Exchange rate for sales bill to feed entry in tally

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This discussion clarifies which exchange rate to use when recording sales bills for export businesses in Tally. The consensus is to use the rate specified on the shipping bill for the initial sale entry. Any difference between this rate and the rate at which the payment is eventually collected, as shown on the credit advice, should be recorded as an exchange rate profit or loss in the Profit & Loss account.

PARVATHY R

PARVATHY R (Querist)

12 May 2022 sir, what is the exchange rate should be taken to sale price for export business for accounting ?
1. as per shipping bill
2. as per credit advice

CA Puja Sharma

CA Puja Sharma (Expert)

12 May 2022 Make the accounting as per the shipping bill.

PARVATHY R

PARVATHY R (Querist)

12 May 2022 Yes mam. Thank you. But the exchange rate in the credit advice is used for which purpose mam?

PARVATHY R

PARVATHY R (Querist)

13 May 2022 Yes mam. Thank you. But the exchange rate in the credit advice is used for which purpose mam? Can you please clarify my doubt. Exchange rate in Shipping bill is the sale price and in credit advice is collection then how to account the difference. Please guide me

PARVATHY R

PARVATHY R (Querist)

16 May 2022 Yes mam. Thank you. But the exchange rate in the credit advice is used for which purpose mam? Can you please clarify my doubt. Exchange rate in Shipping bill is the sale price and in credit advice is collection then how to account the difference. Please guide me

CA Puja Sharma

CA Puja Sharma (Expert)

16 May 2022 In my opinion the difference between the rate at which sale is booked and the rate at which payment is released from the customer to you shall be recorded as exchange rate profit or poss in P/L.

PARVATHY R

PARVATHY R (Querist)

17 May 2022 Thank you so much mam for your prompt reply

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