Multi-Currency Transactions
If your business imports goods, exports to foreign buyers, or pays for overseas services, Udyot ERP’s multi-currency feature keeps your books clean and IRD-compliant. Every foreign-currency transaction stores both the original foreign amount and its NPR equivalent, exchange rates are sourced from Nepal Rastra Bank (NRB) with a manual override option, and period-end revaluation posts unrealised gains and losses to a dedicated Exchange Gain/Loss ledger in line with NAS 21.
Setting Up Currencies
- Go to Masters → Currencies and click + New Currency.
- Enter the ISO code (e.g., USD, EUR, INR) and a display name.
- Enter the current exchange rate against NPR. This rate auto-fills on new vouchers but can be overridden per transaction.
- Save. Repeat for each foreign currency you transact in.
Updating a rate does not retroactively change already-posted vouchers — it only affects new entries going forward.
NRB Exchange Rates and Manual Override
NRB publishes official buying and selling rates daily. For IRD compliance — especially VAT on imports and foreign-currency invoices — enter the NRB rate in Masters → Currencies as your default. If your bank confirms a different wire rate for a specific transaction, you can override the rate directly on that voucher’s exchange rate field.
Recording a Foreign-Currency Invoice
- Go to Vouchers → Sales or Vouchers → Purchase and click + New.
- Select your party and set the invoice date in Bikram Sambat format.
- In the Currency field, choose the foreign currency. The exchange rate auto-fills from Masters; adjust it here if needed.
- Enter line items. Udyot displays amounts in both the foreign currency and the NPR equivalent side by side.
- Apply 13% VAT per line as usual — VAT is always computed on the NPR-equivalent value.
- Save. The General Ledger entry stores the foreign amount on the party ledger and the NPR equivalent on all other ledgers (income/expense, VAT Payable, VAT Input Credit).
Nepal note: When generating your IRD Annexes, Udyot reports NPR-equivalent values — not the foreign currency amounts — so your Annex 1 and Annex 13 comply with IRD requirements automatically.
Collecting or Making Payment in Foreign Currency
The exchange rate on a payment date almost always differs from the invoice date. Udyot handles the difference automatically:
- Create a Vouchers → Receipt (or Payment), select the same party and foreign currency.
- Enter the exchange rate that applied on the payment date.
- Under Bill-wise Allocations, link this payment to the original invoice.
- Save. Udyot calculates the difference between the invoice-date NPR equivalent and the payment-date NPR equivalent and posts it automatically to the Exchange Gain/Loss ledger.
See Payment and Receipt Vouchers for the full bill-wise allocation workflow.
Period-End Forex Revaluation (NAS 21)
At the close of each accounting period, outstanding foreign-currency balances must be revalued to the current exchange rate. This is required under NAS 21 and reviewed by auditors every fiscal year.
- Update rates in Masters → Currencies to the period-end NRB rates.
- Go to Accounting → Forex Revaluation. The screen lists every ledger with a foreign-currency exposure — foreign bank accounts, import payables, export receivables — showing the current book value in NPR and the revalued amount.
- Review and adjust any rate inline if needed, then click Generate Revaluation Journal.
- Udyot posts a Journal Voucher dated to the period-end BS date: gains credit the Exchange Gain ledger; losses debit the Exchange Loss ledger. Both flow into your Profit and Loss statement under Other Income / Other Expenses.
Posting the revaluation journal a second time on the same date triggers a warning — reverse the previous journal first before re-running.
Viewing Foreign-Currency Ledger Balances
Ledgers tied to a foreign currency show a dual-currency view in Reports → General Ledger: the foreign currency column shows the cumulative balance in the original currency; the NPR column shows the equivalent at the rate used when each voucher was posted. After a revaluation journal, the NPR column is updated while the foreign currency balance is unchanged. You can also navigate to any ledger directly from the Chart of Accounts.
Multi-Currency and TDS
TDS under Nepal’s Income Tax Act is always calculated and remitted in NPR. When you pay a foreign vendor subject to TDS, Udyot computes the deduction on the NPR-equivalent value of the payment at the applicable section rate. The TDS leg posts in NPR regardless of the transaction currency.