how are multiple currency transactions supposed to work?

[greg]

hello gnucasheteers,

i'm from the USA living in the UK, trying to use gnucash(1.8.7), hoping
it will work, but i must be missing something, hopefully somebody can
toss me a clue.

i gather gnucash is supposed to be able to do a transaction between two
currencies.  when i try it tho, even when i enter an exchange rate, i
end up with an unbalanced transaction.  the only way to balance the
transaction is when the exchange rate is 1:1?  otherwise, gnucash wants
to add an adjusting split.  is that the way it is supposed to work?

the way i was hoping to use this is to enter transactions when i make
them, eg a purchase on a credit card, then when i get the statement,
correct the amount on the bank's side of the transaction, and hopefully
gnucash would then adjust the exchange rate accordingly without too much
fuss.

is gnucash up to this?  anyone recommend alternatives?

tia,
greg