Enabling and Working with Other Currencies in Tally Prime

Introduction

Tally Prime is a powerful accounting software that enables businesses to manage their financial operations efficiently. For export and import firms, handling multiple currencies is essential for accurate reporting and transaction management. This guide explains how to enable and work with currencies like the US Dollar in Tally Prime.

Purpose of Multi-Currency in Export/Import Firms

1. Accurate Financial Reporting: Multi-currency support allows firms to maintain accurate records of transactions in different currencies.
2. Hedging Against Currency Fluctuations: Companies can monitor and manage risks associated with currency fluctuations.
3. Improved Customer Experience: Offering invoices in customers’ preferred currencies can enhance satisfaction and simplify transactions.
4. Streamlined Transactions: Facilitates easier management of international payments and receipts.

How to Enable Other Currencies in Tally Prime

Step 1: Enable Multi-Currency Feature

1. Open Tally Prime.
2. Go to Gateway of Tally.
3. Navigate to F11: Features.
4. Select Accounting Features.
5. Set Enable Multi-Currency to Yes.
6. Press Enter to save.

Step 2: Create a New Currency

1. Go back to the Gateway of Tally.
2. Select Accounts Info.
3. Choose Currency and then select Create.
4. Enter the following details:
   • Name: US Dollar (or any other currency)
   • Symbol: $
   • Formal Name: United States Dollar
   • Decimal Places: 2
5. Set the Currency Rate (e.g., if 1 USD = 74 INR).
6. Press Enter to save the currency.

Step 3: Using the New Currency

1. When recording transactions, select the relevant currency (e.g., USD) in the currency field.
2. Tally Prime will automatically convert amounts based on the rate you set during currency creation.
3. For reporting, you can view transactions in both the functional currency and the selected foreign currency.

Step 4: Update Currency Rates

• Regularly update the currency rates to reflect real-time market values:
  1. Go to Accounts Info.
  2. Select Currency.
  3. Choose the currency you want to update.
  4. Enter the new rate and save.

Conclusion

Enabling and working with multiple currencies in Tally Prime can significantly benefit export and import firms by ensuring precise transaction handling and financial reporting. Following the steps outlined in this guide will help you set up and use various currencies effectively.

Support

For any additional queries or assistance, you can reach out to Bison Infosolutions, an authorized partner for Tally Prime:

• Website: bison.co.in
• Email: info@bison.co.in
• Support Number: 7047947970