Purchase Import Invoice Entry in TallyPrime: 5 Steps + Example

In TallyPrime, recording an Import Purchase Invoice involves specifying purchase details for goods imported from a foreign supplier.

This process includes defining currency, applying import duties, and other expenses incurred during the import process.

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1. Steps to Record an Import Purchase Invoice in TallyPrime

1. Enable Multi-Currency

• Go to Gateway of Tally → F11: Features → Accounting Features.
• Enable Multi-Currency by setting Enable multiple currencies to Yes.
• Define the foreign currency under Accounts Info → Currencies → Create.
  • Specify the Currency Symbol (e.g., USD, EUR) and the Exchange Rate.

2. Create Ledgers for Import Transactions

1. Supplier Ledger:

• Navigate to Accounts Info → Ledgers → Create.
• Name the supplier, e.g., “ABC Imports.”
• Group under Sundry Creditors.
• Set the currency for the supplier (e.g., USD).

2. Duties and Taxes Ledger:

• Create a ledger for import duties and taxes.
• Group under Duties & Taxes.
• Configure the tax type (e.g., GST or Customs Duty).

3. Expense Ledgers:

Create ledgers for additional costs like freight, insurance, etc., grouped under Direct Expenses.

3. Record the Purchase Voucher

• Navigate to Gateway of Tally → Vouchers → F9: Purchase.
• Party A/c Name: Select the supplier (e.g., ABC Imports).
• Purchase Ledger: Choose the purchase ledger.
• Stock Items:
  • Select the stock item.
  • Specify the Quantity and Rate in the supplier’s currency.
• Duties and Taxes:
  • Add the import duties ledger.
  • Enter the duty amount as per the customs valuation.
• Additional Costs:
  • Include freight, insurance, or other expenses as separate ledger entries.

4. Add Custom Exchange Rate

• For each stock item, specify the Base Currency Conversion Rate (e.g., 1 USD = ₹80).

5. Save the Voucher

• Verify the total, ensuring the converted amount matches your domestic accounting currency.
• Save the transaction.

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2. Example of Import Purchase Invoice in TallyPrime

Scenario: A business imports 100 units of Electronic Item from a supplier in the USA at $10 per unit. Import duty is ₹1,600, and freight charges are ₹2,000. The exchange rate is 1 USD = ₹80.

1. Purchase Entry:

• Party A/c Name: ABC Imports.
• Stock Item: Electronic Item.
  • Quantity: 100.
  • Rate: $10.
  • Value in USD: $1,000.
  • Value in INR: ₹80,000 (₹1,000 × ₹80).

2. Add Duties and Taxes:

Import Duty Ledger: ₹1,600.

1. Add Freight Charges:

Freight Ledger: ₹2,000.

2. Total Invoice Value:

• ₹80,000 (Item Value) + ₹1,600 (Duty) + ₹2,000 (Freight) = ₹83,600.

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3. Benefits of Import Invoice Entry in TallyPrime

1. Accurate Currency Management: Tracks transactions in foreign and base currencies.
2. Transparent Costing: Records all costs (duties, taxes, freight) associated with imports.
3. Regulatory Compliance: Ensures correct reporting of duties and taxes for audit purposes.
4. Improved Financial Insights: Provides detailed expense and cost tracking for imported goods.

By following these steps, businesses can efficiently manage and record their import purchase transactions in TallyPrime.