How to Add Currency in Tally Prime – Step-by-Step 2025 Guide for Multi-Currency Accounting

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Managing multiple currencies is essential for businesses dealing with international clients, foreign suppliers, export–import activities, or foreign travel expenses. Tally Prime makes this process simple by allowing you to add, edit, and manage currencies with full flexibility.

This comprehensive guide explains how to add a currency in Tally Prime, how to configure exchange rates, and how to use different currencies during sales, purchases, and receipt/payment entries.

What Is Currency in Tally Prime?

Currency represents the monetary unit used for accounting transactions. By default, Tally Prime uses INR (₹), but you can add any foreign currency such as:
• USD – US Dollar
• EUR – Euro
• GBP – British Pound
• AED – UAE Dirham
• JPY – Japanese Yen
• SGD – Singapore Dollar
• AUD – Australian Dollar

You can even create custom currencies for special reporting needs.

Why Add New Currency in Tally Prime?

You need multiple currencies when:
• Your company deals with overseas customers or suppliers
• You send or receive foreign payments
• You maintain export/import bills
• You use international bank accounts
• You want to track gain/loss due to forex fluctuations
• You prepare reports for international clients

Tally Prime allows smooth handling of all these cases.

How to Add a New Currency in Tally Prime (Step-by-Step)

Below is the complete, easy-to-follow process:

Step 1: Open Tally Prime → Go to Currency Creation Screen

Navigate to:
Gateway of Tally → Create → Currency

If you do not see this option, use:
Alt + G → Create Currency

Step 2: Enter Basic Currency Details

You will see a Currency Creation form. Fill fields like this:
Name of Currency: Example: US Dollar
Formal Name: Example: USD
Currency Symbol: Example: $
ISO Currency Code (Optional): Example: USD

Step 3: Configure Number Formatting

Tally asks for how the currency should appear in reports. Fields include:
• Decimal Places: Usually 2
• Show Amount in Millions: Yes/No
• Space between Amount & Symbol: Optional
• Symbol Position: Before/After amount

Example:
$ 1,000.00
or
1,000.00 USD

Step 4: Save the Currency

Press Ctrl + A to save. Your currency is now created and ready to use.

How to Add Exchange Rates in Tally Prime

Once currency is created, you must assign its exchange rate.

Go to:
Gateway of Tally → Alter → Currency

Select the currency → Scroll to Standard Rate of Exchange.
Enter:
• Date
• Rate of Exchange (Forex Rate)
• Selling Rate
• Buying Rate

Example for USD:
29-11-2025 → 1 USD = ₹84.50

How to Use Foreign Currency During Transactions

Once a currency is added, you can use it in:
• Sales Invoice (foreign customers)
• Purchase Invoice (international suppliers)
• Receipt Voucher (foreign payments received)
• Payment Voucher (foreign payments made)

Tally auto-calculates:
• INR value
• Forex gain/loss
• Adjustments in P&L

How to Assign Foreign Currency to a Ledger

Steps:
1. Go to Gateway → Alter → Ledger
2. Select Customer or Supplier
3. Set: Currency of Ledger = (select your new currency)
4. Save

Now every invoice for that ledger will use the selected currency automatically.

Forex Gain/Loss Calculation in Tally Prime

Tally calculates both realised and unrealised gains/losses.

Example:
Invoice value at ₹84.50 per USD
Payment received at ₹85.10 per USD
→ Gain of ₹0.60 per USD recorded automatically.

This helps in:
• P&L reporting
• GST accuracy
• Export compliance
• Audit trails

Editing or Deleting Currency in Tally

To edit currency:
Go to Alter → Currency → Select Currency

To delete currency:
Only possible if the currency is not used in any voucher. Used currencies cannot be deleted for safety.

Best Practices for Multi-Currency Accounting in 2025

• Update exchange rates regularly
• Assign currency only to correct ledgers
• Maintain separate bank accounts for foreign currencies
• Check Forex Gain/Loss monthly
• Always keep backups before updates

Conclusion

Adding a new currency in Tally Prime is simple and essential for businesses operating internationally. With proper currency creation, exchange rate setup, ledger mapping, and transaction handling, you can manage multi-currency accounting effortlessly.

Tally Prime ensures professional reporting, accurate forex adjustments, and smooth international operations.

FAQs

1. How many currencies can I add in Tally Prime?
Unlimited.

2. Does Tally auto-calculate forex gain/loss?
Yes.

3. Can I use foreign currency bank accounts?
Yes.

4. Can I change a ledger currency later?
Yes, if no transactions exist.

5. Do I need TSS for multi-currency features?
No.

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