Many Organisations have transactions in more than one currency. Such transactions have to be recorded either in the base (home) currency or in the foreign currency. If the transactions are recorded in home currency, the rate at which the foreign currency is exchanged should be recorded as well. At times you need to record the transaction in the foreign currency itself when you maintain the balance of the concerned account in foreign currency. Tally uses the term base currency for the currency in which your account books are kept.

As Additional Excise

In the Indian sub-continent, a manufacturing tax, or Excise is levied. For some products, a supplementary levy on the 'Basic Excise Duty' is charged, or 'Additional Excise Duty'. This is a surcharge calculation. For example, an Additional Excise Duty of 10% on the Basic Duty. While the calculation method is identical to 'As Surcharge' (see below), the result is to provide a 'Total Excise Payable' calculation accurately during Invoice printing.

Each voucher now contains the Cost Class option at its head. Select Not Applicable in case you want to allocate manually. Select a cost class to auto-allocate according to the predefined percentages set in that class.

We will take two examples, sales and payment.

In sales, we will select Export as the Cost Class.

Go to the Voucher Entry Screen

Select F8: Sales

You have the following options:

Your voucher type : Sales. You could select another voucher type if required.

Before you select classes, it is advisable to create the cost centre structure. Hence, create your cost categories and cost centres before creating classes.

Draw out on paper the Classes required and indicate which cost centres will be affected for each class. For example, You might have the following structure:

Divisions

1. Export

2. Wholesale

3. Retail

   Departments -

4. Finance

5. Marketing

The purpose of Cost Centre Classes is to facilitate predetermined allocation of ledger accounts (like expenses and incomes) to cost centres during voucher entry. Allocation to cost centres can be made while using voucher classes and the cost centres can be 'classed' too.

How does it work?

Automation of cost centre allocation involves 'percentage allocation' based on predefined figures. Cost Centre Classes are defined where percentages at which allocation is to be made are given.

Classes allow Journals to handle Forex Gain Loss Adjustments for companies having Multi-Currency Accounts. You would create a 'class' in the normal way (Accounts Info > Voucher Types > Alter > Journal). And having selected the class during Voucher Entry, will find only those Ledger Accounts appearing which have a Gain/Loss to be adjusted as of the date of voucher and auto-calculation of these amounts.

Expenses and other charges like Import Duty, Freight, VAT, Sales Tax can be specified here which will be calculated automatically on the Type of Calculation and Value basis. For explanation on each Type of Calculation, refer the Appendix.

We have selected Freight which is an account under the group Direct Expenses.

Type of Calculation

We select User defined value as we would like to input the amount of freight charged on the invoice.

Purchase Voucher Classes are templates where you can restrict accounts to be used in entries as well as automate accounting entries for items and expenses.

You can either alter the existing Purchase Voucher Type or create a new voucher type based on it.

From Gateway of Tally > Accounts Info > Voucher Types

The item Name of Class is below Effective Dates for Vouchers and above the Numbering Table.

Give a name to the class by simply typing it, e.g. Imports. You may create more than one class. The class table is now to be completed.

Purchase Vouchers can now be created in Invoice mode. You can enter the suppliers' invoices in the same way as they physically appear.

Set-up Invoice Mode entry for Purchase transactions

1. Select F11:Company Features.

2. Select F1: Accounting Features

3. Set the option 'Allow Invoicing' to Yes

4. Enter Purchases in Invoice Format? Set it to Yes

5. Accept the screen using Ctrl+A.

Select Voucher Entry at the Gateway of Tally. Press F5:Payment. You have to select a class or Not Applicable if no class is desired for this entry. If Cost Centre Class has been set, it can be selected too.

The entries will be made as follows: