Tally Erp9 Lesson Import Purchase Forex Management. Thanks to Slide Share. Mohan.

1. Presented By
Mohan
Master Mind Tally Academy
Coimbatore
India
www.mastermindtallyacdemy.com

2. Tally
Lesson
Import Purchase
Forex
Management
Master Mind
Tally
Academy
Coimbatore - India
Presented By
Mohan

3. Import of Goods
Outward Foreign Currency
Inward Foreign Goods
Imports are monopoly by Foreign Hands.
Vat Sales & Inter State Sales are maneuvering with in India and between respective States.
In Vat Purchase & Sales proceedings, the movement of Goods & Currency are circulating with in India and between States.
Likewise ,Purchase Import of goods are entering in Indian Sub-Continental.
Simultaneously, Currency is Governed by US Dollars Vs Indian Rupee.
Import Country can Command the Overseas Exporters Economic Balances.
Through Directly or Indirectly.
------------------(o)------------------
Tally
Enable Foreign Exchange
Currency Ledger Creation
Import Transactions
Foxex Exchange Difference
Forex Gain / Loss Journal Entry

4. DEFINITION
The Term Import is derived from the conceptual meaning as the goods getting into another countries
port.
The seller of such goods and services is referred as an “ Imports” who is based in the country of export.
Whereas the overseas based buyer is referred to as an “ Exporter”.
Important Procedures:-
Correspondence with Buyer (India) / Sell (Overseas)
 Get Pro-Forma Invoice
 Contains Product Specifications
 Product Rate
 Product Quantity
 Product Rate
 Terms of Payment
 Product Value In USD.
Activation :
Enable Multi Currency -> Select F11 Feature Key -> Set “Yes”
Ledger Creations :-
Currency Ledger -> Foreign Currency US Dollar -> $-> Under Group> Indirect Expenses
Party Ledger Foreign Seller ( Supplier)-> Under Group->Sundry Creditors
Product Purchase Import ->Under Group-> Purchase Account
Bank Ledger -> Under Group ->Bank Account
Forex Gain/ Loss Ledger-> Under Group Indirect Expenses / Indirect Income
Inventory Creation:-
Create Stock Item Product Name.
Voucher Creation :-
Forex Gain / Loss Voucher -> Voucher -> Journal

5. Enter the date for which the exchange rate is applicable
Enter the Standard Rate (optional) which is used to calculate variances from the actual transaction rates
Enter the Selling Rate (your selling rate)
Enter the Buying Rate (your buying rate)
Accept to Save
Note: Last Voucher Rate is displayed, if any voucher has been entered earlier.
Selling Rate – Specified Rate
Receipt of amount from buyer hits in Bank , where receive foreign exchange.
This is the rate obtained from your banker. Once the Selling Rate is specified in the Rates of Exchange
menu, while entering a foreign exchange transaction, the rates are defaulted automatically.
However, you can alter the rate as required.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is no
standard rate.
Buying Rate – Specified Rate
Buying Rate is your buying rate (as opposed to bank's buying rate) used in payment vouchers.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is
no standard rate.
Courtesy : Tally Solutions.(c)

6. Let us know how to activate the Multi Currency Configuration.
Gateway of Tally
Select-> “ F11 Feature Key”
Select -> “ Accounting Features ”
YES – To Allow Multi Currency
Enter to Accept the Accounting Features Configuration .
Set “ Yes”

7. Creation of US Dollar Foreign Currency .
Gateway of Tally -> Accounts Information -> “Select Currencies “ > Select “ Create “
Now Tally in Currency Creation Lay-Out. Set Symbol -> $
Symbol Formal Name -> Dollar ->
Set -> Other Features Say “Yes” / “No”.
This is the completion of US Dollar Currency Creation.
Creation of US Dollar Foreign Money Rates of Exchange.
Select the US Dollar in Alteration Mode
The above lay out will appear.
Rates of Exchange consists of
 Standard Rate / Selling Rate / Buying Rate Etc.,
First we have to set the rates of above slab in Tally in one time Creation .
In Standard Field Set -> Date > Type 60-00 Tally will understand the concept of
Indian Currency against US Dollar
As the same Set Date & Indian Value in Selling Field
Selling rate And Buying Field respectively.
Note the above Exchange Rates are one time Creation. We can any time to change the Forex rates at the time of Payment and
Purchase Transactions respectively.
.

8. Create-> Purchase Ledger:-
Gateway of Tally -> Accounts Information -> Ledger->Creation Lay-Out
Now you are in Ledger Creation Layout.
Ledger Name -> Type -> Purchase – Imports
Select Group Under -> Purchase Accounts From the List of Groups.
Currency Ledger -> Select -> Indian Currency ( Tally Inbuilt)
Set Maintain Balances Bill By Bill -> No
Set “Yes” To -> Inventory Values are affected
Statutory Information:-
Set “Yes” To -> Used in VAT Returns -> Select “Imports” From the VAT /Tax Class Menu
Set “No” To ->Is TDS Applicable.
Set “No” To -> Use For Assessable Value Calculation ?
……….
Now This is the completion of Purchase Imports Ledger Creation.
Create ->Party Ledger:-
Gateway of Tally -> Accounts Information -> Ledger->Creation
Now you are in Ledger Creation Layout.
Ledger Name -> KalaNikethan USA
Select Group Under -> Sundry Creditors … From the List of Groups.
Currency Ledger -> Set US Dollar $
Note :- Import Party Ledger Account Currency is $ US Dollar is Mandatory
Statutory Information:-
Set “NO” To -> Is TDS Deductable
……….
Now This is the completion of Purchase Imports Ledger Creation.

9. Create-> Forex Gain / Loss Account Ledger:-
Gateway of Tally -> Accounts Information -> Ledger->Creation Lay-Out
Now you are in Ledger Creation Layout.
Ledger Name -> Type -> “ Forex Gain / Loss Ac
Select Group Under -> Indirect Income … From the List of Groups.
Currency Ledger -> Indian Currency ( Tally Inbuilt)
Set No -> Inventory Values are affected
Set No-> Allow Cost allocation (Stock Item)
Statutory Information:-
Set “NO” To -> Is TDS Deductable
Set “NO” To -> Used in VAT Returns
Set “NO” To -> Use for Assessable Value Calculation
……….
Now This is the completion of Purchase Imports Ledger Creation.
Create-> Master Mind Bank Ltd Account Ledger:-
Gateway of Tally -> Accounts Information -> Ledger-> Creation Lay-
Out
Now you are in Ledger Creation Layout.
Ledger Name ->Type -> Master Mind Bank Ltd
Select Group Under -> Bank Accounts … From the List of Groups.
Currency Ledger -> Indian Currency ( Tally Inbuilt)
……….
Now This is the completion of Purchase Imports Ledger Creation.

10. We are now in Inventory Creation Layout.
Let us Create Inventory Stock Items :-
Gateway of Tally -> Inventory Information -> Stock Items -> Create
Now Inventory Stock Item Creation Layout will appear.
Name of Stock Item -> Type -> “Remote Video Camera “
Set Description -> As in Field
Set Remarks -> As in Filed
Set Stock Item -> Group Under -> Primary
Set Stock Item -> Units -> No’s ( Numbers)
This is the completion of the Stock Item No.1

11. Let us Crete Special Voucher in the name & style of “Forex
Gain / Loss:
Purpose of Forex Gain/Loss “Special Voucher” function is to
set off the Un- reconciled Forex money exchange values.
Gateway of Tally -> Accounts Information -> Voucher->
Voucher Creation-> In Voucher Creation Layout
Type the Name of Voucher -> “Forex Gain / Loss”
Select Type of Voucher -> “Journal” From the List of Voucher
Types
In the Name of Class Field Type “ Forex Gain / Loss”
Enter to Next Pop up window
View Below Slide…
After Finishing the Name of Class Field
The Purpose of Forex Gain / Loss Voucher is to capture the
Nature of Forex Gain / Loss Transactions
The above Pop Up Window Class : Forex Gain / Loss will appear :-
Contains
Set “NO” to Use Class for VAT Adjustments.
Set “YES” to Use Class for Forex Gain / Loss Adjustments?
Forex Gain / Loss Ledger Account to use set -> Not Applicable
Enter to Accept the Voucher

12. Gateway of Tally -> Select Accounting Vouchers-> Select F5
Payment Entry .
Select Bank Ledger -> Master Mind Bank Ltd
( This is Single Entry Voucher Mode ->
Any Cash / Bank Comes First in Credit )Select Bank Ledger
Transaction of Payment Voucher Entry Mode.
Above Slide, We have Selected Bank Ledger -> “Master Mind
Bank Ltd” . Now Enter to Select Party Name -> KalaNikethan
USA -> Foreign Seller -> Enter Move to next field Amount.
Select Party Seller
Ledger
Transaction of Payment Voucher Entry Mode.
Above Slides, We have Selected Bank & Party Ledgers -> Now
we are in Amount Field….
In The Amount Field Type-> Select Symbol “$” from the key
board -> Denotes -> US Dollars
Select Dollar Symbol $ In
Amount Field
Import Purchase -> Advance Payment Transactions

13. Transaction of Payment Voucher Entry Mode.
Above Slides, We have Selected -> Ledgers of :-
Bank -> Master Mind Bank Ltd
Party -> KalaNikethan USA
Now the Mouse Pointer Stands in Amount Field
Set Symbol “$”( Denotes US Dollar)
Now Type the Dollar Amount -> $ .10520-00
Transaction of Payment Voucher Entry Mode.
Above Slides, We have Entered the Value in Dollar > $ .10520-00
<<< This Slide will help us to
Change / Modification of the Rate of Exchange.
View the full fledged payment entry below.
Now you are in Payment Voucher Entry Mode.
Above Slide We have Selected Party Name -> KalaNikethan USA -> Set Symbol “$” Denotes US Dollar
Then Type the Amount -> $ .10,520-00.
In the Currency Rate Exchange Field, We have Registered the Foreign Exchange Rate as One Dollar Value = Indian Currency
Rate is Rs.60.50 Hence Tally will assumes the Dollar Vs Indian Currency Rate.
Import Purchase -> Advance Payment Transactions

14. Now Let us Transact Purchase Imports Entry.
In the Purchase Entry Field
Set Date -> Use Key F2 -> 1St April 2015
Type Suppliers Invoice No.123
Select Party Name ->From the List of Ledger Accounts -> “
KalaNikethan USA”
In the Previous Slides ,we have selected the Party Foreign
Seller KalaNikethan USA.
Enter to the next filed ….
In Purchase Ledger Field -> Select “Purchase : Imports”
From the List of Ledger Accounts
View Next Slide Enter…
Import Purchase -> Purchase Import Transactions

15. After Selecting the Inventory Stock Item” Remote Video Camera” Enter To Drop-Down, the below Item
Allocations will appear refer Slide No.1 .
Godown …Select -> Main Location.
Enter to Next Field …Quantity-> Set 1 (No)
Enter to Next Field Rate -> Set Symbol $ ( US Dollars) and Type .10520-00.
Tally Automatically Calculates the sum $.10520-00 x Rs.61.50 = Rs.6,46,980-00.
 Watch below slides (1) & (2)
Previous Slide
Import Purchase -> Purchase Import Transactions

16. This Purchase Entry Transactions exposes about
How to set Dollar in Amount Field.
Then how to implement the Forex Rate of Exchange on current date.
We can any time change the Forex Currency Rate of Exchange in the Pop-Up Dialogue Box
Purchase Invoice USD Currency Value is $.10,520-00
Multiple by Rate of Exchange Rate Rs.61.50.
Total Indian Currency Value is Rs.6,46,980-00.
Import Purchase -> Completion of Purchase Import Transactions

17. Legend
The above statement describes about US Dollar Vs Forex Exchange Rate -> Indian Currency Value.
If Forex Exchange Rate will Increase, simultaneously Indian Value will increase. Resulting Indian Exporters will benefit the Forex Exchange Gain.
If Forex Exchange Rate will Decrease , simultaneously Indian Value will Decrease. Resulting Indian Importers will suffer the Forex Exchange Loss.
The above slide describes about the Unadjusted Forex Gain / Loss Amount is Rs.10,520-00
This transactions ends with Forex Gain / Loss.
Party Account Automatic Difference Amount -> Unadjusted Forex
Transactions

18. This Slide narrates about the Unadjusted Forex Gain / Loss
Account of Party Ledger -> KalaNikethan USA
Payment made in Debit Side Shows -> $10,520-00…@ Forex Rate 60.50 ..INR Value Rs.6,36,460-00
Purchase Entry in Credit Side Shows-> $ 10,520-00…@ Forex Rate 61.50 ..INR Value Rs.6,46,980-00
The above slide describes about the Unadjusted Forex Gain / Loss Amount is Rs….10.520-00.
This transactions ends with Forex Gain / Loss.
Ok. Let us Activate the Unadjusted Forex Gain/Loss in Party Ledger Account…Press Enter to View the Ledger
Account of Forex Gain / Loss. Slide Below..
Notes ->
Debit -> Party Account
Credit -> Forex Gain / Loss Account
Party Account Automatic Difference Amount -> Unadjusted Forex
Transactions

19. This Slide narrates about the Unadjusted Forex Gain / Loss
Account of Party Ledger -> KalaNikethan USA
Payment made in Debit Side Shows -> $10,520-00…@ Forex Rate 60.50 ..INR Value Rs.6,36,460-00
Purchase Entry in Credit Side Shows-> $ 10,520-00…@ Forex Rate 61.50 ..INR Value Rs.6,46,980-00
The above slide describes about the Unadjusted Forex Gain / Loss Amount is Rs….10.520-00.
This transactions ends with Forex Gain / Loss.
After Passing the Forex Gain / Loss Adjustment
The Un Adjusted Forex Gain / Loss Account Turned as “ Forex Gain / Loss
Refer the Forex Gain / Loss in
Profit & Loss Account.
Party Account Automatic Difference Amount -> Unadjusted Forex
Transactions