger

Gateway of Tally > Accounts Info > Ledger > Create

To create bank ledger

Gateway of Tally > Accounts Info > Ledger > Create

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

Step 8. How to pass a transaction:

Consider a sales transaction in the dollar currency as follows:

MAC Ltd sold 100 numbers of a product valued at $ 100 on December 2, 2020 to XYZ Ltd. The exchange rate being $ 90 on that specific day.

Process of entering this transaction:

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 02-12-2020

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. The Forex rate of exchange will be displayed.

· In the rate of exchange field feed the currency rate on the date of transaction (in the given example it is $90

To save the voucher

Press “Enter” and save the voucher.

Now on receipt of the sum from ABC INC, we have to pass a receipt voucher. To pass receipt 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 MAC Ltd.)

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

How Unadjusted Forex gain/loss is reflected?

Forex gain/ loss arises due to the difference between foreign currency standard rate and currency’s selling rate or buying rate on a particular day. The unadjusted Forex gain or loss is indicated via the following steps:

Step 1

Go to Gateway of tally > Balance Sheet.

Step 2

Balance sheet shows the unadjusted forex gain/ loss 

Making an adjustment to the unadjusted Forex Gain/Loss:

At the onset, you have to create a ledger titled FOREX GAIN & LOSS under the section of Indirect Expenses


Gateway of Tally >> Accounting Info >> Voucher Type >> Alter >> Journal >> Name of class. specify a name say 'Forex'.

  • In the sub-screen, use Forex Gain/Loss adjustments = yes >> select the Forex gain & loss ledger and accept.
  • In order to adjust the unadjusted forex gain/loss in the balance sheet, pass a journal entry.
  • XYZ Ltd, Cr Forex Gain & Loss
  • Now select - Bill References.
  • Accept the voucher to remove unadjusted forex gain loss

Also read: How to use Tally ERP 9. Release 6 for GST


Multi-currency in Tally.ERP 9 provides a complete support that enables the recording of transactions in various currencies, specifies the rate of exchange, also enables an automatic calculation of Forex Gain/Loss while making simplified adjustments as well. Tally ERP.9 has proved to be an indispensable software to the numerous professionals in the world of accounting. It operates seamlessly, helps you save time, and executes operation to accuracy. Almost every business enterprise resorts to this software for its innumerable benefits. Tally users can also use the Biz Analyst App to manage the business more effectively. You can manage the accounts, make ledgers, and even do data entry to keep the business on the right track.


Q: How to create foreign currency in Tally?


Go to Gateway of Tally- Accounts info.-Currencies-Create.

Q: How does one activate multi-currency in tally?


Go to Gateway of Tally - Press F11: features - Choose Accounting Features. Set option - Enable multi currency to Yes.

Q: Can we alter multi currency in Tally?


We can easily alter multi currency in Tally in the following manner: Go to: Gateway of Tally -select  Accounts info - click on Currencies and finally, click on Alter option.

Q: What is multi currency in Tally?


Organisations mostly deal with more than one country and in different currencies. This calls for a recording of these transactions to arrive at the gain or loss in accordance with the prevailing exchange rates.

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