Accounting in foreign currencies

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Accounting in foreign currencies

Danny Rohde
Hello,

I have a question regarding accounting in different currencies and the
automatic input of exchange rates.

I have a credit card account in CHF and my expense account is also in
CHF. If I go abroad and buy something in GBP I didn't find a "smart" way
to record this transaction. If I put in the numbers if does not allow me
to use the exchange rate feature because both accounts are in my base
currency.

It would be great, if I could just use the program to get a preliminary
exchange rate, before I finally reconcile it from my credit card bill.

Any idea how to achieve this?

Regards
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Re: Accounting in foreign currencies

Charles Day
On Sat, Jun 7, 2008 at 1:17 PM, Danny Rohde <[hidden email]> wrote:

> Hello,
>
> I have a question regarding accounting in different currencies and the
> automatic input of exchange rates.
>
> I have a credit card account in CHF and my expense account is also in
> CHF. If I go abroad and buy something in GBP I didn't find a "smart" way
> to record this transaction. If I put in the numbers if does not allow me
> to use the exchange rate feature because both accounts are in my base
> currency.
>
> It would be great, if I could just use the program to get a preliminary
> exchange rate, before I finally reconcile it from my credit card bill.
>
> Any idea how to achieve this?
>

Perhaps create a GBP subaccount for your credit card, then enter your GBP
transactions there? The credit card's CHF balance, as shown in the account
list and reporting, should go up according to the exchange rate. When you
receive your statement, enter each foreign exchange transaction in the CHF
account as a transfer to the GBP account (reducing the GBP balance).

Hopefully that would work.

-Charles


> Regards
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Re: Accounting in foreign currencies

Danny Rohde


Charles Day wrote:

> On Sat, Jun 7, 2008 at 1:17 PM, Danny Rohde <[hidden email]
> <mailto:[hidden email]>> wrote:
>
>     Hello,
>
>     I have a question regarding accounting in different currencies and the
>     automatic input of exchange rates.
>
>     I have a credit card account in CHF and my expense account is also in
>     CHF. If I go abroad and buy something in GBP I didn't find a
>     "smart" way
>     to record this transaction. If I put in the numbers if does not
>     allow me
>     to use the exchange rate feature because both accounts are in my base
>     currency.
>
>     It would be great, if I could just use the program to get a
>     preliminary
>     exchange rate, before I finally reconcile it from my credit card bill.
>
>     Any idea how to achieve this?
>
>
> Perhaps create a GBP subaccount for your credit card, then enter your
> GBP transactions there? The credit card's CHF balance, as shown in the
> account list and reporting, should go up according to the exchange
> rate. When you receive your statement, enter each foreign exchange
> transaction in the CHF account as a transfer to the GBP account
> (reducing the GBP balance).
>
> Hopefully that would work.
>
> -Charles
Thanks for the response. Unfortunately, this is what I actually wanted
to avoid. Due to the fact that I use several different methods of
payment. For the cash I have a different accounts, but I want to avoid
to create a currency account for each credit card and each currency I am
dealing with.

What I was thinking about is to enable the input of the currency in the
transaction. This way the currency is not only bound to the base
currency of the accounts used, but could easily be set to anything else.
This way I would be able to record the original amount in GBP (other any
other currency) and the resulting amount in CHF for reconciliation
later. Currently I am losing track of the GBP amount, because input is
in CHF only.

I think the data file is able to record this, only the GUI is not
supporting this. What I am looking at is the following fields in the XML
file. The first sets the currency per transaction and the other two will
record the value in foreign currency and in local currency (and
implicitly the exchange rate used).

      <trn:currency>
        <cmdty:space>ISO4217</cmdty:space>
        <cmdty:id>EUR</cmdty:id>
      </trn:currency>

    and

      <split:value>500/100</split:value>
      <split:quantity>500/100</split:quantity>

Is it possible to implement / switch on this functionality in the GUI?

Regards


>
>
>     Regards
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>
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Re: Accounting in foreign currencies

Stephen J. Gowdy-2
In reply to this post by Danny Rohde
Hi Danny,
  You can create a Assets:Currency:GBP (of type Asset) account and
enter the transactions there with a split this;

  Some Thing Liabilities:Credit Cards:UBS 20
  Expenses:Things 20
  Assets:Currency:GBP

  It is easiest to leave the empty Assets:Currency:GBP line there
till you've reconciled the entry when you get your credit card statement.
You get to enter a different exchange rate for each line so you'll need to
adjust them both when you get your statement.
  I can't remember if I got this from the list or the FAQ a while
ago.

  regards,

  Stephen.

On Sat, 7 Jun 2008, Danny Rohde wrote:

> Hello,
>
> I have a question regarding accounting in different currencies and the
> automatic input of exchange rates.
>
> I have a credit card account in CHF and my expense account is also in
> CHF. If I go abroad and buy something in GBP I didn't find a "smart" way
> to record this transaction. If I put in the numbers if does not allow me
> to use the exchange rate feature because both accounts are in my base
> currency.
>
> It would be great, if I could just use the program to get a preliminary
> exchange rate, before I finally reconcile it from my credit card bill.
>
> Any idea how to achieve this?
>
> Regards
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>

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|http://www.slac.stanford.edu/~gowdy/ | CH-1211 Geneva 23        |
|                                     | Switzerland              |
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Re: Accounting in foreign currencies

Derek Atkins
In reply to this post by Danny Rohde
Hi,

Danny Rohde <[hidden email]> writes:

> Hello,
>
> I have a question regarding accounting in different currencies and the
> automatic input of exchange rates.
>
> I have a credit card account in CHF and my expense account is also in
> CHF. If I go abroad and buy something in GBP I didn't find a "smart" way
> to record this transaction. If I put in the numbers if does not allow me
> to use the exchange rate feature because both accounts are in my base
> currency.
>
> It would be great, if I could just use the program to get a preliminary
> exchange rate, before I finally reconcile it from my credit card bill.
>
> Any idea how to achieve this?

I'm in the same boat but replace CHF with USD.  When I travel I just
completely ignore the exchanges and record it all as if it's USD.  I
put the foreign currency information into the transaction description
but just put the (converted) USD values into the amounts.

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-derek

--
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       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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Re: Accounting in foreign currencies

Adam Funk-4
In reply to this post by Danny Rohde
On 2008-06-07, Danny Rohde wrote:

> I have a credit card account in CHF and my expense account is also in
> CHF. If I go abroad and buy something in GBP I didn't find a "smart" way
> to record this transaction. If I put in the numbers if does not allow me
> to use the exchange rate feature because both accounts are in my base
> currency.

I usually just wait for foreign transactions to appear on my on-line
account, then enter them as the resulting value in the account
currency (and I note the original currency and amount in the memo).

> It would be great, if I could just use the program to get a preliminary
> exchange rate, before I finally reconcile it from my credit card bill.
>
> Any idea how to achieve this?

I don't think Gnucash can do this.  On the rare occasions when I've
been motivated to put estimated amounts in before transactions show up
on-line, I use a calculator and put "***ESTIMATED***" in the
description.

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